Innovation and Management Decision-Making Report: BUS705, USC

This report explores the critical role of innovation in contemporary business environments. It delves into how technological and socio-cultural forces influence organizational strategies and management decision-making processes. The report highlights the impact of digital advancements, e-commerce, and changing consumer behaviors on business practices. It also examines how businesses can adapt to these changes by fostering a culture of continuous improvement and customer-centricity. The analysis includes discussions on the strategic responses to innovation, the importance of value creation, and the need for businesses to remain competitive through innovative practices. The report uses examples to illustrate how organizations can effectively respond to these forces and sustain their market position.

Running Head: INNOVATION 0
Innovation and management
decision-making

INNOVATION 1
Innovation “the need of time”
Innovation is a kind of procedure that starts with the introduction of plan of any idea.
Innovation is core activity that helps the businesses in bringing competitive advantage
(Witell, Snyder, Gustafsson, Fombelle & Kristensson, 2016). By considering the business
practice, it means the development of new ways of doing things for achieving any goal.
Organizations that are able to regularlyfind out the opportunities for change are able to
sustain for long time in the market. Digital revolution not only changed the perception of
business but also given emphasis on the performance of business. In recent fast changing
environment, innovation proves to be the key to success. There are certain factors that really
influence the innovation in some or other way. I have also found the two essential factors
named technological and socio cultural factors (Zahra, Filatotchev and Wright, 2009)
Impact of technological factors
It is true that changes in technologies have also changed the perception of people towards
several services and products. If we go back to the past few years, we were having very less
access to purchase any product on digital means. In recent time, due to some advancement in
the technology, we come across the different E-commerce websites such as Alibaba and
Amazon. It enables us in buying various products by sitting at our home. It has also saved the
time of people, as people are not required to go to any shop for purchasing product.
Advancement in technologies has made this thing possible by putting emphasis on the time
and speed. It has also brought the various challenges in front of organizations to make new
strategies regarding innovation (Teece, 2010). In the recent time, tradition approach has

INNOVATION 2
proved to be ineffective as several changes has occurred in the marketplace due to increment
in competition. In the recent time, competitive market has placed several choice in front of
customers for standing out of the competitors.
Impact of Socio cultural forces
It is other essential aspect that require quite response on part of the business organizations.
Both these forces are linked to several aspects of the society such as family, friends, media
and colleagues that influence the opinions, interest and attitude. It is also essential for the
business enterprise to give total emphasis on the particular market (Banu, Dumitrescu,
Purcărea & Isărescu, 2016). Accordingly, it creates the product. The product that is created is
required to fulfil the superior as well as basic needs of the customers. It is true that the failure
in providing the appropriate responses can be seen as the costly mistake. For example-
organization can also loss its brand goodwill and market share or else diminish it. People are
also diversified in the society and therefore, if any organization trust on the established
technology, it will not be able to effectively give response in terms of the innovation. In
addition, it will also not able to experiment the new ideas (Birkinshaw, Zimmermann &
Raisch, 2016).
How to cope up with the change
It is found that large number of suppliers as well as marketers presents in the market,
customers can excellently choose among all the variety of products. However, they
repetitively pursuing the value from all those products for whom they are paying. Therefore,
it is essential for every organization to build such culture that will bring regular improvement
and bring the immense success in organization. Due to changing environment, it is true that
traditional paradigms will not work. All the required changes depend on the customer values
and demand as well as their satisfaction. In every business, customers are the king. Therefore,
it is important to satisfy their need in every aspect of business. Besides this, it is required to
be customer centric that has the main aim to satisfy the customers. In this way, it is clear that
business firm is only able to create the optimum value for all the customers by fulfilling their
needs as well as demand.
Conclusion

INNOVATION 3
The ever-changing competitive business environment creates the several challenges for the
enterprise. For becoming the competitive in the market, business firms are required to include
the innovative changes for standing with the competitors. Related to the successful operation
of business, I have found that they also consider the significance of value creation to each of
the customer. They are also required to compel the tradition business paradigms for
generating the innovation response to each element.

INNOVATION 4
References
Banu, G. S., Dumitrescu, A., Purcărea, A. A., & Isărescu, S. W. (2016). Defining Open
Innovation Concept Using Business Process Modeling. Procedia Technology, 22,
1020-1027.
Birkinshaw, J., Zimmermann, A., & Raisch, S. (2016). How do firms adapt to discontinuous
change? Bridging the dynamic capabilities and ambidexterity perspectives. California
Management Review, 58(4), 36-58.
Teece, D.J. (2010) Business models, business strategy and innovation. Long range
planning, 43(2-3), pp.172-194.
Witell, L., Snyder, H., Gustafsson, A., Fombelle, P., & Kristensson, P. (2016). Defining
service innovation: A review and synthesis. Journal of Business Research, 69(8),
2863-2872.
Zahra, S.A., Filatotchev, I. and Wright, M. (2009) How do threshold firms sustain corporate
entrepreneurship? The role of boards and absorptive capacity. Journal of business
venturing, 24(3), pp.248-260.