Management, Innovation and New techonology - Essay Example

Management, Innovation and New Techonology 1. Introduction In any form of business, innovation is regarded as one the key drivers for growth in productivity (Innovation and Raising Australia's Productivity Growth, n.d.). Incorporation of new goods and services with attributes of uniqueness in the production methods, non technical aspects like management practices and marketing help the firms in enriching their efficiency dimensions (Polder et al, 2010, p. 3). Product innovation is indeed a complex organizational phenomenon and it is visualized as an amalgamation of structural and mental processes. Innovation can be regarded as “a process in which knowledge is absorbed, assimilated, shared and used with the aim to create new knowledge” (Harkema & Browaeys, 1992, p. 1). Product innovation is not a one-off event. A one-off event is an event which will not be repeated for the next time (Strategic Management Innovation, 2009). But the underlying mechanism attached with product innovation is much more complex taking place within the organizations. In this paper, this proposition will be established with the use of 3M case studies. But before going into detailed discussion, a brief literature review can be exhibited regarding product innovation. 2. A brief literature review Product innovation basically includes good or services which is newly evolved and simultaneously developed and improved (Marxt & Hacklin, 2005). The development and improvement incorporates technical specifications, materials and components, software, user friendliness and other functional characteristics (Holmgren, n.d , p.13).  Many scholars have examined product innovation which is based on various resource based views. According to these scholars the process of product innovation can be analyzed as a dynamic capability of the core competence of an organization that helps them in renewing and configuring various resources. From the studies of Daneels in 2002 in which product innovation of five high tech firms was examined and it directs towards the competencies of the firm associated with technology and customers. Daneels also stress on the fact that for development of new products there is a requirement of combination of the potential customers and technology. For optimal product innovation, the resources of firm associated with the current technology and customers are highly essential. From the studies of Shane in 2000 reveals that development of technology gives rise to the creation of new markets as well exploration and exploitation. From the studies of Shane in 2000 eight enterprises were thoroughly studied and it signifies that the entrepreneurial opportunity recognition signifies to the fact that the entrepreneurs generates the ability for recognizing new knowledge for exploiting new products and technology which includes knowledge of market, knowledge of the ways in serving the markets, knowing the problems of the customers and that of the knowledge of technology. The recognition of entrepreneurial opportunities may lead to better understanding of the new technology or that of the technology for innovation (Huang & Wang, 2011, p.71). Bessant in 1994 creates a model which incorporates several processes and influences within the innovation process as depicted in the following diagram. Fig. 1. Brady, (1995), p.14 The strategy system incorporates information regarding the environment with respect to various forces in the economy like economic, political and so on. Identification of the opportunities as well as needs related to innovation in the light of overall business strategy. This leads to dynamism and change. The system of enabling acts as a support mechanism in the development of the innovation process to take place. Involvement in this respect may include tangible and intangible resources like time, money, people, equipment and management’s support and so on. The system of acquisition can be regarded as the technology powerhouse as it is the area where potential strength of the technology of the organization resides. It is the nucleus of technology diffusion and development. The system of product development system gathers ideas for the new products and advances then numerous developmental stages up to the final launch of the product. The process development system develops a platform where the nurturing of the innovation process generally takes place. The linkage system acts as a bridge for connecting the organization to the outer world, government and various other departments. Lastly, the learning system gurantee the experiments of the organization but also the reviews and withholds the knowledge and learning from the experiences that it make. The whole process needs to be visualized from a bird’s eye view and the aggregate essence of the process should be understood as the interaction between various parts of the innovative processes should be understood in a proper manner. Each of these systems can be nurtured for developing it as an independent system but the whole of the system has to be properly grasped (Brady, 1995, pp. 13-14). 3. Recent trend on research and development for product innovation From the beginning of 1980s, the process of globalization has increased to a great extent which includes both basic and industrial research with the development of Research and development (R&D) (Lundin & Serger, 2007). Before that, the corporations stressed at developing their respective positions by building up sales and distribution and assembly operations and internationalization was steered by the notion of supporting the corporation’s foreign activities. In the recent periods, the companies are highly concerned with the importance of R & D research for enhancing their international reputation. The managers are highly tailored for making right decisions in the research and development paradigm (Gerybadze & Reger, n.d., p.1). 4. 3 M case study and product innovation 4.1 Company’s legacy The 3M Corporation is a reputed company operating for decades and stresses highly on the attributes of innovation for growth of the company. The company generally fetches its quarter of revenue from the products which are less than five years old. The life of the company started in the year 1902. The most successful product of the company which is flexible sandpiper still forms an important part of the product line of the company. The companies now produce more than 6000 products ranging from adhesive tapes to the supplies of various offices, supply of medical equipments, magnetic tapes, CDs, electrical equipment and so on. In the organization, innovation was nurtured by the founders but some of the rules for more than century have been basically formalized. The company has constructed a culture that mainly encourages innovation. The company thus infuses innovation mechanism as one of its central pillars (Case Studies in Entrepreneurship, n.d.). The company’s core pillars on which they stand are “shared world class technology, shared customers, channels and brands, shared manufacturing, shared global infrastructure , shared Cultural Innovation Values, Practices, Processes and Toolkits” (Innovation Best Practices - 3M Case Study, 2012). 4.2 3 M’s pessimistic “Post-it”-the initial phase In the year 1978, there was a product launched by the company which is known as Post-it-Note pads. Analysts stated that the idea of the post-it was not at all a profitable one and it was almost disgusting. It can be revealed from the statements of the analyst that, ““Post-it Note Pads" idea was a real stinker” (Nayak & Ketteringham, 1986, p.425). The company also ignored this product before it was a note pad and it was an adhesive which did not properly adhere. The first version of the product which reached the market was a sticky bulletin board whose sales were not at all alarming for a large company like 3M. Bad feedback from the market test reports made the company very much close to closing down the production and sale of the product. 4.3 Stress on creativity although hindrance faced The man behind the discovery of the post-it was the chemist Spencer Silver who was a chemist. He started to develop the product from the beginning of the year 1964 with polymers for adhesive program in the company’s research laboratory. The company has always a tradition of the periodical reexamination of its own products and look for the potential ways to improve them. Silver along with a group of people researched and re researched on the spree of developing new types of adhesives. The course went for almost four years and in this course, Silver discovered a new family of monomers and identified the potential as polymer based adhesives. The company vehemently stressed on stronger adhesives but Silver was running in the opposite path and remains immersed in the ways of finding new virtues within the new product developed by him. The company wanted glue that was stronger and not weaker. Gradually, support from the company went away from Silver and there was closing down of the Adhesive program. The time limit and budget limit was stipulated by the company and after full utilization the company no more gave indulgence on the project. Silver acclaimed at this stating that, "The adhesives program died a natural death” (Nayak & Ketteringham, 1986, p.427). The company cut down its longer range of the research program and the members of the Polymers for Adhesives group were assigned to new research projects. 4.4 Turning back with a bang From the above discussion it can be stated that Silver, despite his discovery faced serious hindrances and was almost forced to nullify his discovery which according market laws were obnoxious. But Silver never lost faith and he believed in his discovery. He was supported by his team mates and they started to promote by themselves. They had to even fight very hard for getting the money for just earning the patent of his unique polymer. After all the struggles, 3 M spent the minimum possible money possible on Silver’s endeavor. They ultimately got the patent. Silver stated that, “We really had to fight to get a patent” (Nayak & Ketteringham, 1986, p.427). With his undaunted spirit, Silver went from door to door to every division of 3M which might be applicable for his adhesive. There was no protest from the organization regarding his research. He went at seminars explaining about the product. Some people left and some people stayed back. Majority of them stated that, “What can you do with glue that doesn't glue?" But no one said to Silver, “Don’t try. Stop wasting our time." (Nayak & Ketteringham, 1986, p. 427). After a long struggle, ultimately two of the employees of 3 M Fry and Nicholson strongly supported his Silver’s innovation and it ultimately turn out to be a successful product with huge return. At the company, people usually executes without permission as they are trustworthy. Trust is a wider domain of cultural angle which remained there in the company for almost eighty five years. The company exhibits that when the company becomes over structured and self conscious about managing its innovation “it does not innovate better than any company” (Nayak & Ketteringham, 1986, p.435). 4.5 Accident coming out of sheer frustration and lesson The success of the Post-it occurred as an accident. It was revealed that these kinds of accidents happen when the organization or the management discourages anybody from doing anything. Silver faced initial hindrances but it was his organization which ultimately paved him the way for leading his endeavor to an utmost success. It can be seen that the key to the organizational breakthrough at 3M is that the people in this organization do not believe in the notion of keeping the corporation above the values of the individuals. The company 3M ultimately paved the path for the people who are quite sure of themselves. It also gave a philosophy that facing hindrances in materializing an innovation is not the end of it. The individualistic nature concentrated on the notion of self strength and belief led the innovation materialize at the end and the people were also not disgraced by the company at the end (Nayak & Ketteringham, 1986, p.437). For the proper development in the product innovation, thorough recognition and reward should be given and throughout various schemes are required. Throughout the company various schemes should be there for the proper acknowledgement of innovative activities. There should be also recruitment of core values with respect and that of sustainable circulation with the movement and combination of people from different perspective for allowing creative combinations (Rethinking Innovation, n.d.). 5. Conclusion The study of the paper concentrates on the fact that innovation in product is not a static phenomenon and it will usher to an optimum level if nurtured properly. The hidden talents of any individual must develop and it should be readily backed by the organizations. The organizations must nurture the potential of the employees in the every ways possible. Innovation must be infused in a proper way so that it will fetch long run development of the organizations. Innovations are not a static phenomenon and it is a dynamic phenomenon which is highly necessary for the optimal development. References 1. Brady, T, (1995), Tools, Management of Innovation and Complex Product Systems. Available at, http://www.cops.ac.uk/pdf/cpn3.pdf (accessed on November 28, 2012) 2. Case Studies in Entrepreneurship, (n.d.). Available at, http://www.palgrave.com/business/burns/students/pdf/02%203M.pdf(accessed on November 28, 2012) 3. Harkema S J M & Browaeys M J, (1992). Managing innovation successfully: a complex process, University Nyenrode . Available at, http://ecsocman.hse.ru/data/601/645/1219/managin_inn.pdf(accessed on November 28, 2012) 4. 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