Creating Value through Innovation Management

Managing Entrepreneurship,
Innovation & Creativity

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Theme: Creating value through innovation management................................................................3
Innovation and its significance...................................................................................................3
Value Creation............................................................................................................................4
Benefits of Innovation................................................................................................................4
Innovation Management.............................................................................................................5
Ways to manage innovation........................................................................................................6
Value creation through innovation management.......................................................................6
Challenges of managing innovation...........................................................................................7
Ways to overcome challenges of innovation management.........................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
Innovation can be defined as the process of converting an idea or concept into final
product or service that creates some value for customers. It means introducing something new in
the market that satisfy needs of consumers and creating some value for which they pay.
Managing innovation is very crucial for an organisation in order to stay ahead from the
competitors and gain advantage in market (Ahlin, Drnovšek and Hisrich, 2014). This journal
paper is based on the theme “Creating value through innovation management”. For gaining
proper understanding of the theme and defining its importance, Google is selected as an example
organisation. It is one of the leading multinational technology company that offers internet
related products and services to customers. The learning outcome of this report will be address
by providing useful information from various sources on innovation, its role along with its
impact on global business. The strategic, tactical and operational challenges faced by company
in developing innovation management culture within firm will discussed in report along with
the innovation management practices used by company.
MAIN BODY
Theme: Creating value through innovation management
Innovation and its significance
Innovation is the concept which is utilize by organisations for introducing something new
in market. It is the process that creates value by implementing novel solutions to the meaningful
issues. As per the American Society for Quality, Innovation is the successful transition of new
knowledge and concept into products, services and processes which delivers some value to the
market and customers (Definitions of Innovation, 2019). It is about harnessing good concepts or
ideas and looking them by their development and execution across an organisation. Companies
use innovation as it is the fundamental way that brings continual value to their consumers. It
plays very crucial role in defining success of an organisation. The ability of a company to
innovate depicts its capacity to constantly making ideas and knowledge into goods, processes
and services in the benefit of company as well as shareholders. It helps in improving productivity
and performance of organisation that ultimately leads it towards gaining high competitive
advantage in market.

In current competitive market, the capacity to create new innovation and ideas has
become a priority for companies (Anderson, Potočnik and Zhou, 2014). Technological
developments as well as intense global competition have made it a source of gaining competitive
advantage in market. It is become important for organisations to innovate and if it fails, its
employees, customers and community can suffer. Businesses employ new ways of thinking and
new technology to add value in existing product. Innovation is very crucial for an organisation as
it provides various benefits to it in terms of competitive advantage, increased productivity,
maximise return on investment, strong culture of organisation etc. (The importance of innovation
for an organization, 2019). One of the best example of an innovative company is Google which
is a leading technological company.
Value Creation
Value creation is one of the common objective of any organisation as every enterprise
work with an aim of earning values. It is created for the buyers in terms of products and services
and on the other hand the stakeholders earn it in the form of rise in the worth of per share.
Innovation play an important role in the formation of value as through this eh capacities of the
existing products are raised and hence the overall demand for it increases (Burns, 2016). A new
idea is brought to the market with the help of change which is capable of creating demand for
itself. When addition of features to the present commodity is done it does the full capacity
utilisation of the various resources and in this way also value is created. Innovation works in
different areas like in the internal business operations, external operation or the products and the
products and service. Adopting change in any of these sections may result into better output
which may lead to achievement of competitive advantage along with the hike in value for
various stakeholders. By using innovation, firms can create values. Innovation supports company
in developing innovative products that a caters needs of society in an effective way by creating
some value for them. By open communication within firm, innovation helps in creating value.
Apart from this, encouraging empowerment within firm will assists global business in fostering
innovation and creating value.
Benefits of Innovation
There are some benefits that innovation provides to an organisation in attaining growth
and success in market. Some of these are mentioned below: