Corporate Innovation of Fisher & Paykel Ltd.

This document discusses the corporate innovation strategy of Fisher & Paykel Ltd. and how to innovate in the home appliance industry. It covers topics such as designing an innovation strategy, structuring a company for innovation, measuring innovation, and more. The document provides insights into the importance of innovation and how it can help a business sustain its position in the market. It also includes a table of contents and references.

Running head: CORPORATE INNOVATION OF FISHER & PAYKEL LTD.
Corporate innovation of fisher & Paykel Ltd.
Name of the student
Name of the university
Author’s note

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Table of Contents
• What to innovate...........................................................................................................................2
• How to innovate............................................................................................................................4
• Designing an innovation strategy..................................................................................................4
• Structuring a company for innovation...........................................................................................6
• Designing the process of innovation.............................................................................................8
• Measuring innovation..................................................................................................................11
• Designing incentives to support innovation................................................................................12
• Learning innovation....................................................................................................................13
• Designing an innovation culture..................................................................................................13
• Applying innovation rules to an organization.............................................................................14
• Innovation in SME’s...................................................................................................................14
References......................................................................................................................................16

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• What to innovate
Fisher & Paykel Appliances is a company with a long and rich history of designing and
manufacturing home appliance products. The company is required to bring about innovation in
terms of product development and product modification. The business firm is required to
undertake a new era in terms of designing the products. The business firm is required to apply
new methods of framing product development for a better future (XU et al., 2014). The business
firm lacks innovation in the products and appliances.
However, the firm has undertaken a couple of measure such as lean product development. The
number of competitors that are emerging within the market is making the firm’s innovation
strategy old. The products and appliances as provided by the business firm are very much
desirable among the consumer market but with the change in time (www.fisherpaykel.com,
2019). There is a need for the business firm to undertake necessary changes in terms of product
development and product modification to sustain position within the economy of a consumer.
We live in a world of design where innovation in the commodity pulls the attraction of the new
as well as of the existing customers. Innovation is a continuous process which cannot be
eliminated upon the success of one achievement. Although the innovation strategy of the firm
was very qualitative, the business firm fails to survive as the time outdated the innovation.

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Figure: Innovation introduced as per the year basis
Source: (Lean-analytics.org, 2019)

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• How to innovate
Curiosity brings about innovation. The business firm should make strategies to
understand the perceptions and vision of the customers, how the consumers make use of the
commodities and the appliances, how they think to use such commodities, do they feel for a re-
utilisation of the product. Understanding of such fact will avail the business firm an opportunity
to bring about innovation that will change the entire phase of the business process
(www.sciencelearn.org.nz, 2019) again. The company should take the initiative towards the
possession of knowledge of the latest trends, technologies and regarding the techniques of the
rival firms.
This will pave about a way for the business firm to carry its necessary action plans. Being a
premium brand, the details quality of the product should be given much of the priority to
stimulate the interest of the end consumers. The company should make use of qualitative and
high end raw-materials for product development being it any segment of the product. Moreover,
the business firm should make utilisation of other raw materials that may be out of reach of other
rival firms. Introduction of new fancy designs by making use of such unique raw-materials (Chan
et al., 2017).
The luxury product segment should be modified in terms of unique properties to re-innovate the
industry. However, another marketing strategy can be implemented, an event can be organized
where various demonstrations of the product will be carried out, and trails will be served. This
will act as a pull marketing strategy capturing much of the consumer awareness.

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• Designing an innovation strategy
Firstly, depict out the opportunities that exist and evaluate each of the possible outcomes.
Then seek for the strength and weakness that stays in the hand of the business unit. The financial
factor should always be given priority taking into consideration the changes in terms of the
economic, political and social factors. The firm can make use of the SWOT analysis and
PESTEL analysis as such that this marketing theory will provide a depth report of the marketing
threats and the opportunities (Kudryavtseva et al., 2015). Moreover, the firm should formulate
innovation strategy keeping in mind the three prime factors; they are namely as follows:
 What- what should be innovated?
 Why- for what the innovation action should take place, the objective?
 How- The questions as of how to undertake the innovate step?
A strategy is nothing but a commitment; it is a composition of statements made from vision,
objective. The firm should undertake research and development measure to address the key areas
that require innovation. The firm should construct a qualitative basis and quantitative basis
measure to evaluate the brand equity and brand loyalty that exists within the consumers. A
quantitative measure such as an interview on a random sample basis, undertaking survey and
many more.
Qualitative measures such as mystery shops and anonymous feedback to address the default
areas. The company should address a poll session to resolve which of the product is most
desirable among the consumer market and why the product is so preferable (Uvarova et al., 2016).
Taking into consideration this specific product research and study can be undertaken to
understand the benefits that make the product of such qualitative and desirable.

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Figure: Innovation strategy
Source: (www.bresslergroup.com, 2019)
• Structuring a company for innovation
Organisational structure- The structure of the organisation itself should be given much
importance (Donate et al., 2015). Factors like does each of the employees of the organisation is
being heard?

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Processes- The business processes of the firm should be monitored such that to make sure
whether the business processes contribute towards the development of product or innovation.
Tools- Do we possess the right kinds of tools that are required to make the business firm arrive at
a logical proposition.
Transparency- Does the business firm acts upon transparency.
Availability of scope- Does every employee has the feature to grow and develop within the
present business context.
Acceptance of failure- The business firm should be capable of accepting the failure that incurs
within the undertakings of the business activities. Failure is the key to success. One should
thoroughly evaluate the failure to arrive at an achievable position.
Employment engagement and loyalty- Structuring a company for innovation, are the present as
well as the newly hired employees working willingly towards the contribution of business efforts
(Drucker et al., 2014).
Team activity- The area of focus should be on the teamwork efforts. Every department should
focus on the efforts of the team participation rather than individual participation. This will bring
about a devastating change within the business outcomes.
The manner of the business undertaking within the business structure should be improved in
accordance with the below-mentioned figure,

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Figure: Structuring of a business unit
Source: Created by the researcher
• Designing the process of innovation
The very sole purpose of innovation within the business is to create value for the business
firm. The value exists in many different forms. It may be a product improvement of the existing
Organizational structure
Business processes
- Modification of the existing business processes to
support school of thoughts.
- Developing unique system for innovation development
Raw-materials and
Tools
- Formulating one’s own goal for innovation and to
ascertain the tools required to arrive at a proposed
stage.
- Conducting research as of the fact that what specific
tools are required.
- Evaluating each of the available tools, until we get
the suitable one for the business firm.
- Devotion of responsibility down the hierarchy.
- Developing new medium of channels for
communication.
- Encouraging organizational transparency

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commodity. Innovation process involves new commodity and services, reduction in cost,
improve net in the efficiency of the commodity, new improved models of business, new ventures
and many more (Mergel et al., 2015). Ideas are seeds for the innovation process. Innovation
process comprises of the following steps; they are as follows:
- Strategic thinking and analysis- The first stage should be to formulate a strategic position
within the market place. So, within this particular stage of innovation, it is to be strategically
enumerated about how innovation is going to contribute towards the value for your strategic
moves. The area that should be targeted is where there is a greater possibility of strategic
advantage.
- Managing portfolio and metrics- One of the important aspects that lies within the framing
of innovation step is the essence of failure. By nature, it is considered that there exists a need
to introduce something new within the business. For which we implement the future plan and
use it in the practical field, we are unaware of the fact that will it be successful or not (Brook
et al., 2014). The innovation portfolios should be managed efficiently and aggressively to
arrive at a preferable balanced position in terms of risk.
- Research- This resembles the framing and design of the innovation portfolio. Which is a
result of the mixture of the short and long term basis projects across all the stages of
innovations. Once we are able to understand the criteria and the area of the gap we can
evaluate our knowledge that is inherited within us as of now and fulfil the gaps. The sole
purpose of conducting the research is to fulfil the gaps. It is the means of research through
which we will be able to fulfil the required gap areas by means of the latest technologies,
consumer values and equipment. However, within this research, the number of opportunities
that lies for the firm will be evaluated and will be chosen the best one that suits the firm.

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- Insight- It is believed of the many professional that the insight is the first most beginning
stage of the innovation process. Within the professionally managed innovation effort, it is
desired that outcome to be accepted as an act of the preceding activity or process. The
random generation of ide is the main criteria within the stage of insight. Insight is a dedicate
process of development and examining carefully. It is not the result of a single body but a
result of teamwork that contributes together towards the common goal.
- Development of innovation- This process deals with the prototyping, designing, framing,
engineering and testing that would result in the final output product. Manufacturing,
distribution, branding, marketing, and sales are too given importance within this stage of
innovation (Foxal et al., 2014).
- Selling- This stage is concerned with the real payoff that is being achieved. By means of
selling the final products, revenue is being generated. In term of the process, improvement
innovation is directed towards the internal factors.
Figure: Innovation process
Framing
model
Idea
generation
Prototype
Research &
indings

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Source: Created by the researcher
• Measuring innovation
In order to measure and quantify the innovation the utility of IT technology can be
undertaken or making use of the leading and lagging indicator. Hence, to estimate the
quantifiable outcome there is a need to identify the leading indicators, it should be used over
some time to measure the measurable output and to help to drive innovation within the
organization.
For the first step, there is a requirement to agree internally basis and to address the key
performing assets of the business firm as the leading indicators for measuring the amount of
innovation that lies within the business firm (Ivanov et al., 2014). Some of the measures that can
be undertaken in order to measure the justifiable proportion of innovation are as follows:
 Ambience for risk bearing and acceptance of failure within the firm.
 A number of efforts and tries that has been undertaken by the firm.
 Percentage of new ideologies that contributes towards the larger initiatives.
 Amount of time spared for the introduction of innovation.
 Revenue generated because of the change in technology.
 A number of projects that makes use of the trendy technologies.
 Change in the business undertakings of the firm.
 Change in customer satisfaction objective and workings.
 New objective and planning phase within the CRM management team.
However, both quantitative and qualitative factors can be undertaken to measure innovation and
its effectiveness.

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• Designing incentives to support innovation
Incentives in terms of business goals (De Blasio et al., 2014):
- The requirements regarding the performance will be defined straight up front basis.
- According to nature basis, it can be long term or short term.
Incentives in accordance with teamwork or group work:
- Collective performance in terms of reward.
Sales compensation plans:
- It can be formulated according to the segment of various sales target objectives.
- Should possess the potential to impact within the bottom line.
However, the bonus scheme is not considered as one of the best approaches for the innovation
introduction. It is not desirable as such that bonuses are being paid by the available amount that
is left over in the account of the desired employee. They are very often regarded as the subjective
mode with an unclear relationship of performance. Although there exists some other alternative
methods for designing incentives for the introduction of innovation, they are as follows:
Termination of the subject body- The threat of termination make the conscious mind of the
employees active and contribute towards the activities of the organization. The manager is not
the only body for bringing innovation within the organization. It is the efforts of the individual
who contributes together and achieve one common goal for the organization. It is a threat for
termination that discourages the existing as well as the new employees from undertaking any
illegal activity or action.

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Explicit contracts and corporate culture- Companies can undertake some measures to
encourage the practice of innovation within the business firm by mean of offering explicitly
based contracts that comprise of a stock option with longs prolonged periods, option repricing.
Feedback- Some visionary bodies focus on the feedback aspect. The focus groups and other
consumers test the generated data and information’s in terms of market attitudes related to
company’s products and services.
• Learning innovation
As a manager, I understand the need for the company to bring about innovation in our
business undertakings. There exists a need for the company to comply with the day to day
changing needs of the customers. This will enable the company to withstand in the strong
competitive era. The company is facing a problem because of the presence of the competition
among the rival presence (Chiva et la., 2014). However, being a manager, I understand the need to
bring about innovation in our products and services to stand within the competition.
• Designing an innovation culture
Some of the steps are as follows (Deserti et al., 2014):
 Communicating for the innovative strategy.
 Cascading workshops for active employee participation,
What specific innovation is required for the field?
What can be contribute to the betterment and achievement of innovation?
What is role play within the innovation process?

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 Organizing an Innovation day.
 Introducing creativity within the workshops.
 Conducting pitching contests.
 Awards recognition for innovative bodies.
 Innovation lab.
• Applying innovation rules to an organization
There are some common rules to apply innovation within an organization
(www.forbes.com, 2019); they are as follows (Dereli et al., 2015):
 Innovation is not an event of a single executive body; it is an overall effort process.
 Innovation should be viewed as a combination.
 Firstly, address the required set of question-related to innovation in terms of a firm’s
performance.
 There lies no perfect size for the introduction of innovation.
 Leverage open innovation for the purpose of expanding the existing potential and
capabilities.
 New business models bring in disruptive innovation within the business firm.
 Have a concern for the core, Innovate core 70-20-10 rule of innovation.
 There is a need to access the platforms in the digital era of time.
 Being competitive is a new means of competitive advantage.
• Innovation in SME’s
The primary objective for innovation in SME’s is to optimize the research and
development including the range of support and services with the objective of making the SME’s

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more powerful in terms of innovative criteria. It mainly includes providing intermediate basis
support and help to the SME’s.
Figure: Innovation matrix
Source: Created by the researcher

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