Managing Innovation Annual Report of Certain Companies

Question: Discuss about theManaging Innovationfor Annual Report of Certain Companies. Answer: Literature Review Introduction Literature review mainly discusses the secondary data that would be useful to carry out a research work. The literature review mainly consists of the previous works of the authors who have carried out research on similar topic, annual report of certain companies, interview by certain people, blogs and other materials. The literature review mainly helps the readers to understand the factors that have been already dealt in the similar field and what are the areas that have been not being explored and could be explored in the future research work. The following literature review will mainly talk about the innovation in the business or society and the way innovations will help in sustainability and growth. An innovation in both business and society helps the individual to become advance and compete at the global level. Innovations make the individuals updated about the latest happenings in the society. The individual will be able to grow and develop only when they will be aware of the society and the changes that are taking place in the society. The literature will talk about the theory of innovations, the fundamentals of sustainability and then will bring about the relation between the innovation, sustainability and growth. Innovations can be in the field of science and technology, environment or in any organization irrespective of the field where the organization is functioning. The main idea of innovation is mainly to take the people forward who are living in a society. Types of Innovations Innovations in an organization can take place in various ways. Innovations can be done in the field of technology that is being uses in an organization, in the business models or in the operations in the organization. Three types of innovations can help in sustainable growth of an organization. The types of innovations are : Incremental innovations When small changes are being made in the technologies that are being used in the organization or in the business model then it is called incremental innovations (De Marchi 2012). Breakthrough innovations When a significant amount of change is done in the field of technologies of the organization or in the business models, then it is called breakthrough innovations (Davila, Epstein and Shelton 2012). As the name suggests, the innovations helps in making huge amount of changes in the models and technologies and the changes will bring significant amount of development in the organization. Radical innovations At times, rarely an innovation takes place in an organization but when the changes happen, it gives rise to a new industry or expansion of the organization as a whole. Radical innovations happen when there is huge change needed in the organization or the organization is trying to expand its business in an international location (Damanpour and Aravind 2012). Radical innovations take place after range of planning been done in the organizations. Theory of Innovation Druckers seven sources of innovation help individuals to know the meaning of innovation in a better manner (Drucker 2014). Once the senior management of an organization will follow the theory it will help them to understand the exact meaning. It will help the senior management to able to go about the innovation well. The seven sources are: The unexpected Market is full of positive and negative factors. An organization come across various opportunities as well as threats in the market. Hence, the organization should keep in mind that they would face the unexpected from the market. The innovations should be made after the going through the current trends in the market. The Incongruity A difference is there between the situations that the organization thought should be there and the situation that is actually present in the society. A thorough market research is necessary before starting the process of innovation Process Need Process need refers to the operation of identifying the weakness in the organization and implement ways that will help them to function well in the market. Before thinking about any innovation, organization should first look into the available resources in the organization. If any of the resources is found missing in the organization, then the company should take necessary steps to rectify those mistakes, fill the gaps and then bring about the change. Industry and Market Structure Change The industry is always changing. At times, the industry times the industry is expanding and at times it is shrinking. The organization that is thinking about the innovation should first think about the changes in the industry then bring about the innovation in the industry. Demographics Variations will be there among the consumers, which are living in a particular location. The income levels, age as well as the education various among the people who are living in the society. The background of the consumers should be kept into mind before bringing any such innovation in the organization or in the society. Changes in Perception, Meaning, and Mood Immigrations and migrations of the people in a country happen in a regular basis. The people resign in a country or at particular location also changes. Thus, before implementation of the innovation, the organization or the government should keep a check on the population of the place and then implement the innovations. New Knowledge Changes might bring opportunities as well as threats. The organization should keep a check on the opportunities that will be brought by the changes in the market and then implement the innovation. Fundamental of Sustainable Growth The purpose of the growth should be strong enough for the growth (Dincer and Rosen 2012). The people who are going with the change should have proper focus that is constant as well as consistency. The senior manager and the employees should work with close contact with the customers and depending on that, they should continuously innovate within the organization. Innovations in the Field of Science and Sustainable Growth Innovation and sustainable growth can be seen in an evident manner in the field of science and technology. According to the task team that studied about the development agenda, science is the best method that will be able to explain the relationship between innovations and sustainable growth. The best way of promoting sustainable development of a society cannot be completed without the help of science, technology and innovations (STI) (UN System Task Team 2015). Once the individual will have a steady access to innovation and technology, it will help them to improve the quality of their living conditions. The innovations in the technological field that will help improving the lifestyle that can further help in resolving issues for a huge population as well as help in enhancing the productivity among the people that will rise the income level of the individuals (Boons et al. 2013). The there are two types STI issues that need to be handled in a cumulative manner in the work of technology. The growth that has driven by innovation can no longer be associated with developed or high-income countries (Cohen, Brown and Vergragt 2013). Some of the developing countries in the world have been able to develop themselves as far as the technology and innovation is concerned. The second issues that has been identified as far as the STI is concerned, is that it would be better to consider STI in an integrative manner rather than considering it as an independent agenda (Sarkar 2013). Once the STI will be integrated with public goals by giving special attentions to culture, development and educations. The integration will help in sustainable growth of a community and help in effective growth of the society as a whole. Thus, it can be seen that innovation in the field of science not only helps in growth of science but also in turn helps in the growth of the entire society. Bio-economy Strategy as Innovation and the Contribution for Sustainable Growth The bio-economy strategy adopted by Europe is of the most important examples of how innovations can be used for sustainable growth in the society (European Commission 2012). Due to the increase in the number of population in the world, the environment has been hugely affected. The growth of population has resulted in excessive use of resources which in turn in mainly resulting in the depletion of the environment (Mazzucato and Perez 2014). Thus, a huge need innovation will help the society to combat the problems of population growth and depletion of resources. If advancement is being made on the use and renewal of biological resources and give rise to innovative way of bio-economy strategy; it will help the Europe to give rise to a sustainable environment. If bio-economy is being implemented in the economy then it will help in sustainable growth of the country in various ways (Kastalli and Van Looy 2013). Some of the ways of sustainable growth in the industry are: Enhance economic growth and maintain the growth Create jobs in the rural, commercial and industrial areas Reduce the dependency on the fossil fuels Improve the environmental and economic sustainability It has been seen that there will be an increase in population among the people who are living in the society. By 2050, there will be increase in demand of food by 70%. Thus, the bio-economy strategy aims at changing the food habit and the way of living of the people in the society. Currently, it has been that the amount of that are being wasted annually account to be 90 million tonnes. The innovation with the help of bio-economy strategy aims to decrease the amount of food wastage in the society. Hence, it can be seen that innovation cannot be always associated with the expenditure but also can be a way to reduce expenditure of an economy as a whole. In a country like Europe where the dependency on junk food is quite high, bio-economy strategy will help in changing the food habit for the better (Lyasnikov et al. 2014). Contribution of the OECD and Non-OECD Countries Towards Sustainable Growth through Innovation The countries from all over the world has hugely contributed for innovation. They have invested huge a lot of money for innovation purpose with the help of research, development ns other support measures. In the year 2012, OECD government invested a monetary amount is almost equal 0.8% of the GDP of the country (PWC 2012). Finland and Korea invested 1 percent of their GDP. Twenty-seven countries out of the 34 countries under the OECD government as well as many non-OECD countries have invested for the research and development with the help of tax incentives. During the period of 2008 until 2012, the rate of employment fell in the OECD as well non-OECD countries. The fall mainly of the recession, that had hit the world economy (Aiginger, 2014). However, it has been seen that the new firms were able to reduce the rate of unemployment in the countries. The new firms have come up new ideas and innovations. The new firms have been able attract the individuals and help in the development of the society as a whole(Lorek and Fuchs 2013). The simple relation between innovation and growth is based on the fact the innovation leads to development of new products and the development of products will help in growth of the organization (Bocken et al. 2014). It has been found that the economies that are constantly innovating new technologies and products are growing fast and are more dynamic in nature. As they are innovating new thing constantly they have full knowledge about the changes in the economy and the society, during the time of difficulty, they are able to solve the problems in better and in a prompt manner (Baranenko 2014). Innovations also help the economies to lower their dependency in fossil fuel and give rise to better idea that will help them to find out ways that will help in reducing the use of fossil fuel in the society (Zheng and Kammen 2014). An economy that is constantly innovating will be able to grow in respect to sales and employment than an economy that is not innovating and is operating on traditio nal norms. Summary After going through various aspects of sustainable growth and innovation, it can be summarised that the only way to sustainability and growth is innovation. Traditional ways can help the society or the organization to grow. However, innovation will help them to see beyond the traditional ways and stay ahead in the race of competition with other nations. Innovations not only mean giving rise to new products or idea, innovation may also include the adding something in the traditional idea and giving rise to new idea. The input in the traditional matter can be modern which will help in giving rise to new idea. Many people have this misconception that innovations means huge amount of expenditure and only developed countries, which are capable of such expenditures will be able to give rise to innovations. However, such kinds of misconceptions are only given rise by those people who are not interested in innovations. Innovations need ideas and enthusiasm that will help in growth of an organization. Only the presence of technology will not help the people to give rise to innovation but ideas are also important for innovation. Innovations can be in the field of technology as well as the field of environmental impacts. Thus, not only monetary help but also proper ideas are needed to give rise to innovation. The process of innovation requires a lot of knowledge, awareness and education. Thus, if any of the organization is giving rise to innovation, then they will have more awareness than the people who are not interested in innovation. Hence, a group of people or country will always have a solution of the problems and will be able to solve a problem in a better manner if they are thinking of innovation. As a result, they will be able to grow and sustain and sustain their growth. References Aiginger, K., 2014. Industrial Policy for a sustainable growth path.Policy paper,4, p.7. Baranenko, S.P., Dudin, M.N., Lyasnikov, N.V. and Busygin, K.D., 2014. Use of environmental approach to innovation-oriented development of industrial enterprises.American journal of applied sciences,11(2), pp.189-194. Bocken, N.M.P., Short, S.W., Rana, P. and Evans, S., 2014. A literature and practice review to develop sustainable business model archetypes.Journal of cleaner production,65, pp.42-56. Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business models and economic performance: an overview.Journal of Cleaner Production,45, pp.1-8. Cohen, M.J., Brown, H.S. and Vergragt, P. eds., 2013.Innovations in sustainable consumption: New economics, socio-technical transitions and social practices. Edward Elgar Publishing. Damanpour, F. and Aravind, D., 2012. Managerial innovation: Conceptions, processes, and antecedents.Management and Organization Review,8(2), pp.423-454. Davila, T., Epstein, M. and Shelton, R., 2012.Making innovation work: How to manage it, measure it, and profit from it. FT press. De Marchi, V., 2012. Environmental innovation and RD cooperation: Empirical evidence from Spanish manufacturing firms.Research Policy,41(3), pp.614-623. Dincer, I. and Rosen, M.A., 2012.Exergy: energy, environment and sustainable development. Newnes. Drucker, P., 2014.Innovation and entrepreneurship. Routledge. European Commission, 2012.Innovating for A Sustainable Growth Bioeconomy for Europe. 1st ed. 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PWC, 2012.How to drive innovation and business growth Leveraging emerging technology for sustainable growth. 1st ed. [ebook] Available at: https://www.pwc.com/us/en/supply-chain-management/assets/pwc-oracle-innovation-white-paper.pdf [Accessed 16 Oct. 2016]. Sarkar, A.N., 2013. Promoting eco-innovations to leverage sustainable development of eco-industry and green growth.European Journal of Sustainable Development,2(1), p.171. UN System Task Team, 2015.Science, technology and innovation for sustainable development in the global partnership for development beyond 2015. 1st ed. [ebook] Available at: https://www.un.org/en/development/desa/policy/untaskteam_undf/thinkpieces/28_thinkpiece_science.pdf [Accessed 16 Oct. 2016]. Zheng, C. and Kammen, D.M., 2014. An innovation-focused roadmap for a sustainable global photovoltaic industry.Energy Policy,67, pp.159-169.