Managing Change and Innovation

Running head: MANAGING CHANGE AND INNOVATION
Managing Change and Innovation
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1MANAGING CHANGE AND INNOVATION
Introduction
The global commercial and organizational framework have over the decades, changed
and developed considerably, much of which can be attributed to the international phenomena
like that of Globalisation, trade liberalisation as well as technological and infrastructural
innovations, which in turn, have cumulatively contributed in making the international
commercial environment more integrated, inclusive and interconnected (Goetsch and Davis
2014).
With more and more businesses going global and with the global marketplace
developing over the years, almost all industries have been observing increasing dynamics in
both the demand and supply side and the firms in every industry have been experiencing
increasing competition, from both domestic as well as international competitors (Denti and
Hemlin 2012). Thus, in the contemporary age of increased competition and awareness as well
as uniform distribution of information across the globe (both among the producers and the
consumers), it is of utmost importance for the business organizations to stay efficient and
consistently innovating in their production as well as operational frameworks. As Baden-
Fuller and Haefliger (2013), argue, innovations in the organizational framework are of crucial
significance as much of the profitability, operational efficiencies as well as long-term
sustainability and competitiveness of the organizations depend on the same.
There exist several factors and drivers, in general, in the organizational scenario,
which help in implementing innovations in the operational frameworks of the businesses and
which may be both internal as well as external (Norman and Verganti 2014). Keeping this
into consideration, the concerned essay, tries to highlight the internal and external drivers
which are expected to be present in the aspects of implementing innovations and changes in
the organizational frameworks of the businesses for the purpose of thriving in the

2MANAGING CHANGE AND INNOVATION
technologically progressing and automated future, thereby discussing the relative importance
and benefits of these factors and trying to infer whether external or internal drivers are more
efficient and beneficial in these aspects.
Innovations in Businesses
The notion of innovations in the overall global framework and particularly in the
business operations, have been becoming increasingly popular and relevant in the recent
period, when the world is gradually heading towards automation and higher reliance on
technology for every day activities. In this context, there exist different perceptions regarding
the meaning and implications of the term “Innovation in the Business”.
In this context, Dawson and Andriopoulos (2014), define the concept of business
innovation as the process in the operational framework of the business organizations, of that
of introduction of new ideas, methodologies, technologies, work-flows aa well as new
services or product, so as to increase the market share, profitability and competitiveness of
the concerned business, by gaining a competitive edge over their rivals. The primary
objectives behind implementations of innovations in the businesses, as highlighted by
Crumpton (2012), are that of improvement of the existing products or services, introduction
of new products or services, introducing new and efficient processes, solving existing
problems and also that of reaching out to new product markets and customers.
According to Visnjic, Wiengarten and Neely (2016), innovations in a company, can
be brought by concentrating on the following forms:
Product innovation- This includes the designing and development processes of different and
innovative products offered by the businesses, which in turn attract greater clientele and help
the companies in earning economies of scale.

3MANAGING CHANGE AND INNOVATION
Service innovation- This refers to the changes in the ways of providing the services to the
customers, which can be attributed to the increasing age of digitalisation and the improving
aspects of service distribution through the mobile channels and greater involvement of the
customers in the entire process (Souto 2015).
Process innovation- This aspect of organizational innovations, involve the implementation of
new technologies and methods in the overall processes and operations of the companies, with
the objectives of increasing the operational efficiency of the organizations as a whole (Keeley
et al. 2013).
In the contemporary period of increasing automation and technological reliance in the
overall global framework and in the age of increased digitalisation, it has thus become
extremely crucial for the organizations to incorporate innovations in their operational and
production frameworks, so as to increase their revenue generation, profitability,
competitiveness and long-term sustainability in the markets (Bucherer, Eisert and Gassmann
2012).
Drivers for innovations in business organizations
There exist various factors and drivers which facilitate the implementation of
innovations in the organizational frameworks and different operations of the businesses and
these factors may be both internal as well as external. The internal drivers, in this context,
refer to those attributes and factors which are present within a particular business and are
subjective to the concerned business organization itself (Bock et al. 2012). On the other hand,
the external drivers of change, in an organization, refers to those situations and factors which
exist outside the business organizations, in the external business environment, but have
considerable implications on the organizational changes and operations. Keeping this into
consideration, the various internal as well as external drivers which are relevant in the aspects