Impact of Innovation on Organizational Efficiency

The provided text discusses how a firm has implemented several initiatives to increase efficiency through innovation. The company has utilized an integration map plan to streamline processes, improved communication to enhance understanding among consumers, and considered employee reactions to ensure successful implementation of changes. The assignment references various studies and resources that emphasize the importance of innovation in organizational efficiency.

MANAGING INNOVATION
IN BUSINESS

Executive summary
This study provides in-depth knowledge of innovation process. The report contains various
driver of innovation and also analyse the way these drivers force organisation to establish
innovation culture in organisation. To conduct study we have chosen luxury auto mobile leader
Rolls-Royce. Report include all the stages of development of 103EX model, which is one of the
ambitious car of company. Rolls-Royce got the idea of making this car from its marketing
department which shows its innovation culture. Study gives all information about HRM practices
adopt by organisation to cultivate the culture.
Assignment also provides keen information about innovation audit that will help Rolls-
Royce in identifying their strength and weaknesses. Also, it will lay emphasis on how better
communication and knowledge about the operation can help firm in managing and implementing
changes. Study will highlight about the innovation road map that will assist company in
successfully implement the new and creative changes. It will help them in developing of new
goods and services so that consumer loyalty can be created. For better understanding of
innovation various new software will be used by company. It will help firm in building better
efficiency and ability during the time of implementing innovation.

Table of Contents
INTRODUCTION...........................................................................................................................1
1. Drivers of innovation in Rolls-Royce.................................................................................1
2. Innovation road map and analysis of leaders to successfully plan for innovation.............5
3. Importance of organisational knowledge, knowledge transfer and cross functional
cooperation in order to analyse and assess innovation capabilities and blockages..............10
4. Identification of new product for Rolls-Royce.................................................................13
5. Activities in innovation Audit........................................................................................15
CONCLUSION..............................................................................................................................19
References......................................................................................................................................20

INTRODUCTION
Innovation is process of applying new idea and imagination in reality to bring
improvement in product and service. Innovation is very much essential element for any
organisation because of cut throat competition and increased customer expectation, which force
an organisation to practice innovation, otherwise company can lose its market share and goodwill
in market. Present study discusses about need of innovation in organisation. Study also describe
various activities in implementing innovation. Study provides innovation audit of Rolls-Royce
which is very big name in making luxury cars. Company is situated in United Kingdom, it is a
subsidiary of BMW. Unique feature of Rolls-Royce is, it makes cars on special demand by
customer, which are highly customised and demands more innovation in product.
1. Drivers of innovation in Rolls-Royce
Auto mobile industry has large contribution in UK economy. Rolls-Royce practice
innovation identification approach to know about factors that demands continuous innovation in
organisation. Organisation take help of technology to get the information about customer
innovation expectation, like Computer-Aided Personal Interviewing (CAPI), Online/web
surveys, Mobile phone surveys, chatbot, Functional Magnetic Resonance Imaging (fMRI) and
Social media monitoring/listening. Company keep its eyes on competitors so that it can know
about its R&D needs. Royal Roy ask to its employee to share their innovative ideas based upon
their experiences. It uses look to the past policy in which idea which are kept aside in the past,
are taken forwarded, for instance RR abounded the idea for offering boron steal car to customer
because that was costly manufacturing process to company that time, but now company decided
to take forward the idea because now it has the technology which can helps company to maintain
its cost. Company also practice out of the box thinking for future need fulfilment. External factor
also forces the company to take innovation initiative, information of these external factor are
gathers from observation, data logging, reporting and inspectors. Company identifies need of
more automation and efforts less driving improvements in its car from above sources.
Following are the main drivers of Rolls-Royce innovation:
Environmental issue like global warming, carbon emission, air pollution, smog, acid
rain, harm to human health and biodiversity are the current key issue which grab the attention of
almost every industry. Rolls Royce recently test its latest eco aero engine, environmental friendly
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production machine and process, to reduce energy consumption it uses wasted power back
policy. Company have hold DIN ISO 50001 certification for this.
Satisfy customer need is one the characteristic of innovation, which is also taken into
consideration by Rolls-Royce. Customer now have high expectation due to increased awareness,
high disposable income, standard life style. Company make innovation regarding leather colour
matched with customer dress and accretions, it also offers picnic seats in its special edition cars.
Rolls-Royce have so many strong competitors like GE, Pratt & Whitney, United
Technologies AND Honeywell. Customer can easily switch their buying decision therefore
company always add something which is not offer by its customer yet, for instance company
recently launch New Rolls-Royce Phantom car which have unique dashboard glass that can be
use as canvas for art lover.
Auto mobile industry is highly sensitive to technical changes, because these changes
affect the customer satisfaction deeply. Technology not only change driving experience, it also
contributes to save cost, resources and help in maintain the earth's health. These care have unique
night vision system with pedestrian warning, besoke audio system, Satellite Aided Transmission
which use GPS to sense the traffic and other physical feature of road so that gear can easily swift
according to gathered GPS information, which eventually helps in maintaining the engine health
and life. Most prominent social factor which is affecting the Rolls- Royce is environment issue,
customer's expectation with company, customer age group and work culture. Company eagerly
welcome people with different culture and accordingly it alters its organisation culture.
Task Mode Task Name Duration Start Finish Predecessors
Auto
Scheduled Sales of business 95 days Mon 06-02-
17 Fri 16-06-17
Auto
Scheduled
Analysing the market
requirements 20 days Tue 20-06-17 Mon 17-07-
17 1
Auto
Scheduled
generating innovative
ideas 30 days Tue 18-07-17 Mon 28-08-
17 2
Auto
Scheduled
discussion with seniors
and managers 40 days Tue 29-08-17 Mon 23-10-
17 1,3
Auto
Scheduled deciding the cost 10 days Tue 24-10-17 Mon 06-11-
17 4
Auto
Scheduled making effective plans 20 days Tue 07-11-17 Mon 04-12-
17 2,5
Auto
Scheduled selecting ideas 36 days Tue 05-12-17 Tue 23-01-18 6
2

Auto
Scheduled
developing the computer-
aided personal
Interviewing
40 days Wed 24-01-
18 Tue 20-03-18 3,7
Auto
Scheduled online survey 80 days Wed 21-03-
18 Tue 10-07-18 8
Auto
Scheduled social media analysis 69 days Wed 11-07-
18
Mon 15-10-
18 9
Auto
Scheduled
Functional magnetic
resonance imaging 60 days Tue 16-10-18 Mon 07-01-
19 9,10
Auto
Scheduled Felxibility plan 12 days Tue 08-01-19 Wed 23-01-
19 11
Gantt Chart:
UK Automotive industry share £82 billion turnover, which is a significant contribution,
it also encourages the leading luxury car manufacture to bring required changes as, there is high
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scope to earn high market share and profit. Change in trend force organisation to alter its product
and service periodically, otherwise product can face threat of being obsolete. Nobody wants to
purchase an outdated product. Company set amazing blend of royal texture and technology by
using AI, sensor and other technologies ruling in trend. Nature of leader also influence the
change, like leader who is dynamic, adventurous and energetic personality, will try to absorb
change frequently. Also, promote and encourage the same in organisation.
Political change as Brexit is milestones change which not only affect the car industry but
almost every business. Brexit will affect trade relation with other countries, which eventually
affect the supply chain of company. Immigration limitation can arise shortage of skilled worker,
company has to move to local recruitment and selection. May be possible, these local people do
not have the skill, education and experience exposure, which is essential to work with Royce. In
such case company need to change it training and development program too. And it also hurt the
foreign investment. it will lower the current capacity of company by change in employment legal
compliance, fluctuation in currency exchange rate etc. company administration changes and
expense will rise as WTO Tariff is supposed to enlarged by 32%.
Porter five forces influencing Rolls- Royce
threat of new entrance
Luxury car industry is capital intensive as industry demand high capital investment for
research and development. And given industry is relay on advance technology, which required
continuous R&D. Apart from it experience and network should be strong for company which
wants to do its business in luxury segment. These factors, minimise (Low) the threat of new
entrance for rolls- Royce.
Threat of substitute product
Rolls- Royce car has uniqueness in quality, technology and royal experience, which is
hard to get in other product. Also, no other vehicle can render the same satisfaction as peroneal
luxury car. So company faces low threat of substitute.
Bargain power of supplier
There are so many suppliers are available which render the standardised product and
having low switch cost. Company can easily move on to other supplier in case of high price and
poor material supplied by supplier.
Bargain power of buyer
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Roll- Royce earned a goodwill, prestige and reputation attached with its cars. Also, it has
high product differentiation along with lavish quality. So, In case customer wants to purchase the
car of quoted company, it has to pay the amount demand by company. It indicates customer do
not have significance power to force company to bring change in pricing.
2. Innovation road map and analysis of leaders to successfully plan for innovation
Rolls-Royce can engage in making use of innovation road map in order to attract and
retain more consumers. For this they can make use of strategic leadership and human resource
management. This will help them in managing and coordinating the various functions of
organisation. Innovation road map process includes the following:
Define: Rolls-Royce company for creating innovation needs to define and scope the
innovation opportunity (Tidd, Bessant and Pavitt, 2015). For making unique image in the
environment, organisation needs to get involve in doing market analysis in search for various
opportunities. It can be in the form of problem, need or want of customer. They need to also do
keen evaluation about their competitors.
SWOT help in know the opportunities and threat of company, these tow influences the changes
like firm will move further where it identifies scope to grow, where treat force organisation to
bring improvement otherwise it may lead to big failure. Organisation's strength and weaknesses
also driver of change like good financial position encourages the Firm to bring more positive
changes, where weakness wants restrung to eliminate these. Following is the SWOT of rolls-
Royce, which shows its change drivers too.
.
Strength
 Strong technological support.
 Old reputation and goodwill.
 Owned Status symbol positioning.
 Over the globe presence.
Weakness
 Profiling requirements burden, cause
customer switch.
 Fairly similar car design.
Opportunities
 Move to environmental friendly luxury
Threat
 Very huge premium price demands by
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car.
 Liberalise the Profiling process.
 More technology in luxury car.
company.
 Political changes like BREXIT.
Innovations in the car industry vs innovation in company
In June 2014, Google launched its ‘Android Auto’, a telematics software that can be
connected to car dash board for infotainment. It also enables the driver to access GPS, maps,
streaming music, weather, and a host of other applications. A slew of car-makers including
Abarth, Acura, Alfa Romeo, Audi, Bentley, Chevrolet, Chrysler, Dodge, Fiat, Ford, Infiniti,
Jeep, Kia, Maserati and Volvo will offer Android Auto in their cars Industry. While in the Rolls-
Royce company they are building the future of flight with our Advance and UltraFan technology,
pioneering innovations that are setting new benchmarks in efficiency, environmental
performance and precision engineering.
For identifying the innovation opportunities company needs to see that management of
the people is influenced by the proposed new solution. Also Rolls-Royce must make the
communication plans to make employees familiar with the new creation they are going to
implement in their products. It will help employees or workers in better understanding the
changes made in goods and services. Also, organisation while defining innovation can make use
of ethnography that includes qualitative discussion with consumers about the new creation. It
includes the questions related to if customer is liking new product or service, are they satisfied
with it or not.
Discover: Rolls-Royce while making road map for innovation can discover new ideas.
For this company can communicate with consumers and employees about the changes they want
to see in their goods and services. Also, it will support them in getting new and creative ideas
which can support organisation in increasing their brand name. It can also allow firm in
enhancing their revenue and profit. For getting new techniques or ideas firm may ask workers to
do the brainstorming and find ultimate solution to the problems. Also, Rolls-Royce needs to
make sure that the innovative good they are building is according to the needs and demands of
consumers (Tidd, Bessant and Pavitt, 2015). Firm can also make use of TRIZ and biomimicary
software for getting new ideas and solution to the problems. It will help company in making
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understand the innovation done by them to the large number of people. The ultimate goal is to
develop large number of ideas and concepts.
Future of the industry
Rolls-Royce, creates trust for customers, and that can be drawn from contextual data sets
in the outside world. They're focused on how can take those deep data sets and apply advanced
data innovation techniques to them in order to generate value – both for our own business, in
terms of operational cost savings and efficiency gains, and for customers, in terms of how
support new services can help them operate their businesses and make better decisions
Key staff in Rolls-Royce
Rolls-Royce hires employee’s from the diverse culture as diversity is the most essential
element to achieve a culture performance which is high and is also enabler of innovation. The
main objective of firm is to increase awareness and understanding of all employees of the value
of diversity and inclusion. Build diversity and inclusion into the way they work and Drive
commitment to diversity and inclusion.
Develop: Rolls-Royce must be engaged in developing designs and concepts for
experimentation. This phase is totally based on the previous stage of generation of ideas. Idea
been selected by the company is developed in this phase. In this stage the ideas and innovative
techniques are been formulated in the concepts. The facts and concepts are than been made
understood to the employees and workers so that proper implementation of innovation can be
done in the firm. The ultimate solutions are than tested by participants based on their reliability
and viability while considering business objectives, goals and resources. It is one of the most
important step in the innovation road map. Firm needs to lay keen emphasis on it. Also, effective
communication must be done by company during the time of implementation of the innovation.
Research/patent put into action
A method of determining a fuel delivery fault in a gas turbine engine is provided to Rolls-
Royce as a patent. It has an engine consisting of a combustor, for delivering fuel to the
combustor, and a turbine which is driven by hot gas from the combustor. The method includes
comparing a measured turbine gas temperature profile against a predicted turbine gas
temperature profile. The method further includes comparing a measured fuel delivery flow
number of the combustor fuel system against a predicted fuel delivery flow number of the
combustor fuel system.
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Rolls-Royce start-up accelerator and incubator
Rolls-Royce database is going to launch a database in London. The programme will
provide mentoring and technical support to startups specialising in the areas of advanced
analytics, artificial intelligence (AI), Internet of Things (IoT) and block-chain, among other deep
technologies.
Research and development
The R&D department is engaged in applying the expertise knowledge to improve the
performance and efficiency of product.
Structure and team work
Rolls-Royce is following the divisional structure. They hire culturally diverse people and
motivates them to achieve there task in teams.
Key drivers leadership and profitability
Product of the company is current key drivers. Firm has suffered from severe loss last
year. They have hired executive team for managing and leading changes.
External focus 2020 and beyond.
Rolls-Royce have a global target to reduce the energy functions by 30% till the year
2020.
Sphagetti network innovation
Rolls-Royce have communicated through the press release that they are expanding there
global market share of authorised service centres of its corporate care.
Demonstrate: Rolls-Royce can develop working model map process. They can involve in
keenly analysing and evaluating the innovation that has been developed by them. Also, firm can
engage in demonstrating changes implemented by board of management. This can support
industry in knowing the drawbacks and loopholes which has been seen in the product. Industry
can engaged in developing products and services according to the needs and demands of
consumers. Also, firm must make sure that the employees and workers have keen knowledge
about the innovation that has been implemented by the Rolls-Royce. This will allow them to
make consumers aware about the same. During the planning session of this phase, we will
carefully create a project plan with experimentation objectives, methods and scope of
experimentation along with milestones, budget and resourcing. A control plan and reaction plan
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are created to deal with various consequences. This will support organisation in managing and
controlling the functions that needs to be done during the time of implementation.
Rolls-Royce can involve in demonstrating the satisfaction of customer by asking them
frequent questions on changes made by them. This will support firm in making relevant changes
and also will help firm in creating consumer loyalty towards the services and goods imparted by
them. It will assist industry in making understand the innovation done by them to the large
number of people. The ultimate goal is to develop large number of ideas and concepts. Also,
company needs to engage in measuring the satisfaction of consumer through the innovation
made by the company.
Organisation and leaders plan for innovation
An organization innovation engage the plans and strategic management implementing and
developing. It is involves stakeholders. Rolls Royce company stakeholders participate in the
process of making clearly and logically plans that all employee understands. They are creating
innovative strategic plans given inputs plans. They are easily create and systematically
adjustments conversation provide their business structure, like bottom up and top down.
Innovation planning create the strategic goals and mission into strategies plans in their firm.
Strategies and management innovation.
The Rolls Royce company assigned to develop and strategic plans and that is alignment
given and across their business.. These requirements can be completed when there is stop activity
in their organization. They have ensuring alignment with strategies and operational creativities.
Leaders need to realize to good management. they have making plans to distribute to company.
A business in increasing input plans, and those that given input plans. The Rolls Royce company
establishing innovation plans create for unforeseen condition and change the market situations.
They want to better plans for their company so leader is came into new idea's and unconventional
viewpoints (Steward and Conway 2014). The company innovation process of relevant
participated stakeholders, and they have make plan very clearly and logically plans that all
employees understands. An organization have the able to process to developing plans and
integrated strategic plans using for improve business innovation and their performance.
Broad search for ideas
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An organisation search for making new idea's. There are aware of new possibilities and
habitual thinking to discovery of knowledge. The real critically change the activity of the any
company lies not in implementing new idea's. The Rolls Royce company search for new idea's
for achieving their goals (Chesbrough, 2014). A leader can need to new idea's recognize thinking
the company goals and innovation. They can search for new idea's large group of employee
willing to help them. They have encouraged innovation by industry solutions and personal wish
to make them. So an organization affects positively.
Designing innovation networks
Designing innovation in new idea's generate a circle of innovation. This is very
effectively. A leader effects the networks allow employee with various kinds of idea's ways of
solving problems to cross knowledge and idea's. They have capture the company image and
brand then focus on innovation networks. These are change the management function to existing
resources without launching. Social network will help the Rolls Royce company order to existing
networks and their characteristics (Tidd, Bessant and Pavitt, 2015). This is all information
through an essential role in the making of affectively innovation networks by identifying mind
set of single and groups. So that is using for an organization build. A leader is separately
developed new ideas and innovation, and highlighted the company map networks and industry
structure. They are shows cross program management were better connected with them. A leader
improves the performance so making networks then change innovation. The higher performing
unit so a leader, who controls of the interaction about network design connection with the
company. They have observed that a lower mangers same challenges in other companies.
3. Importance of organisational knowledge, knowledge transfer and cross functional cooperation
in order to analyse and assess innovation capabilities and blockages
Importance of organisational knowledge
Rolls-Royce is engaged in implementing new innovations and capabilities. For this it is
very important for them to have a knowledge related to organisation. It is most important as it
will support organisation in making employees understand about the changes they are going to
make. Also, when the workers have proper understanding about new innovation related to
product or services, they can better able to manage the customers.
Customer centred innovation mapping
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They have developed an efficient yet simple system company can use to find new ways
to innovate. There method, is commonly known as “job mapping,” breaks down the task the
customer wants done into a series of discrete process steps. By deconstructing a job from
beginning to end, a company gains a complete view of all the points at which a customer might
desire more help from a product or service—namely, at each step in the job.
R&D and adaptability of change in Rolls-Royce
Rolls-Royce is following the long term strategy. They have implemented the internal
reward system so that various ideas can be generated from anywhere in the organisation, through
which they can easily adapt change. Thus Rolls-Royce builds agility and resilience into its
culture. In many ways the starting point is still R&D but dynamic management of new and
developing technologies ensures that an eye is always kept on forming compelling customer
propositions that will create long term value. When they have full knowledge about industry,
then it can help employees in adjusting to the changing environment. Also, better decision
related to the innovation is made related to it. It increases the operational efficiency of
organisation. Also, it helps in enhancing the operational productivity of firm which increases the
innovation capabilities.
Rolls-Royce when have knowledge about their innovation and change then it will support
firm while implementing creative changes to enhance the consumer satisfaction. Sharing of
knowledge can help firm in answering the questions of customers. This assist the company in
creating consumer loyalty. Also, knowledge must be contained about the needs, demands, taste
and preferences of consumers. This can act as an opportunity for the industry. While
implementing changes managers and supervisors must also be engaged in effective
communication so that the employees have keen knowledge and understanding about the
innovation been implemented.
Experimentation and culture of experimentation
Rolls-Royce has made use of there name for producing experimental cars Because
innovations from EX cars filter into production models, all new lines include the cumulative
knowledge that comes from exploring the future in pursuit of perfection. As well as newly
developed materials and ideas, such as the carbon fibre, each uses production materials such as
leather and wood, rather than clay and foam or other prototypical materials.
Importance of functional cooperation
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Rolls-Royce must be engaged in making use of functional cooperation which means that
while implementing innovation, they need to adhere with consumers needs and demands. This
will help them in gaining and retaining consumers. Also, market analysis should be done so that
taste and preference related to goods and services is been known to the firm. It will support
Rolls-Royce in enhancing their profit, revenue, productivity and profitability (Smith and
Tushman, 2015). Also, fun cooperation is very necessary so that firm can properly manage the
various functions and task while implementing innovation. This function will also support
organisation in enhancing their operational efficiency.
In cross functional cooperation Rolls-Royce can provide specific roles and task to their
individuals so that no confusion exist in the firm. Also, this can enhance and motivate the
employees to perform better. Firm while adhering to needs and demands of customers must also
make use of effective communication in making employees or workers understand about the
needs and demands of customers. This can support Rolls-Royce in establishing their brand name
while implementing innovation. Poor communication can result in mismanagement in an
organisation which can hamper their growth and reduce their profitability.
Importance of knowledge transfer
Knowledge transfer means share to knowledge and given solution to the inputs' problem.
The Rolls Royce company this theory apply their business, it is transfer of practical problems.
Serving knowledge from one part of group of firm to another group. Knowledge transfer in the
most popular challenges includes in project of managements in the business. These challenges
are share between knowledge transfer and key players. They are involved management projects.
The company identifying who knows what, so that is difficult knowledge, when worth consists
of organization information too much. An especially interest to business and practitioners in
knowledge management.
This is impact on all area's creativities of the firm. This is includes knowledge related to
capturing, developing, serving, and identification etc. Rolls Royce company arranging an rising
number of projects, the management should create many applicable in the projects. There are
sources of knowledge of involves like identify, capture, apply, and destination of knowledge. It
is define of the project level, personal level and business level. the company level of managing
functions or staff groups of work projects. And project level in knowledge using in order to
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complete the objectives of individual project. Or single level of knowledge share to most of
single task to perform by particular one person included in project.
4. Identification of new product for Rolls-Royce
New product development demands continuous research and brainstorming. To actively
participate in innovation process, an organization has to develop innovation culture so that all the
employee and department can contribute to achieve this goal. Rolls-Royce create innovation
culture so that it can continuously practice innovation. It’s innovation engagement policy and
practices are given below-
 Rolls-Royce put “innovation” as most crucial element in its vision statement so that all
the department and its employee take innovation as organization culture and contribute to
achieve this objective. Marketing team of Rolls-Royce give suggestion company to put
more efforts for automation because team knew that their company welcomes suggestion
for innovation as innovation is part of organisation culture and vision statement.
 Company facilitate training and development program regarding auto mobile
technology so that employee’s to nourish their creativity. To develop 103EX model
company took help of Bosch automotive training centre. Bosch one the leading and best
auto mobile training provider in UK.
 High work performance work environment of company contain supportive and
participative leadership and open communication so that employee can share their idea
and experience. Rolls-Royce arrange international business tour for their employee. It
sends its employee to japan so that employee can get exposer and technical experience
of world's most technically sound country.
 Organisation adopts corporate collaboration with auto mobile technology providers and
raw material supplier so that latest information can avail about industry and according
innovation decision can take as soon as possible. Compnay has Collaboration with
Microsoft,Agency for Science, Technology and Research (A*STAR) and Defence
Science and Technology Agency
 Rolls-Royce keep inspire its employee towards innovation, for these it sends its employee
to international seminar and auto mobile conference so that employee knows more and
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feel valued. Company allow its employee to take participation in decision making and
Incentivize with a prize to keep its employee motivated while making of 103EX model.
 Performance and innovation audit conduct by researcher and development of company so
that it can review its past innovation and build framework for future innovation. For
instance, Rolls-Royce knows that it got success in innovation regarding looks of CARS
but it also finds that its Cars do not have the latest automation facility than its
competitors.
 Company HR’s facilitate incentive other monetary and non-monetary to its employee,
based upon their contribution in innovation process.
 Rolls-Royce never put all the burden of innovation idea only on production department, it
believes in share accountability. For instance, company's finance, marketing, H.R and IT
department equally participate in innovation process and decision. All the department
took initiative by giving their idea, creativity and experience in making of must awaited
RR PRODUCT.
 Company's higher authority always engaged in getting answer “Why”, “what” and to
whom” which automatically help It in identification of innovation need .for instance why
automation is necessary was the question asked by high authority in meeting. They got
answer that more automation is in demand and automation also helps in safety of driver
like GPS enable gearing change technology help to keep driver safe. Company conduct
online survey for its existing customer to know about their pricing and technology
expectation with 103EX model.
 Company is more focused for customer satisfaction by innovation, it arranges feedback,
questionnaire and interview to its customer so that customer need can be identified which
can be fulfil through taking improvement decision.
 Company conduct Haackthon, which are focus more on innovation only. Apart from it
uses shark tank style approach to induce innovation.
 Idea management software use buy company so that they can contain and manage
different ideas given by employees and can be use in the future.
 Leader organize idea competition activities, which provide a platform to employee to
show their creativity.
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 Companies facilitate all the tools, resources and information which are required for
innovation process. For instance to all the department have access to its integrated
information system , company help employee by giving them break from work for
brainstorming, the latest software are arranged to employee.
 Rolls-Royce give sense of freedom and chance of fail to employee, so that employee will
not hesitate in experiment the innovation. Company use simulation machine to make
experiment. For instance employee can practice on simulation car mechanism to make
different experimental. Simulation give advantage to employee and organisation
both.103EX model's faced all the test on simulation machine for quality check.
Employees feels safer in experiments and companies resources and money also save.
 Rolls-Royce also have separate innovation lab which have drive-by-wire system,
Dynamic Design Lab, driving simulators.
 Company use holacracy. It delegates the authority at all level of company, because
organisation think that innovation can be born at any level. it is not necessary that only
higher authority have right to practice the innovation. Delegation of authority can be seen
as marketing team's suggestion give birth to 103EX model.
 Organisation use Individual learning for innovation. Rolls-Royce adopt organisation
learning from group and individual so that it can learn from its employee and
stakeholders. 103EX model is outcome of group learning of marketing team which is
converted as organisation learning.
5. Activities in innovation Audit
On the basis of external and internal innovation audit, company identifies that customer
need more automation and smooth driving experience. To get this objective company follow the
innovation Audit process which is given below:
Idea generation:
Idea generation is the foremost activity in making any innovative decision. In this stage
Rolls-Royce ask to its employee to contribute in innovation process by using their creativity
skills, imagination and experience. Company also use feedback and suggestion from its
customer. Idea generation tools like SCAMPER, Synthetics, Visualization, mind maps and 6-3-5
Brain writing are used by the company. Some innovative idea of Royals Royce are Rolls-Royce
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103EX which is its first vision vehicle ever, apart from it company has artificial intelligence
voice named Eleanor to facilitate more automation
Illustration 1: Innovation Audit.
Analysing:
Generate an idea is not sufficient to make innovation. Rolls-Royce practice various tools
to analyse the feasibility of idea with align it organisation's resources and external and internal
strength and weakness. Apart from it company also gather information about market size,
technical barrier, cost analysis, risk feasibility analysis. In this stage organisation try to get the
idea of possible pricing strategy, make segmentation and target for new product and sale
channels startgy.
For instance, in company has sound financial position which help it to test grab the new
technology, company's research a development team is unmatched in industry which supports
organisation to makes its dreams come true. Company do not have any technical and law barrier
regard its ambitious 103EX model. It will be premium model of company which target only high
income level group people.
Development:
Rolls-Royce use 3D printing, Gamma Technologies, Maple soft Maple, Very high speed
integrated circuit, and other software to develop the product. Apart from its company try to find
ideal supplier of required technology, raw material. Development stage also have so quality test
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for each stage in production department with the help of AI machines and robots and machine,
which helps organisation to minimise the variation in idea and reality. To develop 103EX
company build prototypes, conduct crash test, suspension test etc. if car successfully passes all
the quality check and meets expectation of engineers than only Commercialization process will
take place.
Commercialization:
In this stage company bring its innovative idea and product in front of its customers. For these
purpose Rolls-Royce uses its website, car fairs, advertisement. Company receive feedback after
annoce the product. Marketing teams practice postilion, branding, sales tactics via marketing
plan. Commercialization is tactic used by any organisation to induce curiosity for the product
among customer.
Diffusion:
If Rolls-Royce find that its innovation receives positive response and feedback from
customer and other stakeholders than only company takes decision to supply the new cars in car
showroom for its customer. Rolls-Royce majorly takes direct order from customer as per their
customisation preference.
Innovation audit for success
Rolls-Royce can also get engaged in utilizing innovation audit for the implementation of
new creation. This audit is a way to understand how effective an organisation is at managing of
innovation. The audit will factor in the wider operational environment of both up and down
stream suppliers and service providers. In the innovation audit firm needs to lay emphasis on
factors or components such as products, services, processes, and business models. Keen focus
must also be given on the suppliers, investors and other people who are going to invest on these
innovations. This innovation audit can help Rolls-Royce in knowing about their strength and
weakness. It can also help firm in developing future capabilities.
It can help them in determining the ways that can support organisation in improving their
performance. Innovation audit helps company in knowing about the strength and weakness of the
firm which they need to focus. It helps them in laying emphasis on internal and external
stakeholders and asking for their judgements before doing For better understanding their strength
and weakness company can follow the innovation audit process. Rolls-Royce can involve in
setting the stage for the innovation they are going to implement. They determine the effective
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goals and objectives which firm needs to address. The audit team helps in having idea about and
scope about the key theme that is very necessary for organisational success.
Rolls-Royce can also follow the innovation strategy. They can first develop idea which
must be unique and different in nature. Idea must be very innovative and creative so that it can
help firm in establishing the unique image in the market. Also, industry can engage in asking for
new ideas from their employees. It will also help them in making healthy relationship with their
employees that can support industry in making employee loyalty. This can also increase the
efficiency and productivity of workers. Company who is engaged in implementing innovation
must do innovation audit for knowing their strength and weaknesses.
Innovation audit can assist Rolls-Royce in responding to external and internal
opportunities and can use its creativity to introduce new ideas and concepts. Making use of new
methods, goods and services can attract and retain more consumers. This can help firm in
creating their brand name and image in the global market. Also, by doing innovation audit Rolls-
Royce can identify the factors that are emerging as the weakness in their working. This can
support Rolls-Royce in overcoming the weakness and will ensure their growth as well as
performance. It will be beneficial for firm.
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CONCLUSION
From the above study is has been concluded that innovation is not one-time process, it
demands continuous efforts. An organisation must focus on develop innovation culture rather
than innovation process, it will help the organisation in long run. By implementing correct
innovation process organisation get competitor and garb market peritoneal market share . Apart
from these, organisation is forced to engage itself in innovation process by external factor. It is
very essential that organisation must have correct information and idea about customer need,
otherwise whole innovation process can become disaster for organisation.
Rolls-Royce has also engaged in making use of innovation audit that has helped them in
analysing their strength and weaknesses. The audit team has supported them in managing
suppliers and investors which has increased the efficiency and productivity of an organisation.
Also, firm has involved in making use of innovation map plan which has assisted them in
implementing the innovation. They have laid focus on improving communication in order to
make new changes make consumers understand better. For defining new innovation firm also
have a keen understanding of their employee’s reaction to the innovation or changes they are
going to implement. This has increased their efficiency.
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