How to Overcome Organizational Barriers to Creativity and Innovation - Essay Example

? Marketing Product Innovation In the past, numerous organizations whether small or large, have been surviving even with limited innovation and ideation capabilities. In recent world, there are trends that drive the process of innovation. Factors like outsourcing and globalization force organizations to exert efforts to improve it effectiveness ad efficiency (Yang & Tao, 2012: p. 319-331). An organization requires more than supplying good products for it to succeed. For instance, an industry require innovative management and processes that can assist it in improving productivity and cutting down operating costs. The work by Mats, Paolo and Jennie “Ideation capabilities for continuous innovation” explores and discusses ideation capabilities in large organizations. Ideation capabilities relate to organizational and managerial processes for the implementation, selection, identification and stimulation of innovation ideas. According to the results of this study, organizations adapt to distinct approaches to ideation. On the other hand, Sylvie Laforet writes an article by name “A framework of organizational innovation and outcomes in SMEs” to address innovation and its consequences in small and medium-sized enterprises (Stamm, 2005). Sylvie develops a detailed theoretical structure of the innovation’s end results, how it occurs, as well as, its effects on the financial performance of an industry. She focuses on three distinct innovations in addressing the topic of market product innovation. Sylvie states several drivers to innovation in small and middle businesses (Siddike, Amna & Kohda). For instance, quality, business, environment, a desire to succeed and improve working conditions in SMEs drive innovation. As Jennie et al describes the negative consequences of a resultant formalization, Sylvie focuses on the positive impacts of innovation. The positive consequences of innovation entail: improvement of SMEs’ image, reputation, cost benefits, increased financial performance, recruitment of additional labor and increase in outfitted efficiency among others. Consequently, just like Jennie et al, Sylvie states the negative outcomes of innovation. For instance, operational issues, management and financial risks: inclusive of industry’s reputation and image loss, customer and employees issues, safety, environmental and health impacts, uncontrollable industry growth and costs. Such negative outcomes of innovation are outrageous and require the large-scale, medium and small organizations to take action to manage them immediately. There are several approaches on how to overcome organizational barriers to creativity and innovation. According to Jennie et al, a firm with an explicit focus on developing ideation practices realise that there are negative outcomes of the resultant formalization. Employees develop significant ideas for innovation and creativity. However, the extent to which an organization can involve employees in ideation is a challenging aspect, even though additional technologies make the practice realistic. Nevertheless, the management requires to identify all creative employees within the business to curb the barriers to innovation and ideation. Surprisingly, creativity within the organization might emerge from people or teams that the management least expects. It is essential for the organization to steer employees and inform them the expectations of the ideation process. When the organization identifies the creative employees and innovative ideas, the next step involves removing the confusion and create a business environment where people can utilize maximum creativity. For instance, the management can use scenarios and visualize ideas (Schottler, 2007). It is essential to ensure that every employee and subordinate member in the business is comfortable. More so, the management should discuss the changes in the management while at the same time, work on all permissions. The SMEs or large organizations must avoid performing an act that might jeopardize the process of ideation and innovation. Jennie, Paolo and Mats indicate that the degree to which the management should direct the search for ideas is a non-trivial question. This is because limitation nd freedom can facilitate the ideation process. The organization must exert caution while searching for new ideas from employees. The creative employees should put the ideas on paper and management should take time to go over them (Trott, 2005). On this note, the business must be careful that it does not take the easy route to innovation or ideation. For instance, the idea that worked well for the business last year might fail this year, and vice versa. Therefore, the organization must be flexible to change and welcome the same change. Innovation drives changes and the executives must look at the organization and evaluate how it will accept those changes. In an organization, ideas of innovation can emanate from numerous of distinct sources. At times, it might result from focusing on encouraging new ideas, whereas others might be from sources that the business hardly expects (Siddike, Amna & Kohda). For instance, innovation and idealism can results from spontaneous reactions by employees to certain needs. Employees are the major sources of organization innovation. The employees are familiar with the exact departments in the business especially the areas that they can make maximum use. This implies that the same employees rarely have to force the ideas out of them because the innovation come naturally. Customers are additional sources of innovation, although companies overlook them. Clients know their wants and portray the innovative ideas regarding how the organization could meet those needs through new services and products (Schottler, 2007). When SMEs and organizations take time to listen to ideas from customers, it can significantly boost innovative ideas that will flow into the business. Jennie et al states that firms can benefit from more deliberate approaches to ideation, in particular when these are balanced, broad and focus on building capabilities. These building capabilities include those that are essential to organize informal structures in new strategies and formalize the informal in establishing overt systems, roles and processes (Michael, 1989). In order for the organization to become innovative, it requires to promote and encourage the idealism of innovation (Zhu & Guan, 2013:p1195-1216). For instance, the large organization should ensure that it engages all the staff members and departments and feel as part of the innovative environment. The achievement of new ideas and innovation requires ample time for the company to succeed. Therefore, leaders within the organization should exert commitment and focus on key areas. For instance, the organization should foster the culture of creativity and innovation (Lamb, Hair & Mcdaniel, 2012). Since innovation is a continuous and time consuming process, it is essential for the business to create a supportive environment. The environment should be open and supportive; encourage creative expression and thinking; reward success; and hardly dismisses an idea that fails. It is vital for the company to focus on and motivate its staffs because they are the richest sources of creative potential and new ideas. Jennie et al discusses the concept of sustainable competitive advantage, which requires the organization to shift from past and static view to a dynamic one. Whether the company is launching new products or pitching investors, it is likely to succeed when it communicates and creates a sustainable competitive advantage (Kirova, 2010). The company should avoid relaxing on the note that it was the first in the market. This is because an organization with better products will venture the market and leave it in the dust. Alternatively, the business should invest in innovation even when it is the sole producer and supplier of a product. When an industry is solving and facing similar pain as what others are addressing, under the same clients, then there is competition. Creating and implementing a sustainable competitive advantage is a challenge, but it is easy. Well, there are guidelines for assisting the organization succeed in competitive advantage. For instance, the organization should patent its product, create brand loyalty, upgrade and update innovation, utilize long term incentives & contracts and employ a net-worked team members. It is possible for the organization to achieve a competitive advantage via low pricing strategy and provide new products that are superior to the existing similar products (Huang, 2008:p.619-626). The strategy for a business should continue to succeed over a long period in order to gain sustainability. According to Jennie et al, dynamic capabilities consist of the capacities to shape and tense threats and opportunities; maintain competitiveness and seize opportunities. This is possible through reconfiguring, protecting, combining and enhancing the tangible and intangible assets of a firm. In Sylvie’s work, there are factors that contribute to the success of SME and those determining SME innovations. For instance, strategies, business planning, regional support and networking are some of the factors that contribute to innovation in SMEs. More so, optimizing an organizational structure can contribute to efficient and effective management of idealism and innovation (Helle, 2007: p194-201). Managing innovation requires the SMEs to understand the process of innovation. The next step involves coming up with a strategy and techniques that will assist in implementing and managing the process. A small or medium scale business should adapt to an effective strategy of managing innovative projects in order to succeed. A perfect executive will take significant idealism forward, as well as, work in unison with the team members to develop products under market potential. A tremendous idea from customers or employees might fail to reach its maximum potential when the business hardly manages every stage in an innovation process (Fiore, 2003). The initial step towards the management of innovative projects relates to identifying policies and processes that the team follow during the implementation of ideas. The process depends on the size of the business, the complexity of a project and the category of the organization. Some of the innovative ideas are quicker and easier to implement than others (Fang & Qi, 2011). Consequently, the crucial aspect for the organization is to ensure that it allocates ample time planning. In addition, each participant in the process must be focused on attaining similar results for the industry. When a company develops a perfect work strategy for an innovative and new project can assist in focusing its efforts and perform under the stipulated time frame. The plan must move from developing an innovative idealism to evaluation and implementation. Firm-specific characteristic, structural factors and external environment are factors that affect innovation in small/medium scale businesses. External environment portrays regional differences like sectors, activity levels, competitive structure and market types. Other external environment that affect innovation in SME are market and strategic orientation (Doole & Lowe, 2008). SMEs can obtain a competitive advantage via acts and strategies of innovation. In addition, the industry can implement innovation on a broader perspective including new strategies of conducting business and new technologies. There are several challenges that affect the process of innovation in SMEs and large organizations. Moreover, the company should adapt to a deliberate action to attain success in the entire innovation process. According to Sylvie, there is little information regarding the ingredients for a successful innovation process, its outputs and inputs. In addition, little research has examined innovation, its impacts on the financial performance of a business and few of them on the outcomes of innovation (Cheng & Shiu, 2008). A successful innovation process comprises of three different phases: the execution phase, the incubation phase and the search phase. Every phase has distinct attributes for the organization to succeed and requires the business to adopt a strategic approach. People have different ideas regarding the crucial ingredients for every successful innovation. Some people state that understanding the challenges and clients is key others believe it is crucial innovation, smart commercialization, industry foresight and market speed. For each business, innovation and idealism is an occasion for opportunities and risks. The risks of innovation are obvious: it might fail to lead to wastage of the investment in SMEs. In as much as Sylvie discusses, the outcomes of innovation, executives require to evaluate both the consequences of a failure and opportunities for development that innovation processes provide (Carolyn & Karen, 2002). The positive impacts of innovation are sustainable development, improved health care, increased productivity, creation of high paying jobs and competitive industries. Idealism drives innovation and SMEs and large organizations should endorse ideas and creativity from customers/employees. References Carolyn Folkman Curasi, Karen Norman Kennedy, (2002) "From prisoners to apostles: a typology of repeat buyers and loyal customers in service businesses", Journal of Services Marketing, Vol. 16 Iss: 4, pp.322 – 341 Cheng, C. C. J., & Shiu, E. C. (2008). Critical success factors of new product development in Taiwan's electronics industry. Asia Pacific Journal of Marketing and Logistics, 20(2), 174-189. Doole, I., & Lowe, R. (2008). International marketing strategy: analysis, development and implementation. London, Cengage Learning. Fang, H., & Qi, H. (2011, July). Exploration on product brand innovation under creative management. In Product Innovation Management (ICPIM), 2011 6th International Conference on (pp. 276-279). IEEE. FIORE, C. (2003). Lean strategies for product development: achieving breakthrough performance in bringing products to market. 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A bibliometric study of service innovation research: based on complex network analysis. Scientometrics, 94(3), 1195-1216. Read More