Innovation Fitness Report From the Handbook

This report analyzes the innovation strategy and process adopted by MasterCard in the rapidly changing digital environment. It includes a literature review on innovation strategy and key elements of the innovation process. The report provides recommendations for improving innovation performance.

Innovation Fitness Report From the Handbook
CONTENTS

INTRODUCTION.................................................................................................................................1
LITERATURE REVIEW......................................................................................................................1
Innovation strategy............................................................................................................................1
Key elements of innovation process..................................................................................................2
METHODOLOGY................................................................................................................................3
FINDINGS............................................................................................................................................3
DISCUSSION.......................................................................................................................................3
RECOMMENDATIONS.......................................................................................................................3
REFERENCES......................................................................................................................................4

INTRODUCTION
Today, each and every one are living in the age in which technology as well as
information competencies are advancing at an incomparable pace which is quite quicker
compared to the others in the history of humans. This era is presenting enormous prospects
throughout every industry. In the context particularly financial services, the movement of
digitalization is the most important renovation or modification from the time when the plastic
credit cards. This rate of alteration is assumed to accelerate over the coming few years due to
the fact that it becomes conceivable for individuals to carry out their monetary activities
through utilizing devices by any kind of channel (Trott, 2015). One of the leading
multinational firm in the payments as well as commerce industry, MasterCard is taking into
account new solutions for making improvements in the financial services and searching for
different manners to innovate quickly compared to the past. Based on this, the main aim of
the current research report is to analyse the ways in which the organization is managing
innovation in this rapidly changing digital environment. Further, the report will evaluate the
innovation strategy and innovation process adopted by MasterCard and will focus on
prioritized recommendations for improving innovation performance.
LITERATURE REVIEW
Innovation strategy
As per Maier (2018), because of the rising pressure in relation with the global
competition has resulted in the emergence of more and more issues related to the
management of innovation in the contemporary years. Firstly, due to the advancement in
technology, it is becoming indispensable to combine as well as gather more comprehension in
relation with the dispersed areas of science. And the second point is that because of the
pressure of competition, companies are being forced to accelerate evolution procedures for
the purpose of shortening the life cycles of their products. Furthermore, as the needs and
preferences of the customers are getting diverse at a tremendous pace there has been
development of varied models as well as variants of merchandise which has resulted in
smaller units of manufacturing and markets to be targeted. As per Zhang (2015), innovation
management is the processes being adopted by corporations for management of innovation.
This enables the organizations to react to both internal as well as external opportunities
through utilizing its creative efforts for introducing novel concepts, merchandise and
processes. An important one sub-section of innovation management is innovation strategy.
1

According to Dodgson (2017), the advancement system of the organization alludes to
arrangements and the executives approach of the firm that immediate endeavours towards
creating items in accordance with the inclusive technique of the company. This additionally
directs how the association will utilize its assets to meet the association's targets for
development. As needs be a company's advancement methodology depends on the course and
vision of the organization. This is done inside the cut-off points "of assets accessible to the
firm to help current and future advancement endeavours and its developing corporate
technique, association, and culture. One-way development technique is emerged is by the
manner in which the association utilizes steady and extremist advancement. To lay it out
plainly, these two kinds of advancement allude to the level of oddity included.
As per Bessant and Tidd (2019), gradual advancement is tied in with doing what we
improve and hence it is a systematic quest for making items, a help or an interaction more
successful or proficient. Steady developments accordingly builds on the current skills of the
company and are described by minor mechanical changes. On the other hand, fundamental
innovation is carrying out things in the novel way and therefore, the solution is also new to
the world. As defined by Dodgson (2018), fundamental or radical innovation embodies
precarious occasions that helps in redesigning of knowledge, designs and the nature of
competition in the product market. Therefore, fundamental innovations are destroying
competence subsequently they essentially alter the technical course
Key elements of innovation process
External influences along with internal conditions where all the factors perform on
each other decides whether the innovation will be successful or not. As suggested by Trott
(2015), innovation is not being regarded as a single occasion rather it involves a series of
actions which are connected among themselves. Furthermore, innovation can be
comprehended as an important procedure which comprises different types of phases. There
are different researches which have suggested that firms with high level of performance in the
field of innovation usually have a prescribed or recognized progression for the development
of novel merchandise and administrations. Thus, it can be attributed that taking into account
as well as determining the stages of these innovation processes can prove quite valuable and
beneficial. According to Narvekar and Jain (2016), there are several models of innovation
processes are present but the process related to that is still enigma. Due to this, this procedure
cannot be pinned down without any difficulty.
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As per the belief of Tidd, Bessant and Pavitt (2015), innovations also differ in terms
of scale, amount of freshness or originality and nature, at the level of generalization it is quite
probable to see same kind of basic procedures which are shared by all the organizations.
Furthermore, as supposed by Linsu and Youngbae (2019), even though the phases of
innovation is being developed on the foundation of researches being conducted in the nations
which are developing, they does not essentially depicts all the events in these developing
nations. However, they are beneficial for investigating the process of innovation in the
nations which are at the developmental stage.
Search element of innovation management process
Strategic management of innovation as well as evolutionary economics of innovation
literature stressed the significance of access of the organization to an assortment of inputs for
producing successful innovations that will going to impact the competitive edge of the
companies. Nonetheless, specified that the degree of consideration by firms and firm leaders
is confined looking for and overseeing such assortment is certainly not a simple undertaking
and regularly includes looking in outsider mechanical spaces.
METHODOLOGY
FINDINGS
DISCUSSION
RECOMMENDATIONS
3

REFERENCES
Books and journals
Trott, P. (2015). Innovation Management and New Product Development, Second edn.,
Prentice Hall, UK
Narvekar, R. S. & Jain, K. (2016). "A new framework to understand the technological
innovation process", Journal of Intellectual Capital, vol. 7, no. 2, pp. 174-186.
Linsu, K. & Youngbae, K. (2019). "Innovation in a newly industrializing country: a multiple
discriminant analysis", Management Science, vol. 31, no. 3, pp. 312-322.
Tidd, J., Bessant, J., & Pavitt, K. (2015). Managing Innovation, Third edn., Wiley, UK
Maier A., (2018), Innovation the new trend în today’ s challenging economy, The 13th
International Conference on Informatics în Economy, IE 2014, 15-18.
Zhang, S 2015, ‘Innovation management: Corporate’, in Encyclopedia of new venture
management, SAGE Publications.
Dodgson, M., Gann, D. & Salter, A. 2017, The management of technological innovation:
strategy and practice, Oxford University Press, Oxford; New York.
Bessant, J.R. & Tidd, J. 2019. Managing innovation : / integrating technological, market and
organizational change. 4. ed. Hoboken: Wiley
Online references
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