Managing Innovation in Business

This report explores the importance of managing innovation in business and its impact on economic development. It focuses on Samsung as a case study and discusses future industry trends, innovation requirements, and capabilities. The report also includes a SWOT analysis and the McKinsey 7S Model.

Managing Innovation in
Business

EXECUTIVE SUMMARY
This report is based on new innovation that are taking place in a modern era and has
simplify the overall working procedure of company and facilitate smooth flow of activities in an
effective and efficient manner. There are lots of changes going to take place in future like
changes in lifestyles, new market trends, changes in taste and preferences of customers and many
more. This report is based on Samsung which is well known brand and has expanded its
operations worldwide and emphasise on delivering excellent offerings so as to gain maximum
customer satisfaction. The main aim of this report is to provide information regarding the
changes in technology and adoption of modern and innovative technology which attract younger
generations towards it and which in turn improve the overall business performance. This report
also covers future of organisation 2020 and beyond so as to capture large market share and allow
to meet the expectations of future generations. Furthermore, this include innovation requirements
of industry 2020 and beyond that is likely to shape a bright future and ensure maximum sales.
This also cover innovation capabilities of respective firm and determine the availability of
resources by ascertaining opportunities and threats and combatting weaknesses so as to gain
significant position at a global level.

Table of content
Contents
EXECUTIVE SUMMARY.............................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
Future of the industry 2020 and beyond......................................................................................1
The Organisation Innovation Requirements 2020 and beyond...................................................3
Building the Future Innovation Capabilities................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Managing innovation in a business constituent an important part as it helps in economic
development of country and provide multiple sources of revenue streams and enhance a greater
future. Innovation promote creative and innovation ideas and provide an enormous opportunity
for firms to increase the productivity and profitability of corporations (Alzahrani and et.al.,
2017). This report is based on Samsung which is a renowned brand, headquarter in South Korea.
This firm makes future planning to promote advanced technology with additional features that
meet the expectations of customers which in turn increase the sales and profitability within the
market. This report comprises of Future of industry 2020 and beyond and several innovation
requirements in future. Also, various innovation capabilities in coming years is also covered in
this report as these help the firm to gain maximum exposure by gaining competitive edge in the
marketplace.
Future of the industry 2020 and beyond
In an era of globalisation, changes are taken at a very fast pace in a dynamic environment
and there is fast modification in technology, taste and preferences of customer and many more.
By looking towards this, the manager of Samsung is likely to bring new and innovative
technology in future as this is considered as one of the popular brands (Blau and Hameiri, 2017).
It always focuses on standardisation and sophisticated technology which is going to beat its
competitors. One of the best facts about this company is that it always plans in advance and the
requirements of products by customers in future which enhance the brand image of a firm across
the globe. The new and emerging mode of technology is going to fascinate especially younger
generation who are technologically oriented in future which in turn generate more sales and thus
increase the profitability within the confines of telecom industry.
In year 2020, the vision of Samsung is to planning to increase its sale of around 400
billion and it would create a strong pillar by emphasising mainly on three aspects such as
creativeness and innovations, partnership and third one is Great people. In future, there is going
to be highly demand of smartphones so the company is planning to launch a 600 megapixel
camera which would gather more information and details that is greater than human eye. In
addition to this, there is giant revolutionised in technological sector and very soon it is planning
to launch autonomous vehicles and drones as it would enhance the positive reputation at a global
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level (Samsung push into 5G for 2020 and beyond. 2020). In future 2020 and beyond, it is going
to launch increasing sensor size and further look into other kinds of sensor that could register
smell or taste which is considered as beyond the human senses and is likely to hit in future. This
would increase the productivity and profitability of company and such new and advanced
innovation are likely to beat its competitors. Also, this is firm is planning to launch Galaxy S20
series of phones and Galaxy Z Flip in which screen is going to fold from top to bottom. Also, it
would expand its operations by looking the factor of fast and efficient technology and planning
to enter into 5G capability which provide fast speed and boost the IT industry (Dawar, 2019).
Based on this, the SWOT analysis is conducted to determine the positive and negative aspect and
determining the threats and make best use of opportunities. In the context of Samsung, the same
is presented as follows:
Strength
 Low cost: Samsung provide products as low cost which is likely to gain large market
share across the globe.
 Brand reputation: By launching several new models of smartphones in coming year,
it could achieve positive reputation across the globe.
 Quality specification: The respective firm would provide excellent offerings and
take environment protection measures which build strong brand image in coming
years.
Weakness
 No operating system: One of the major weakness is that Samsung phone does not
has its own operating system which is major issue.
 Decline in profit: The respective firm has to sell its product at low cost due to
emerging competitors which decline the overall profit margin.
 Lack of performance: The concerned firm has decline its performance in coming
years due to the reason due to its major competitor such as Apple which focus on
uniqueness.
Opportunities
 Advanced technology: In future, by using 5G capabilities and new and advanced
innovation, this is going to hit the market with great sensor that are more intense and
capture more details even more than human eye.
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 Increase market share: The respective firm provide offering at low cost with
additional features and innovative design that will gain large access of customers and
thus capture large market share.
 Strong financial position: The company has strong financial position in future that is
going to build a strong positioning across the globe.
Threats
 Emerging number of competitors: There are giant number of competitors such as
Apple, OnePlus and many more that is going to possess a big threat for Samsung in
future.
 Large market of Chinese: There are large number of Chinese companies that
provide almost same features of similar attributes at low cost which decline the
overall performance of company in future.
The Organisation Innovation Requirements 2020 and beyond
Samsung always focus on new and advanced technology and deliver superior services to
their clients which ensure maximum customer satisfaction across the globe (Dery, Sebastian and
van der Meulen, 2017). the respective firm always strive for advancement in hardware and
software programs and also has stylish edge and provide attractive models which fascinate
customer and thus boost the sales in a competitive market. Also, future generations are more
particular about new and advanced technological environment so by looking this, the respective
firm is planning to launch 5G phones and a dot projector which would going to emit 30000
invisible dots and build a 3D facial map (Samsung changing for future. 2020). In addition to this,
the firm is planning to launch flood illuminator with invisible light which would help an
individual to detect Face ID even in dark. These new innovations and requirements of Samsung
are in evident and going to beat its competitors across the globe. Furthermore, the company is
planning to launch Galaxy X in coming years which is going to be one of the leading smartphone
and thus fascinate large number of users to buy the product.
McKinsey 7S Model: This is one of the important frameworks which is used by
management to implement changes in an organisation in an effective and efficient manner. In
other words, this model is propounded by Tom Peters and Robert Waterman which define
several elements which are interdependent on each other and facilitate smooth operation of a
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business (Goller and Bessant, 2017). In the context of Samsung, the seven elements are
presented as follows:
Strategy: This is regarded as the action plan which assist firm in achieving competitive
advancement in the marketplace. Samsung is a renowned brand that provide superior
smartphones so they follow diversification strategy as they emphasise on new product in new
market which gain maximum customers and emphasise on developing a huge segment of market.
Structure: This represent the proper integration and division of work in which business has
arranged the functional units in different areas. Samsung has an appropriate structure in which
CEO is at top position and then duties are allocated as per the positions of job.
System: This represent a sequence of activities to be taken place which assist the firm in
making an appropriate decision making. The manager of Samsung follows a systematic approach
and abide all rules and regulations which facilitate smooth conduct of activities in a
predetermined manner.
Skill: This represent the core competencies and capabilities of workforce in an
organisation. The HR manager of Samsung recruit potential and highly qualified employees
which aims to render a best and innovative solution to their clients.
Staff: this represent the nature and quality of staff that is being hold by organisation.
Samsung has highly trained employees as it implements proper recruitment and selection policy
which ensure a greater success and also improve the overall productivity.
Style: This involve the working procedure that is used by company so as to gain
competitive position across the globe. The manager of Samsung implements democratic style of
leadership as it considers the ideas and opinion of subordinates so that they feel that their
presence is important and ensued greater success in future.
Shared Values: This is associated with values, ethics and norms that is associated by
business. The manager of Samsung is always focus on high standards and provide proper
guidance to their employees with excellent communication skills as it ensures greater satisfaction
if customers in future (Anuj Bhatia. 2020). Also, it aids in accomplishment of goal in a short
span of time by making advance planning and coordination in a workplace.
Strategy Samsung has prepared an action plan and
develop a strategy in future which improves
the overall performance.
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Structure The respective firm is likely to use divisional
structure which facilitate proper coordination
and cooperation in a workplace.
Style The style chosen by firm is democratic style as
it considers the ideas and suggestions of
employees so that they could work with greater
zeal.
Staff Samsung implement a proper recruitment and
selection procedure and hire a potential
candidate which provide greater benefit in
future.
Skill The staff of Samsung are specialised trained
and also, they promote innovative ideas and
render a quicker solution that ensure maximum
satisfaction.
System The respective firm always plan to use new and
innovative technology in their workplace and
also provides unique innovations that generates
greater growth in future.
Building the Future Innovation Capabilities
In a digital economy, it is essential for Samsung to create product differentiation and sell
products at a low price which assist to gain competitive edge and also it emphasises on advanced
and new innovation so as to gain maximum exposure across the globe.
PESTEL analysis: This provide the framework to determine both internal and external
factors by ascertaining the availability of resources and assist a firm in taking an appropriate
decision. The manager of Samsung has undertaken several changes by taking into several factors
into consideration which are prescribed below:
Political factor: The political conditions affect the decision making of firm as it includes
corruption, political stability and many more (Gunawan, 2019). Due to pandemic, there is
decline in sales operations and affect the working procedure of Samsung.
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Opportunities: The stability in political condition would provide a great opportunity to
Samsung to enjoy greater economy of scale as it facilitates smooth operations of business and
thus enhance the productivity in future.
Economic Factor: This factor comprises of several elements such as inflation, GDP,
level of employment and economic stability. Samsung is likely to introduce advanced
technological model with new features which bring maximum sales and thus contribute a greater
success in future.
Opportunities: Foreign Direct Investment provide an enormous opportunity to Samsung
to expand its operations by launching new designed smartphone and attract multiple revenue
streams that provide growth in future and provide a mode to gain competitive position across the
globe.
Social factor: This consist of emerging lifestyles, demand and supply, level of income and so on.
By looking towards an awareness towards future, the manager of Samsung makes an appropriate
plan and decide future course of action and understand taste and preferences of customers and
produce such offerings which ensure maximum customer satisfaction (Cho Mu-Hyun. 2020).
Threats: There are giant number of players of Samsung such as Apple and many more
which possess a big threat for company and also there is rapid changes in technology which
enable firm to make changes quickly. The business environment enforce company to create new
and advanced smartphones as new models are easily fascinated by future generation while there
is decline in sale of old model.
Technological factor: This is one of the important constituent which includes elements
such as research and development and level of technical awareness present in the market place,
Samsung is well known brand that is planning to create more and more advanced products so as
to gain maximum exposure in the world and also its low cost strategy would increase the sales
operations within the confines of IT industry (Hellebrandt, Heine and Schmitt, 2018).
Opportunities: The respective firm is planning to launch new products such as
smartphone with 5G capabilities that ensure maximum speed and highly develop sensor which
would gather more detail greater than human eye and is likely to hit the market in future.
Environmental factor: By looking awareness towards environmental protection,
Government has taken several measures regarding this aspect. The manager of Samsung is going
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to make use of renewable sources and emphasise on recycling strategy so as to achieve long term
sustainability and objectives.
Opportunities: The respective firm uses environment friendly packaging and carboards
and discourage the use of plastic which generate positive reputation across the globe and also
help in achieving long term objectives within respective time period.
Legal factor: This constituent of several elements such as antitrust laws, copyright and
patent laws and many more (Hunady, Pisar and Durcekova, 2019). The manager of Samsung
abides all rules and regulations and maintain proper code of conduct to facilitate smooth
operations of business.
Threats: Various legal factors and change in laws and legislation might affect the internal
operations of a respective firm and decline the overall performance within the confines of
telecom industry and also it decreases the profit margin.
Supply chain management: The manager of Samsung purchases raw materials in a bulk
quantity from vendors at a low cost which decrease the cost of production and thus reduce the
overall profitability within the confines of telecom industry (Jung and Chung, 2016). The
respective firm maintain a strong supply chain network and has mutual relationship with
suppliers and customer which ensure future growth opportunities and also increase the
profitability. Supplier management is considered as the core unit of firm which in turn ensure
greater efficiency and achieve a desired level of output. Low operating expenses and continuous
supply of raw materials assist Samsung to ensure future success and also efficient supply chain
network is likely to built a great future which in turn enhance the brand image across the globe.
Efficient supply chain network assists the firm to create a healthy relation and increase the
efficiency and effectiveness within IT industry. Also, Samsung focus on achieving sustainable
objectives and reduce the environmental hazards so as to maintain goodwill across the globe.
The supply chain management of Samsung is focussing on maintaining a criterion based on four
factors namely, human resource capacity, delivery on proper time, cost competitiveness and
response to risk factor. It makes judicious usage of resources such as manpower, material and
machines so as to achieve maximum level of output and facilitate smooth operations of business
in an effective and efficient manner (Obara and et.al., 2016). Product quality and cost
effectiveness are the two main considerations of supply chain management as it ensures greater
level of output. Samsung has maintained optimum relation with suppliers an abide all
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international standards and regulations which ensure transparency and accountability and also
engage various stakeholders that aids in making various decisions in supply chain management.
The respective firm also emphasises on certified with eco partner suppliers as in future this is
considered as core point among the minds of individuals.
Samsung has around 2500 network of suppliers around the globe that provide raw
materials, equipment’s and many more and it is located in different countries such as US, Korea,
Japan, Taiwan but among these China is considered as one of the huge suppliers who provide
products at a low cost. In addition to this, Samsung is likely to built strong relation and network
of suppliers so as to gain competitive edge at a global level (Oluwasegun Olutkotun. 2020).
Samsung is planning to collaborate with Cisco which aims to provide a unique and intelligent
solution as this major alliance provide a greater opportunity for company to grow. They are
planning to create the best Wi-Fi 6 experience which is considered as one of the advanced
innovations. This also aims to provide a render and effective solution to their clients within
fiction of seconds and provide a wonderful experience to their customers across the globe. This
is likely going to hit the market and creates an lasting impression of customers and builds greater
customer loyalty.
Collaborative arrangements: the manager of Samsung emphasise on providing
specialised training to their staff and assign roles and responsibilities in according to their
specialisation which ensure maximum customer satisfaction across the globe. in addition to this,
collaboration with external stakeholders provide an opportunity to the respective firm to gain
competitive advancement and provide expansion, diversification and modernisation which
provide an enormous growth to the company. In the context of Samsung, the following factors
are given beneath:
Franchising: This is most commonly practice today as it involves the agreement between
two parties in which one party grant some rights and authorities to other parties (Wang, 2017).
Samsung is planning to expand its operations in future through franchising as the firm focus on
new and innovative technology and thus gain maximum customer satisfaction. This boost the
sale of products and increase the profitability of corporation within the confines of telecom
industry.
Joint Venture: it involves collaboration between two or more parties that emphasise on
accomplishment of common goal. The manager of Samsung could collaborate with local parties
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in future which ensure sharing of resources, funds and ideas of expertise that aids in taking fast
decision and thus ensure competitive position across the globe.
Merger: It involve combination when two or more firms merge together in order to
increase market share. The senior authority of Samsung is planning to merge in future so as to
enjoy greater economy of scale as it is one of the leading companies, headquartered in South
Korea. This provide greater growth and thus increase the profitability of corporations.
Strategic Alliances: It is a written agreement between two parties in order to achieve a task in a
short span of time (Wann and et.al., 2017). Strategic alliance provides an enormous growth
opportunity to the firm like Samsung to generate a client base and minimise the possibility of
risk (David Gorton. 2020). In addition to this, the respective firm emphasise on expansion and
diversification that generate a strong brand image across the globe.
KPI What the
measurement is now?
What is the optimum
level of performance?
Standard (targets) new
21 May 2020
Value/Significance?
Loss to the company
by not meeting the
standard (can
connect with step 3)
new 21 May 2020
units per month of
product
100 units per month 150 units per month In future, there is a
drastic
improvement in the
product as it aims
to meet the greater
requirements of
customers across
the globe and also
it boost the sales
and productivity in
future.
Processing time for
a particular
function
3 days 2 days Samsung is
focusing on new
and advanced
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technology as in
future there is huge
demand of it so it
conducts fast
operations of a
business by hiring
potential
candidates.
Number of
customer
complaints
10 per month 5 per month This is one of the
biggest advantage
for a company like
Samsung as it
make product with
utmost care by
considering that
there would be
fewer complaints
by the customers
which increase the
level of satisfaction
and develop
customer loyalty by
providing quality
specifications to
their clients at a
reasonable cost.
Ansoff matrix:
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Market penetration: Samsung launches its well established products in the existing
market as it aims to create large share of market across the globe. the firm reduce the prices of
phones which in turn generate maximum number of customers.
Product development: Samsung always emphasise on providing excellent offerings such
as 5G phones and dot projector and strong sensor which would capture more information than
human eye which grab the attention of large number of clients and develop a positive image
across the globe.
Market development: Samsung has expanded its operation in new market segments
through different approaches like Foreign Direct Investment, Direct Exporting, Merger and
acquisitions that provide an attractive opportunity for business to grow at international level.
Samsung always emphasise to build an effective strategy that provide new and innovative
services and also it has strong brand presence in the country.
Diversification: Samsung has diversified its business into several like electronics,
medical equipment, home appliances but it boosts the maximum sale in smartphones. The
respective firm is planning to launch 5G capability smartphones that would bounce the market
and thus maximise the greater revenue within the confines of telecom industry.
The strategy adopted by the firm is diversification strategy as it always come with new
products with strong sensor that could generate more information greater than human eye and its
strong global presence would capture the large market share and enhance the positive reputation
across the globe. This provide greater future opportunities for the firm and help in meeting
requirements of future generations.
Blue Ocean strategy
This is a new strategy that emphasise company to move into new market segments and
prepare an effective planning so as to gain large access of customers across the globe. the senior
authority of Samsung has already known their market is going to be technical oriented so it
creates product differentiation that would grab the attention of users from different parts of the
country (P.J. Bednarski. 2020). The respective firm create new market segments and provide
offerings at low cost which is a unique concept which would be going to fascinates their clients
and thus ensure maximum satisfaction. The concerned firm has giant product portfolio that aids
in creating a strong brand presence and also it handle the complaints of customers within fiction
of seconds, it render an effective solution which is likely to boost competitive edge over the
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market. In addition to this, the leader of respective firm provide effective training to their staff
with proper guidance so that they could accept the changes that are taking place in future and
also they promote new and creative ideas that provide assistance in taking best decisions and
shape the bright future of the respective company to the next level.
Four strategy framework:
Elemination
 3G connectivity
 Camera
Raise
 Less in weight and also long term
durability
 Excellent quality of speakers
Reduce
 Sizes of screen
 Also, the storage capacity of Phone
Create
 Strong sensor
 Flash video
CONCLUSION
From the above information, it can be summarised that the business environment in
which company carry out its operation is regarded as dynamic so it is essential for manager to
adapt changes quickly to gain competitive advancement across the globe. The manager should
emphasise on providing specialised training to their subordinates so that they are ready to accept
challenging task and inculcate confidence and determination among them. Also, the manager
should plan in advance and must determine the future capabilities and thus achieve a competitive
position. The future of organisation 2020 and beyond is discussed in this report that determine
the availability of resources and various new and emerging modes of technology and emphasise
the firm to fulfil the requirements of customers as they are technical oriented in nature. Proper
coordination and cooperation would assist the firm to facilitate smooth conduct of activities that
ensure future growth and success. The senior authority through excellent communication skills
divide the work among the staff that matches their talent and skills so that they could work with
greater zeal and also it avoids confusions and misunderstandings among them which in turn
shape a bright future and provide a greater path towards a greater success. The respective firm
has undergone several changes in today’s era as it has made several plans to launched a smart
phone with additional features. Also, the respective firm could has proposed new and innovative
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changes which provide an immense level of growth in future. In addition to this, the innovations
and new technology has entirely changed the business by looking towards the present and future
scenarios. Before any proposed changes, it has just a moderate company that was lagging behind
its competitors. After making proposed changes, Samsung has become one of the top company
that provides advanced technology and thus fulfil the requirements of customers with latest
development of mobile phones and many more gadgets with innovative designs and attractive
features.
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Books and Journals
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Goller, I. and Bessant, J., 2017. Creativity for innovation management. Taylor & Francis.
Gunawan, Y., 2019. Tugas Review International Journal of Management and Business Studies.
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