Innovation Management: Approaches, Role, and Impact on Business

This report provides a comprehensive analysis of innovation management, exploring various approaches such as disruptive, sustaining, and radical innovation, along with their critical understanding and application in global businesses. It examines the role of innovation in enhancing competitive strength and its impact on global business operations, using examples like Aston Martin. The research methodology employed includes positivism philosophy and a deductive approach for secondary data analysis. The report evaluates the strategic, tactical, and operational challenges in establishing a viable innovation management culture and concludes with commercially viable solutions and recommendations for successful innovation management, supported by relevant literature and examples.

Innovation
management

Abstract
The current assignment is based on the topic of successful innovation management which
comprise of a discussion about the critical approaches of innovation consist of disruptive
innovation theory, sustain innovation approach and radical approach of innovation. Further, an
analysis of crucial role of innovation in leading enhanced competitive strength and other positive
impact on global business are also evaluated. Beside this, a discussion about the research
methodology for leading and conducting a secondary research work comprise of Positivism
philosophies and deductive approach is also included to lead a more systematic and better insight
on selected topic. At last, critical analysis of findings along with valid conclusion and
recommendation also form a part of current assignment.

Table of Contents
Abstract............................................................................................................................................2
Theme: Successful innovation management (Global Examples)....................................................1
INTRODUCTION...........................................................................................................................1
Literature Review.............................................................................................................................1
Approaches for innovation management.........................................................................................1
Critical understanding on managing innovation and technology transfer..............................1
Role of innovation and its impact on global business............................................................3
Research methodology.....................................................................................................................4
Research approach..................................................................................................................4
Data collection method...........................................................................................................5
Data analysis method..............................................................................................................5
Related questions.............................................................................................................................5
Findings............................................................................................................................................6
Critical evaluation of findings.........................................................................................................7
Strategic, tactical and operational challenges in establishing a viable innovation management
culture.....................................................................................................................................9
Conclusion and commercially viable solution...............................................................................10
REFERENCES..............................................................................................................................13

Theme: Successful innovation management (Global Examples)
INTRODUCTION
Innovation management is mainly associated with the process which encompasses all
suitable measures and resources to promote and use innovation within an organisation.
Innovation management is basically comprises of a set combination of innovation practises and
change management that aim at coming up with new and more creative ideas and business
processes (Singh and Gaur, 2018). Thus, innovation management is important and vital for a
business organisation as it lead to development and creation of new and improved products along
with more efficient and effective business operations (7 Reasons Why Innovation is Important,
2020). For current report the orgnisation selected is Aston martin which is well know automotive
brand dealing in luxury sports cars and other vehicles. Aston martin is a company which makes
regular innovation and modification in its cars and design to avail the benefits of innovation in
product. This particular assignment comprises of a discussion about the approaches of innovation
management along with determining its role and impact on global business. Further, a critical
evaluation on the implication of approaches of innovation management is also included in this
report along with identifying the key strategic, tactical and operational challenges in establishing
a viable innovation management culture. At last, a discussion over the commercially viable
solution and recommended strategies for successful innovation management is also forms part of
current assignment.
Literature Review
Approaches for innovation management
Critical understanding on managing innovation and technology transfer
It is vital and essential for all global business organisation to understand the need and
importance managing innovation and technology transfer as it brings relevant amount of
creativity and modification in their product and services to remain more competitive and
successful in their business environment (Kasemsap, 2017). Thus, to ensure viable innovation
management and lead efficient technology transfer a number of theories and approaches of
innovation management are adopted by global business. Some of theses theories and approaches
of innovation adopted by global business organisation are discussed and evaluated below:
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Disruptive Innovation theory
Descriptive theory of innovation is a powerful tool that is used by global business and
many leaders of small entrepreneurial companies to become powerful by way of thinking about
innovation driven growth. Disruptive theory of innovation is vital for a global business in
creating a new market and coming up with a new value network which eventually disrupt an
existing market with a better version of product or services. Thus, descriptive innovation
comprises of coming up with a new technology whose application is new for business
environment and significantly affects the way a market and industry used to function. For
example: Mercedes-Benz is the first global business which come up with the idea and innovation
of diesel engine. The Mercedes-Benz 260 D in the W 138 series was the world's first series-
production diesel passenger car which is based on Disruptive Innovation theory and changed the
way of operations in automotive sector through making cars more which are more fuel efficient
and generate much higher power (Fontana and Musa, 2017). Thus, this Disruptive innovation by
Mercedes-Benz was successful and lead innovation and betterment in modern high pressures fuel
injection system and lead to improvement in fuel economy.
Sustaining innovation approach
The sustaining approach of innovation is mainly associated with leading improvement
and changes in an existing product in order to make it more valuable and efficient. Thus, the
sustaining approach of innovation does not includes creation of any new market or value market
but comprises of development and modification in an existing product or service by means of
creating value which allow companies to become more valuable and compete against each other
in business environment (Gershon, 2016). For example: Aston martin is taken as the first global
brand to come up with the concept and innovation of electric vehicles in luxury cars and has
made regular improvement in its cars design and models to make them more efficient. This
innovation in automotive sector by Aston martin is based on reducing and limiting the carbon
emission in environment for its protection and conservation. But, soon the main competitor of
Aston Martin had sustain its innovation and started coming up with better and more innovative
version of electric car. Ferrari is also among such global brand that is also planning to come up
with electric car until 2025 (Ferrari Is Going Electric, but Not until after 2025, 2019). The
global business which is leads most suitable example for Sustaining innovation approach is Tesla
cars which is currently asserting the world’s transition towards sustainable energy through
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coming with many new and upgraded models with solar integrated system and other renewable
energy solution in automotive sector with many new upgraded and modified version of electric
cars.
Radical approach of innovation
The radical approach of innovation comprises of developing some revolutionary
technology that can brining change to the world through improving existing systems and
products in order to make them faster or cheaper. For example: the diesel based cars launched by
Mercedes-Benz is more economical and cheaper the petrol based engine and has brought a vital
change in operation and design of automotive sector through its revolutionary innovation. The
best example of radical approach of innovation comprises of Iphone launched by Apple inc.
which is a global business and now known for its most efficient and viable operating system
which has made it most successful brand in telecommunication sector (Lee and Kang, 2018).
IPhone is viable example for radical approach of innovation that has paved the way for the
modern Smartphone market and lead for merging of farming equipment with sensor technology
which has made it more faster and feasible technology.
Role of innovation and its impact on global business
Innovation plays a vital role in success of a global business through efficient and successful
exploitation of new ideas and improved process which lead to bring new and improved product
and services in the market. Thus, innovation plays most optimistic and direct role in increasing
efficiency and performance level of a global business by improving its creativity and
profitability. The main points and reasons reflecting the vital role of innovation and its positive
impact in success and better performance of global business organisation are provided below:
Creative development and continuous improvement- Innovation plays a vital role in
enhancing creativity and modification skill of a global business to make its product and services
more value and useful for customers. For instance: the coming up with a diesel engine is a vital
innovation of Mercedes-Benz which is reflecting high level of creativity and critical thinking of
its employees to come up with a modified version of product which enhance the economy of fuel
and lead to new innovation in automotive sector (Westland, 2016). Apart from this, continuous
improvement is also a vital and positive impact of innovation that enhance sustainability level of
an organisation and boost and motivates employees for better business skills to come up with
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improved version of techniques and process to have continuous improvement in business
operation.
Beat competition and respond to current trends- The another positive impact of innovation
on global business is seen in form of enhanced competitive strength and better brand positioning
and recognition in business environment. When a global business thinks in an innovatively way
and keeps on coming up with new ideas it become much easier to beat competition with the help
of optimum operation and more attractive and creative product and services. Further, innovation
also plays a vital role in keeping a balance with current trends and coordinates business operation
with resent trends and dynamic characteristics of business environment. For instance: the
innovation sustains by Aston Martin through launching and coming up with Electric vehicles
leads to its improved brand image and makes it superior than its competitors. At the same time,
electric vehicles as an innovation of Aston martin also keeps a balance with recent trend of
becoming socially responsibly and fulfilling CSR through ensuring protection and conservation
of environment through ensuring reduction in carbon emission and other harmful substances
(Trapp, Voigt and Brem, 2018).
Thus, on the basis of above discussion and example of global business it can be evaluated
that a vital role is lead by innovation in enhancing creativity level of global business and also
leads to continuous improvement in business operation to enhance its productivity and success
level. Further, a positive and optimistic impact of innovation is seen on global business as it
leads to enhanced competitive strength and better brand recognition to beat and overcome
competition in global market along with ensuring balance and coordination with dynamic
business environment and ongoing trends of market.
Research methodology
It represents the set of method and approaches used for undertaking a research work. The
research methodology and approaches for current investigation on successful innovation is
provided and discussed below:
Research approach
Selection of positivism philosophy of research is seemed most suitable and appropriate for
current investigation in place of realism, pragmatism and interpretivism. The main reason for
opting positivism philosophy comprises of fact that it support better scanning and testing of
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secondary data also facilitates an effective way to develop better understanding on the basis of
collected data. There are two main types of research approach which comprises of deductive and
inductive approach from which use of deductive approach is made for current study as it leads to
a logical and better analysis of pre-exists literature (Kasemsap, 2017). Further, implication of
Descriptive design is also made as it ensure a more theoretical and in-depth study to have better
understanding and analysis of facts to reach a more viable and specific conclusion.
Data collection method
Adoption of secondary sources of data collection is made for current study as it is less time
consuming and easy to collect and evaluate along with implication qualitative method of
research which facilities and ensures in-depth form of study with the help of collection of
theoretical information.
Inclusive Method- The inclusive criteria for selection of secondary information consists of
use of online articles and journals relevant to the topic of innovation along with selecting only
those literature which are published after 2015.
Exclusive method- Paid journals along with the articles with irrelevant and incomplete
information are excluded while conducting current investigation.
Data analysis method
Analysis of secondary data is made with the help of systematic literature review method
where as for analysis of qualitative form of data use of thematic approach is made (Dodgson,
2017).
Related questions
Questions Linking with Literature review
Q1) what are the main strategies that are
undertaken by global organisation to ensure
better and successful innovation at their
workplace?
The strategies that could be taken by a global
organisation to have better and successful
innovation comprises of leading out
participative form of management as it ensures
enhance creativity level of employees and
build a critical thinking in employees which
support better and enhanced innovation
(Gershon, 2016).
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Q2) Which one is the most vital innovation
theory for a global business during
managing innovation and technology
transfer?
The innovation theory comprise of many
approaches like Disruptive Innovation theory,
Sustaining innovation approach and Radical
approach of innovation out of which
implication of sustaining innovation seemed
most disruptive innovation theory is most vital
for a global business as it comprises of coming
up with a fully new and modified form of
technology to transfer world in better way thus,
attract larger number of customers and also
leads better reputation (Westland, 2016).
Q3) What impact of successful innovation is
seen on the global business orgnisation like
Aston martin?
Overall a positive impact is lead by a
innovation on business organisation but in
starting at the time of implication of change it
quite be risky (Lee and Kang, 2018). Like in
case of Aston Martin, coming up with electric
vehicles was quite expensive in starting but
this new innovation leads a positive impact on
Aston Martin in longer term through enhancing
its sales and productivity.
Q4) What are the main role and benefits of
innovation for a global business?
The main role and benefits of innovation for a
global business comprises of Creative
development and continuous improvement
along with Beating up of competition and
better respond to current trends to acquire
better opportunity in global business
environment (Zizlavsky, 2016).
Findings
Theme 1: Main strategies that are undertaken by global organisation to ensure better and
successful innovation at their workplace
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The main strategies that could be adopted by global business comprises of leading
effective communication and participative approach of leadership at workplace (Bębenek, 2017).
An analysis could be made that effective communication lead to enhanced discussion and
interaction among employees which helps in developing critical thinking in them while
participative leadership approach allows better exchange of view and ideas which promotes and
support higher level of innovation at workplace of global organisation.
Theme 2: The most vital innovation theory for a global business during managing
innovation and technology transfer
Adoption of disruptive Innovation theory out of three main theory of innovation i.e.
Sustaining innovation approach, Disruptive Innovation theory and Radical approach is most vital
for a global business as it offer an enhanced power and increased competitive strength for global
business by the way of a completely new innovation and better product through adoption of new
technology and complete transformation of operation (Dodgson, 2017). Thus, the adoption of
Disruptive Innovation theory provides maximum advantages and attracts larger number of
customers for a new innovative and conventional form of technology which enhanced success
and performance level of a global business.
Theme 3: Impact of successful innovation is seen on the global business orgnisation like
Aston martin
A positive impact is lead by successful innovation on the global business orgnisation like
Aston martin through leading delivery of more exclusive and efficient product and services
which attract larger number of customers and enhance sales and productivity of a global firm.
Theme 4: The main role and benefits of innovation for a global business
The main role and benefit of innovation for a global business consists of leading a way
which ensures continuous improvement and efficiency in its products and operations. Further,
beating of high level of competition at global level is also lead by innovation which ensures and
leads to better success and performance at global level through attracting larger number of
customers for innovative and improved products and services (Gerlitz, 2016).
Critical evaluation of findings
It has been find out that innovation is vital and crucial for all business organisations at
global level which lead to enhanced creativity level and also lead improvement in its brand
image and goodwill to beat competition in international environment. Use of various approaches
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of innovation is made by global business organisation for instance Mercedes-Benz has adopted
Disruptive Innovation theory and come with an entire new design of car engine which is run by
diesel in place of petrol. On contrary, global companies like Aston Martin and Tesla cars has
adopted Sustaining innovation approach and implicate the changes and modification is resent
models and design through making efficient use of renewable form of energy and come up with
electric cars and solar vehicles (Zizlavsky, 2016). An analysis can be made that all these
approaches and theories of innovation have certain advantages and drawback a debate and
discussion about which is provided below:
The main advantage and benefit of Disruptive Innovation theory comprises of
implementation of new and more conventional lead in a business environment that leads to
adoption of new technology and complete transformation of operation. Thus, Disruptive
Innovation theory is beneficial and vital for a global business as it offer an enhanced power and
increased competitive strength for global business by the way of a completely new innovation
and better product (Gerlitz, 2016). But still some risk and drawback are also associated with the
implication of Disruptive Innovation theory which consists of lack of guarantee of success as the
new innovation may or may not be liked by the customers which leads to higher risk of failure.
Thus, an evaluation can be made that Disruptive Innovation theory is viable in leading success
for Mercedes-Benz as its diesel cars and engine is liked and supported by customers as it lead to
more economic fuel. But, on contrary the risk of failure is taken as the biggest threat and
challenges of Disruptive Innovation theory as a completely new product and innovation is
undertaken by the organisation. Thus, implication of Sustaining innovation approach seems more
viable and beneficial for a global organisation as some betterment and improvement are lead out
in a current product or services thus, chances and risk of failure is lower as compared to
Disruptive Innovation theory (Haleem, Kumar and Luthra, 2018). Apart from this, Sustaining
innovation approach also leads to an effective tool to gain upper hand on competitors and allows
enhanced motivation and competitive strength in business environment. The drawback
associated with the Sustaining innovation approach comprises of risk of wastage of resources
along with high cost of innovation and time consumption to modify and improve an existing
product. Apart from this, implication of Radical approach of innovation is also seemed suitable
and viable for a global business as an entirely new idea would lead to enhanced brand image and
better recognition of product in global environment which ensures success of a global business.
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But the risk of failure and required amount of resources are high in case of implication of
Radical approach of innovation as huge investment and resources are required to come up with a
new and radical innovation.
Strategic, tactical and operational challenges in establishing a viable innovation management
culture
There are many strategic, tactical and operational challenges which are faced by global
organisation while establishing and implementing viable innovation management culture (9
Challenges Hindering Innovation in Your Organization, 2020). The main challenges which are
faced by global business while establishing innovation management culture within their
orgnisation are evaluated and discussed as below:
Strategic challenges
Lack of empowerment and motivation in employees- The biggest strategic challenge that
is faced by a global company comprises of lack of empowerment and effective motivation in
employees towards innovation and changes. Employees have a fear that innovation or rapid
changes will distract there day to day role and feels risky to try new ideas. Thus, lack of
motivation and empowerment is the biggest hurdle faced by Aston martin while adopting and
implementing a culture of innovation (Bębenek, 2017).
Lack of clear strategy- The another vital strategic issue or challenges faced by global
business during leading culture of innovation comprises of missing a clear strategy which leads
to creation of chaos and confusion. It has been evaluated that the concise innovation strategy is
must and crucial for leading a culture of innovation but global business like Aston martin founds
it difficult to develop a clear strategy which dictates and direct innovation in strategic operations
to lead a culture of innovation (Goodman and Dingli, 2017).
Tactical challenges
Lack of finance and other resources- The main tactical issues or challenge encountered
by global business during executing a model or culture of innovation comprises of lack of
sufficient fund and resources required to undertake some new ideas and creativity. It has been
evaluated that transformation of technology and coming up with new innovation require many
resources and significant amount of funds which are at risk and creates many challenges for
global business (Dodgson, 2017). While coming up with some new innovation collection of
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