Innovation and the Oil & Gas Industry

This assignment analyzes the role of innovation within the oil and gas industry. It emphasizes that effective implementation of innovation helps businesses better meet customer needs and achieve a competitive edge. The concept of strategic innovation, encompassing seven dimensions, is discussed as a framework for implementing innovative ideas effectively. The importance of understanding a firm's strengths and weaknesses in driving the innovation process is also highlighted.

Innovation

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK...............................................................................................................................................1
Innovation and intervention........................................................................................................1
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1
.........................................................................................................................................................1

INTRODUCTION
Innovation is defined as a new method, idea or process. In today's business environment,
it is very necessary for enterprises to adopt the concept of innovation or something new to its
customers on continuous basis as this help fulfil the requirements of its customers and at the
same time provide competitive benefit (Van Bommel, 2011). Strategic innovation is another
concept which should be implement by enterprises, in this an organisation redesign its strategy or
introduce some variation in it for execute all business operation in an effective way. Innovation
and invention and the major benefit between these two terms is all given in this report. In
addition to this strategic innovation with its seven dimensions is all mentioned under this.
TASK
Innovation and intervention
Innovation refers to new method, device or idea. However it is also known as the
application of better and new solutions for meet some specific requirements. Further, innovation
can be defined as something more effective that contribute in growth of society. Application of
imagination, information is also come under the concept of innovation (Thun and Hoenig, 2011).
Basically innovation is the transformation of a idea into reality. It can be defined as the variation
that add to the product or services to satisfy the needs of customers.
Invention
Invention is known as unique method, process or composition. It may be a improvement
or may be a new process for create an object. Term invention is used for something that has
never been made before or for the process that has never come into background before.
Basically, invention is defined as the process or act of create, discover and design a new method
and process that is nit existed before (Tang and Musa, 2011). One of the main feature of
inventions is that it can be patented as this provide security to the inventor.
Large number of people think that innovation and invention both are same but there is
huge difference between these two terms and this can be understood by the points given below:
Basis Invention Innovation
Meaning This term is use when idea
for a process or process take
Implementation of idea or
method for a product for
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place that has never been
made before.
the first time is known as
innovation.
What is it? Under this development of a
new product take place.
In this value is added to
something which is
already exist.
Concept A new and original idea with
its working in theory
Practical implementation
of idea take place in this.
Skills required Invention require scientific
skills.
Various skills are require
under this such as
technical, marketing and
strategic.
Occurs This take place when a new
idea strikes to mind of an
individual.
Innovation take place
when requirement for a
product felt or
improvement in that
product is required.
Concerned with Concept of invention is
concerned with single
product only.
Innovation is concerned
with various products and
process.
Activities involve in this Research and development
activities.
All activities of various
function of enterprise.
Strategic innovation
Strategic innovation is the process in which enterprise redesign or reinvent its business
strategy for add value in business activities for better satisfy the needs of customers, achieve
business growth and to get competitive advantage. This type of innovation is very essential for
an organisation (Ratten, 2011). Mainly this is A systematic approach whose focus remain to
generate incremental innovations. Innovation becomes the strategic one when it take place
intentional and create a influential difference in the value deliver by firm to its partners,
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customers and other corporations. A strategic innovation formulate a portfolio of various growth
opportunities with use of a creative process (Pérez-Luño, Wiklund and Cabrera, 2011).
Enterprise that go with this type of innovation do not necessary make changes in its good and
services which it offer to its customers nor it changes the existing technology. Mainly,
innovation take place on executive level is known as strategic innovation.
In today's business environment, it is very essential for enterprises to innovate its
products and services on continuous basis. This support firm in improve its position in market
and at the same time help ensure long term survival of firm (McNeil, Frey and Embrechts,
2015). Strategic innovation is a approach that support organisation in to bring all their creative
assets, capabilities and resources together to develop products and services portfolio for achieve
growth in sector. British Gas can use the concept of strategic innovation for achieve growth.
There are seven dimensions of strategic innovation that is given under the following points: A managed innovation process: First dimension of strategic innovation is relate with
manage the process of innovation. This consists sequence of various activities from
starting of innovation (López-Nicolás and Meroño-Cerdán, 2011). Adoption of this
dimension support in conduct a simple brainstorming session as this help in analyse both
pros and cons of main idea of innovation. It is examined that process of innovation
combined both traditional and unconventional factors and this consists trends exist in
market, customers and competitive analysis. This support organisation in make strategic
thinking about innovation new. This provide an opportunity to firm to explore various
areas of innovation and find ways to work with partners. It is examined that process of
innovation play a essential role in develop core of strategic innovation. Further, this
provide direction to firm about development of new product and services to get
competitive benefit in market. In addition to this, his encourage organisational to think
about all possible perspectives and the factor that consumer more time and cost which
negatively affect the process of innovation and hamper profitability of organisation. One
of the main benefit of team based dimensions, it provide an opportunity to employees of
firm to share their knowledge and skills. All this support firm in develop a new idea for
product innovation. Strategic alignment: This dimension support organisation to develop support for the idea
of innovation. It is analysed that this enable firm to engage senior management team and
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engage stakeholders in development of vision for the new idea of innovation. This
enable firm to create ownership, collect investment decision to develop a strong
foundation for effective implementation of innovation idea. Further, it is examined that
in this firm require to select future leaders and skilled employees so idea of innovation
can be implement effectively. For drive growth, it is very essential for British Gas to use
strategic alignment in an effective way by improve the allotment of resources and assign
roles and responsibilities (Kim, Kumar and Kumar, 2012). It is very important for
organisation to encourage participation of stakeholder for innovate idea as this build
support for idea. Industry Foresight: This dimensions of strategic innovation concern with the changes
and enhance understanding of individual work within enterprise about the trends new to
business. With help of this, British Gas can analyse the ground of innovation and its
success rate in market. All this help company in improve its process of innovation and
rate of success in market (Hopkin, 2017). Every enterprise have different trends and
drivers of change and this is the main reason they carry out their activities essentially.
This indicate that every industry has its own limitation and features which affect the
process of their innovation. With help of industry foresight firm developed its
proprietary view that support its various strategies and future leadership. This dimension
support British Gas to consider the market trends and help in develop effective
innovation which support firm in get competitive advantage. Consumer/customer insights: This dimension support firm in understand better about
the needs and specific requirements of its customers. It help firm in manufacture
products as per the needs and requirements of its customers. Further, this also help in
increase popularity of new products and services which contribute more in success and
growth of firm. This is also known as one of the most significant dimension of strategic
innovation as this give information to firm about the attitudes, behaviour, needs and
requirements of customers (Haimes, 2015). With this, enterprise can manufacture better
products and ensure its success in market. Response of customers in product
development support firm in improve the features of products and enhance its value for
customers. Firm communicate in market about its new products that drive growth.
Adoption of customer insight approach help in involve customers as partners in process
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of innovation. All this nit only increase the effectiveness of innovation process but at the
same time support firm in fulfil the requirements of its customers. But insight of
customers is innovation process is not the only way to improve product innovation.
Consideration of various stakeholders such as suppliers, partners, investors and
employees also play a significant role in product innovation and development. Core competency and technology: Framework related with core technology and
competency is another dimension related with the process of strategic innovation. This
can be used by British gas to leverage its assets. Understanding of core competency and
technology help management in implement the process of innovation in an effective way
(Christoffersen, 2012). One of the main reason behind this is that it help management in
identify the major competencies, resources and capabilities. All this support management
in implement innovation process in an effective way. Further all this increase firm's
ability to achieve competitive benefit. British Gas can effectively use the innovative
technology to create and maintain better relations with its suppliers, partners and many
more. Organisational readiness: This dimensions is the one that drive company's growth in
market. With clear understanding of organisational readiness firm can improve its ability
to act effectively upon innovative ideas and strategies. Further, with this company's
enhance its abilities to fulfil operational, political and cultural demand during
development of strategies related with innovation. Sometimes enterprise implement
innovation process in an effective way because sometimes identified growth
opportunities reduce the effectiveness of company's innovative idea.
 Disciplined implementation: Various activities that support enterprise to encourage
participation to its stakeholder in innovation process come under implementation.
Improved capacity of firm support management in effectively implement the concept of
strategic innovation. All this provide competitive benefit to company. Lack of required
skills among staff members create so many issues in implementation of strategic
innovation. This not only affect the resources of company but at the same time reduce its
competitive benefit in market.
Overall this can be concluded that consideration of strategic innovation support British
gas to not only develop strategic innovation ideas but at the same time help in produce
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innovative and better products for customers. Further, this also help to achieve growth and
competitive benefit in market.
It can be stated that seven dimensions of strategic innovation support British gas in
innovate new products and services to the customers and this help firm in get competitive
benefit. Various dimensions of strategic innovation support firm in generate ideas of innovation
and at the same time help in implement the same. Adoption of strategic innovation support
organisation in use a structured approach that help organisation to create an effective platform
for sustainable and ongoing innovation.
In today's business environment, it is very essential for an enterprise to implement the
concept of innovation and offer something new to its customers on continuous basis. One of the
main benefit of this is that it support firm in retain customers for a long time period and at the
same time provide competitive benefit to it. With help of this concept British Gas can offer
effective services to its customers and can fulfil their requirements in better way. One of the
main benefit of innovation is that it contribute in success and growth of firm. It is very essential
that concept of innovation should be implemented in oil and gas industry.
CONCLUSION
From the above information, it can be summarised that effective implementation of
innovation help an enterprise in better satisfy the needs of its customers. Concept of strategic
innovation and its seven dimension support firm in implement the innovative ideas in an
effective way. It is very important that a firm should have knowledge about its major strength
and weakness as this support the process of innovation and at the same time provide competitive
benefit to firm.
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REFERENCES
Book and Journals
Christoffersen, P. F., 2012. Elements of financial risk management. Academic Press.
Haimes, Y. Y., 2015. Risk modeling, assessment, and management. John Wiley & Sons.
Hopkin, P., 2017. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Kim, D. Y., Kumar, V. and Kumar, U., 2012. Relationship between quality management
practices and innovation. Journal of operations management. 30(4). pp.295-315.
López-Nicolás, C. and Meroño-Cerdán, Á. L., 2011. Strategic knowledge management,
innovation and performance. International journal of information management. 31(6).
pp.502-509.
McNeil, A. J., Frey, R. and Embrechts, P., 2015. Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Pérez-Luño, A., Wiklund, J. and Cabrera, R. V., 2011. The dual nature of innovative activity:
How entrepreneurial orientation influences innovation generation and adoption. Journal
of Business Venturing. 26(5). pp.555-571.
Ratten, V., 2011. Sport-based entrepreneurship: towards a new theory of entrepreneurship and
sport management. International entrepreneurship and management journal. 7(1).
pp.57-69.
Tang, O. and Musa, S. N., 2011. Identifying risk issues and research advancements in supply
chain risk management. International journal of production economics. 133(1). pp.25-
34.
Thun, J. H. and Hoenig, D., 2011. An empirical analysis of supply chain risk management in the
German automotive industry. International journal of production economics. 131(1).
pp.242-249.
Van Bommel, H. W., 2011. A conceptual framework for analyzing sustainability strategies in
industrial supply networks from an innovation perspective. Journal of Cleaner
Production. 19(8). pp.895-904.
Online
Innovation Strategy, 2017. [Online]. Available through: <https://strategyn.com/innovation-
strategy/>./