Lecturer: Dr Lawrence Akwetey & Anand Walser
Student: Dzhenneta Saparova
Executive summary 3
The role of innovation in strategy 5
Innovation in organisation 6
Case study of Apple 7
Limitations on the role of innovation strategy 7
Value Chain 8
This course work analyses the concept of innovation, evaluates the importance of innovation in strategy and also study techniques of promoting it in organisations. In the beginning a researcher discusses the nature of innovation and investigates its significance in current social and economic conditions. Further, this assignment examines two key factors such as ability to generate a sustainable competitive advantage for companies and also its capability to help organisations in preventing strategic drift, in order to certify that innovation is a valuable component of strategy. Therefore strategies that are focused on innovation can add real value to a business organisation and aid them to engage leading positions in the market. With help of well known management thinker –Peter Drucker and also Apple case study, the researcher looks at the ways that management can promote innovation in business companies. Having discussed the importance of innovation and its advantages, a researcher analyses some drawbacks of innovation. To be more precise it considers at the possible benefits of strategic drift and also other sides of strategy beyond innovation which should be taken into consideration by an organisation. Moreover, a researcher also provides examples of organisations becoming prosperous by innovating. This assignment concludes with a concept that innovation plays a crucial part in successful strategy and future prosperity of the cooperation.
As time goes on, nothing stays the same in our life. Everything is influenced by the time and all things are in continuous variation. In the market industry the progression is dramatically fast, the product which is taking leading position today, most likely be substituted by another tomorrow. Therefore it is essential for organisations to adopt right strategy in order to deal with these continuous changes and survive in the business industry. In accordance with Peter Drucker (1985) the truest way for business to be successful is to innovate. In order to understand a relation between business and innovating, it is necessary to determine the meaning of innovation.
According to Alan Altshuler and Robert D. Behn (1997), Innovation is the successful realization of new ideas and also aspiration to change the way a company operates and delivers service to the society. This statement contains ideas that are new to the public, new to an industry, or simply new to a specific company. The social and economic circumstances are the primary factors of the determined role of innovation in strategy. Peter Drucker (1992) explained it as “the knowledge economy” which emerged since of the end of the Second World War, due to increase of the service sector and decline of producers, business corporations have had to respond to change if they wish to do well in the business industry. In concordance with Peter Drucker business has only two main actions such as marketing and innovation. (Kotler & Armstrong, 2008). To be clearer, initially a business company must create a client but in order to keep customer loyalty and profit, an organisation must always provide the required products and services with the terms of innovation.
The role of innovation in strategy
A business strategy can be determined as a long term business planning. Strategy is varied from targets, purposes, vision,