This report evaluates the business issue of innovation and creativity at Brittany Ferries in United Kingdom. It includes three course concepts, i.e. quality management, disruptive and technology innovation and brainstorming, which are used to evaluate concepts to overcome the issue of innovation and creativity.
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Running Head: BUSINESS ISSUES1 Contemporary Business Issues
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BUSINESS ISSUES2 Part 2: Executive Summary Innovation is a strong driver in creating competition and for the survival of an organization and its business. Creativity and innovation can be defined as the application of new ideas, knowledge and approaches that generate new competencies and sustainable competitive advantage. The major goal of this report is to evaluate the business issue, i.e. innovation and creativity. It includes three course concepts, i.e. quality management, disruptive and technology innovation and brainstorming, which are used to evaluate concepts to overcome the issue of innovation and creativity. This organization has implemented various innovative practices and policies to stay competitive in the shipping industry. By implementing these concepts and processes, Brittany Ferries is able to attain more competitive advantage in shipping industry in United Kingdom.
BUSINESS ISSUES3 Table of Contents Part 2:...............................................................................................................................................2 Introduction......................................................................................................................................4 Business Issue Theoretical Review.................................................................................................4 Quality Management....................................................................................................................5 Disruptive and technology innovation.........................................................................................5 Brainstorming...............................................................................................................................6 Evaluation of organisation’s Business Issue practices....................................................................6 Conclusions and Recommendations................................................................................................8 References........................................................................................................................................9
BUSINESS ISSUES4 Introduction In today’s competitive business environment, most of the organizations need to deal with different business issues like; innovation and creativity, globalization, e-networks, cyber security and Big Data. These issues affect the growth and success of company in perspective industry. Each and every organization creates and implements various strategies and policies to overcome these issues. This report includes the discussion about a business issue that is confronted by Brittany Ferries Company in United Kingdom(Brittany Ferries, 2018). The company has successfully managed the issue of innovation and creativity in relation to its business processes and services. It discusses the three core concepts, which are related to innovation and creativity practices. These concepts are such as; quality management, disruptive and technology innovation and brainstorming. Theoretical aspects of these course concepts are included in the report. Moreover, there is the discussion about how the organization has implemented these course concepts to deal with the chosen issue. The data is collected from the secondary sources by the use of qualitative methodology. Brittany Ferries is successfully able to manage this issue by implementing effective practices. Business Issue Theoretical Review Any organization cannot attain sustainable innovation by one-sided approach. It needs an understanding of what innovation is, categorizing the concepts for assuring evaluations and differentiated methodologiesfor companiesto make their innovation skills and creativity stronger. Innovation is the process of balancing the opposing and generally complementary variables. There are various frameworks, which may assist to have a holistic outlook. Innovation and creativity are two important factors, which are required for the growth and success of a company (Anderson, Potočnik, and Zhou, 2014). Moreover, creativity is the capacity of doing something unusual and original. Innovation is the development of something, which has never been developed earlier and it is identified as unique product or service.To understand the concept of innovation and creativity, Social Cognitive Theory of innovation can be used. This theory states that today’s companies are using technology and advanced methods to innovate its businesspracticesandprocesses.Theyouthisshiftingfromtraditionalinnovationto technological innovation. It is a good indicator of future market potential (Ratten, &Ratten, 2007).Three major concepts, which can be used to analyze the innovation and creativity
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BUSINESS ISSUES5 practices at Brittany Ferries, are quality management, disruptive and technology innovation and brainstorming. These concepts assist the organization to ensure that it runs its business activities by implementing various practices to deal with the issue of innovation and creativity. Quality Management In today’s competitive business environment, emphasis on quality as a competitive tool is replaced by emphasis on innovation and creativity. In an organization, managers require to know how to adopt quality management practices to attain innovation performance along with quality performance. Quality Management is the process that ensures that a company, products and servicesareconsistent.Itincludessomemajorcomponentslike;qualitycontrol,quality planning, quality control and improvement in quality. It is emphasized not only on the quality of products and services, but also on the resources and ways to attain it. With the increase of competition in market, companies are struggling for superior innovation in products and services (Bon, and Mustafa, 2013). It has potential to strengthen a company’s products, processes and its administrativeinnovation,whenstrategicallyassociatedwiththeinternalsituations.An organizationcanusedifferenttypesofqualitymanagementtoimplementandinfluence innovation.Socialqualitymanagementassiststheorganizationinenhancingtheproduct innovation in different ways. Quality training improves the skills and abilities of employees to enhance the teamwork and reduce the errors that have a large impact on product innovation. Moreover, encouraging better relationships in supply chain can assist in information sharing process about innovative products and services. For example, Sony has collected the data related to quality issues, which are arising in Japanese marketplace. Based on this information, the company has contacted with its technical and quality management specialists. Sony has accelerated its quality improvement by enhancing measures and promoting innovative products. Thus, dealing with quality management issue assisted the organization to engage in innovation and creativity (Dawson, and Andriopoulos, 2014). Disruptive and technology innovation Disruptive and technology innovation are the major types of innovation, which develops a value network and market that disrupts the current marketplace. It refers to the application of innovative processes and practices that affects the operations of company and its perspective
BUSINESS ISSUES6 industry. For example, Adidas is the organization that is implementing disruptive innovation to its business practices. It is re-innovating its business processes and models. In addition to this, technology innovation is also a major activity, which can assist in analyzing the innovation and creativity issue. This is the process of applying major technology changes in its current products and services. Under this, an organization implements or upgrades its technologies for improving business operations (Ibrahim, Amer, and Omar, 2011). Adidas is the best example from real business world that aims to implement technology innovation by including advanced and modern technologies in its manufacturing process. To develop technology innovation, the organization is increasingly using new software, like; CAD. However, these types of innovation are sustainable and beneficial for the organization, but they are very expensive. Brainstorming Brainstorming is an approach, which can be an effective way to generate new and innovative ideas and thoughts on any specific issue. These ideas can be clarified and reviewed to find out the best idea and best approach (Rawlinson, 2017). This technique is most appropriate with group of 8 to 12 people and in the relaxed atmosphere. Brainstorming plays an important role in the process of innovation and creativity. There are different types of brainstorming like; team brainstorming, individual brainstorming and nominal group brainstorming (Lee, Wan, Shi, and Li, 2014). There are so many examples, which have chosen brainstorming technique in its innovation and creativity process. These companies are like; Apple, Google, Samsung etc. Evaluation of organisation’s Business Issue practices In addition to effective environmental sustainability practices, Brittany Ferriesorganization is implementing various concepts to manage innovation and creativity in the business practices. This is the organization, which is continuously focusing on innovation and creativity in its shipping services and operations. Brittany Ferroess is a leading ferry and holiday operator in Europe, which has integrated a brand campaign that assisted the orgaization in building its successfull practices across digital, television and press sources (Brittany Ferries, 2018). It has a large impact on the company’s brand and its competitive position in shipping industry. As mentioned in the first part of the report, Brittany Ferries has implemented various innovative practices to develop environmnetal sustainability. For example, this organization has introduced the ships, which are operated by LNG (Liquefied Natural Gas). This gas reduces the presence of
BUSINESS ISSUES7 CO2 and airpollutants. This was a type of disruptive innovation that disruoted the existing marketplaceandaffectedtheindustrytrends.BrittanyFerriesintroducedfiirstship,i.e. Honfleuer, which has reduced the pollution via its shipping activities. It had a large impact on the competitve players in the industry. The organization has implemented disruptive innovation successfully and it assists the orgaization in gaining more competitive advantage over its competitors (Sigala and Kyriakidou, 2015). Moreover, Brittany Ferries is using quality management processes to overcome the issue of innovation and creativity. Under quality management process, first it has focused on improving the decision making process of company. It has selected the social quality management process that affected not only its services but also its internal structure. In addition to this, it is conducting quality training program that asists in establlsihing team spirit and developing innovative ideas. The business environment with quality management practices supports Brittany Ferries in promoting internal innovation (Leavengood, Anderson, and Daim, 2014). Quality management is the process that helps the organization in managing business issue of innovation and creativity. TheaboveconceptsassistedBrittanyFerriesinenhnacingandpromotinginnovationin organizaational processes. Apart from these concepts, brainstorming is the technique that encourages creativity among people of organization. It can assist them in generating new ideas and thoughts regarding business activities (Rivas-Hermann, Köhler and Scheepens, 2015). Brittany Ferries also implements brainstorming technique for implementing creativity in its technical and shipping processes. The organization has created a team of experts, which give the best and creative ideas to develop new products and innovations. One of the best example of innovation and creativity at Brittany Ferries is a new cruise ferry, i.e. named as PEGASIS (Power Efficient Gas Innovative Ship). It is the most eco-friendly cruise ferry to run in United Kingdom. This innovation assisted the organization in replacing Pont- Aven and it is operated on longer routes between Spain and United Kingdom. By implementing the above core concepts and inovative practices, Brittany Ferries is able to deal with other issues and develop its emission and pollution reduction capabilities (Sahut, and Peris-Ortiz, 2014). Innovation of this new ship enabled the organization is reducing emmision of CO2 by 20%, sulphur oxide by 99% and Nitrogen Oxide by 80% in comparison to other traditional ships. It
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BUSINESS ISSUES8 enhnaces the brand image and reputation of Brittany Ferries organization in UK and other countries, where it operates its business. Thus, it can be stated that Brittany Ferries has successfully implemneted these concepts and dealt with the business issue of innovation and creativity (Schniederjans, and Schniederjans, 2015). Conclusions and Recommendations Itisherebyconcludedthatinnovationandcreativityaretwomajorcomponentsforan organization to enhance its business processes and activities. Each and every organization needs to make innovation in its practices because it is good to implement changes in the process. The above report concludes that Brittany Ferries is implementing various concepts to deal with the issue of innovation and creativity. The report discusses three concepts, i.e. quality management, disruptive and technology innovation and brainstorming. Moreover, it can be recommended that Brittany Ferries should identify some more approaches of innovation and creativity. It should focus on development of its operations management and human resource management. It should give proper training to their drivers, so that they can manage the speed of ships. To become more innovative and creative, it should hire experts to deal with different issues, confronted by Brittany Ferries.
BUSINESS ISSUES9 References Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-sciencereview,prospectivecommentary,andguidingframework.Journalof Management,40(5), pp.1297-1333. Bon, T.B. and Mustafa, E.M.A., 2013,Impact of Total Quality Management on Innovation in Service Organizations: Literature Review and New Conceptual Framework,Elsevier Journal. BrittanyFerries,2018,AboutBrittanyFerries,Retrievedfrom http://www.brittany-ferries.co.uk/information/about-brittany-ferries. (Accessed on 14 February 2018). Dawson, P. and Andriopoulos, C. (2014).Managing Change and Innovation, Sage Publishing, London, U.K. Ibrahim, I., Amer, A., and Omar, F., 2011,The Total Quality Management Practices and Quality Performance: A Case Study ofPos Malaysia Berhad, Kota Kinabalu, Sabah.Paper presented at the International Conference on Business and Economic Research. Leavengood, S.A., Anderson, T.R. and Daim, T.U., 2014, Exploring Linkage of Quality Management to Innovation, Portland State University. Lee, C.B., Wan, J., Shi, W. and Li, K., 2014. A cross-country study of competitiveness of the shipping industry.Transport Policy,35, pp.366-376. Rawlinson, J.G., 2017.Creative thinking and brainstorming. UK. Routledge Publications. Ratten,V. &Ratten, H., 2007, Social cognitive theory in technological innovations",European Journal of Innovation Management, Vol. 10 Issue: 1, pp.90-108, Rivas-Hermann, R., Köhler, J. and Scheepens, A.E., 2015. Innovation in product and services in the shipping retrofit industry: a case study of ballast water treatment systems.Journal of Cleaner Production,106, pp.443-454.
BUSINESS ISSUES10 Sahut, J. M., and Peris-Ortiz, M., 2014, Small business, innovation, and entrepreneurship.Small Business Economics,42(4), 663-668. Schniederjans, D. and Schniederjans, M. 2015,Quality management and innovation: new insights on a structural contingency framework.International Journal of Quality Innovation. Sigala, M. and Kyriakidou, O., 2015. Creativity and innovation in the service sector.The Service Industries Journal,35(6), pp.297-302.