Business Management | Innovation Thinking Practices

RUNNING HEAD: INNOVATION
MANAGEMENT
BUSINESS MANAGEMENT

INNOVATION 1
Introduction
The report reflects on the concept of innovation thinking and practices in an
organization. It involves the reasonable solution to the given interrogations. The discussion
involves the application of relevant theories as well. The key purpose of the report is to
emphasize on the significance of innovation in the organization.
Solution
1. Innovation is considered as the key to success for business enterprise. In practice of
increasing customer strength, it is proved highly beneficial. There are multiple innovation
theories. It includes Disruptive, sustaining, radical, and incremental theories. Disruptive
innovation is the application of technology that highly affects the functioning of market
and industry. Sustaining innovation is also referred as Routine innovation. It often
happens depending on upgraded technology, customer and market demand. Radical
innovation act as a growth strategy. It is concerned with the exploration of new
technology. It leads to the improvement in existing system. Incremental innovation refers
to small and gradual improvement in in existing product, process and method. It allows
the organization to maintain a competitive position in the market (Ngo & O'cass,
2013).
2. Innovation and creativity are highly assisting in practice of raising customer strength.
Laying focus on innovation and creativity raises the possibility of development of new
products and services. Creation of new products and services helps the organization in
gaining customer attention and engagement. It will motivate the customers to try
company’s new products and services. It will raise sales and enhance customer strength.
Therefore, it will prove highly beneficial in the applied practice. This in turn, helps the
organization in gaining more market share and experiencing high recognition in the
market (Teece, 2010).
3. Leadership style has a high role in developing innovation in organization. Specific
leadership style gave rise to innovation whereas others prohibit. Democratic and Laissez
Fair Leadership style involves giving specific degree of authority and responsibility to the
employees. It allows them to give consideration to their own ideas and thoughts for
performing their work. Additionally, the democratic leader motivates and empowers
them. It motives the employees to move forward with their innovative ideas. An

INNOVATION 2
autocratic leadership style involves providing low authority to the employees. In this
leadership style, employees ideas and suggestions were not given due consideration. With
limited power, employees do not able to generate innovate new creative ideas.
4. Organization and industry context are relevant to innovation. This is because innovation
is highly significant for business organizations as well as for overall growth of the
industry. In order to attain consistent growth, organization has to rely on innovation. It
allows the organization to develop upgraded products. It assists in gaining a significant
and recognized position in the market. Organization has to lay high emphasis on
developing innovation in its products and services. Failure in application of same results
in failure in developing high customer strength. It leads to facing higher competition with
rivals. Therefore, innovation attains a key role in organization and industry.
5. There are multiple internal and external factors that lay an impact on organizational
innovation. Creation of career development programs provides learning opportunities to
the employees. It improves their knowledge and develops new skills among them. By
gaining new and higher knowledge they develop more potential to be innovative in their
work process. In the presence of high competition, availability of better technology, and
change in customer taste and preferences, it develops a force on an organization to come
up with new and innovative outcomes.
6. Innovation gave rise to potential risk and challenges in the organization. To identify and
assess the risk and challenges, organization has to lay prior attention towards its
employees. It should communicate with them to gain information about their problems
they are facing due to innovation. It will allow them to take appropriate measures. To
control the innovation issues associated with employees, organization has to develop the
use of risk reduction strategies. The organization should accept the risk and try to take
effective measures. It should try to seek suggestions from all the employees. This is
because it will help the organization in gaining wide variety of ideas for solving the
challenges (Chesbrough, 2010).
7. Multiple elements in an organization drive innovation. These include organizational
culture, structure, physical environment, process, and team. Healthy and positive
organizational culture gave rise to healthy mindset. It enables the employees to develop
creative ideas. Availing the use of team based organizational structure and developing
teams involves sharing of ideas, and thoughts. Collaboration of ideas gave rise to
innovation and creative thinking. Providing learning opportunities and developing the use
of new process in the organization also contributes to innovation (Piperopoulos, 2016).