The Role of Innovation Management and its Impact on Global Business

This report delves into the crucial role of innovation management and its substantial impact on global business operations. It begins by analyzing the significance of innovation in fostering business growth and competitive advantage, particularly in the context of international trade. The report explores the benefits and drawbacks of open innovation, emphasizing its role in enhancing research and development. It then examines the strategic, tactical, and operational challenges in establishing a viable innovation management culture, including issues like strategy development, employee experience, and intellectual property complexities. Furthermore, the report investigates key attributes for retaining learning from effective innovation management practices, providing examples of successful innovation strategies adopted by global companies like GE, and concludes with an evaluation of various innovation models and techniques.

INNOVATION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Analyse role of innovation management and its impact on global business...............................1
Strategical tactical and operational challenges in establishing a viable innovation management
culture..........................................................................................................................................4
Investigation on key attributes in retaining learning from effective innovation management
practices.......................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Innovation management defines the combination of several management activities that
begin with innovation process that show within the existing goods. According to this project
study benefits and drawbacks of open innovation can be considered mainly. It refers to an
essential term that helps in motivating the mind of the person towards involving in innovation
activity. There benefits and driving forces assist in enhancing the research and development
within openness innovation. Further this report is based on the analysation of skills and
knowledge related to innovation management as it majorly influence the organisation. It also
explains the strategies, tactics and operational challenges to develops the culture of innovation.
Therefore it also elaborates the key features of retaining the effective innovation within practices
of management. In this several theories of innovation can be involved that are used. At last this
project evaluate the concept, models, techniques to analyse the different applications of the
innovation(Lee and Kang, 2018).
.
MAIN BODY
Analyse role of innovation management and its impact on global business
In today's business environment innovation plays an essential role in developing the
growth and success of the business organisation. It represent as an important aspect within the
company by adding the value in the goods that can reflect the major breakthrough in the
improvement of the current existing offerings. If executing innovation within the procedure of
developing products and services also creates risk for the organisation. In this management in the
innovation is helpful for the organisation in examine the fundamental aspects of importance of
new concept, theory and models to creating innovation. In case of international trading business
need additional skills and capabilities of managing the culture that is based on continuous
improvement. This also helps in gaining the competitive advantage within the global rival
marketplace(Noktehdan and et. al., 2019). To understand the concept of innovation management
firm builds to manage the innovation process in systematic way so that they can face low risk.
Management of innovation is very attractive process as it helps the business enterprise to
minimise the risk to the high extent. In this management that are involved in the international
business can majorly support the innovation and creativity and also maintains the momentum
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within innovation by offering resources to the organisation in an creative and appropriate way
that are also cost effective, does not involve high manpower and also not taking the more time.
Organisation at global level promoted the idea of innovation to developing the market by
focusing on developing the budget and recruiting and placing the workforce on the right job role.
In this leaders of the business enterprises can majorly support the company innovating
employees so that they can enhance the profits and sustainability of the company within
marketplace and it also maximise the reputation of the team in the competitive global
market(Halvari and et. al.,2019).
At global level if a company wants to connect with external sources within international
market they mainly do focus on open innovation(Curado, 2018). It represents as a integration of
the resources based on internal and external factors that also helps in enhancing the morale of
the business enterprise or this might encourage the culture of innovation within the working
environment of the company. It is also beneficial for SME firms because they collect the high
reputation within market as they do their business activities by doing the innovation. This will
also enhance the sustainability of the company. mainly the concept of innovation is highly
adopted by the large size organisation or the start-ups firms for attracting the large base of
customers or grow the goodwill in all over the world. Innovation management is very trendy in
the global and domestic market by the help of open innovation(Paskaleva and Cooper, 2018),
Company can get the platform to effectively integrate with the management of innovation. In
simple means innovation management refers to an administration process that helps in improving
the value of the offerings of firms within the market so that they can easily compete with the
competitors. Within the business enterprise, integration of open innovation and innovation
management includes some positive and negative aspect on global business that can be shown
below:
Positive impact of open innovation on global organisation
 Emerging innovation in present ones - When the business enterprises are moving
towards the international market they adopts the culture of innovation to sustain within
that market or to attracts the large base of customers with their innovative offerings. This
also beneficial for attracting the new users frequently. the use of innovation management
also develops the thinking to do modifications effectively all their current offerings so
that large market share can be capture in long term survival(Faems, 2020).
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 Enhancing the range of products and services - The major advantage of open
innovation within business is that it helps to develop the new offerings of the company
when they can focus on expanding their business operation in the new market. This also
helps in generating the high profits and revenues by attracting the customers within new
international market with their innovation management by doing open innovation. In this
innovation management is also very effective for managing the risk of spending high cost
as it can effectively utilise the resources in an appropriate manner at the time of
producing and designing the new goods and services.
 Develops strong connections with stakeholders - Another advantage of the open
innovation within global business is that it is very helpful to making a strong relations
with the several stakeholders. Due to open innovation, investors can invest their financial
resources to get the high profits in return. Innovation management also helps the
organisation to get higher success and growth so that they can survive for a longer period
of time(Meyer-Brötz, and et. al., 2018).
Negative impact of open innovation on global business
 Competition - Within global business, there is major competition is present within the
marketplace. In this businesses are doing innovation to sustain and earning higher profits
and due to this companies may face the major competition. to overcome this issue firms
will use the intellectual property rights to protect their innovation so that creeping and
strolling the idea by others can be prohibited. but all this includes major cost that start-up
firms cannot afford it and this will arise the high risk of competing within marketplace.
 High implementation cost - Focusing on the open innovation companies need to invest
more on the executing innovation management within the organisation. In this they also
focus on research and development that involves high operating cost(Anwar, 2018).
To effectively understand the concept of the open innovation strategy several examples can
be represented such as Apple, Samsung, Google and many more. In this taking example of
GE that is one of the prominent company who execute the open innovation models to sustain
within the rival market (Open Innovation: Benefits, Case studies and Books. 2020). As open
innovation helps the firm to making the effective collaboration between managers and
entrepreneurs so that communication can done in an stronger way. in innovation models GE
spend around $17 billion on researching that helps in generating higher profits. Company
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like GE also provide the students the right path to enhance their career by doing the
internship and collecting lots of information from that. this company is also recognised as
analysing the potential talents that can sustain in the market with the open innovation
challenges. this represents as a impossible mission to the most of the firms to makeover the
students in an effective way so that individual student can compete with in the competitive
market with their innovative idea. in this students are developing their designers, expertise,
engineer skills by sharing the innovation ideas in the market.
This will includes the two sides of open innovation that is bright side and dull side which
can be elaborated below:
Bright side
Organisational Knowledge management Code of conduct
 Diversification in the
investment in research
 market entry would be
easy
 beneficial for acquit
ion of resources
 In this ideas can be
based on broad
knowledge
 developing internal
skills by
communicating
external knowledge
 Adopting the
intellectual property
rights
 Examine the patents
right effectively
Dark side
Organisational Knowledge management Legalities
 High implementation
and research cost
 Loss in innovation
because of creeping
 Drawback in focusing
on legal task
Strategical tactical and operational challenges in establishing a viable innovation management
culture
Within open innovation there are several aspects that may impact the business in negative
way. And to minimise the risk of open innovation within international market that is
copying of the innovation products within the marketplace. to overcome the issue of
creeping the innovation, company can focus on managing innovation that may involves the
transparency that helps in enhancing the culture of the innovation within business
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environment. in this the main purpose of the manager of organisation is to understand the
concept if innovation and why to do innovation so that it can done in a successful way. in
this business enterprise may face the challenge to managing the trust and biasness(Kumar
and et. al., 2018). some of the challenges can be shown below:
 Lacking in developing the strategy based on innovation - Within organisation if
manager want to develop the culture of innovation they may focus on making
strategy that is crucial. Because it involves the direction and process of executing
the activities within the firm to attain the goal of the company that is based on
innovation. Therefore lack of developing strategy is affecting the operational
activity of the enterprise(Nylund and et. al., 2019).
 Less experienced employees - when organisations cannot offers the proper
training and development sessions to their staff members that it will majorly affect
the results and the performance of the team mates. this also shows the lack of
motivation between employees due to this innovation within firm may suffer.
 Lack of multiplicity - if an organisation follows the dynamic culture this will
generate the innovation within business. By getting the several creative ideas from
number of employees organisation will gain high success. but because of lacking of
diversity innovation process and management will suffer(Iglesias-Sánchez and et.
al., 2020).
 Within business organisation innovation is done with one centralised group
only - Within organisation separate department can be included for doing
innovation and it will affect the culture of firm because due to this at working place
equal culture cannot be followed. To be successful at the global level involvement
of each department in innovation is essential.
 Lack of cooperation – in this when there is no cooperation between the employees
at the working place then it would be difficult for the company to done innovation
in a specified period of time. Lacking of collaboration affect the success and
implementing strategies by the managers that also create challenge to beat the
competition with in market. Therefore lacking in this determinant creates major
challenge in doing the innovation(Ramli and Soelton, 2018).
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 Intellectual legal complexity - By doing the business in international market
business ventures may involves the number of aspects to enter into the market place
such as licensing, franchising etc. at this time protecting the ideas from the
competitors is very complex and risky. to overcome this problem company need to
do intellectual property rights that also become one of the major challenge for the
organisation. This is the major challenge that the company may face while doing
the innovation and due to this culture of the working place should be affected.
For example- Samsung that is one of the leading company that is known for their innovation.
And doing their operations they include the concept of open innovation that can builds the
strength of the firm within the competitor marketplace. In corporation at operation level the
primary goal is to build the team working culture so that effective solutions can draw out. To
developing the innovative culture within organisation collaboration is more important without it
no innovation management can implemented successfully and firm will cannot sustain for longer
period of time with good market position. Although Samsung accelerator program can be
organised to offering support to the entrepreneurs so that they can build the software to
developing innovation. This will encourage the innovation and the people who support
innovation so that business can sustain and gain high profits(Sáiz and Amengual, 2018).
Investigation on key attributes in retaining learning from effective innovation management
practices
It is to be invested that executing the innovation culture within organisation business
enterprise may adopt the innovation management. This will enhance the practice of
innovation and boosting the proficiency to overcome the challenge based on open
innovation in some context that can be shown below:
 Boosting employee morale through rewards and recognition - Within
organisation developing the concept of rewards and recognition helps in enhancing
the productivity and performance of employees and due to this innovation can also
be boosted. it is very essential for representing the best working environment. in this
employees feel respected and secured and do more contribution in the profits of
company by doing innovation. This also helps in encouraging employees to get the
innovative ideas for future success of business. In this innovation management is
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appreciated by the employees because of rewards and recognition(Santos and et. al.,
2019).
 Participation of every staff members within decision making based on
innovation - To encourage the innovation culture within the organisation it is very
significant for the manager of the company to make a active participation of their
staff members in the decision making factors. If at the working place isolated culture
is followed than innovation cannot be generated successfully. In this collaboration
and cooperation between team member is mandatory to get the successful outcomes
based on innovation. This will also helps in capturing the opportunity that can beat
the competitors within rival market area. in this company can adopts the technique of
crowd sourcing where involvement of the employees is reflected. This assist in
enhancing the high extent source of generating ideas that combines the business
activities to the current business environment. in this, enterprise may focus on
initiating the innovative ideas and it can be done by using the involvement in several
techniques like brainstorming, presentation and ongoing informal and formal
communication. This helps in limiting the gap between top authority and staff
members because of active participation strategies within organisation. Due to this
high innovative ideas can be regulated for future growth and success(Briones-
Peñalver, Bernal-Conesa and de Nieves Nieto, 2019).
 Developing transparency - in business venture if transparency can be maintained,
then it will help in encouraging the culture of innovation management. In this team
mates play an active role related to sharing idea, understanding the task so that
suitable and appropriate ideas can be shared and passed out within working
environment. in this if company employees does not clearly understand the task that
needs to innovation that ideas cannot be deliver effectively and due to this innovation
is posted in future dates. This will reflect the trust issues and biasness between the
management and employees. at this time firm needs to focus on training and
coaching facility so that there understanding power should be enhanced and
employees are suggesting their best ideas and also communicate it to the managers
so that they get the rewards for their effectiveness within innovation.
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 Optimum utilisation of the innovation management tools – Innovation
management tools such as wave, ideawake etc. present as an successful tool in
encouraging and motivating the employee relation and their engagement within the
innovation decision making using gaming techniques. in this employees can share
their issues and sharing their ideas within the gaming techniques using the
innovation management tool. innovation management developing the digital and
electronic working area within the business environment so that shareholders,
investors and employees and connect and share their thoughts and ideas in an
effective way. this helps in implementing the best strategies within the business
venture so that company will face the higher success in it(Veronica and et. al., 2019)
 . Creating awareness by running the events and campaigns – For encouraging the
environment, related to innovation within business industry companies need to focus
on participating and organising the campaigns and events so that they will create
awareness at the marketplace regarding the culture of innovation. in this manager
can develops the innovation by analysing the current demand so that employees
show their reflective ideas based on innovation that gives the productive results to
the business enterprise. This also helps in eliminating the wastage by focusing on
effective plans. in this employees are encouraged towards the use of innovation by
using social networking sites that is adopted by manager to encourage employees for
innovation management via using digital campaigns.
CONCLUSION
From the above explained report it is concluded that innovation play an essential role in
operating and running the organisation on international level. To offer the current selling product
of the organisation in the new market business enterprise need to develop the innovative ideas in
their strategies that is based on marketing. To sustain in the existing market firm need to focus on
innovation in their goods and services for targeting the large number of people within market. In
this both open innovation and innovation management play a significant role because it enhance
the productivity and efficiency of the business enterprise.
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REFERENCES
Books and Journals
Anwar, M., 2018. Business model innovation and SMEs performance—Does competitive
advantage mediate?. International Journal of Innovation Management. 22(07).
p.1850057.
Briones-Peñalver, A.J., Bernal-Conesa, J.A. and de Nieves Nieto, C., 2019. Knowledge and
innovation management model. Its influence on technology transfer and performance in
Spanish Defence industry. International Entrepreneurship and Management Journal,
pp.1-21.
Curado, C., 2018. Human resource management contribution to innovation in small and
medium‐sized enterprises: A mixed methods approach. Creativity and Innovation
Management, 27(1), pp.79-90.
Faems, D., 2020. Moving forward quantitative research on innovation management: a call for an
inductive turn on using and presenting quantitative research. R&D Management, 50(3),
pp.352-363.
Halvari, S. and et. al.,2019. Conceptualization of hackathon for innovation management.
In ISPIM Conference Proceedings (pp. 1-17). The International Society for Professional
Innovation Management (ISPIM).
Iglesias-Sánchez, P.P. and et. al., 2020. How do external openness and R&D activity influence
open innovation management and the potential contribution of social media in the
tourism and hospitality industry?. Information Technology & Tourism, pp.1-27.
Kumar, S. and et. al., 2018. An integrated approach to analyse requisites of product innovation
management. International Journal of Business Innovation and Research. 16(1). pp.36-
62.
Lee, H. and Kang, P., 2018. Identifying core topics in technology and innovation management
studies: A topic model approach. The Journal of Technology Transfer. 43(5). pp.1291-
1317.
Meyer-Brötz, F. and et. al., 2018. Mapping the technology and innovation management literature
using hybrid bibliometric networks. International Journal of Technology
Management. 77(4). pp.235-286.
Noktehdan, M. and et. al., 2019. Innovation management and construction phases in
infrastructure projects. Journal of Construction Engineering and Management. 145(2).
p.04018135.
Nylund, P.A. and et. al., 2019. Internal and external financing of innovation: Sectoral differences
in a longitudinal study of European firms. European Journal of Innovation
Management. 23(2). pp.200-213.
Paskaleva, K. and Cooper, I., 2018. Open innovation and the evaluation of internet-enabled
public services in smart cities. Technovation. 78. pp.4-14.
Ramli, Y. and Soelton, M., 2018. Implementing innovation management on market
attractiveness and unique resources to enhance business performance on organic
fertilizer industries in Indonesia. Academy of Strategic Management Journal. 17(2).
pp.1-12.
Sáiz, P. and Amengual, R., 2018. Do patents enable disclosure? Strategic innovation
management of the four-stroke engine. Industrial and Corporate Change. 27(6).
pp.975-997.
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Santos, G. and et. al., 2019. Value creation through quality and innovation–a case study on
Portugal. The TQM Journal.
Veronica, S. and et. al., 2019. Do stakeholder capabilities promote sustainable business
innovation in small and medium-sized enterprises? Evidence from Italy. Journal of
Business Research.
Online
Open Innovation: Benefits, Case studies and Books. 2020. [Online] Available through:<
https://apiumhub.com/tech-blog-barcelona/open-innovation-benefits/>.
management.
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