Innovation at firm-level is important for general life of a firm that operates in a liberal competitive market. However, innovation only is not sufficient being that in most cases companies do give more focus on a newer technology rather than the customers problems (Kotesmir & Meissner, 2013, p. 16). In as much as new market technology is important, some other factors also play in and needs to be considered. Consideration of these other ideas helps in turning them into ground breaking innovations.
Invention is the creation of a newer product or an introduction of a fresh process into the market. According to Gompers and Lerner (2001, p. 21), it involves a massive capital investment while on the other hand, innovation involves the improvement on an existing process, service or product. Being that Pint Energy Company is keen on injecting a couple of products and services as a strategy to expand their operation, application of innovation strategy is most appropriate for achievement of objectives of Pint Energy Company. This is because a deeper understanding of innovation model as a means of firm appraisal is important despite the firm level in an economy being that it assists the management in understanding, outlining and initiating action on management matters (Tidd, 2006, p. 32). It is also cost effective and requires less resources compared to full invention. Furthermore, innovation leads to injections of products and services which are in line with the companys objectives thus doesnt require much marketing investment.
Referring to Ortt and van der Duin (2008, P. 524), there are various models of strategic innovation that Pint Energy Company can apply during the product and service injection into the market.
Technology Push Model
This kind of innovation model has a linear structure and thus simple. This model maps innovation as a successive process executed across distinct stages. It makes an assumption that, new advancements in technology are based on scientific discoveries and research and developments. The end product is then achieved through manufacturing, engineering, research and marketing as a way of ensuring product success and also invention as outputs.
Market Pull Model
Under market pull model, the priority for creating innovation process is on the significance of the demand in the market. In contrary to the technology push model which derives product development from scientific advancements, innovation ideas are obtained from the market place and research and development becomes responsive to these necessities. It is a linear strategic innovation model and thus simple.
This model is also referred as coupling as well as chain-linked model. This model is more like dual in nature being that it recognizes interaction as well as feedback loops to. This ensures that innovation is coupled between market, science and technology and thus overcomes the limitations of the first two models. In the internal business setup, the interactive model integrates several independent stages and functions. This mode is non-linear being that it is composed of feedback loop.
The parallel innovation model is of higher order being that it allows cross functional incorporation inside firms. It allows for functional overlap between different departments in execution of duties. It further allows for associations and connections in the external market structure between, suppliers, government bodies as well as customers. This creates a healthy environment as well as economy within a company being that resources can be shared between different departments
The network innovation model is a more integrated model which stresses that innovation is spread networking procedure thus requires constant change happening inside and among firms, described by a number of outward inputs surrounding competitors, customers and suppliers (Rothwell, 1994, p. 22). The main end goal is to integrate companys interior innovation setting and aligns it with the exterior aspects within the market of operation.
The open innovation model incorporates the use of information and communication technology as a strategy for innovation (Enkel, Gassmann & Chesbrough, 2009, p. 313). The information and communication technology is used as means of accelerating innovation procedure and communication across the networking structures by elevating both speed to market as well as development effectiveness via strategic market alliances. This is an effective model to be applied in a company which is aiming to increase its competition strategies.
Pint Energy Company should adopt the open innovation model. This is because the model does limit the Pint Energy Company to only internal generation of ideas and development issues (Chesbrough, 2003, p. 42). The model provides a smooth alignment in both interior and exterior environment concepts as together with market paths in outside and internal market environments. These paths includes insourcing and licensing among others which are enabled within the development sequence. This model is thus hybrid and dynamic as well-being that it favors model shift where competitive gain may originate from outside findings away from boundaries of one research and development unit. There is also a possibility of benefiting from exclusive reliance on the companys own internal market paths by linking to exterior bodies that are well placed to offer commercial advantage on a certain expertise. This is essential as it saves time as well as unnecessary costs to the Pint Energy Company.
The process in open innovation model will also benefit the company (Chesbrough, Vanhaverbeke & West, 2006, p. 44). There is outside-in process which includes extending and enhancing the companies own knowledge base by integrating customers, suppliers and sourcing external knowledge as well. There is also inside-out process involving the security of commercial advantages by taking concepts to market quicker compared to inside environment through license issue, spin-offs, joint ventures and multiplying technology. Finally there is coupled process combining both process for the gain and commercialization of both internal and external knowledge through various processes thus reducing risks and in the end helping in extending the boundaries of Pint Energy Company in the United Kingdoms market and even beyond.
Dimensions of Strategic Innovation Framework
Being that the current market structure is more dynamic, innovation by companies should be continual so as to match the changing market environment (Palmer & Kaplan, 2007, p. 7). Therefore, the idea of injecting new products and services by Pint Energy Company is healthy for the companys survival in a more competitive market. However, the initiation of these changes needs a strategic framework which will ensure that the companys changes are growth driven and thus impacts on general profitability and revenue margins of Pint Energy Company. There are seven dimensions according to ORaghallaigh, Sammon and Murphy (2011, p. 369) over which Pint Energy Company must use to realize its strategic innovation framework.
A Managed Innovation Process
A managed innovation process is crucial being that it is at the core of the creativity of the whole innovation process (Schutte & Preeze, 2008, p. 537). When a strategic innovation is properly managed and a view beyond what is obvious is provided, it becomes easier to inspire and influence participants of the team. When they are influenced and inspired, they develop the ability to explore many diverse ways and finally attempt to provide new possibilities and dimensions.
Team work and harmony is essential for the success of the company. Under strategic alignment, the support and enthusiasm is vital from the key stakeholder in an effort to motivate the company and ensure that all of them are concentrated on similar goals, visions and actions within the company (Cormican & OSullivan, 2004, p. 824).
The industrial foresight is vital for the company being that it aids people inside the company to understand the main drivers of change. It also helps them to identify the present trends that are new to the company and the market at large. Finally, it assists them to be familiar with new technologies that may be of much benefit to the business company and to think beyond the obvious.
The consumer insight is vital in establishing a strong company and customer relations. It helps the company to have an understanding and perspective of what the customers require. This encompasses what the customers have said as well as what they havent.
Core Technologies and Competence
The core technologies and competence are internal and organizational strengths existing within the company which can be extracted and put into better use (Teece, 2010, p.181). These company strengths can offer satisfaction to consumers and finally help in improving the quality of the brand.
When a company is ready organizationally, acting on new market ideas and implementation of new strategies becomes quickly and it is done in an organized manner (Eleveens, 2010, p. 37 ). Existences of an organized company structure also helps in managing financials together with operational demands that comes in handy when using strategic innovation.
The level of discipline displayed by the Pint Energy Company will be the determinant on how effective the strategies and ideas will be. The discipline is proportionate to the enthusiasm of company while going on with the whole innovation idea.
Finally, Pint Energy Company can put some few considerations as part of success guarantee to the strategic innovation plan. According to Geoffrey (2003, p. 88), assessment about how competitive the innovation is useful. This assessment helps the company to evaluate its position in the market of operation. The innovation products to be injected should also be aligned according to the companys key strategic goals and focus for it helps in support product identity. There is also need to evaluate potential consumers who will benefit from these new products and services. During execution stage, risks, partners, processes, suppliers and resources as well as the market environment must be identified. This ensures that there is success in the innovation. There is need to assess the market and monetary value of the innovations and how the company will harvest value from these injections. Therefore, open model together with the innovation dimensions as well as taking considerations are the key to enjoying the market boom in the United Kingdom by the Pint Energy Company.
Chesbrough, H., Vanhaverbeke, W. and West, J., 2006. Open Innovation: Researching a New Paradigm. Oxford University Press.
Chesbrough, H., 2003. The Logic of Open Innovation: Managing Intellectual Property, 45(3), p. 33-58.
Cormican, K. and OSullivan, D., 2004. Auditing Best Practice for Effective Product Innovation Management. Technovation, 24(10), p. 819-829.
Eleveens, C., 2010. Innovation Management. Innovation Process, Models and their Implications. Nijmegen, NL.
Enkel, E., Gassmann, O. and Chesbrough, H., 2009. Open R&D and Open Innovation: R&D Management, 39(4), p. 311-316.
Geoffrey, A. M., 2003. Darwin and the Demon. Innovation within Established Enterprises, 82(7), p. 86-92.
Gompers, P. A. and Lerner, J., 2001. The Money of Invention: How Venture Capital Creates New Wealth. Harvard business press.
Kotesmir, M. and Meissner, D., 2013. Conceptualizing the Innovation Process-trends and outlook. NRU HSE Working Paper Series Science.
Ortt, J.R. and van der Duin, P. A....
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