Innovation System & Business Growth

This assignment examines the crucial role of innovation systems in achieving long-term business growth and success. It highlights the importance of a skilled and competent workforce for effective implementation and explores how innovation can drive expansion, increase customer base, and enhance sales turnover. The analysis emphasizes the need for a robust implementation plan to ensure fruitful outcomes and stresses the significance of stakeholder communication in clarifying goals, objectives, and creating a competitive edge in the marketplace.

Project
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TABLE OF CONTENTS
Table of Contents.................................................................................................................................2
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
The review of existing business practices of Coffee Vile against the seven dimension of
strategic innovation......................................................................................................................3
Modified Innovative system........................................................................................................4
Implementation plan for the innovation system..........................................................................5
Communication plan covering participants.................................................................................7
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
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INTRODUCTION
In the modern era, management of business activities and practices has become one of the
most complicated tasks for any company. The rationale behind this is that the competition among
businesses in almost every industry has become so intense that it is not easy for firms to gain
competitive advantage over other market players (Baldwin and von Hippel, 2011). Along with
this, companies are also required to review and make changes in their business practices at
regular intervals and this is very complicated task. The present research report is based on Coffee
Vile which is an enterprise that servers quality food and coffee to all its respective customers.
The review of existing business practices of Coffee Vile against the seven dimension of strategic
innovation has carried out in this report.
TASK
The review of existing business practices of Coffee Vile against the seven dimension of strategic
innovation
In the present scenario, innovations have become very important in getting competitive
advantage and sustaining at marketplace. Furthermore, the review of Coffee Vile operations
against the seven dimensions is provided below as:
 Managed Innovation process- After reviewing the current business practices, it can be
stated that the innovation process developed and managed is somewhat effective. This
can be justified by the fact that website developed by Coffee Vile is innovative but at the
same time the products and services delivered by the organization cannot be termed as
innovative. The menu developed for breakfast, lunch and dinner is approximately the
same as what other companies are offering (Coffeeville, 2012).
 Strategic Alignment – It can be stated that Coffee Vile is strategically very aligned as all
the major stakeholders are focused on same vision and mission. This is helping the brand
in carrying out smooth flow of all operations and activities.
 Industry Foresight – In terms of industry foresight it can be explained that the workers of
Coffee Vile are still not clear with the fact that what drives change and the new
technology which they can used for carrying out all operations and activities. The
company or selected business enterprise needs to work upon this area in order to earn
adequate sales and profits in long run (Dahlander and Gann, 2010).
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 Consumer Insight – This parameter or dimension of strategic innovation can be termed as
satisfactory or effective as Coffee Vile is well aware about changing need and demand of
customers. This will help in long term sales and profitability of company and will also
support in acquiring higher degree of customer satisfaction (Grunert and Traill, 2012).
 Core Technologies and Competencies – After reviewing the core technology and
competencies it can be stated that the brand is technologically very sound. It is using the
best machines, coffee beans and other related ingredients are of best quality and this has
developed satisfaction among customers.
 Operational Readiness – In context of operational readiness it can be stated that the
operations and business practices are very flexible and this means that changes can be
easily done as per need and requirements. It can be expressed that carrying out operations
at small level also makes it very easier for the company to carry out changes in processes.
Coffee Vile will not have any issues in adapting and implementing new ideas, business
process and technologies.
 Disciplined Implementation – The selected business enterprise will need to work upon
this parameter. Furthermore, a participative approach of leadership can be used to
encourage staff members to take part in the process of decision making. It has been
evaluated that the employees working at Coffee Vile can have some issues or difficulties
in adapting changes at frequent intervals.
Modified Innovative system
It has been observed that Coffee Vile is using same kind of products, services and
marketing strategy which other market players are using. The brand will need to come up with
new and modified innovative system in order to attract more customers and retain the old ones.
Here, changes can be carried out in the existing food and coffee products which has been
delivered by Coffee Vile. It can easily come up with new range of customized food and coffee
which will allow customers to make their own coffee and food as per their taste, preference and
need. It can be stated that each and every customer has its unique taste and requirement which
can be easily satisfied by adopting innovative system such as customization (Martin and
Moodysson, 2011). This will also support Coffee Vile to develop a distinctive brand image in the
market as it will be offerings products which will be completely innovative in nature. The use of
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such innovation system will also results in providing customers with a clear reason that why they
should prefer services and products delivered by Coffee Vile over the products which has been
offered by other coffee brands in the market. However, it can be argued that development of
customized system is not easy task and the selected business will need to invest large amount of
funds and resources.
On the other side of this, it has been observed that Coffee Vile is operating at a very
small scale and therefore, the innovation can be done in the field of marketing. At present what
the small enterprise is really doing is marketing its products and services on social media and
over internet. Furthermore, the competition for such brands is very high as there are many big
market players operating in the industry. In order to market its product, the innovation which
can be used by Coffee Vile is introducing special membership cards for its regular customers and
their family members (Melville, 2010). People who have got the membership card can get the
products of Coffee Vile at comparatively low prices. This is a very cost effective but innovative
way which can be used to market products and attract more customers. Furthermore, the brand
can also introduce discounts and special offers for the people who have got membership card of
Coffee Vile. This will help the small business enterprise to attract desired number of customers
and generate expected sales in the best possible manner.
Implementation plan for the innovation system
The innovation system will be implemented in Coffeeville by establishing project team
with two stakeholders. This innovation plan is explained as follows- Establishing project team-First of all project team will be communicated about the
purpose of innovation project and its importance in order to determine long run growth of
selected corporation. In this regard, customers and employees will be involved through
which management come to know about effectiveness of innovation system (Rice, 2013).
The main reason behind including stakeholders is to ensure optimum utilization of
limited resources because with their consent it can be possible. State the activities to be done-There are different activities included in the project such
changing the processing of coffee manufacturing for reducing cost of production and
introducing customized coffee and innovation in marketing (Tapsell and Woods, 2010).
All of these activities ensure that Coffeeville will be able to increase customer base.
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Furthermore, activities like training, development and technological innovation will also
be covered through which proposal plan can be implemented in an effectual manner. Scope out department to support innovative practices- There are different department in
an organization such as production, finance, marketing and HR. Here, department which
will be affected from innovation are; production and marketing (Tushman, Lakhani and
Lifshitz-Assaf, 2012). This is because customer will be increased by changing the
marketing activities as well as offering customized coffee. However, marketing
department will go through structured training under which discounting strategy is
developed by taking into account price of coffee or cost of the same. Therefore,
marketing department plays important role in implementing potential changes or
innovation. Communicate the entire plan-The implementation plan will be communicated to
producers or chef as well as marketing personnel along with service providers. It is
because they are directly connected with this innovation and accordingly they can easily
accomplish the set objectives (Di Vita and et. al., 2013). An example of marketing
innovation which is about the brought by Coffeeville; membership card is introduced
through which customer will get discount for bill of more than 5 dollar. It proves to be
effective to increase customer base because discounting strategy create psychological
effect among them (Fagerberg, Martin and Andersen, 2013). Furthermore, marketing
personnel will target upon increasing price of coffee because ultimately they are offering
discount. However, initially prices will be kept low. Review the progress-Implementation plan will be followed by review under which
standards will be set by management. It facilitates corporation to carry out all operational
activities effectively so as to deliver good quality of services to large number of buyers
(Melville, 2010). However, progress will be measured by taking reviews of customers
also that whether they are liking the new scenario or innovation or not. Apart from this,
customer base and cost of production will be considered for reviewing the progress of the
project.
 Taking corrective action-This is the last step of innovation system under which
management take corrective action on the basis of revision. In case customer reviews are
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not good then little changes are brought into customized system in accordance with their
preferences (Manral, 2011).
Communication plan covering participants
Communication plan is very important for an organization as it facilitates to clarify
everything about the firm among customers and other related parties. It has been explained as
follows- Set the objectives-The first step of communicate plan is the setting the objectives under
which Coffeeville focuses upon; increased customer base, higher rate of return and
competitive edge of the business (Kumar, 2012). Under this, stakeholders will come to
know about key objectives of the business and accordingly they will be able to put efforts
in the same direction. Key participants-The key participants will be included in the communication plan so they
can understand the overall process. Here, management invites investors, employees and
suppliers. They are important for the business as they invest their money to earn good
rate of return. Select the mode of communication-There are different mode of communication will be
used for communicating plan. In this regard, internet, face to face meeting and telephonic
conversation will be ensured (García-Morales and et. al., 2012). The reason behind
selecting these different modes is to clarify all doubt of key stakeholders. This in turn
business can integrate all participants so as to determine future growth and success in the
marketplace. Communicate the plan-This is the step at which management of Coffeeville
communicate the entire plan among key stakeholders through which they can support
company. Furthermore, suppliers, investors will be communicated in face to face meeting
where all objectives and importance of innovation system will be communicated (Manral,
2011). Taking views of stakeholders-At this process, stakeholders are provided chance to share
their views and suggestions on particular topic. It will be effective for management to
incorporate their ideas. However, some of the suggestions might not be fruitful where
corporation can make stakeholders understand that why the specific idea will not be
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helpful (Fagerberg, Martin and Andersen, 2013). Therefore, it becomes interactive
process where company and stakeholders or other parties work with integration so as to
accomplish set objectives on right time.
 Revise the plan-This is the last step of communication plan where management of
Coffeeville revise the entire plan in accordance with suggestions and views of
stakeholders. This proves to be effective to carry out business operation effectively with
implementation of innovation system.
CONCLUSION
The aforementioned report concludes that innovation system play important role in long
run growth and success of the business where one must have skilled and competent workforce to
implement the same. It enables business to move in the upward direction by expansion and
increasing customers. It can also be concluded that implementation plan should be strong enough
through which used resources produce fruitful outcome. Furthermore, communication plan must
cover key stakeholders for clarify of goals and objectives in order to create competitive edge of
the business in the marketplace. Apart from this, modified innovation system contributes towards
increasing sales turnover because customers are offered chance to have customized coffee which
tends to hive them higher level of satisfaction.
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REFERENCES
Journals and books
Baldwin, C. and von Hippel, E., 2011. Modeling a paradigm shift: From producer innovation to
user and open collaborative innovation. Organization Science. 22(6). pp.1399-1417.
Dahlander, L. and Gann, D.M., 2010. How open is innovation?. Research policy. 39(6). pp.699-
709.
Di Vita, G. and et. al., 2013. The Role of Innovation and Organization in Small Size Wineries:
The Case of Malvasia delle Lipari PDO Wine1. Calitatea. 14(137). p.107.
García-Morales, V.J. and et. al., 2012. Transformational leadership influence on organizational
performance through organizational learning and innovation. Journal of Business
Research. 65(7). pp.1040-1050.
Grunert, K.G. and Traill, B., 2012. Products and process innovation in the food industry.
Springer Science & Business Media.
Kumar, V., 2012. 101 design methods: A structured approach for driving innovation in your
organization. John Wiley & Sons.
Manral, L., 2011. Managerial cognition as bases of innovation in organization. Management
Research Review. 34(5). pp.576-594.
Martin, R. and Moodysson, J., 2011. Innovation in symbolic industries: the geography and
organization of knowledge sourcing. European Planning Studies. 19(7). pp.1183-1203.
Melville, N.P., 2010. Information systems innovation for environmental sustainability. Mis
Quarterly. 34(1). pp.1-21.
Rice, A.K., 2013. Productivity and social organization: The Ahmedabad experiment: Technical
innovation, work organization and management. Routledge.
Tapsell, P. and Woods, C., 2010. Social entrepreneurship and innovation: Self-organization in an
indigenous context. Entrepreneurship and Regional Development. 22(6). pp.535-556.
Tushman, M., Lakhani, K. and Lifshitz-Assaf, H., 2012. Open innovation and organization
design. Journal of Organization Design. 1(1).
Online
Coffeeville, 2012. [Online]. Available through: <http://simulations.ibsa.org.au/coffeeville/About
%20us.php>. [Accessed on 8th November 2016].
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