BSBMGT608: Manage Innovation and Continuous Improvement Report

This report analyzes the management of innovation and continuous improvement within A.C. Gilbert, an Australian toy manufacturing company. It examines key systems and processes like supply chain and operational systems, and evaluates their effectiveness. The report identifies key performance indicators (KPIs) and key result areas (KRAs) to monitor performance. It includes a discussion of strengths and weaknesses, along with opportunities for new technology and e-commerce. Task 2 focuses on developing options for continuous improvement through a case study and performance improvement strategy, including risk and cost-benefit analyses. Finally, Task 3 details the implementation of an innovative process, the development of action and contingency plans, and a schedule for evaluation and improvement. The report covers quality management, performance review processes, and service level agreements, offering a comprehensive view of the company's innovation strategies.

Running head: MANAGE INNOVATION AND CONTINUOUS IMPROVEMENT
BSBMGT608
Manage innovation and continuous improvement BSBMGT608
Name of student
Name of University
Author note

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MANAGE INNOVATION AND CONTINUOUS IMPROVEMENT BSBMGT608
Table of Contents
Introduction......................................................................................................................................3
Task 1: Review of programs, systems and processes for continuous improvement.......................3
1. Key systems and processes used by A.C. Gilbert....................................................................3
2. Effectiveness of key systems and processes............................................................................4
3. Ways of monitoring performance............................................................................................7
4. Discussion of performance in the key result areas or KRAs...................................................7
5. Strengths and weaknesses of the A. C. Gilbert Company.......................................................8
6. Identification of new technology and e-commerce opportunities............................................9
Task 2: Development of options for continuous improvement.......................................................9
1. Case study................................................................................................................................9
2. Consideration of scenario.......................................................................................................10
3. Performance improvement strategy.......................................................................................10
5. Lead session...........................................................................................................................10
6. Group’s approval for amended strategy.................................................................................11
7. Incorporate results of session into revised strategy...............................................................11
8. Develop a risk analysis for strategy.......................................................................................12
9. Develop a cost-benefit analysis for strategy..........................................................................12
10. Approval for strategy by manager.......................................................................................12
Task 3.............................................................................................................................................13

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1. Implement an innovative process...........................................................................................13
2. Implementation of new process, i.e., omnichannel marketing...............................................13
3. Development of action plans..................................................................................................13
4. Two contingency plans for the implementation issues related to action plans......................14
5. Implementation issues............................................................................................................15
6. Amendment of action plans and contingency plans to address implementation failures......15
7. Develop a schedule for evaluation and continuous improvement.........................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Introduction
The report is developed to analyse the various important aspects of managing innovation
within the organization A.C Gilbert, Australia and ensuring continuous improvements for
enhancing the organizational efficacy. The report will discuss the major programs, processes and
systems that are used to manage continuous innovation and improvements at the company
through consideration of supply chain systems, operational processes and determining the key
performance indicators to ensure successful delivery of products and services. A.C. Gilbert is
one of the major toy manufacturing company and is known for its production of good quality
erector set, which is a metal toy construction set (Davila, Epstein & Shelton, 2012). The
performance objectives will be created to focus on the strategic goals, risk analysis and cost
benefit analysis for implementing useful strategies to ensure improvements within the
organization consistently. Lastly, the implementation of innovative processes is done to develop
final action plans and contingency plans are considered to continuous evaluation of business
outcomes and managing improvements in a continuous manner.
Task 1: Review of programs, systems and processes for continuous improvement
1. Key systems and processes used by A.C. Gilbert
Supply chain
Supply chain is the flow of processes during the manufacturing and production of
products and services managed with the use of raw materials and resources. This results in the
production of finished goods that are delivered to the customer through the involvement of
people, processes and resources used. The supply chain of A.C. Gilbert involves both

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manufacturers and wholesalers from whom the sellers purchase the raw materials, though
managing own design and brand (de Oliveira Teixeira & Werther, 2013). The raw materials and
supplies are plastic, metal, wood, textile, moulded components along with the materials used for
packaging such as printed materials, can, box, etc.
Operational systems
The operational systems were used in the warehousing of data to manage the everyday
transactions for A.C. Gilbert and ensure that the reliability and integrity of the data are
maintained. The operational systems also included designing the products, prepare effective
plans according to the requirements for resources and how the sales could be managed. The
information obtained to gather enough raw materials for the production of products and
management of packaging procedures were also part of the operational systems (Green, 2012).
Finally, the finished goods of A.C. Gilbert were packaged and delivered to the warehouse where
those had been stored and later transferred to the customers.
Product/service delivery
The products delivered included train sets, erector sets, chemistry sets and other items
including microscope and engineering sets that have kept the customers satisfied for a long time.
The quality of products was good enough and those had been packaged inside metal boxes to
keep it safe. The sales team managed the orders placed by customers and the distribution team
managed the products’ delivery by using contract transport before selling those to the consumers
(Imai, 2012).

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2. Effectiveness of key systems and processes
The major systems and processes have increased the organizational performance largely.
The information about customers were assessed to fulfill their needs and requirements and check
for any areas that need improvements to preserve the transactional data and make the business
function effectively too. The operational systems include management of business operations
within a diverse industry and manage the organizational structure, policies and practices properly
to drive the business performance (Jacobs & Chase, 2013).
Key result areas (KRAs)
The major areas where positive results are obtained have been supply chain management
area, production area and physical environment. The KRA, i.e., profit is facilitated by effective
tax planning methods and by proper organizational administration. The sales and revenue
generation area is another area where positive results are obtained such as invoicing, top line
billing, etc. The people is another area where the positions, qualifications, wages structure,
training and developmental needs are monitored. The systems, processes and technology are
other areas where the human resources, financial and equipment resources have been managed
wisely at A.C. Gilbert (Laudon & Traver, 2013).
Key performance indicators (KPIs)
The KPIs are linked with the strategic objectives and few of these have been enabling
proper approaches to maintain good customers’ services, manage marketing techniques,
management of human resources to engage employees and reduce the level of turnover.
Management of human resources is another key performance indicator that helps in engagement
of employees, reduces employee turnover and provide enough scopes and time to fill the gaps for

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open positions (Marr, 2012). Cost is another component that determines how well the
organization has performed while the customer metrics is another KPI that helped in delivering
good customers’ services and generate good amount of profit through customers’ acquisition as
well.
Performance review processes
The performance review processes helped in monitoring the performances of the
organization and evaluate the progress of manufacturing and production processes. This
identified the areas of weaknesses and helped in evaluating the performances, furthermore
approaches were undertaken to improve the performances of those areas and increase
organizational productivity (Martini et al., 2013). By reviewing the performances, it was found
that there was inappropriate management of human resources, leadership skills lacked, which
resulted in less organizational production, and even some of the chemical lab toys were illegally
used as inaccurate vintage toys.
Sample service level agreement (SLA)
Approvers Roles Signature required Date of approval
Name of company A.C. Gilbert 28.10.17
Customers Adam 29.10.17
SLA was one of the major aspects of key processes that defined the scope and even
managed quality through management of responsibilities between the customers and the
company. The SLA between the company and customers helped in provisioning of toys and

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services through which enough support could be provided. The involvement of stakeholders is
essential for making the mutual agreements successful (Sanchez & Blanco, 2014).
3. Ways of monitoring performance
Quality management and continuous improvement theory
Total Quality Management or TQM is customer based, service oriented method that helps
in improving the quality of toys, and promote continuous improvements at A.C. Gilbert. Quality
is managed with the help of quality planning, quality improvements and quality control
techniques. Joseph Juran’s theory included gaining awareness of the scopes to make
improvements in quality, identify the goals and objectives, provide training and development
needs, monitor organization’s progress and performances and finally prepare a report to show the
results (Stadtler, 2015). The improvements are identified and repeated until the highest quality is
achieved.
The Kaizen’s theory was used by the organization to use a TQM system properly and
improve the systems and processes to enhance the quality. This theory also identified the areas
that need improvements and regular monitoring (Wathne & Heide, 2013).
4. Discussion of performance in the key result areas or KRAs
Quality is the most important KPA, where the company has remained consistent all
throughout. The good quality toys inspired many children and made them gain interest and skills
to develop bridges, robots, etc.
Being one of the largest and oldest toy companies in the whole world, the organisation
has acquired the Mechano and America Flyer to enhance its sales by introducing new toy trains

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too. Thus, the sales of the company increased largely and the profit level too (Wu, L., & Buyya,
2012).
Supply chain performance was quite good because the wholesalers and manufacturers
were paid well for the raw materials they supplied for the company and this not only increased
level of satisfaction among them too. The quality of raw materials like metal, wood and plastic
was good, which helped in the production and delivery of good quality products too (Davila,
Epstein & Shelton, 2012).
The human resources were managed properly and their needs and requirements were
fulfilled. They were allowed to take part in making decisions, which further helped in motivating
them to perform better and reduce chances of employee turnover (de Oliveira Teixeira &
Werther, 2013).
5. Strengths and weaknesses of the A. C. Gilbert Company
The reputation of the organization dropped when the company started using cardboard
box instead of metal boxes and even the long lasting toy parts were replaced with breakable
parts. This deteriorated the quality of toys and made the customers dissatisfied, thus creating a
bad image. Few strengths of the company included huge market share and string brand image
and introduction of wide range of toys. Innovation of toys introduced new action figures that
were promoted during movie premiers like James Bond, Transformers, etc (Green, 2012).
The customers‘services were not up to the expected standards because of the
deterioration of employee performance. The sales and profit level dropped largely, thereby
resulting in failure to establish new lines and cost of products. The products were expensive and

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quality deteriorated, which were definitely not value for money products available in the targeted
market segments (Imai, 2012).
To develop a strong brand name, A.C. Gilbert could introduce new toys related to the
movie for entering new markets and is considered as a major opportunity.
6. Identification of new technology and e-commerce opportunities
The production staffs, engineers, human resource workers and sales personnel of the
organization should have been aware of the opportunities and developed digital platform to sell
products online and make it convenient for the customers to buy products. The IT technical staffs
would handle the e-commerce website with proper support by IT staffs and marketing
consultants within the external environment to assess the market conditions and deliver products
and service accordingly. The advertising experts must be skilled and knowledgeable to market
the products online by targeting different market segments and understand the needs and
equipments of customers easily too (Jacobs & Chase, 2013). Organic search engine traffic should
be generated along with pay per click advertisements that could provide enough scopes for the
company to generate good amounts of revenue in business.
Task 2: Development of options for continuous improvement
1. Case study
As part of the continuing operations and business processes, A.C. Gilbert must move
from its boy toys to production of toys for the girls too. To improve the performances, marketing
and promotional strategies are designed to attract more customers and reach wider audience
group. The quality of products deteriorated, which should be improved to create a consistent
customer base. The organization must utilize the TQM system to improve the efficiency of

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business processes and enhance the products’ quality, furthermore making the employees
informed about the areas that needed improvements (Cox, 2012).
2. Consideration of scenario
Management of team is processed by the manager of the organization who administers
and coordinates the team members by encouraging them to work as an unit and perform to their
potential. The management of team is done through management of proper communication
between the staffs, enabling them to work as a team set objectives and manage appraisal of
performances. It could also help in identifying the issues and resolve conflicts, furthermore
enhance organizational efficiency and productivity through effective leadership. Approval of
team members is essential and the manager should agree to them regarding certain things before
making an effective decision (García-Morales, Jiménez-Barrionuevo & Gutiérrez-Gutiérrez,
2012).
3. Performance improvement strategy
The performance improvement strategy sets clear strategic goals and integrates the
existing processes with the new processes. The manager of the organization takes the ideas and
views of the employees before making any decisions with proper agreement.
The goals are to generate high amount of revenue and enhances the sales of the company.
The KRAs are costs, benefits, profit level achieved while the KPIs are positive brand
name and image, diverse range of toys and introduction of many new lines to attract more
customers (Grötsch, Blome & Schleper, 2013).

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5. Lead session
The company was closed due to certain reasons and if it was not closed, certain changes
and improvements were needed to be done including the involvement of organizational staffs so
that they can discuss and provide their useful opinions before making any decisions in business
Creative techniques include extracurricular activities, training and developmental sessions that
could be provided to them to enhancing their level of skills, creativity, knowledge and expertise
level (Karpagam & Suganthi, 2012).
The manager should have considered the views and responses of employees before
making any decision and even encourage the group members to identify the potential issues and
furthermore resolve the issues properly.
In case of any mistakes, failures should be accepted rather than becoming over reactive
and provide vague explanations to the risks caused (McLean & Antony, 2014).
6. Group’s approval for amended strategy
The leadership strategy would help in improving the structure of the organization by
setting organizational goals properly and introduce new products one by one, rather than
introducing 50 new lines within just a year. The opinions of employees must be assessed through
high levels of motivation and encouragement to make them perform to their potential. To
manage approval by group, training is also provided to the workers to enhance their skills and
knowledge level (Montibeller & Winterfeldt, 2015).

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7. Incorporate results of session into revised strategy.
From the case study, it could be understood that a loss of $281,000.00 was recorded and
to overcome this kind of issue, A.C. Gilbert should revise the strategies prior to the
implementation process.
8. Develop a risk analysis for strategy.
There are several risks associated with the business trends and technological innovations,
because of which, the risk analysis strategy must be implemented to identify the risks and
determines the probable impacts created (Pophal, 2015).
9. Develop a cost-benefit analysis for strategy.
The cost benefit analysis is a systematic approach used to determine the strengths and
weaknesses of the company and evaluate its business activities and requirements. It is done to
determine the best option available for fulfilling the requirements and achieve the benefits
though enabling management of savings all throughout. It could compare the benefits and costs
and implement policies by A.C. Gilbert to determine whether the investment decision could
bring feasible outcomes or not and also check the expected cost against the benefits that had been
expected (Ruiz-Torres et al., 2013).
10. Approval for strategy by manager
The manager must be cautious about the emergence of risks and evaluate the costs and benefits
before implementing a strategy. The manager should evaluate the costs that would be incurred
for the implementation of new technologies and even check things that would be required by the
human resources to mange good productivity. By assessing the costs, risks, the manager would
approve the strategy to be implemented (Schiuma, 2012).

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Task 3
1. Implement an innovative process
The innovative process that could be implemented by A.C. Gilbert had been the use of ad
tech, social media involvement and management of omnichannel marketing. Nowadays, with
the introduction of new technologies, social media involvement has become a effective way of
marketing through online advertising and offline merchandising for enhancing the sales. Social
media involvement could also help the company to increase the customer base and enhance its
sales revenue (Slack, 2015).
2. Implementation of new process, i.e., omnichannel marketing
The omnichannel marketing mighty also help A.C. Gilbert to deliver seamless and better
quality services to people and make customers get engaged with the physical store, online app or
website and even through social media. This would allow the customers to access the products
and services by communicating with the business online or offline and this would have surely
facilitated and promoted better consumers’ experiences consistently (Trapp et al., 2015).
3. Development of action plans
KPIs
 The sales were increased by 50 percent.
 New leader was appointed as the CEO
 Profit level was quite low because of the decline in quality and reduction of investments
or spending, which showed that the company’s performance was not satisfactory.
 Changes were not implemented and the new lines were not sufficient for capitalizing on
the recent trends

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Objectives
 To increase sales staff by 50 percent
 To use the television advertising for increasing sales revenue
 To form long lasting relationship with the customers and generate revenue in business
b. activities to promote the process and sustainability
To promote sustainability, environment friendly approaches were undertaken and the toys were
made with good quality materials supplied by the suppliers. The wastes were renewed and
harmful gases were not produced to ensure that an ecological balance in nature was to be
maintained (Zhu, Sarkis & Lai, 2012).
c. activities to reduce any negative impact on people.
Risks are mitigated through maintenance of environment friendly approaches for preventing
pollution and ensure that the healths of human beings are not deteriorated. The wastes of the
company were needed to be recycled or incinerated, rather than throwing those here and there,
which could also harm the environmental condition. Harmful carbon emissions are also
prevented to the utmost level possible (Cox, 2012).
4. Two contingency plans for the implementation issues related to action plans.
The contingency plans could be providing rewards and incentives to the workers, to keep
them motivated to perform better and follow the risk assessment strategy to assess the risks and
create an effective plan to resolve those and gain benefits. The contingency plans could also
resolve the supplier related issues and check that good quality raw materials and supplies were
provided for the process of manufacturing and production (Grötsch, Blome & Schleper, 2013).

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5. Implementation issues
The issues of implementing contingency plans include lack of motivation and
encouragement, inaccurate analysis and inability to forecast risks.
6. Amendment of action plans and contingency plans to address implementation failures
The actions plans and contingency plans are integrated to identify the issues regarding
implementation and ensure that the challenges and issues are overcome with ease and efficiency.
Based on plan for taking actions, the contingency plans are developed to check out for the
mistakes and resolve those (Karpagam & Suganthi, 2012).
7. Develop a schedule for evaluation and continuous improvement.
Activities for evaluation and continuous
improvement
Time frame
Procedures of evaluation 10 days
Assessment of organizational requirements 15 days
Management of human and financial resources 10 days
Learning processes 8 days
Implementation of strategies 15 days
Contingency plans 6 days
Total 64 days
Conclusion
The report was prepared to manage innovation and ensure continuous improvements with
the consideration of the business organization named A.C. Gilbert. The systems and processes
used to bring out positive results in various areas and even determined the key performance

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indicators that proved to be beneficial for the success of the company. The promotion of value,
creativity and innovation was done so that the company could find success within the business
environment. The omnichannel marketing and involvement of new technologies could have
stopped the ultimate fate of the company and even might have brought the expected profit level
for the organization with much ease and efficiency.

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