Managing Innovation within Organizations

The assignment provided is a detailed discussion on managing innovation within organizations. It explores different approaches to innovation management, including the change management model adopted by BMW. The discussion also highlights the importance of managing innovation networks, open innovation, and responsible innovation in today's business environment. Various references from books and journals are cited to support the arguments made in the document.

Managing
Innovation
(course 2)

EXECUTIVE SUMMARY
The report is about BMW Company and highlights the importance of managing
innovation in to their system and help them to achieve high profitability and productivity. The
report will provide the brief description about need and requirement that must be adopted by
company to introduce innovation process so that smooth functioning could be performed. Part
from it, reasons are also highlighted that allow company to construct the future innovation
capabilities and concept that assist them to perform work process in conducive way. The
condition of this company in 2020 and beyond is also been discussed effectively so that proper
decision could be made in this regard. Apart from it, there are several needs through which
innovation methods must be adopted in order to create sustainable amount of image in market
place where the company is operating. Business environment is dynamic in nature and involve
number of changes that need to be incorporated into their system to run in smooth manner. The
report have thrown light on the conditions that will be present in 2020 and beyond it hence, there
are number of aspects that need to be taken into consideration, out of all innovation is most
effective aspect that underlines the importance of carrying out work procedure in innovative
way.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................2
FUTURE OF INDUSTRY IN 2020 AND BEYOND.....................................................................2
THE ORGANISATIONS INNOVATION REQUIREMENTS 2020 AND BEYOND..................4
FUTURE INNOVATION CAPABILITITIES FOR THE ORGANISATION ............................6
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10
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INTRODUCTION
Managing innovation is an effectual procedure that pertain acceptance of such tools and
techniques that allow management to function in such a away so that competitive advantage
could be gained in effective and efficient manner. The report highlights the case of BMW which
is a well-established brand in auto-mobile industry and supply varied variety of products to
customers in market place. The assignment concentrates on BMW' requirements that assist the
company to produce their product with high innovation process. Innovation allow them to come
with new ideas and working process so that competitive image could be established in business
environment which is dynamic in nature. There are certain capabilities that aids in constructing
the future abilities of this company and helps them to earn high outcomes in from of market
share and sustainable amount of profits (Talukder, 2016). Hence, the complete image of
company's innovation in drafted that consider various type of factors like operational
environment so that work process can be conducted in effectual mode. Apart from it, the future
of industry 2020 and beyond this year are also been underlined along with the requirements so
that proper decision can be made while considering all these aspects in achievable manner.
According to the previous coursework BMW needs to focus on various features of vehicles in
order to enhance their productivity. Basically, history of the company and its current
performance was explained in the previous work. Thus, throughout the assessment it is identified
that selected firm needs to concentrate on their products features for capturing the mind of
maximum clients. As demand of consumers are getting maximized and every wants to
experience new things which is only possible if manufacturer is going to create some unique cars
with splendid quality. It means, organization must focus on their manufacturing department as
well as responsible to focus in their creativity department. For example; company have the
opportunity to get engaged in other business also like; aviation industry and so on for gaining
competitive advantage. For analysing the coursework 1, it can be examined that BMW has poor
auto-mobile portfolio for differentiating small goods. So company require to make those
strategies and policies which help them in developing unique type of brands.
FUTURE OF INDUSTRY IN 2020 AND BEYOND
In 2020, there is a boom in Auto-mobile industry to where there is a transformative
change, alternative fuels, new lightweight materials and innovative technology as sales shift and
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environmental regulation tighten (Biemans,2018). It is certain that we will start seeing
electrification of vehicles in coming times. The pace of change would depend on many factors
such as affordability, infrastructure of vehicles and for an environment to respond. Electric
vehicles, autonomous cars has an inkling of what the future of driving will look like. Experts
refers to “well to wheel” when taking the entire energy chain into account. Sustainable mobility
can only be achieved if primary energy for locomotion comes from renewable resources such as
wind power, solar power, hydro-power or geothermal energy. However, it has been assessed that
number of changes are incurred at marketplace because of fluctuation in distinct external and
internal elements. The major development in 2020 year are as follows:
CONNECTED CARS MOVE AHEAD: The brand loyalty is becoming a thing of past.
Many IT requirements will become mandatory by 2020, and manufacturers will need to take this
into account. Therefore in order to carry out this aspects BMW have decided to launch various
car models in 2020 and other coming years. There will be high amount of challenges that have
been faced by organisations in this industry 12 electric and 13 hybrids category by 2025. In
2021the BMW will going to launch a base in which the accommodation facility will be attained
that will consist of the ability of accommodating plug-in hybrid option, internal combustion
systems well as while system through electric capacity.
INNOVATION as a Major Concern- They are not much different from current model
of car of this company but will possess differentiation in its height as it will be somewhat taller
which assist in taking floor batteries concept (Landsperger and Spieth, 2011).There is another
future of this company that involve unique feature of BMW’s basis of fifth generation electric
powertrain that is going to release in 2021 year. There are numerous features that are involved in
this category that include tesla competitor as it will going to launch with the speed of 600
kilometres per hour. It has been true that future beyond 20202 will be full of challenges which
may be related to connectivity, safety issues hence, this a big challenge in front of car industries
as they have to produce products in taking into consideration all these aspects in effective and
efficient method. Innovation is also another concern that must be adopted by the company.
Full attention on customer’s need
In 2020 and beyond it will be the world of shifting preferences in-auto innovation is as of
now progressively more imperative to customers than mark - right now, about half would
organize it over brand and style in their next auto buy choice, In-auto innovation is as of now
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progressively more imperative to customers than mark - right now, about half would organize it
over brand and style in their next auto buy choice.
With more youthful ages demonstrating less enthusiasm for driving and auto
proprietorship, it's possible they will definitely turn out to be less keen on which mark really
conveys their vehicle encounter: needs for them will be network, esteem and effectiveness.
THE ORGANISATIONS INNOVATION REQUIREMENTS 2020 AND
BEYOND
Innovation refers to the process of coming up with new, fresh, innovative ideas and
thoughts in order to introduce something which in unique in nature and has not been introduced
by any other organisation. Era of 2020 will be full of innovation as new and modern technology
will b introduced in every field that will make the product or service more effective and efficient.
There are several innovation requirements that need to be fulfilled by all business concern that
will going to operate till 2020 and beyond it.
The pentathlon model framework describing the accommodation wide range of soft
enterprise issues and problems rather than linear model of innovation in better manner. With the
help of this model, it will overcome with such deficiencies of various phased model such as
HRM, ideas management, selection of priorities and significance of whole market situations or
conditions. Along with this, it is that model which main role is to conduct innovating strategies
that will demonstrate what is required in order to concentrate and goals, communication,
measurement and effective technology of doing success. In the middle of this model, the flow
has been conceptualised in the funnel, indicate such ideas or thoughts with the procedure of
priorities and along with execution and interaction in new product development has been done in
better manner (Talukder, 2016). In this model, the middle part of this model depicts the
development of an individual component within an innovating process. The pentathlon
framework is different from previous model as well as its features are totally different from such
innovative activities as identify that how people and company environment surviving the role in
value of desiring conductive culture in which people are motivated towards doing innovative
activities in BMW company.
There are five elements of Pentathlon model are as follows: Ideas management & Creative management – It is required for BMW company is to
make new and unique ideas which help them in attracting large number of customers
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towards their services and facilities in proper manner. They require to develop effective
strategies and policies that will assist them in gaining high amount of income or
profitability appropriately. In the project part 1, BMW required to improve their PESTLE
analysis by which they can determine all factors in detail. It means company needs to
implement assessment process for understanding each or every aspect in better manner.
As a result, it aids in controlling probabilities of heavy losses. Basically, in the
coursework 1 various types of vehicles and models of BMW are determined which shows
that furthermore company needs to focus on their other quality. Along with this requisite
to make proper plans or strategies by considering necessary facts or figures such as;
customer choice or preferences, opinions of several leaders, assessment of competitive
strategies, fluctuation in various internal and external factors henceforth. It means, all
these elements needs to enhance or improve for overcoming company issues in proper
manner. BMW need to make improvement in poor auto-mobile brand portfolio for
gaining attention of more customers. There are certain areas which need to identify that
there are various elements which require to develop appropriate plan to recognise issues
and problem of poor auto-mobile brand portfolio with small product differentiation. It
can be analysed that this will increasing the necessary facts and figures in the present
market for support employees about their needs and demands. The company can easily
make strong relation in positive manner with their employees that support organisation
for managing business operations and functions in effective way.
Prioritisation, selection and Portfolio management – This is the another major stage of
pentathlon model where the company needed to select specific management or administration
factor so they can easily determine current requirement of an organisation. BMW require to
adopt such strategy which assist them in examining portfolio management and prioritisation in
proper manner (Talukder, 2016). The BMW Group is in a greatly solid money related position,
with money stores totalling € 13,167 million at 31 December 2016 (2015: € 11,383 million). Free
income created by the Automotive portion amid the year time frame at that point finished added
up to € 5,792 million (2015: € 5,404 million). For instance, BMW Motorrad the bike division of
BMW Group revealed a 5.9% development to 145,032 units (2015: 136,963 units). BMW
Motorrad's five biggest markets were Germany, the USA, France, Italy and Spain. As a major
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aspect of its new methodology, BMW Motorrad is extending its model range, having set a
business volume focus of 200,000 units for 2020 (Landsperger and Spieth, 2011). Implementation management – It is all about how to implement various plans and
procedure of BMW at workplace for attaining their set objectives or goals in a defined
time frame. For example; manufacturing department of selected firm is going to
introduce creative product as well as aiming to get engaged in some other sector. It
means, implementation of this plan enforce company to use some major theories and
approaches for controlling various chances of loss. It means, before expanding their
business in some other sector company needs to assess the demand, choice of customers
and status of current market. Innovation strategy – According to this element an organization is going to involved in
designing creative products as well as might get involved in designing their existing
products for maximizing their profit level. This strategy supports BMW in various
manner such as; increase the income level, aids in establishing their goodwill at
marketplace so on.
 Human resource management – It is all about management of people because all the
activities are managed and regulated by them only. It means, company needs to design
some major policies and plans for the development of staff members as well as offer best
facilities to them in order to motivate employees. For example; BMW must conduct
various training programmes, refreshment events, provide flexible hours to staff members
and so on for encouraging them towards success. (Talukder, 2016).
FUTURE INNOVATION CAPABILITITIES FOR THE ORGANISATION
Clearness on an Innovation Strategy is a key component of the individuals who
effectively insert Innovation in their authoritative DNA. This is the reason Innovation Strategy
includes conspicuously in the system of BMW. Specific accentuation will be set on the best end
of the excellent section. By 2020, the BMW Group is focusing on critical deals volume
development around there with the expansion of various new models, including the BMW X7, to
supplement the BMW 7 arrangement. Organisation adopts various innovators into their system
so that effective decision could be made in adequate way.
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Those engaged with the improvement of inventive thoughts soon wind up dispirited when
their thoughts are expelled by senior officials who don't comprehend their sources or setting.
This impacts any official level endeavours at encouraging advancement (Robertson, Casali and
Jacobson, 2012). Trusting development is basic to business isn't equivalent to being imaginative.
Again and again, associations under put resources into building up a powerful advancement
capacity that goes on for a considerable length of time and changes the association (Drucker,
2012).Inside every association, there are levers that can be pulled to regulate advancement,
change attitudes and consolidate with the fitting devices to make development achievement.
Tragically, there is no standard outline for development that can be basically received. Each
organization has diverse objectives and destinations for advancement, distinctive frameworks,
procedures and limitations. Building up the correct abilities that match (and potentially change)
an association's desires, qualities and culture is basic for conveying advancement comes about
(de Zubielqui, Jones and Statsenko, 2016). The various other capabilities that is included in
future growth of BMW organisation include that proper handling of human resource could be
done so that smooth functioning of company could take place ad result in reaching high outcome
in form of profits at certain time period and accomplishment of vision and mission could take
place(Wang and Tsai, 2014).
Building world class advancement capacity
Three imperative standards control approach.
 Implant advancement through training
 Change the way of life by changing the way we work
 Apply foundational answers for fundamental difficulties
BMW trust that the most ideal approach to create advancement abilities is to "learn by
doing" development, chip away at genuine business difficulties and practice methodologies and
procedures. Demonstrated methodologies and procedures offer a repeatable procedure and help
company to change the way of work and implant advancement in the authoritative texture (Koch,
2012).
This organization has certain shortcomings and dangers which impacts adversely on
hierarchical perspective while executing crisp creative thought for expanding highlights of
engine vehicles rendered by BMW.
There are other different issues that are described as follows:
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Knowledge management – It is fully related to combining knowledge management of
employees which help in thinking various ways in better manner. The effective knowledge
management is the section of innovation. BMW make innovating services which help in
enhancing its employes skills and knowledge regarding new products or facilities.
Stakeholders engagement – The company are mainly share accurate data and knowledge
which enable firm to assess the community requirements and needs in proper manner. For
example, at the time when stakeholders are dealing with major risks and upcoming future effects
by innovation as BMW need to conduct take view of stakeholder for better improvement in
business operations and its functions effectively.
Leadership style – This is another issue and problem of leadership style which help them
in making effective innovative services or products for attracting their customers in the large
market place (Biemans, 2018). The style of leadership directly efect on their team members as
some time they were dealing with major issues and conflicts that will occur within an
organisation. With the assistance of this leadership style, innovation is enhancing for coming
collaborative teams and also make innovative ideas for smoothly run their business functions and
its operations.
Change management – This is other major issue which mainly arise in the BMW
organisation. Change management is the systematic approach which are dealing with
transformation of company goals, procedures and technologies which are required while doing
business operations and main functions. Sometime employees does not like such changes so they
are giving their views regarding such changing implementation within an organisation. The main
motive of this change management is to execute effective strategies and policies for affecting
modifications, managing changes and assist people for adopting such alterations in better way.
LEWINS CHANGE MANAGEMENT MODEL
The change management model was developed in the year of 1950 by psychologist Kurt
Lewis. There are large number of people who prefer and regulate in the certain zone of safety.
There are three stages of changes which are apply by BMW are described as under: Unfreeze – Most of the people develop active efforts to resist changes and in order to
overcome with this, so unfreezing should be initiated by doing motivation. Transition – It is initiated changing stage, the firm moves in the transition period and
adequate leadership is required for successful procedures within BMW.
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 Refreeze – After changes accepted and need to execute successful, then company became
stable and employees refreezes when they regulate and operate under new regulations.
CONCLUSION
From the above describing report, it can be analysed that Managing innovation is an
effectual procedure that pertain acceptance of such tools and techniques that allow management
to function in such a away so that competitive advantage could be gained in effective and
efficient manner. In 2020, there is a boom in Auto-mobile industry to where there is a
transformative change, alternative fuels, new lightweight materials and innovative technology as
sales shift and environmental regulation tighten. With more youthful ages demonstrating less
enthusiasm for driving and auto proprietorship, it's possible they will definitely turn out to be
less keen on which mark really conveys their vehicle encounter: needs for them will be network,
esteem and effectiveness. BMW have an approach or system of giving better client benefit as
driver of development on the organization.
The pentathlon model framework describing the accommodation wide range of soft
enterprise issues and problems rather than linear model of innovation in better manner. The
future requirement of this electric vehicle is very difficult for estimating and this is fully depend
on authority decisions regarding its rules, regulations, incentives and infrastructure which has
been adopted by BMW. This organization has certain shortcomings and dangers which impacts
adversely on hierarchical perspective while executing crisp creative thought for expanding
highlights of engine vehicles rendered by BMW. The company using change management model
for maintaining the future innovative ideas for long time period. The ideas are more effective and
appropriate which help them in gaining high growth and success in better manner.
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REFERENCES
Books and Journals
Biemans, W., 2018. Managing innovation within networks. Routledge.
Landsperger, J. and Spieth, P., 2011. Managing innovation networks in the industrial goods
sector. International Journal of Innovation Management, 15(06), pp.1209-1241.
Jaw, Y.L., Chen, C.L. and Chen, S., 2012. Managing innovation in the creative industries–A
cultural production innovation perspective. Innovation, 14(2), pp.256-275.
Talukder, M., 2016. Managing innovation adoption: From innovation to implementation.
Routledge.
Lundstedt, S.B. and Colglazier, E.W. eds., 2013. Managing innovation: the social dimensions of
creativity, invention and technology. Elsevier.
Drucker, P., 2012. Managing in turbulent times. Routledge.
Wang, C.J. and Tsai, C.Y., 2014. Managing innovation and creativity in organizations: an
empirical study of service industries in Taiwan. Service Business, 8(2), pp.313-335.
Koch, A.H., 2012. Authority and managing innovation: a typology of product development
teams and communities. Creativity and Innovation Management, 21(4), pp.376-387.
Dawson, P. and Andriopoulos, C., 2014. Managing change, creativity and innovation. Sage.
Owen, R., Bessant, J. and Heintz, M. eds., 2013. Responsible innovation: Managing the
responsible emergence of science and innovation in society. John Wiley & Sons.
Lichtenthaler, U., 2011. Open innovation: Past research, current debates, and future
directions. The Academy of Management Perspectives, 25(1), pp.75-93.
de Zubielqui, G.C., Jones, J. and Statsenko, L., 2016. Managing innovation networks for
knowledge mobility and appropriability: A complexity perspective. Entrepreneurship
Research Journal, 6(1), pp.75-109.
Robertson, P.L., Casali, G.L. and Jacobson, D., 2012. Managing open incremental process
innovation: absorptive capacity and distributed learning. Research policy, 41(5),
pp.822-832.
Robertson, P.L., Casali, G.L. and Jacobson, D., 2012. Managing open incremental process
innovation: absorptive capacity and distributed learning. Research policy. 41(5).
pp.822-832.
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management. CRC
Press.
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