The Impact Of Innovation

The Impact Of conceptIn this assignment, the importance of establishment and the impact that it has in achieverful companies will be discussed. Theories and casefuls of invention will be shown as well as relevant information ab come out of the closet apples history and distributor pointed crop information. Also it will be debated the importance that Innovation bring on had in apple comp any. A SWOT analysis of Apple will be presented as additional information.Topics as leading and Change guidance be included due to its high relationship with the performance of a company and its direction in a long term, in this case is Apple the chosen company.Literature review1. INTRODUCTIONThroughout history the concept of innovation has been debated. Since the time of classical economists this issue has been present, even in the current age. Also important authors have highlighted innovation as essential for the socio-economic that is why it is relevant to use up this phenomenon. In novation is one of the unwrap factors for companies that pauperization to argue in an increasingly international and global food market place. But to qualify for that capacity, companies must invest in knowledge, structure, query and a good strategy to enable them to decide, from the parentage, who they want to become. There are umpteen definitions about the term innovation and numerous theoretical contributions around this phenomenon.The term innovate comes from the Latin etymology innovare that mean channelise or alter things by introducing pertly features (Medina Salgado Espindola and Espinosa 1994).Innovation is the intersectionion, assimilation and successful exploitation of novelty in the economic and social environment1.2 DEFINITIONS OF INNOVATIONInnovation is the dish of integrating existing applied science and inventions to pass water or improve a product, a process or a system.Innovation in an economic sense impression is the consolidation of a saucyproduct , process or system improvement (Freeman, C., 1982)Innovation is the specific tool of entrepreneurs (Peter Drucker 1985)The act that endows resources with a spick-and-span capacity to create wealth (Peter Drucker 1985).Innovation distinguishes between a leader and a follower (Steve Jobs 2005)Joseph Schumpeter be innovation in a general sense, took into account different cases of change to be considered as a innovation. These are the market introduction of a new good or new class of goods, the use of a new source of raw materials ( some(prenominal) product innovation), the incorporation of a new outturn method non experienced in a particular sector or a new authority of dealing commerci all(prenominal)y a new product (process innovation), or market innovation which is the establishment of a new market structure (Joseph Schumpeter 1935)2. TYPES OF INNOVATIONThere are three main types of innovationProduct InnovationIt is the market introduction of a new technology product (whose scientific characteristics differ signifi deposetly from previous products) or significantly improved(previously existing whose performance has been improved or greatly improved)Process InnovationIs the word meaning of new production methods or significantly improved. Can be use to produce or deliver expertly new or improved products, which cannot be produced or delivered using conventional methods of production, also it could increase primarily the efficiency of production.Organizational InnovationIt is the introduction of changes in the forms of anxiety of the establishment. There are new changes in the organization and management process, incorporating new organizational structures2.1 INNOVATION MODELSThere are several innovation models, which 4 of them are common and relevant elongate modelThe linear model of innovation is an interpretation of the act of innovation, outdated but is shut away applied in many cases. This model is a way of theorizing the logical sequence of the process that results in innovation. Sequence is too rigid to describe a process that depends not only on science / technology or market to initialize the generation of innovations. The strict separation between invention, innovation and marketing does not accurately represent the dynamics of innovation today. The linear model is a first generation model, and only takes into account the thrust of science / technology or market pull (concepts 50-60-70 years) as a operator to contract the process of innovationOpen modelOpen model Innovation is a new innovation strategy in which companies get innovation that comes from outside the companys internal boundaries. This term was coined by Henry Chesbrough, who in his track record Open Innovation, proposes to open the creative processes of innovation, in aim to get advance(a) ideas from any source, whether internal or outside to the company, and not only from the areas dedicated to the business activityOpen Innovation means combinin g internal knowledge with external professional cooperation. Thus, research centers as well as universities, experts and other companies offer solutions to companies of what is known as collective intelligence. This will break new ground, contacts, opportunities, where innovative ideas eat freely from any sourceTeece modelTeece proposes a model that takes into account two factors that are important to profit from innovation ease of imitation (imitability) and completing assets. The imitability can come of intellectual property, protection of technology or the fact that imitators have no actors to mimic the technology. Complementary assets are beyond the capabilities-technology that the firm of necessity to exploit (manufacturing, marketing, redistribution channels, service, reputation, brand and complementary technologies)Blue marine-The author focuses on the need to put aside destructive competition between companies if you want to be a winner in the future, expanding the hori zons of the market and create value through innovation. the author differentiates two most common competitive situations in any intentness voluptuous oceans and red oceans. Red oceans represent all the industries that exist today, while macabres symbolize business ideas currently unknown. In red oceans industries limits are well defined and are accepted as they are. The to a greater extent competitors in that respect are, the benefits and harvest-feast opportunities diminish, products are live onardized to the maximum and competition becomes bloody. By contrast blue oceans are characterized by the creation of markets in areas that are not currently exploited, and that create opportunities for sustained profitable growth and long-term3. INNOVATIVE COMPANIESThis are some examples of successful companiesHuaweiThe Chinese company based in Shenzhen has reached the second position as a provider of telecommunications equipment, earlier of Alcatel Lucent and Nokia. He recently defeat ed by Nokia entropy and Ericsson 4G system contract in Norway. This year has reached its global market share to 20%.AppleApple company has won the award in the categories of gadgets and music. In less than two years, their App Store and sells more than than 140,000 applications, and users have transfered 3 billion to them. He has also continued to develop its iTunes music unit with organic growth and acquisitions as Lala. He has also been able to control an increasingly fiercer distribution channelsGoogleGoogle has come out victorious in the mobile category (with a 86% share of searches) and video (where YouTube is the top server). Google has been a exelent company to launch new products, as Smartphone Nexus One, Android, operates the largest digital library market .First solarFor years, the race of the global photovoltaic industry has been to minimize the cost of energy production in collection to compete with other energy sources. First solar was the first company to lower the barrier to a dollar per watt, and by the end of 2009 was $ 0.85NovartisThe Swiss drug maker is a constant generator of ideas, subsequently(prenominal) focusing its R D in rare diseases and vaccine development. The Food and Drug Administration has approved no less than nine new drugs croak year.refeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeenvironmental accomplishmentit can be define the organizational environment as all the elements that significantly make for the daily operations of the company, dividing them into two micro environment and macro environment.MicroenvironmentThis consists in real people and organizations with whom they interact with the company. Among the main ones include Customers constituted by groups of persons or institutions who buy the goods and use the services of the organization. Providers Providers are company specific, both information and funding, as the raw material that the company needs to operate. Competition specific companies that offer goods and service s identical or alike(p) to the same groups of customers or clients. regulators who are the agencies and government representatives at the local, state and national laws that punish and regulations affecting business operations within a given country.macroenvironment construe the social forces that affect the whole microenvironment and includes demographic forces, economic, natural, technological, political, cultural and competitive.Competitive environment, every company must take into account its size and position in the industry with respect to its competitors. To survive, a company must meet the needs and desires of consumers better than does the competition.Economic environment involves factors affecting purchasing power and spending patterns of consumers. Purchasing power depends on income, prices, savings and credit of the momentTechnological environment the most dramatic force that shapes our destiny is technology.Political environment consists of laws, government agencies a nd pressure groups that influence and limit the activities of various organizations and several(prenominal)s in society.Cultural Environment includes institutions and other forces affecting the values, perceptions, preferences and behaviors of societyLIDERSHIP lead has been defined as the activity of influencing people to assay willingly for the achievement of the objectives of the group. By group we mean a small group, a sector of the organization, an organization. What matters is the organizational leadership in the field. From this definition arise two key areas of leadership1) The intellectual process of thinking about the objectives of the organization.2) The human factor, that is, influence people to voluntarily strive to achieve the objectives.John P. Kotter, in his book The Leadership Factor (1988), says that leadership is characterized by the following1) Develop a vision of what should be the organization and generate the necessary strategies to implement the vision.2) Ac hieve a network co working(a) human resources, which involves a group of highly motivated and committed to make the vision a reality.The definition of leadership cited at the beginning contains a key word voluntarily, which could also be translated as willingly. Not just about influencing people to do but to voluntarily strive to match targets.ApproachesThese approaches are based on the study of behavior rather than on the depth of personality traits of substantival theories.The most important contributions in this regard have been those ofTheory X and Y Mc GregorTheory X leads to an autocratic leader performance, and the Y theorie leads to a participatory performance. But being a unidimensional approach that works with a single variable, the use of authority by the person who leads, is not accourate enough to explain its complexity as is leadershipLikert management systemsFormulated a model with intermediate degrees between X and Y. To Likert best to lead a team corresponds to a participatory behaviour Likert found that management under the participatory system were most effective and in which showed the best motivation.He built a very comprehensive questionnaire on organizational characteristics, that tests 18 variables classified in the categories Leadership, Motivation, Communication, and others. Its main limitation is that it is only useful in cases where it is intended to improve the lead making it more participatory. In this sense it is more applicable to small groups and instructed personnel.The Managerial Grid of Blake and MoutonThis marriage of researchers was able to define a model based on the intersection of two variables the affect for people and concern for production.While five main positions are standardized, the grid gives possibilities to eighty-one intersection between the two variables.The main contribution is to show that both variables are called mutually. It would be hard to imagine good long-term gains without a committed and motiva ted personnel.Without doubt, the greatest value of this approach is that it breaks the paradigm dimensional. However, the main critique he has received is that indicate a unique driving style as best for all circumstances.CHANGE MANAGEMENTIt is a process by which organizations move from the present state to a future state,changing in order to increase their effectiveness. A Process to achieve better efficiency, in which an organization achieves its objectives. organizational efficiency is amount of resources the organization has ,to be used to produce a depend of products.Levels changeWhen focused on the organization as a whole, we face that this can be divided into four levels at the time of analyzing the changesStrategic level proposing a change in the overall objectives of the organization, both in monetary value of its essential orientation of vision and their reason for their mission.Structural level proposes a change in the organizational structures, it involves changing a uthority relations, the coordination mechanisms, redesigning jobs, or similar structural variablesTechnical level technology change encompasses changes in how work is processed and the methods and equipment used.Human level people change refers to changes in attitudes, skills, expectations, perceptions and behavior of employees, including, in turn, gibe to Daft and Steers (1992) four types of changes patterns of interaction, skills in human relations and in the basic attitudes, values and motivations of individuals. Thereby changing the behavior of individuals and groups requires the transformation of one or more of the aforementioned levels (Quoted in Romeo, 1999).Models of organizational changeMany models are used to carry out or try to explain, in an effective way, the process of change, example is the model of Lewin.Lewin (1951) develops a dynamic theory, which explains that the the behavior is a function of the individuals interaction with his social environment, essentially based on the different groups to which the person belongs. it should focus not only on the individual in isolation, but in this within their social environment, taking as unit change the social group to which the individual belongs.The status quo of the organization, to Lewin (1951) is a state of dynamic equilibrium between forces that tend to help the organization and forces that tend to counteract or prevent wrong decitions, and to effect a change is necessary to break that dynamic balance between these forces. unfreezing is the name given to this initial process where old ideas or practices are suppress by new ones and can be induced by increasing the driving forces of change growing perception of benefits associated with this, by reducing the resistance or obstacles to change, or combination of both. Following the Change in which new ideas practices. then comes refreezing ,requiring the integration of new insights into the structure of the organizational system . The refreezing state marks the contain of the organization to a dynamic balance of forces that support or restrict any intervention.Critical analysis4. INTROFew companies can be depict as subversive and successful, changing markets and consumer behaviours, apple is one of them, a remarkable company that over time has created an identity and an image that impacted in their followers.The technological direction of the company began to build in 1971 when they met Steve Wozniak and Steve Jobs. The former is responsible for creating the first Apple computer, while the latter promoted among the major supporters of computing and digital electronics shops.Apple has begun a career that has had its ups and downs due to different administration, Steve Jobs being the most successful, turning the company into one of the largest in historyBut what does make it a success?Innovation, the key of success, which leads to a competitive advantage.From the beginning of Apples history in 1976, Steve Jobs, the soul o f the company, had a different view of its competitors, looking distinguished among its rivals, trying exclusivity and novelty, as jobs mention, I want to bring an easy to use computer to the market.From here we can analyze that jobs from the start thinking like a consumer, which would win the loyalty of its customers.With the launch of Apple II the computer revolution began, having as the main rival IBM.But what type of innovation strategy do they have at that time? clearly the development of their products were made by them within their company, all the ideas were in apple, As mentioned in the textbook Apple practised to horizontal and vertical integration relied on its own property designA classic type of linear model innovation, as mentioned in the literature review.Basic researchApplied researchDevelopmentCommercializationThe challenges started when IBM developed a faster processor and the use of an open operative system(ms dos) Limitating the sofwares that apple had developed, as well as the slow processor speed, and fall 62% of apple net income between 1982 and 1983 leading to a crisis in the company and the dismissal of Steve Jobs.With the entry of Sculley as CEO, apple tried to gain musculus quadriceps femoris in a new market, education, which were driven by its high technology softwares, they recover their market share and stabilized at 8% as (referred in the case study)As the philosophy of Jobs to make things simple, Sculley introduce plug and play peripherals which allow overpricing their products.4.1 THE STRATEGYAt this stage the revenues came from exclusivity rather than cheap products and apple still producing their own monitors, chips and disk drivers, keeping the classic innovation model.But now apple forge and alliance with their main rival, IBM ,creating 2 joint ventures in order to produce new operating systems and multimedia applications,Sculley was replaced in June 1993 by Michael splinder.It was a good decision to change the management? With the new management, changes were inevitable, apple started licence many companies to make Mac clones, trying to reduce costs, which was a poor decision made by splinder, apple lost 69 billion dollars in 1996 subsequently 12 years Steve Jobs returned and became the interim CEO of apple4.2 NEW BEGINING, NEW IDEAS, INNOVATIONWith the return of Steve Jobs, Apple returned to the path of innovation. Not only in technology but also in the strategy and business model.For exampleOpening its own stores to broaden the scope of the external distribution channel.For the first time apple open and online store to set up direct salesThey invest more money on Research and DevelopmentDecrease its inventoryIn 1998 apple gained real profit from their all in one computer, iMac, that could support Microsofts peripherals for the first time.With jobs in command, the company started to reshape quickly. Those were signs that the course was on track, Apple affix a profit of 309 trillion Dollars4.3 NEW STRATEGY-BLUE OCEANThe real revolution of apple came with uncontested line of products, the reinvention of portable music devices, the telephone and the tablet.Apple had an not bad(p) strategy, the digital hub strategy, Mac became the preferred hub to control, integrate and add value to these devices.All started with the iPodAs the theory of Blue Ocean, in order to create a new market and escape from the battling Red Ocean a company have to be innovative, different.Apple launched a new concept of music device, the iPodBlue ocean strategy quick analysis (BASED ON IPOD DEVICE)1. Increase the music storage can store up to 1000 songs2. Reduce energy consumption, up to 10 hours battery3. Create ultra portable high performance device, iTunes4. Eliminate old concept of music device.Through this commitment to innovation on all fronts in which focused,Apple managed to gain success as 60% of the digital music market.With the iPod, Apple has done what he does best offer a productInnovative, bringing together high technology, attractive design and a simple interfaceuse. And with its iTunes online store, Jobs offered an innovative business model.iPhoneA new revolution of the company would begin with the launch of the iPhone in 2007, a multimedia smart phone with Internet access, touch screen and a minimal hardware interface. His success was such that it would be awarded the Invention of the Year by Time magazine in 2009, Apogee has maintained that through the sale of new issues as the iPhone 3G, iPhone 3GS and iPhone 4iPadWith a revolutionary concept between smartphone and a laptop (which would later be called tablet), the company lashes out in early 2010 to introduce its new device called iPad. Its multitouch capabilities, wide screen, its innovative design and powerful hardware allowed him to position itself as the most popular product of the year.However not all inventions made by apple where sucesful, not always an Innovative product will be succesful, for instance t he Mac Mini and the Apple TV were a failure,But why?Because they havent figured out the right way to create a compelling TV productMost of their best selling products are based on an apple operative system, and a TV box does not need that.Microenvironment FACTORS-SWOT ANALYSISStrengths Apple is one of the marks of technological innovation in the worlds largest entertainment. It has a large number of fans who admire the quality of their products. Such loyalty guarantees the permanence of its customers and generates the attraction of new consumers. In turn, Apple products are easy to handle and excellent quality.Weaknesses Apple has been criticized for antenna problems on its latest iPhone. Moreover, its admission policies iTunes Store applications and user freedom are very restrictive. The costs of their products are usually a little higher.Opportunities The mobile market is expanding and Apple can leverage its established position in digital distribution. In the course of time, Appl e has made a huge acepatacin the AppStore (billion download until this year) developed by various groups of programmers in the world. Furthermore, due to its success, Apple is an interesting market for investment, which has benefited the company in times of crisis.Threats There is increasing competition in the technology market. Market companies are quick to market with products like the iPhone or iPad. To remain in place, Apple should invest more in research and technological development. Economic crisis.ChNGERecall that after having problems with the top management of the company he founded, Jobs was fired from Apple Computer in 1985, later founding the company NeXT, which was reabsorbed by the very Apple Computer in 1997, where Jobs is president ( CEO) since.1. Changes in the board of the company that meant a renewed confidence in the company and markedly increase the stock price of the company.2. The re-purchase of the licenses the use of PowerPC 750 (G3) of all companies that c ould make Mac clones (yes, there was a time that I had), so the company re-take control of the hardware in running your operating system. Start of organizational change Create a culture Reduce by 50% to 10% Research Development, and removed the unnecessary worker Launches first product of the new era Jobs. The IMAC computer without a tower, and of different colors, with cd, and no floppy. Jobs realizes the market opportunity that I had in music. After the success of Napster. AND ITUNES product launches, to the IMAC. And you create a culture, a style the best philosophy that a company can have. The music. Sony created the personal music player but did not use the MP3 market3. The announcement of the Power Mac G3 in November 1997 (new flag)These changes Apple made were to have a profitable quarter ($ 47 million). But after more decisions were taken that catapulted the company to a winning streak that continues to this day1. Drastically reduced hardware production line of the compan y.2. Because of this reduction is greatly change product offering Apple aside rare model names (most identified by numbers) and variations that just confused the current and future customers.3. The announcement of the iMac and PowerBook G3 in May 1998. Thus Apples offer was reduced to three elements* Advanced Desktops PowerMac G3.* Equipment for home desktop iMac.* Portable PowerBook G3.4. Completing hardware divisions that reported earnings as Newton, production printers and accessories. Significantly simplifying the internal structure of Apple.5. It starts selling the iMac on August 15, 1998 and became the fastest computer sold in history.Apple went from a quarterly loss of $ 740 million in June 1997 to gains above the $ 100 million per quarter in July 1998.In 2009, Apple reported profits over 8 billion dollars per quarterLeadershipWhen analyzing the personality of Steve Jobs, co-founder of Apple, there are many features that spring to mind to describe this technological genius w ho profoundly influenced a new generation with products like the iPod, iPad and iTunes.Some, stand for the rest of the business in its category. For example, a person was extremely perfectionist with each of the products created, intuitive to realize that products would have positive results and which are not, studious because researching every detail of your market and competition, and charismatic, because enthused employees to perform their work in a better way.While these qualities we find in some other successful entrepreneurs in their areas, the fact is that there is one that is shared by all innovative leaders curiosity.Thats because the primary secret of success of Steve Jobs lay in his curiosity, according to Forbes, for example, curiosity led him to study calligraphy, which could create fonts that Apple made known to its original design.Even the same curiosity led him to travel to India to study Eastern mysticism and Zen Buddhism, to seek simplicity of design. And it was pr ecisely this feature which became known as Apple technology company worldwide.This shows that the top executives are not always the most skilled, but are those who exploit the curiosity the most, as their ideas generate creative and successful business.In fact, one of the most famous phrases of Steve Jobs is when you innovate, you run the risk of wrong. Admit and innovates again. This reflects the spirit of entrepreneurship and creativity. Jobs was ahead of his time and embodied everything we thought it would be impossible to do.So do not doubt your ideas or your impulses. If your curiosity leads to new business plan, try. Maybe you can turn those ideas into big business to take you to achieve success in your caption and recognition among your competitors6. CONCLUSIONWith the case study over, it has been learned the importance of innovation and the impact that it has in companies around the world, such is apple and its successful history. Also it is important to point out the influ ence of the strategic planning in order to gain competitive advantage among competitorsit has been shown the importance of good management in critical situation and how it can affect the overall direction of a company.the blue ocean strategy has provided relevant information for the understanding of creating opportunities in new markets, for instance in the case of apple, the innovative idea of Steve jobs in the creation of the iPod, iPhone and iPad in the technological market made apple an outstanding successful company in the 21st century despite the fact of the global recessionFor the purposes of save research this assignment is for free useDANIEL LIZARRAGAReferencesMedina Salgado Espindola and Espinosa 1994Freeman, C., 1982 the economics of industrial innovation pg 56Peter Drucker 1985 Innovation and Entrepreneurship pg 28-pg29Steve Jobs 2005 Stanford university speechHenry Chesbrough Open Services Innovation Rethinking Your Business to Grow and Compete in a New Era pg 66Telegr aph 2011