How Development of New Products Changed due to Situational Changes - Essay Example

? Innovation and Development Table of Contents Table of Contents 2 Introduction 3 Definition of Innovation 3 Role of innovation in organization and business 4 Discussions 5 Theory of Innovation 5 Changes in the demands of the customer needs and wants 6 How Development of New Products Changed Due To Situational Changes 8 Analysis 9 Findings 10 Conclusion and recommendations 11 References 13 Introduction In this age of stiff economic downturn and tough competitive scenario, the definition of innovation is changing at a rapid pace. It is mainly because, the concept of innovation is used by the organizations or entrepreneurs in order to make their future safe and secure. This means that, to hold a competitive position in future (post economic crisis world) most of the organizations or entrepreneurs desire to invest huge amount of revenues over innovation. Innovation is the only strongest weapon that helps an organization or an entrepreneur to develop a strong identity in the market among other rival players. Other than this, it might also be used to develop a huge brand image and equity in the market so as to retain its sustainability in the market among others. Side by side, innovation also acts as the latest buzzword among the corporate organizations such as Google, Apple Inc, Procter & Gamble that helps these companies to remain in the headlines of the newspapers and business articles. Due to which, the reputation and fame of the organization also gets enhanced to a certain extent as compared to others. This might be possible only by gratifying the changing requirements and demands of the customers by presenting them varied types of inventive solutions or products. Thus, innovation is the development or creation of new products, services and technologies that might fulfil the changing needs of the market as well as improve the competitive image of the organization. Definition of Innovation In this age, just as the likings and demands of the customers are changing, the definition of innovation is also altering. Now a day, innovation is not only concerned with introduction of new products or services but also development of new ideas and information so as to improve other features such as process improvement, enhancement of inner morale of the employees or penetration into new markets. Similarly, according to the manager or leader of Apple Inc, Mr. Steve Jobs, innovation means enhancement of the inner morale of the employees that might prove effective in improving organizational portfolio in future. This might be possible only by improving the level of performance of the employees thereby amplifying the productivity and brand value of the organization in the market. Role of innovation in organization and business In business and organizations, innovation acts as the catalyst for the development of inventive products, services or ideas. This might be possible only if the dedication power of the employees is extremely high as compared to others. However, in order to do so, the management of the organization need to enhance the level of motivation and team spirit of the employees thereby recuperating the growth and profit margin of the organization. Side by side, the market share and brand value of the organization might also get enhanced among other rival players as witnessed in case of Apple Inc. Mr. Steve Jobs the most unconventional leader of Apple Inc became successful in convincing Wozniak as well as many other employees to support him in the development of computers in Apple Inc. This proved extremely beneficial for the organization of Apple Inc in future era that amplified its recognition and status in this competitive market among other contenders. Therefore, the entire credit for such an innovation of Apple Inc is mainly due to the best performance of its employees. Thus, employees of the organization are directly related with the concepts and ideas of innovation. Hence, it might be stated that innovation acts as the guiding forces that amplifies the efficiency and effectiveness of the organization so as to cope up with varied types of challenges in the upcoming future. This essay is divided into five parts that mainly highlights the importance of innovation and development in this age as well as in future era. Along with this, it also describes the ways in which the concepts and ideas of innovation and development changed due to situational alterations. Discussions Theory of Innovation Innovation is a buoyant activity that offers a positive impact over the efficiency, quality, output, techniques, competitiveness, brand value and market share of an organization. Moreover, the desire of innovation enhances the level of performance and confidence of the employees that marks the initial stages of development of new products and services. This might be well-explained by the theory (diffusion of innovations). According to Isaksen & Tiddy (2006) diffusion of innovation is described as one of the most popular theories of innovation. It states the extent by which the innovative idea, product or services is accepted by the members of the society. However, to do so, effective channels or media is extremely essential, as it helps in communicating the idea or information to the members of the society. Apart from this, it also enhances the level of awareness of the customers thereby amplifying the demand of the products or services. As a result, the level of knowledge, decision-making power, persuasion, confirmation and finally acceptance or rejection of the procurement of the product is also entirely related with the process of communication. Without which, the target customers remain almost unaware about the products or services and so their level of interest also remains dormant. Due to which, the rate of total sales and profit margin of the organization also remains quite low as compared to others. Therefore, it might be depicted that adoption of an entirely new product or service is entirely dependent over the communication status as well as the time period required to increase the awareness level of the customers. So, promotion or advertisement of the distinguished features of the product or service is extremely essential for any organization to retain its portfolio. Without which, an organization may not sustain in this age of aggressive scenario among other rival players. Thus, it might be clearly stated that communication plays a major role in enhancing the demand of the inventive products or services of the organization in this age as compared to previous era just as seen in case of the invention of iMac and iPhone of Apple Inc. As Apple Inc widely promoted the features of iMac and iPhone to its customers, so the market share and profit margin of the organization improved from $ US 5.7 billion in the year 2010 to $ US 7 billion in 2011. Moreover, the recognition and brand loyalty of the organization of Apple Inc also improved significantly among other rival players. Hence, from the above paragraph, the importance of communication channels or social media might be clearly depicted as compared to any other marketing activity. Changes in the demands of the customer needs and wants In order to survive in this age of aggressive competition, innovation and development acts as the prime requirements of an organization. This is because; innovation helps in development of varied new products and services that might increase the popularity of the organization in the entire market. However, the methods or processes used for invention of the products or services are also changing in order to cope up with the altering needs and requirements of the customers. Therefore, in order to tackle such changes, confident attitude and risk-taking nature are the two key requirements that need to be present within the employees or leader of the organization. This is because; presence of such type of qualities within an employee or a leader might prove effective for the organization in long run. This is because; such type of inner qualities of a leader might encourage and motivate the employees towards invention of the new products so as to handle situational changes effectively. By doing so, the level of reliability and brand value of the organization might also get enhanced thereby improving its sustainability in the market among others. Such a scenario is witnessed in Apple Inc at the time of introduction of Apple retail stores in the year 2001 for its customers to examine varied computer devices, software’s and many other electronic devices. Although, it seemed extremely risky in first sight still the sheer intelligence of Steve Jobs proved worthy for the organization. And it helped in attracting numerous customers that enhanced the position and market share of the organization of Apple Inc in such economic turmoil situation. Hence, the risky decision of Steve Jobs helped Apple Inc to tackle changes effectively thereby amplifying its productivity and loyalty in the entire globe (Von Stamm, 2008, p 456-589). Apart from this, in order to tackle such changes, a leader with extreme determination and thinking ability is extremely essential. The leader or manager of Apple Inc is one of the finest examples of such types. Due to intelligence and shrewdness, he became able to enhance the net income and profitability by 30% and 66% in this competitive market among other competitors. This became possible by the decision of purchasing NeXT and NeXTSTEP operating systems that proved extremely beneficial for the organization of Apple Inc in this changing scenario. Moreover, the high degree of involvement of Steve Jobs with his co-workers or employees also acted positively in tackling the effects of changing situations. Due to which, the followers or the employees became extremely attracted towards his actions that enhanced their level of performance and commitment towards work to a significant extent. As a result, in-spite of economic downturn or changes in customer demands, the position and supremacy of the organization of Apple Inc enhanced considerably in the entire segment among other challengers. Therefore, it might be stated that changes might be tackled mainly through intelligence, and so the sharpness of Steve Jobs acted as a magical tool that enlisted its name in Fortune 500 companies. Hence innovation and development are directly related with intelligence and dedication. How Development of New Products Changed Due To Situational Changes In this age of tough competition, an organization comprising of a manger or a leader with high controlling and tackling power might sustain effectively. This means, a leader with bureaucratic style of leadership includes high influential power to inspire the employees or followers. Side by side, the high judgment power to analyze the changing requirements of the customers is also essential for a leader in this aggressive scenario. Therefore to cope up with such a scenario, Steve Jobs developed MacBook Pro in the year 2006 that improved the reputation and the position of the organization of Apple Inc in the market among others. Not only this, the development of ipod and iPad also fascinated a wide range of customers of varied preferences and income groups thereby amplifying the power of dominance in the market among others. Side by side, such developments also reduced the threat of substitute products thereby amplifying its loyalty within the minds of the target customers. Therefore, the leadership style of Steve Jobs proved extremely beneficial for the organization of Apple Inc in developing varied types of inventive items to cope up with changing situation (McKimm & Philips, 2009, p. 346-489). Moreover, Steve Jobs also comprised of the ability to motivate the employees or followers of the organization to offer high level of devotion over research and development to present creative products such iphone 5. This became possible by the implementation of the strategy of reward system for the employees presenting high level of performance in the organization among other co-workers. And thus this strategy proved extremely effective for the organization and its employees thereby amplifying its competitive advantage in the market among others (McInerney, 2011). Consequently, the development and introduction of iphone 5 not only amplified the uniqueness of the organization in the market but also paved its path for success. Along with this, both the returns and status of the organization of Apple Inc enhanced thereby improving the brand value in the entire market as well. Thus, such inventive development significantly improved its global recognition and excellence in the market. Therefore, the leadership style of Steve Jobs helped the organization of Apple Inc to handle the changing situations effectively by analyzing and evaluating the requirements and demands of the customers (Tushman & Anderson, 2004, p. 345-378). Therefore, it might be depicted that the leadership or managerial style also needs to be changed along with situations or requirements so as to mitigate the threats of risks such as (low market share or bankruptcy, financial crisis and many others). Hence, it might be revealed that just as creativity, change is also bizarre. So, creativity, innovation and development might act mutually to over-shadow its effects (Christensen, 2003, p. 345-467). Analysis In order to cope up with the challenges of the changing situations, highly confident attitude and optimistic viewpoint need to be present within the employees as well as the leader or manager of the organization. This is because, these qualities acts as the backbone to withstand the negative effects of the situational changes in an effective way. Along with this, such inner qualities of the leader also helped in motivating the employees or followers of the organization towards their assigned duties and responsibilities. Due to which, the organization of Apple Inc became able to develop and introduce varied types of inventive products such as i-Pad Air or iPhone 5. These inventions enhanced the level of reputation and position of the organization of Apple Inc in the market among other rivals. Side by side, the productivity and total sale of the organization of Apple Inc also amplified to a considerable extent in-spite of situational changes. As a result, the level of retention of the experienced staffs enhanced thereby reducing the ratio of attrition to a certain extent. This factor also acted as another vital reason that enhanced the loyalty and efficiency of the organization of apple Inc in the market among other contenders (Isaksen & Tiddy, 2006, p. 245-389). Other than this, the planning and supporting nature of Steve Jobs of Apple Inc also helped its employees or followers to develop products as per the requirements of the customers. Due to which, the organization of Apple Inc became able to satisfy the requirements of the customers thereby increasing the rate of retention. Along with this, it also increased the rate of reliability and trust of the customers over the brand that proved extremely advantageous for it in long run. This is because; customers act as the cornerstone of an organization, without which it may not prosper in the market among others. Therefore, it might be stated that the leadership style of Steve Jobs not only assisted the employees of the organization of Apple Inc but also enhanced its portfolio in long run. So, leadership style of Steve Jobs proved extremely advantageous for the organization by retaining its effectiveness by reducing the threats of changes (Davenport, 2005, p. 346-389). Findings The leadership style of Steve Jobs proved that creativity and intelligence is the mother of innovation and development in this age of tough competition. Due to which, the rate of innovation and development of varied types of products and services enhanced to a certain extent as compared to other contenders such as Dell, HP, Microsoft, Acer and many others. As a result of it, the efficacy and net income of the organization of Apple Inc enhanced thereby amplifying its profit margin to a considerable extent. Moreover, due to the presence of various inventive products and services, the range of customers increased significantly as compared to other contenders that amplified its market share as well. Apart from this, the opportunity to expand and penetrate into new markets also increased for the organization of Apple Inc as compared to others. Due to which, its brand image and gratitude increased significantly in-spite of economic downturn. Side by side, the weakness and threats of the rival players also reduced significantly thereby amplifying its prosperity in the market. Thus, it might be clearly depicted from the above mentioned point that, the entire dominance and efficiency of the organization of Apple Inc is mainly due to the admirable leadership style of Steve Jobs. So, he is recognised as one of the most impressive leader of all times (Von Stamm, 2008, p. 345-467). Conclusion and recommendations Conclusively, it might be described that innovation and development might act as the backbone of any organization, but leadership makes all these activities more streamlined. This is because, without leaders or managers, an organization may not increase its loyalty or market value or creativity. As a result, an organization may not retain its effectiveness or portfolio in the market among other rivals. Therefore, it might be revealed that leadership style of Steve Jobs proved extremely effective for the organization of Apple Inc. This may be proved by the invention of iphone 5 in the year 2011 that amplified its total sale and profitability of the organization among other contenders as presented in the below graph. Along with this, such invention and development also enhanced a wide array of customers of varying life-style and income groups towards the brand. Due to which, the level of supremacy and dominance of the organization of Apple Inc enhanced to a significant extent as compared to others. Moreover, the rate of switchover costs of the customers also reduced thereby enhancing its loyalty and dependency within the minds of the customers. Apart from this, the inspiring and motivating power of Steve Jobs also enhanced the inner confidence and morale of the employees thereby increasing their dedication towards work. However, it might be possible only if the system of extra wages such as incentives or bonuses might be implemented within the organization of Apple Inc, then the level of dedication and rate of retention of the skilled and knowledgeable employees might get enhanced. Along with this, the rate of attrition within the organization of Apple Inc might get reduced, thereby amplifying its respect and brand value in the market among others. Along with this, if the employees are presented the power to participate in the decision-making process so as to dedicate their own idea and suggestions, before invention of any specific product or service then their self-esteem might get enhanced to a considerable level. This might also enhance their performance level as well as the output of the organization in the market. Therefore, if the above mentioned facts might be implemented within the organization of Apple Inc, then the rate of innovation and development might get enhanced as compared to other contenders. And then level of retention of the organization in the top-most position in the market might remain among all other rival players. As well as, the image of Apple Inc to develop innovative products might remain forever in the market. References Christensen, C. (2003). The Innovator’s Solution, Creating and Sustaining Successful Growth. Boston: Harvard Business School Press. Davenport, T, H. (2005). Thinking for a living: How to get better performance and results from knowledge workers. Boston: Harvard Business School Press. Isaksen, S. & Tiddy, J. (2006). Meeting the Innovation Challenge: Leadership for Transformation and growth. Chichester: Wiley. McInerney, S. (2011). Steve Jobs: an unconventional leader. [Online] Available at: http://www.smh.com.au/executive-style/management/steve-jobs-an-unconventional-leader-20111007-1lcmo.html [Accessed on November 25th, 2013]. McKimm, J. & Philips, K. (2009). Leadership and Management in Integrated Services. London: Springer. Tushman, M. L. & Anderson, P. (2004), Managing Strategic Innovation and' Change. New Von Stamm, B. (2008). Managing lnnovation, Design and Creativity. Chichester: Wiley. York: Oxford University Press. Read More