Managing Innovation in Business

This report highlights the importance of innovation in the business world, using British Petroleum as a case study. It discusses the history of BP, its innovation performance, and capabilities. The report also explores the industry overview and BP's existing innovations. It concludes with an overview of BP's future plans and projects.

Managing Innovation
in Business

EXECUTIVE SUMMARY
The report highlights about the innovation and its importance into the business world. For
reference purpose this report has taken an example of a company, British petroleum. British
Petroleum is a British company which has its head quarters in London, England. The company
engages into the business of gas and oil. The report discuss about the history of company that it
was founded in the year 1901 and slowly and steadily it has become world major companies for
producing the oil and gas. The company now comes into the category of super major companies
which are considered as a major organization which provides the oil and gas worldwide. The
report also discuss about the innovation done by the company to company to cater the needs to
the market.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................3
The organization and Industry Overview....................................................................................................4
The organization and its innovation History............................................................................................4
BP IN INDIA..............................................................................................................................................6
The organization existing innovation performance and capabilities........................................................6
The industry in 2016................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................8

INTRODUCTION
Innovation refers to the generation of new idea, creative thinking or thoughts,
imagination of new device or method. The whole world is evolving because of innovation.
Innovation brings comfort and easiness into the lives of people. Similarly, business brings
innovation into their activities, operations and products and services which they offers to the
people. In order to survive into this competitive world, it has become necessary for the business
to be innovative and creative with their product and service offerings. For reference purpose this
report has taken an example of a company, British Petroleum (Biemans, 2018). British
Petroleum is a multinational company which engages its business in gas and oil. It has its head
quarters in London, England. It comes at 7th position in world’s oil and gas super majors. The
company was founded in the year 1909, 14 April.
This report discuss about how a company’s origin and innovation history. The report also
includes the existing innovations along with the performance and capabilities. Apart from this
the report also includes how company performs after 2016 and present.
The organization and Industry Overview
The organization and its innovation History
BP- BRITISH PETROLEUM OIL AND GAS INDUSTRY
BP is a British multinational company which engages in the work of oil and gas. It is considered
as a leading company which serves through out the world. BP comes into the category of Super
Majors which means it is one of the company which consider as a major provider for oil and gas
to the whole world. The company sells its products in approx more than 80 countries in which it
provides fuel to the countries, which can be used for transportation, generation of energy, in
some retail services and also for the products of petrochemical items. The company was founded
by William Knox, and it has its headquarters in London. Some of the products made by the
company may includes, petroleum, fuels for motor, natural gas, petrochemicals and the like.
HISTORY
The discovery of oil by the british was started in the year 1908. In this year they found the in
large amount at a place in Khueztan. It is said to be firstly found oil for the business of trade in
Middle east region. The founder of the company William then made contact to the region head
for taking the permission for extracting the oil from their region; this event said that has changed
the history of that entire region. The discovery of oil has lead to the generation of many
industries and companies which engages into the oil extraction and natural resources business.
Many companies were opened in petrochemical business.

1909 - The organization is joined in England as The Anglo-Persian Oil Company Limited After
eight years of larger part share the Anglo-Persian Oil Company Limited. Turns into the pre-
famous oil maker proprietorship, the British government starts. The joining centers around the in
the Middle East (Damanpour and Aravind, 2012). The organization enters offering conventional
portions of Anglo-Persian commercialization of Masjid-I-Suleiman in into worldwide promoting
in mainland Oil Company stock available to be purchased to general society.
1954 - The organization name turns into The British BP enters North America with its Petroleum
Company Limited. Promoting exercises reach out to New Zealand, portions of Africa and
Europe. An understanding for Iranian oil gives BP a 40% stake. BP increases a greater part
enthusiasm for Standard Oil. The organization secures the synthetic substances and plastics
interests in Europe
1997 – in light of mounting proof and concern with respect to ozone depleting substance
emanation and the rising temperature of the earth. BP turns into the first in quite a while industry
to state publically the requirement for preparatory activity on environmental change (Hall and
Williams, 2019).
Starting at 31 December 2018, BP had tasks in 78 nations worldwide with the worldwide base
camp in London, United Kingdom. BP activities are sorted out into three business portions,
Upstream, Downstream, and renewables.From 1951, British Petroleum had publishes the
Statistical Review of world energy report, which is taken to be as benchmark for energy industry.
2005 - British petroleum sold its business which included derivatives and olfines works and
along with refineries in Grangemouth, which is located in UK. Apart from this it also sold his
Laveran project which was in France for $8.3 billion. The company opens and launched up a
new business of generating energy from low carbon power.
EXPLORATION AND PRODUCTION
BP has the upstream activities also which includes exploring of new crude oils and resources of
natural gases. After exploring these resources, the company will produce the oil and natural gas,
and then transport and stores it for selling purpose. This operation of exploring the oil and gas
would be taken place at 25 countries. In the year 2018, the company gets successful in extracting
3.4 millions of oil per day. This helps the company in becoming the major source for providing
the oil and natural gas to the world. The company has extract to much oil and natural gas which
no other company has achieved to extract, store and sell.

The company, British Petroleum also has some down stream activities which includes marketing
services, refining activities, manufacturing work, transportation, activities of trading and supply
for crude oil, also the products related to petrochemicals and petroleum. These Downstream
activities are responsible for company’s fuels, lubricants and businesses for petrochemicals.
There major operations are located in Europe, Asia and North America.
BP IN INDIA
In February 2011 - BP framed an organization with Reliance Industries, taking a 30% stake in
another Indian joint-adventure for an underlying installment of $7.2 billion.In September 2012,
BP sold its auxiliary BP Chemicals (Malaysia) an administrator of the Kuantan cleaned
terephathalic corrosive (PTA) plant in Malaysia, to Reliance Industries for $230 million.
In India, BP possesses a 30% portion of oil and gas resources worked by Reliance Industries,
including investigation and creation rights in excess of 20 seaward oil and gas squares, speaking
to a venture of more than US$7 billion into oil and gas investigation in the nation (Massa and
Tucci, 2013).
The organization existing innovation performance and capabilities
INNOVATIONS
British petroleum was first industry in world to go for different way of production that does not
affect climate. That innovative idea was not to use fuel but use renewable energy that is useful in
saving in energy in form of Alternative low carbon energy
British petroleum was the ever first company to get recognized as “super majors” by adopting a
strategy of expanding its major focus at providing energy sources other than fossil fuels. The
company establishes a low carbon energy business as an alternative source for generating energy,
in the year 2005. For this purpose the company invested around $8 billion for a time period of 10
years in renewable energy which includes solar power energy, wind energy and bio fules.
Whereas non- renewable sources includes hydrogen power and natural gas. According to the
report, the company has spend a total of $8.3 billion which he believe to get completed by 2013.
BP announced an investment of around $200 million in renewarble energy for Renewable energy
for lightsource. The purpose of light source energy was different from solar energy, it seeks
focus at managing the solar firms along with maintaining them instead of manufacturing of solar
panels also. As per the report of 2017, the company’s light source has generated around 1.3 GW
of solar capacity and aprt from this it also manages around 2 GW capacity of solar. The plan is to
increase the capacity upto 8 GW in the project in US, Europe and India.
The company has also invested in a project of Israeli quick charging battery firm name as store
Dot Ltd. for around $20 million.

Bob Dudley, the CEO of the company ensure that from the total spending of company around 15
to 17$ billion would be invested in low carbon energy and technology production, according to
the reports of 2018.
In the recent plan, 2020, the company has promised to cut its green house emissions to zero by
the year 2050. The is making surety that that there carbon emission which is emitied from thir
operational activities like from fuels companies also from the transports which uses the fuel to
work, would be cut to zero. But the further process or details about how the company will be
achieving this is limited to few people only. The company added that they are changing their
structure of operations into four different business groups to achieve the goals, these 4 business
groups are as follows: operations and production, products and customers, gas and low carbon
and at last engineering and innovation (Tidd and Bessant, 2018). The company also discontinued
its business with Amercian Fuel and manufactures of petrochemicals, western energy Alliance
and etc. because of some issue in regard with new commitments.
The industry in 2016
PRESENT SCENARIO OF BP INCLUDES PROJECTS AND CHANGES OVER WITH TIME
In 2011–2015, BP chop down its elective vitality business. The organization reported its
takeoff from the sunlight based vitality showcase in December 2011 by shutting its sun oriented
force business, BP Solar. In 2012, BP shut down the BP Biofuels Highlands venture which was
created since 2008 to make cellulosic ethanol from developing vitality crops like switch grass
and from biomass. In 2015, BP chose to exit from other lignocellulosic ethanol organizations.
In June 2014, BP consented to an arrangement worth around $20 billion to supply
CNOOC with condensed flammable gas. In 2014, Statoil Fuel and Retail sold its aeronautics fuel
business to BP. To guarantee the endorsement of rivalry specialists, BP consented to sell the
previous Statoil flight fuel organizations in Copenhagen, Stockholm, Gothenburg and Malmö air
terminals to World Fuel Services in 2015.
In April 2017, the organization agreed to sell its Forties pipeline framework in the North
Sea to Ineos for $250 million (Von Schomberg, 2013). The deal included terminals at Dalmeny
and Kinneil, a site in Aberdeen, and the Forties Unity Platform. In 2017, the organization glided
its auxiliary BP Midstream Partners LP, a pipeline administrator in the United States, at the New
York Stock Exchange.
Apart from this the company, BP, also accounced an investment in solar energy
developer. The investment was about $200 million, through that investment the company also
acquired 43% of stakes into lightsource company. In the same year, the company has acquired

another company also which was named as Clean energy’s along with its assest and production
units and current contacts of supplies.
The company also purchases BHP’s shale’s assets in the year 2018, july for the amount $10.5
billion. Along with this the company also has brought the interest in Clair field of 16.5%, UK
which results in increase of their share to 45.1%.
In the year 2019, the company, British petroleum found out approx 1 billion barrels of oil
at the location of its Thunder house in Mexico. After that the company has planned to spend
around $1.3 billion at a third phase of Atlantics field which is located near New Oraleans. The
company British Petroleum is keeps on expanding and taking many projects. It is also taking the
projects of solar power installation. In this project the company is responsible for installing the
solar power plant in the area where there is huge amount of sunlight so that they can convert it
into electricity. The company is also a major source for employment (Weisburd and Braga,
2019). It is considered as an employer which hires huge number of workers. As the company
serves many countries, it follows all the rules and regulations which is prevailing into the country
of their operations. The company completes all the legal laws, as the different countries have
different legal laws in them.
CONCLUSION
From the report discuss above, the innovation and its importance in a business has been
discussed. Innovation refers to the generation of new ideas, or design or method which helps the
company to cater the needs and wants of their target market. Innovation is much very necessary
for a business for its growth, survival and profits. The companies by innovating new products
and services bring ease and comfort into the lives of their customers. The whole system of
evolution is brought by innovation. When things get innovated, they bring change into the style
in which people leads their lives. Report discusses the history of a British company, Bharat
Petroleum. And how the company expands itself and bring innovation and creation in its
offering.

REFERENCES
Books and Journal
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
Christensen, C. M., Raynor, M. E. and McDonald, R., 2015. What is disruptive
innovation. Harvard business review. 93(12). pp.44-53.
Damanpour, F. and Aravind, D., 2012. Managerial innovation: Conceptions, processes and
antecedents. Management and organization review. 8(2). pp.423-454.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Hall, C. M. and Williams, A. M., 2019. Tourism and innovation. Routledge.
Massa, L. and Tucci, C. L., 2013. Business model innovation.The Oxford handbook of
innovation management. 20(18). pp.420-441.
Parida, V., Westerberg, M. and Frishammar, J., 2012. Inbound open innovation activities in high‐
tech SMEs: the impact on innovation performance. Journal of small business
management. 50(2). pp.283-309.
Tidd, J. and Bessant, J. R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Von Schomberg, R., 2013. A vision of responsible research and innovation. Responsible
innovation: Managing the responsible emergence of science and innovation in society,
pp.51-74.
Wang, Z. and Wang, N., 2012. Knowledge sharing, innovation and firm performance. Expert
systems with applications. 39(10). pp.8899-8908.
Weisburd, D. and Braga, A. A. eds., 2019. Police innovation: Contrasting perspectives.
Cambridge University Press.