How Business Environment Forces Drive Innovation: A Blog Post

This blog post, written for a BUS705 Innovation Management course, analyzes how various forces within the business environment necessitate organizational innovation. The author identifies commoditization, the digital revolution, globalization, and the impact of social media as key driv...Read More

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INNOVATION MANAGEMENT
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How Forces (Trends) in the Business Environment Require Organizations/Companies to be
Innovative
There are a variety of significant factors pushing change across the globe today.
Designing an effective plan for innovation allows the company to recognize and practice all
of these. Providing strategic direction for the business cycle is critical but beneficial.
Following are the driving factors:
Commoditization
This is the relentless tension that pushes declining costs, which remains a powerful
competitive power. Wal-Mart had defeated Sears in 1992 to develop into the number one
store in the country. Why did Sears permit that to occur? First, Sears endured the
aloof presumption that it was impassable, and then its executives badly underestimated the
market’s core competitive forces (which I relate to as the attitude issue) and enabled Wal-
Mart to out-innovate them in three crucial areas of performance: product cost, logistics cost,
and selling. Essentially, Wal-Mart perfected one of the main factors behind the market,
commoditization.
The Digital Revolution
The digital revolution immediately targeted the manufacturers of computers, pushing
I.B.M. into a transformation that cost the organization 200,000 employment (Oppong, 2018).
So the influence of ever inexpensive technology went on to strike other businesses, too. This
is also a vital tool for peasants who plow and irrigate their crops because they know from
satellites, and it also informs them how, when, and how well they will market their goods. It
is just as valid in Nebraska’s corn belt as in rural India, coastal China, and central Brazil.
There is no part of the culture that digitization does not significantly impact.
Globalization
Globalization has pulled each country into one common economic structure, and many of
us are now engaging in a centralized social network via social networking. Consequently, the

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approach of a rising organization will handle a globalized environment in which growing
millions of individuals engage in social and corporate societies around geographic borders.
Globalization’s influence and effect ensure that recognizing the existing and potential effects
of global developments on activities, designing a globalization plan to maximize
development prospects by access to numerous markets across the world, and expanding its
scope to new clients, is important for any business.
Social Media Spread
Virtual technology is increasingly becoming more relevant as it is being extended to
more and more aspects in business, industry, and community. Without the internet industry
nowadays is implausible, and the myriad technological resources we utilize to run the
corporate organization. Now, hundreds of millions of individuals using social networking
sites such as Facebook, MySpace, Twitter, and LinkedIn to connect, which is a phenomenon
of immense influence, and maybe considerable meaning.
Although these might not be the organization’s most important concerns, the
probability is that any mix of them would have a major effect on your position, on the
strategic decisions you take, and hence on your commitment to innovation. Various
businesses and start-ups are going increasingly into innovation and are striving hard to
produce successful outcomes, for example, industry start-ups have discovered how to
leverage cloud technologies to minimize costs and improve market performance, which
would boost the development of the organization.

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References
Dhir, S., 2019. The changing nature of work, leadership, and organizational culture in future
ready organizations. Corporate culture, Management, Leadership, Job redesign,
Organizational Behavior, Innovation, Change Management, Human Resources,
V.U.C.A.
Domínguez-Escrig, E., Mallén-Broch, F.F., Lapiedra-Alcamí, R. and Chiva-Gómez, R., 2019.
The influence of leaders’ stewardship behavior on innovation success: the mediating
effect of radical innovation. Journal of Business Ethics, 159(3), pp.849-862.
MALIK, R. and Ravinder, K.A.U.R., 2017. Emerging Trends in Organizational Behavior: A
Perspective. International Journal of Research in I.T. and Management, 7(2), pp.10-
20.
Oppong, N.Y., 2018. Human resource management transfer challenges within multinational
firms. Management Research Review 41(7), pp. 860-877