Innovation Organisation - BAM Construct UK Ltd - Essay Example

Innovation Organisation Table of Contents Summary 3 2.Introduction 4 3.About the Organisation 6 4.Literature Review 9 5.Innovation Process and the Organisation 13 6.Innovating the Products and Services 15 7.Future of the Organisation 18 8.Conclusion 19 References 20 1. Summary BAM Construct UK Ltd. is one of the leading construction companies in UK and is a part of the European construction enterprise. The company was established way back in the year 1874. Despite experiencing a temporary decline in terms of turnover in 2005, it has been growing steadily since 2006. This report has aimed at analyzing the element of innovation process that has been successfully ingrained within the organisational framework of BAM Construct UK Ltd. and has also thrown light on the aspect of product and service innovation. By augmenting the research context with relevant literature review, the report has outlined the future prospects of this highly diversified company. Various tables and figures have been employed in order to justify the objectives of this research, and to provide evidence of the company’s operational excellence. 2. Introduction Present day business environment is very dynamic in nature which keeps on changing frequently with the changing market conditions at domestic and international level. Organisations existing in the present day business environment have sufficiently understood this fact and perform their market analysis and research activities to identify the changes. It is very essential for present day organisations to get adapted to the changes and maintain their business operations. To attain the level of flexibility required for adapting to the changes organisations develop innovative approaches to modify their business structure and systems as per the changes. This report discusses the theories of innovation and its real application in present day organisations. Irrespective of industry type every organisation is required to identify the changes and resist them. This report has considered the construction industry and its performance in the international market. BAM Construct UK Ltd. is one of the leading construction companies in UK and is a part of the European construction enterprise. The study has considered the company BAM Construct UK Ltd. as its sample organisation for analyzing the innovative practices performed within present day organisations. The study emphasizes various innovative approaches which are practiced in the sample organisation and also provides with suggestions on improving their innovation practices in regards to their product development activities. Organisations come up with innovative products which are developed as per the changing demands of the customers’. Organisations are required to update their product range at regular intervals which help them in gaining competitive advantage. Theories proposed by researchers on the topic of innovation provide significant support to the organisations. These theories guide organisations in the process of introducing the innovation to their internal environment. Identifying the future and preparing to face the upcoming challenges has become another crucial aspect for the organisations. Concepts of innovation also plays significant role in preparing organisations for achieving sustainable development in highly dynamic environment. 3. About the Organisation BAM Construct UK Ltd. had its origin in UK and was established during the year of 1874. The company is a part of the European construction enterprise, Royal BAM Group. The company has its operations in the construction and infrastructure development industry. It has a huge network of business operation which covers the regions of England, Scotland, and Wales. BAM Construct UK Ltd. offers construction services to educational institutions, retail organisations, developments made for miscellaneous usage, healthcare sectors, leisure industry, and institutions for law and order. Figure 1: Industries Availing Services from BAM Construct UK Ltd. (Source: BAM Construct UK Ltd.-a, website) The company has gained reputation because of its high quality work and innovative approaches which adds versatility to its products and services. The company has a strong knowledge base which is helps it in conquering the highly dynamic business environment with ever changing demands and associated issues. The company has a strong employee base of 1,400 people who deliver quality work to their clients. The organisation considers its workforce as one of its valuable assets through which it gains excellence in its sector. The company also has a strong financial background which is evident from the data pertaining to its turnover which has continuously moved upward since 2006 though the company has faced slight decrease in its turnover in 2005. Figure 2: Turnover of BAM Construct UK Ltd. during 2004-2008 (£m) (Source: BAM Construct UK Ltd.-b, website) The company has shown an impressive financial performance which is evident from the data provided by the company for the financial year 2008. Figure 3: Summary of Financial Performance of BAM Construct UK Ltd. in 2008 (Source: BAM Construct UK Ltd.-c, website) Figure 4: Lifecycle of BAM Construct UK Ltd. Figure 5: Timeline of BAM Contractors, Ireland (Source: BAM Contractors, n.d.) 4. Literature Review Innovation is something which is related to invention of something new either in form of an object or a process or technique. As per the definition of the American Heritage Dictionary, innovation has been defined as: “The act of introducing something new: something newly introduced” The Department of Trade and Industry of UK has defined innovation as: “The successful exploitation of new ideas” According to a press release of Harvard Business School (2004) innovation has been defined as: “A creative idea that is realized” Organisations perceive innovation in the form of new technology or process which supports them in converting new concepts into feasible applications through which organisations gain competitive advantage. Innovation supports organisations in enhancing their products and services by successful adoption of business practices which are economically beneficial for the organisation. In organisational perspective innovative ideas are created by the managers and entrepreneurs who have a clear understanding of the vision of their organisations. National leaders interpret innovation in terms of economic growth which is obvious through establishment of link between the competitive market conditions and the scientific methodologies. These factors are most significant powers which can result into potential economic growth of any nation. Researchers have proposed theories pertaining to the successful adoption of innovation and its acceptance by organisations. Diffusion theory describes the process through which an organisation adopts innovation and brings it into effect at all the levels of the organisation. For effective adoption of innovation organisations also ensure its acceptance at its different levels. Diffusion theory identifies certain factors which are required to be considered for the successful adoption and organisation wide acceptance. These factors influence the process through which organisations perceive the innovation. Factors include the communication channel possessed by the organisation through which information is communicated across the organisation. Time required for successful adoption is also one of such factors which influence the innovation process. The social system is also responsible for adoption of innovation and influences the process of innovation (Rogers, 1965, 1995). Feasibility of the innovation is also an important factor to be considered since innovations which are not feasible could pose adverse impact on the organisation. Innovations are introduced to organisations in terms of their technological developments. It is systematic approach though which organisations adopt innovation in terms of technological developments. Researchers have proposed several models which monitors the steps by step adoption of innovation. These models enforce sequential occurrence of events through which technological innovations takes place within the organisations. As researchers viewed innovation in terms of technological advancements they proposed ‘technology push’ model which focused on specific business process. The model shared a close relationship with the scientific policies proposed by Vannevar Bush according to which developments in basic science leads to technological improvements which results into flow of new products and services in the market. The basic science explained the sequence as follows: (Source-Shavinina, 2003, p.46) Another category or innovative model is considered as interactive model which perceives innovation process as a highly complex network of communication pathways, joining both the internal and external environment of the organisation. This category of model relates the organisational functions which are internal to the organisation with the external factors comprising of communities involved in scientific researches for introducing technological concepts to the business process. The network also includes the market place which encourages the technological necessities of the business processes. The schematic flows of steps are as follows: (Source-Shavinina, 2003, p.47) The interactive model emphasizes on various interactions which take place within or outside the organisation for the successful adoption of the innovation. Further studies on the model elaborated it with some more steps and described the iterative behavior of the innovation process. The third category of innovation model is of system model which encourages organisations which have lower capabilities in terms of resources for bringing innovation in their organisations. The model suggests small organisations to overcome their shortage of resources by forming network with other large organisations. This model benefits organisations with certain advantages. Firstly, it becomes convenient for small firms to avail latest technologies and its maintenances with the support of large organisations present in the network. Effective exploitation of skills can be obtained through the formation of network between the small and large firms. It also encourages collective learning process which is beneficial for both the small and large business firms. Small firms are also benefited from the network in terms of gaining access to the industry with greater potential (Shavinina, 2003, p.46-48). 5. Innovation Process and the Organisation A continuous effort for innovation of the products and services has become an essential part of organisational activities. Continuously changing customers’ expectations and market conditions have forced organisations to keep on changing their products and services with these changes. BAM Construct has very well understood this essentiality which is evident from their innovative approaches towards all of their business operations. For enhancing their productivity and on time completion of projects the company possess strong supply chain mechanism to offer values to their clients. Understanding the need of faster delivery without compromising on quality aspects the company has a strong base of subcontractors who are experienced and skilled to meet the expectations. The company has graded its subcontractors into different levels on the basis of their skills and level of experiences (BAM Construct-d, n.d.). To make equal contribution in resolving the environmental issues BAM Construct possesses international standard for environmental management systems, ISO 14001 for all of its business functions. Workshops are also conducted by the organisation for bringing awareness among the organisational members towards the environmental issues related to the business operations of the organisation (BAM Construct-e, n.d.). This helps in effective communication of the innovative steps taken up by the company at all of its levels. The service engineering offered by the company claims to have features such as optimum time for development of designs, committed managers, and a team based approaches. The company possesses technological capabilities for designing through CAD software involving the latest technology. The on-site monitoring system possessed by the company helps them in gaining competitive edge over their competitors. These features are needed to be monitored as the company delegates their projects to the team of subcontractors associated with the company. In this context subcontractors who have potential capabilities for product development and its delivery get benefited from their connections with BAM Construct. This can be considered as an application of system model of innovation which emphasize on forming network between the small and large firms of same industry (BAM Construct-f, n.d.). 6. Innovating the Products and Services Innovating products and services is also another facet of innovation which is needed to be done by organisations. It is important to renovate the products and services for organisations because of the changing expectations of customers from their products and services. In their approach towards innovation of products and services BAM Construct utilizes resources which have low impact on the environment by controlling the emission of harmful organisational wastes. Other resources such as timber used by the company in its projects are obtained from sources which are legal and reliable in nature making them fit for establishing long-term relationship with the organisation. Innovation of products and services also involves analyses of social system and the level of technological influence on them. Through these analyses BAM Construct has been able to identify the areas where flexibility is needed to be enhanced and worked accordingly. Knowledge sharing is an effective way of gaining insights of continuously increasing skill level required to renovate the products and services. BAM Construct promotes events for identifying potential firms involved in construction industry through sponsoring awards and ceremonies (CE, 2010). It helps them in identifying the potential talents from the pool and develops relationships with them. In this sense it is true for the larger organisations that they tries to exploit skills possessed by small firms of the industry for their mutual benefits. Accumulation and dissemination of knowledge and skills creates a synergy which benefits both the partners involved in the business operations. BAM Construct UK Ltd. innovates its construction and designing methodologies which it has proved through several examples of its work pieces such as the architecture developed for the Darwin Centre in UK. The infrastructure of the museum was completed developed in phases out of which BAM Construct UK Ltd. contributed to the second phase of construction. This also supported the company in grabbing the international architectural competition during 2001. The innovative design developed and crafted by BAM Construct UK Ltd. changed the traditional perception of people regarding the museum and represented the application of latest scientific technologies to the museum (The Natural History Museum-a, n.d.). Figure 6: Floor Plan of the Darwin Centre, UK (Source: The Natural History Museum-b, 2010) Figure 7: A Gallery in the Darwin Centre, UK (Source: The Natural History Museum-c, 2010) Figure 8: The Darwin Centre, UK (Source: The Natural History Museum-d, 2010) 7. Future of the Organisation Organisations seek innovation to achieve the sustainable development and meet the future challenges posed by the industry. It requires over all development of the organisation considering all of its aspects. In this sense, focusing on social and cultural issues has become important for the organisations. BAM Construct being a part of construction industry has supported social initiatives to overcome the issues of homelessness through CRASH, a charitable organisation which utilizes skills and resources of building industry for the development of shelters and hostels. It tries to control the issue of accommodation for the organisation which provides support to homeless people (CRASH, n.d.). In the line of service BAM Construct includes innovation through the feedback which it obtains from its present clients whose projects have been completed under its banner. The company believes that for better understanding of customers’ need and provide them with the same in a cost-efficient and sustainable way it is important for the organisation to have feedback on their current projects. In maintaining their pace of innovation within the organisation BAM Construct UK Ltd. has equally emphasized all the parts which have direct or indirect relation with their business such as the people, community, and environment which have direct influence over their business. Some other influential factors considered for innovation are the suppliers and the customers who are among the crucial pillars of their business operation (BAM Construct-g, n.d.). 8. Conclusion Continuous renewal of products and services range is a potential sign of increased competition level since organisations offering more number of product alternatives gain advantage over their rivals. In relation to this, every organisation irrespective of its size and capabilities has applied efforts in bringing innovation into their operations. Adding innovation to the business processes should be visible across the organisation and has to be accepted at all of the management levels. The various models of innovation proposed by the researchers are of potential use for present day organisations for adopting innovation. All of the categories of innovation models viz. linear model, interactive model, and system model have their different approaches towards adoption of innovation. These models have undergone further research works which has resulted into certain differences but the central idea of these models remain in consideration of innovation as a major driver of gaining competitive advantage. Organisations such as BAM Construct UK Ltd. serve as the benchmark for other firms who need to introduce innovation to their business processes. Innovation has multiple benefits for the organisation as well as other agents who are involved in the innovation processes. From the study of BAM Construct UK Ltd. various aspects of innovation can be understood where the company has given equal importance to all the parts which have direct or indirect relationship with it. The company has adopted several approaches for the overall development of the society as well with simultaneous efforts on innovating their products and services. References 1. BAM Construct UK Ltd.-a. No Date. BAM Construct UK Delivers A Strong, Consistent Performance in 2008. [Online] Available at: http://www.bam.co.uk/Default/NewsRoom/NewsDetails/09-04-24/BAM_Construct_UK_delivers_a_strong_consistent_performance_in_2008.aspx [Accessed on March 26, 2010]. 2. BAM Construct UK Ltd.-b. No Date. About Us- Financial – Turnover 2004 – 2008 (£m). [Online] Available at: http://www.bam.co.uk/Default/AboutUs/AboutUs-Financials.aspx [Accessed on March 26, 2010]. 3. BAM Construct UK Ltd.-c. No Date. About Us – Financial – Revenue by Market Sector 2008. [Online] Available at: http://www.bam.co.uk/Default/AboutUs/AboutUs-Financials.aspx [Accessed on March 26, 2010]. 4. BAM Construct UK Ltd.-d. No Date. About Us – Supply Chain Management. [Online] Available at: http://www.bam.co.uk/Default/AboutUs/AboutUs-SupplyChain.aspx [Accessed on March 27, 2010]. 5. BAM Construct UK Ltd.-e. No Date. BAM Construct – Environment – Environmental Management. [Online] Available at: http://www.bam.co.uk/Default/CSR/CSR-Environment.aspx [Accessed on March 29, 2010]. 6. BAM Construct UK Ltd.-f. No Date. BAM Services Engineering. [Pdf] Available at: http://www.bam.co.uk/brochure/Services_Eng_bcochure.pdf [Accessed on March 29, 2010]. 7. BAM Construct UK Ltd.-g. No Date. BAM Construct – CSR – Customer Partnership. [Online] Available at: http://www.bam.co.uk/Default/CSR/CSR-Customers.aspx [Accessed on March 29, 2010]. 8. BAM Contractors. No Date. Timeline. [Online]. Available at: http://www.bamcontractors.ie/live/timeline.html [Accessed on April 30, 2010]. 9. CE. February 28, 2009. Constructing Excellence – BAM to Sponsor Top Trophy at CE Awards 2010. [Online] Available at: http://www.constructingexcellence.org.uk/news/article.jsp?id=11045 [Accessed on March 29, 2010]. 10. CRASH. No Date. CRASH – Patrons. [Online] Available at: http://www.crash.org.uk/patrons/ [Accessed on March 29, 2010]. 11. Rogers, E. 1995, 1965. Diffusion of Innovations. 4th ed. New York: The Free Press. 12. Shavinina, L. 2003. The International Handbook on Innovation. Elsevier. 13. The Natural History Museum-a. No Date. National History Museum – The Architecture of the Darwin Centre. [Online] Available at: http://www.nhm.ac.uk/resources-rx/files/darwin-centre-architecture---final-37535.pdf [Accessed on March 29, 2010]. 14. The Natural History Museum-b. 2010. Floor Plans. [Online]. Available at: http://www.nhm.ac.uk/visit-us/galleries/floorplans/index.html [Accessed on April 30, 2010]. 15. The Natural History Museum-c. 2010. Galleries. [Online]. Available at: http://www.nhm.ac.uk/visit-us/galleries/index.html [Accessed on April 30, 2010]. 16. The Natural History Museum-d. 2010. Darwin Centre. [Online]. Available at: http://www.nhm.ac.uk/visit-us/galleries/orange-zone/darwin-centre/index.html [Accessed on April 30, 2010]. Read More