¶ … innovation is a group of steps and activities visualized for translating ideas into actual products / services / processes. The innovation process commences with identifying and defining the source problem (Sva?, 2012).The building blocks of an innovative culture are as follows:
Values
Resources
Climate
Success
Behavior
These aforementioned building blocks are linked. For instance, the values of an enterprise affect the employee's behavior, workplace climate, and how success is perceived and quantified.
An innovative culture inherits ideas from research conducted by multiple authors. For promoting innovation, most enterprises generously invest time in resources, processes, and quantifying success. However, most companies have neglected to evaluate the more difficult to identify and/or measure factors of innovative culture with respect to people - including climate, behavior, and values.
To date, apparently, most companies have quantified innovative culture in terms of processes, management of resources, and measuring success of innovation rather than measuring building blocks of people oriented innovation. Most managers have observed that handling employee's behavior, values, and office place climate are quite a huge challenge. As per one CEO, the easier part is the toughest part. However, as difficult these so called 'people issues' are, they are the deciding factors in shaping an innovative culture and developing the competitive edge (Rao & Weintraub, 2013).
Company: Samsung
1. Management Styles: Samsung spearheads the electronic market in chip design, batteries, televisions, and screen technology. It is the epitome of innovation. Moreover, it strives to avoid patents as it innovates. From its earliest entry into innovative culture, Samsung competed with Toshiba in the washing machines sector. The Samsung Company has worked their way around patents; innovating new patentable ideas from its competitors (look at the Samsung presentation for example).
During the late 1990's and early 2000's, two developments influenced the company to implement a more methodical approach to innovation, which has spearheaded their current success ratio. They found inexpensive scientific expertise in Russia during the late 1990's. Samsung has a cordial professional business alliance with Russian Academy of Science. A contract has been signed by both parties. The Korean government finances small sized Korean enterprises working on the research of Russian Academy. Samsung on the other hand, increases their patents and works on their research. The chief advantage for Samsung is inexpensive Russian expertise available as low as $3,000 to $5,000 / month (Shaughnessy, 2013).
2. Capitalize on innovation and intrepreneurship:
The Samsung Strategy and Innovation Center (SSIC) is situated in Silicon Valley. Its intended aim is to amplify profits and reach a $400 billion benchmark by 2020. Apart from initiating SSIC, Samsung has also invested $100 million to initiate the Samsung Catalyst Fund for funding components and subsystems. Moreover, it has invested $1 billion in Ventures Americas Fund for investing in third parties as well as multiple researching facilities (Eaton, 2013).
Samsung has vested interests in Silicon Valley's think tank. In a strategic move, it also aims to shifts some research and development teams outside of Korea. Samsung has shown a return on investment in excess of $6.6 billion during the year 2012, accomplishing a market capitalization of $200 billion during the fiscal year. Its arch competitor, Apple reported double profits, in excess of $13 billion during the same fiscal year with a market capitalization of $420 billion (Eaton, 2013).
Company: Amazon
1. Organization's culture
Amazon has pioneered technological innovation resulting in phenomenal growth. From its service, with Amazon 1-click expediting the ordering process, customer-specific recommendations are made via browsing through the customer's interests by examining their purchase history, Amazon has pioneered the online shopping experience. At the core of Amazon's business ideology is innovation; during the last 15 years, the company has striven to enhance and upgrade the shopping experience for its customers. The business is based on a two-step model:
Finding the appropriate product for the customer
Shipping it in fastest time possible
With over eight fulfillment centers in United Kingdom, products are ready to be shipped to customers, a winning combination of competent workforce and technology (Curtis, 2013).
1. Capitalize on innovation and intrapreneurship: Developing a business and maintaining it doesn't guarantee its sustenance for the next century or even two decades. As per S&P 500 estimates, a company's lifespan in 1958 was 50 years, in 1983, it was reduced to 30 and in 2008 it was driven down to 18. To remain afloat in the present marketplace, every business should be built-to-change. A case in point is Amazon, which remained afloat after the dotcom bubble burst, spearheading its annual growth from $4 billion to $20 billion (2002-2008). Amazon's trump card is its ability to change. With zero tolerance for a complacent attitude in its work ethic, it survived the dotcom bubble, and expanded its business portfolio from books to wide ranging consumer goods...
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