Innovation in Business Management - Essay Example

Essay: Management Innovation Introduction Innovation in business requires people who are able to generate and implement new knowledge and ideas in the managerial cycles of a business environment. There has been an increasing demand by firms and organizations for well trained and skilled people in innovative methods of management. As the search for new sources of growth and sustainability intensifies, there is a need for the understanding of the best types of skills necessary for management and innovation in a business entity. Over time, the ability to make explicit relationships between specific skills and innovation has been a daunting task for business organizations (Acharya, 2012). The broad nature of ideas in the definitions of innovation and skills, the hardship in the ability to relate innovative outputs and outcome with human capital, and the limitation in the availability of innovation-specific information have made it difficult task for firms to accurately come up with innovative means of operations in order to maximize their potential in performance. This study aims at exploring the link that exists between the desired innovations and skills necessary for the management of an enterprise (Acharya, 2012). In both managerial and individual levels, one needs to acquire and develop certain skill in order to become efficient in the smooth running of his/her business operations. Some of these basic skills include; academic skills, reading and writing, generic skills in problem solving, multicultural openness, technical skills, and leadership skills. These are some of the skills one will need to add in his/her portfolio as a manager and an individual. Skill assessment exercise helps one measure his level of skills and realize the need to add more skills necessary for effective management (Acharya, 2012). In creativity design, the managers will also be required to acquire the managerial and entrepreneurship skills in order to be able to foresee future opportunities and threats in their managerial operations. Individuals need to acquire the skills that will enable them to; learn from their work place the new ideas and opportunities that can be explored at an individual level for their development of skills and knowledge (Aghion, 2013). The required set of skills in an organization is determined by certain factors such as the type of innovation and industry structure, as well as the stage of the innovation. Some of the problems foreseen in group exercise are on how the group will be able to draw different skill mixes in different times to come up with the needed skills for innovation in their group work (Aghion, 2013). Innovation can apply in different ways to an organization; in some it would mean the introduction of something new that would facilitate the smooth and efficient running of the enterprise. This would imply coming up with new processes and products for the improvement of an organizations’ competitiveness in an industry of operation. For the relevance of skills across the innovative spectrum in an enterprise, business strategists do scout for skills related to the mission objectives of a business through the development of a frame work for decisions on investment, human capital and research and development. In order to be innovative, we need the design of program and techniques that can aid in the liberation of our thinking (Bishara, 2013). Group exercise exhibits certain problems on the determination of whether creativity has become the major focus in management or simply a measure of risk management by imitation. The exercise focuses on the practice of management to determine whether it is a cognitive state of everyman or just an exceptional practice. The ever increasing globalization may be seen as a problem if proper innovative skills are not adopted and practiced in the running of an organization. The future organizations have devolved different methods and analysis to help in the identification and acquisition of necessary tools for innovation in their operations (Bishara, 2013). It has been proven that innovation has become the major driver in the modern economy, but there is a foreseen a concern in the future investments in new technologies, services or products due to the risks and challenges associated with the future. The inability of the exercise to unravel and predict what the future holds provides uncertainty that may hinder the implementation of certain innovative practices. Decisions on the level of funding necessary for research and development and the prioritization of the type of research has proven to be a difficult choice to make. This requires both intensive and extensive research procedures that will enable such priority settings in a business organization (Blundell, 1999). Managers often depend on the bulk of skills they have gathered throughout their careers in management when it comes to the dissemination of innovative decisions to be implemented. The use of the general human capital and the firm-specific human capital is an important consideration in corporate decision analysis in the exercise (Chao, 2012). In the group exercise, it is observed that innovation beers a significant risk due to the inherent uncertainties in the concept of actual business profit. Innovation imitators can move across the industry very easily through the adoption of proven techniques of operation but they fail to maximize on the potentials of such innovations as they do not relate to their missions and objectives of operation (Blundell, 1999). Group exercise in the business operation can be confronted through the application of the general practices of management. The application of conventional management practices such as planning, implementation and evaluation are important in the determination of core functions of management at different levels. Emerging concepts in practice of general management emphasizes on the need for empowering workers in an organization; creation of learning organizations, effective communication, effective communication and partnerships beyond the boundary levels (Chao, 2012). Such group exercise problems can further be dealt with through the application of “soft” skills including communication and team work. Technical skills are an essential part in types of work and globalization has led to greater need for the adoption of skills facilitating colorations among firms. Group exercised will employ the practice on multidisciplinary teams for the ease of innovation implementation. All the practices helps in the creation of new concepts and practices that will enable the application of management functions in the use of innovative approaches dealing with knowledge creation and utilization of skills related to innovation (Chao, 2012). Research boundaries in the study of innovation often work with individuals in more than one organization having their own objectives and goals. This requires managers of an organization to create a conducive environment for work so that a network is formed for the acquisition of skills necessary for the business. In a constantly changing environment, managers will need to be able to create a common mission and vision towards the achievement of a desirable future. They need to direct their actions towards empowering and motivating diverse groups. As a result, managers will need to be ready to experiment new methods of creating a favorable atmosphere to encourage group members to learn through trial and error in the new ways of work in an organization (Coles, 2006). The research analysis here entails the approach of the paradigm shift from the traditional functioning of “Do as I say” to the modern form of “How we shall do it together” which defines the boundaries of research. The emerging concepts in management will define the concept of research on the basis of implementation of innovations in the management cycle. The research boundaries will lie on the conventional means of innovation implementation in the management practices of an organization. The emerging concepts of innovation criterion provide the basis for research of skills necessary for the growth and development of an organization (Coles, 2006). The research boundaries shall be initiated on the basis of lateral thinking which is a problem solving technique applicable on horizontal and vertical logical frameworks. This enables a different approach to a problem as it challenges the preconceptions and provides a new way of thinking in an interview process. This helps in the assessment of individuals assumptions and explores their reactions to the management models being practiced (Coles, 2006). Educational achievement has become one of the broad indicators of the available skills as source of innovation in business. The general design of boundary in the research is also obtained from the reflection of the employment data: there has been an increase in the employment of tertiary graduates with the expected innovative skills to employ in the management of a business organization. However, a clear for data improvement skill is still necessary for a realistic diagnosis of the innovative facts (Fee, 2013). Empirical findings have shown that the business enterprise sector has currently continued to employ more research oriented labor skills to enable them work on the new research procedures aimed at expanding business profitability and reducing risks and uncertainties. Increasing business analysis has shown that both technical and business management skills are relevant in the innovation process. A shortage in skilled and experienced work force is one of the key hindrances to innovation by business enterprises. However, the interpretation of results of shortages is a matter of an institutional judgment as the critical level at which it becomes a concern may vary among different business firms (Fee, 2013). Future perspectives have indicated that there is a mixture of skill availability in relation to innovative capacity of an institution. As such policy formulations should be geared towards the creation of an enabling environment for individuals to acquire appropriate skills and promote the optimal use of such skills at the work place. Innovative skills may need to be broad to provide a wider perspective view of events taking place in the management of business. This can also enable the creation of relevant relationships between specific skill groups and innovation. Skill development that requires policy attention is knowledge on the views of science as a function of business and flexibility in research work (Francis, 2013). As a manager team flexibility may be improved through the adoption of specific research findings relevant to the business innovative processes. This requires taking roles in management through an inclusive process of participation in the business decision making process. Workers should be encourage to freely explore different methods of skill application in the work place to enable them practice their hidden talents that may be innovative if properly nurtured (Francis, 2013). The implementation of managerial functions by the manager should be aimed at the achievement of the overall goals and objectives of the organization. In order to encourage innovation, the manager should emphasize on the organizational policies that appreciates relevance of research and development programs in an organization. Implementation of such policies will enable the exploration of new methods of operations that will enhance growth and development through efficient deliveries in the targets of an enterprise (Galasso, 2010). Today’s global economy has seen an enormous growth in the sector of information technology. This has provided a potential avenue for research and innovation adoption through easy access of useful information relevant for innovative application. As such, managers should ensure that there is an effective and efficient information flow and access in the business to enable them achieve the business potential in terms of innovation. Resource utilization has currently shifted from capital strategic resources to strategic resources in terms of knowledge and creative thinking. This strategies can enable an enterprise acquire competitive advantage through the implementation of continual innovations and managerial skills and knowledge in the process of innovation creation (Galasso, 2010). Empirical studies on innovation in the business performance have proven that there is a strong positive correlation between the two. It shows that there is a need for basic knowledge of management in the initial operations of a business as well as later stages for the continuous relevance of business operations in an industry. Innovation enables an enterprise to stay relevant in the competitive business environment (Galasso, 2010). A manager of an enterprise needs to posses the skills that will enable him to have an overview of the marketing and market development, finance and competition. This will help in the design of competitive approaches in the creation of innovative ways of remaining relevant. Lack of adequate managerial skills and the market product link may result into the failure of a business enterprise unless research is employed to gain this knowledge (Galasso, 2010). Innovative engagements involve the use of analytical frameworks that posit the nature, correlations and boundaries in an organization. The notion of interaction between business players in the process of communication has been brought forth by Actor-network theorists. This indicates that there is a connection between human and a product in connection relationships. It further indicates that such relationships should be guided by management authority from the top to bottom. Managerial norms in product innovation referred to as “obligatory point of passage” (OPP) has the ability to allow transactions among the lower players in a network. A compressive model of innovation process is provided by the Actor-network theory (ANT) which focuses on science-based innovation process. This is a heterogeneous model which is made up of people, research, evidence, technologies, financial resources, institutions, and regulations operating together to produce an innovation. ANT represents a process of heterogeneous components interconnected and assembled into a reality providing fundamental ontological contribution. In the ANT framework, the links and knots form a central core that represents the actors in the organizations, While the links represents the relationships between them and ‘initiate the innovation and then act to organize, and hold in place, all the activities along the loops reaching out to the wider context’(Hall, 2001). The loops represent the activities designed to link the core with four interdependent source of power in the case of innovation process. The sources of power here are represented by, scientific evidence and the technologies that depend on it; this encompasses the political power, public opinions and allies among others. The loop on the upper side shows the ‘world mobility’. New actor networks relate and mobilize the various nonhuman resources of intangible and tangible (Hall, 2001). Figure 1: ANT framework of innovation SOURCE: Young, Borland, &Coghill (2010) The use of theory here is made use of through the acknowledgement of the continued evolution in management with regard to innovation. Management has continued to evolve as the complexity of the society continuous. It has been realized that an outside option in management by generalist managers against specialist managers provides a labor market mechanism that sees failure as a means that encourages innovation. Such a mechanism provides an alternative mechanism of contracts for long-term plans as job security (Hall, 2001). Study results have shown that the mechanism of incentive provides motivation to innovation and rewards long term success even though it tolerates early failure. Such finding have also emphasized the importance of investment in human capital and managerial skills in the current knowledge-based economy in which innovation has become a determinant for business success (Galasso, 2010). Enforcement of non-competing associations within an industry envinronment contributes to the accumulation of skills of management which has a direct influence in the industry innovation. Findings from research have suggested that generalists’ managers spur innovation since them posse’s skills that are applicable in a wider area of business operations incase of failure in risky innovations. These give a general impression that an efficient labor market promotes innovation in the corporate actions competitive environment. Innovation has become a driving force in the current economy as it carries with it significant risks with inherent uncertainties that calls for cautious actions (Galasso, 2010). Research studies have put it that, the modern management entails the management of people who bring resources with them to the firms rather than manage human resource. The recognition of these facts provides motivation for innovation in the business enterprise. Managerial role involves the inspiration of full engagement in the vision, to empower members in order to achieve desired results. Generalist managers do create more diverse portfolios that enable them create centers for innovative processes (Francis, 2013). These actions helps in the development of a competitive management in the business with proficiency of profession in making the right decisions that requires a thorough knowledge and practice of principles and practices of management. Good leadership skills make an exemplary manager through the understanding of innovative methods application in the running of a business venture. Management style determines the success of failure of an enterprise as it accounts for tangible and visible accomplishments. In a business organizations, managers are seen as people who do things right through innovation and research rather than those who do the right things as in the public domain of being a leader (Francis, 2013). For the success of an organization one needs to acquire good managerial and leadership skills in order to come up with effective ways of management and innovation for the success of an enterprise. Such qyualities of effective manager include; trustworthiness and dependability, imagination and vision, good communication skills, integrity and selflessness, good public relation and the ability to get along with people. All this will enable an enterprise to spot and create opportunities through innovation that will ensure the growth and sustainability of the business (Francis, 2013). Innovation requires the utilization of certain hidden talents in people. As such, it is a fact that every person has a hidden potential that can be tapped in one way or the other. It calls upon the managers to tap in and use such talents in an organization to create innovative ways of solving problems and coming with new ideas for the profitability of an organization. In fulfilling such duties managers will need to use the managerial functions available to them such as planning, controlling and leading (Francis, 2013). In conclusion, the ability to create something new or to come up with a better process in the attainment of the final output is what innovation is all about. Innovation has become part and parcel of business operations for the survival of an enterprise. It has been proven that the survival and prosperity of an enterprise is a function of innovation in the industry of operation. In order for one to be able to compete for the little available resources for production and be able to satisfy the consumers, he has to come up with new ways of operation. Without innovation in the market place, all management activities will ground to a halt as the business will not be to able compete effectively in the market and make profits for sustainability (Francis, 2013). List of References Acharya, V., R. Baghai, and K. Subramanian, 2012, Wrongful discharge laws and innovation, Review of Financial Studies, forthcoming. Aghion, P., J. Van Reenen, and L. Zingales, 2013, Innovation and institutional ownership, American Economic Review 103, 277-304. Bishara, N., K. Martin, and R. Thomas, 2013, when do CEOs have covenants not to compete in their employment contracts, Working paper, Vanderbilt University Law School. Blundell, R., R. Griffith, and J. Van Reenen, 1999, Market shares, market value and innovation in a panel of British manufacturing firms, Review of Economic Studies 66, 529-55427. Chao, R., M. Lipson, and E. Loutskina, 2012, financial distress and risky innovation, working Paper, University of Virginia, Darden School of Business. Coles, J., N. Daniel, and L. Naveen, 2006, Managerial incentives and risk-taking, Journal of Financial Economics 79, 431-468. Fee, E., C. Hadlock, J. Pierce, 2013, Managers with and without style: Evidence from exogenous CEO changes, Review of Financial Studies 26, 567-601. Francis, B., I. Hasan, and Z. Sharma, 2011, Incentives and innovation: Evidence from CEO Compensation contracts, working paper, Fordham University. Galasso, A., and T. Simcoe, 2010, CEO overconfidence and innovation, working paper, University of Toronto.Performance, Cambridge: Cambridge University Press. Hall, B., A. Jaffe, and M. Trajtenberg, 2001, The NBER patent citations data file: Lessons, insights and methodological tools, NBER Working paper 8498.28. Read More