Report on Innovation Management and Value Creation Strategies

This report delves into the critical realm of innovation management and its profound impact on value creation within organizations. Focusing on the theme of "Creating value through innovation management," the report explores the multifaceted nature of innovation, its significance in the contemporary business landscape, and the imperative for organizations to embrace it to maintain a competitive edge. Drawing on the example of Google, the report examines how innovation drives value creation, enhances productivity, and fosters a culture of continuous improvement. It highlights the benefits of innovation, including problem-solving capabilities, increased productivity, and the ability to outmaneuver competitors. Furthermore, the report provides an overview of innovation management practices, including strategies for managing innovation effectively, addressing the challenges that arise in the process, and overcoming obstacles to foster a culture of innovation. The report emphasizes the strategic, tactical, and operational challenges faced by companies in developing an innovation management culture, along with the innovative management practices used by companies. In conclusion, the report underscores the importance of innovation management for sustained success in the dynamic business environment and offers insights into how organizations can leverage innovation to create value and achieve their strategic objectives.

Managing Entrepreneurship,
Innovation & Creativity

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Theme: Creating value through innovation management................................................................3
Innovation and its significance...................................................................................................3
Value Creation............................................................................................................................4
Benefits of Innovation................................................................................................................4
Innovation Management.............................................................................................................5
Ways to manage innovation........................................................................................................6
Value creation through innovation management.......................................................................6
Challenges of managing innovation...........................................................................................7
Ways to overcome challenges of innovation management.........................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES ...............................................................................................................................9

INTRODUCTION
Innovation can be defined as the process of converting an idea or concept into final
product or service that creates some value for customers. It means introducing something new in
the market that satisfy needs of consumers and creating some value for which they pay.
Managing innovation is very crucial for an organisation in order to stay ahead from the
competitors and gain advantage in market (Ahlin, Drnovšek and Hisrich, 2014). This journal
paper is based on the theme “Creating value through innovation management”. For gaining
proper understanding of the theme and defining its importance, Google is selected as an example
organisation. It is one of the leading multinational technology company that offers internet
related products and services to customers. The learning outcome of this report will be address
by providing useful information from various sources on innovation, its role along with its
impact on global business. The strategic, tactical and operational challenges faced by company
in developing innovation management culture within firm will discussed in report along with
the innovation management practices used by company.
MAIN BODY
Theme: Creating value through innovation management
Innovation and its significance
Innovation is the concept which is utilize by organisations for introducing something new
in market. It is the process that creates value by implementing novel solutions to the meaningful
issues. As per the American Society for Quality, Innovation is the successful transition of new
knowledge and concept into products, services and processes which delivers some value to the
market and customers (Definitions of Innovation, 2019). It is about harnessing good concepts or
ideas and looking them by their development and execution across an organisation. Companies
use innovation as it is the fundamental way that brings continual value to their consumers. It
plays very crucial role in defining success of an organisation. The ability of a company to
innovate depicts its capacity to constantly making ideas and knowledge into goods, processes
and services in the benefit of company as well as shareholders. It helps in improving productivity
and performance of organisation that ultimately leads it towards gaining high competitive
advantage in market.

In current competitive market, the capacity to create new innovation and ideas has
become a priority for companies (Anderson, Potočnik and Zhou, 2014). Technological
developments as well as intense global competition have made it a source of gaining competitive
advantage in market. It is become important for organisations to innovate and if it fails, its
employees, customers and community can suffer. Businesses employ new ways of thinking and
new technology to add value in existing product. Innovation is very crucial for an organisation as
it provides various benefits to it in terms of competitive advantage, increased productivity,
maximise return on investment, strong culture of organisation etc. (The importance of innovation
for an organization, 2019). One of the best example of an innovative company is Google which
is a leading technological company.
Value Creation
Value creation is one of the common objective of any organisation as every enterprise
work with an aim of earning values. It is created for the buyers in terms of products and services
and on the other hand the stakeholders earn it in the form of rise in the worth of per share.
Innovation play an important role in the formation of value as through this eh capacities of the
existing products are raised and hence the overall demand for it increases (Burns, 2016). A new
idea is brought to the market with the help of change which is capable of creating demand for
itself. When addition of features to the present commodity is done it does the full capacity
utilisation of the various resources and in this way also value is created. Innovation works in
different areas like in the internal business operations, external operation or the products and the
products and service. Adopting change in any of these sections may result into better output
which may lead to achievement of competitive advantage along with the hike in value for
various stakeholders. By using innovation, firms can create values. Innovation supports company
in developing innovative products that a caters needs of society in an effective way by creating
some value for them. By open communication within firm, innovation helps in creating value.
Apart from this, encouraging empowerment within firm will assists global business in fostering
innovation and creating value.
Benefits of Innovation
There are some benefits that innovation provides to an organisation in attaining growth
and success in market. Some of these are mentioned below:

Solve problems easily: For solving particular problems, an organisation requires to come
up with creative ideas. It needs outside the box thinking to find out the answer that it never
come up with (Chen, Chang and Lo, 2015). By innovation, an organisation like Google is able to
find out creative solutions that assists in creating value for society and make its business better.
For example: Crowdsource innovation of Google which helps in enhancing quality of Google
Maps.
Increase productivity: Innovation helps a business in developing new products by adding
some features in existing one. New product that enables to satisfy needs of customers helps a
company in increasing its productivity. Innovation also leads to encourage creative thinking
within firm which develops ability of employees and they becomes more productive (Crumpton,
2012).
Beat the competitors: Innovation is the critical factor to success of an organisation.
Innovative thinking within organisation makes it easy for them to beat the competitors available
in market by offering high quality innovative products and services to customers.
In most of the companies, innovation is seen as a linear research, development,
deployment and demonstration process in a which each phase acts as its own silo. However, in
context of Google, each thing works as a feedback loop which is tightly coupled, with product
team and researchers who working collectively in order to develop new products and determine
fruitful areas of research for further study. For creating something innovative, it just requires to
think creatively. Ideas for innovation can come from anywhere as there are many sources
through which an individual or an organisation can get idea from. These sources includes
changes in demographics, incongruities, transformations in market structure and industry, new
knowledge, unexpected failures and successes, changes in perceptions and meanings etc. Proper
analysis of these sources helps company in identifying opportunities that are exist in the market.
Proper identification of opportunities and their exploitation assists organisations in gaining
competitive advantage in market over the rivals (De Klerk, 2015).
Innovation Management
Innovation management refers to a systematic process of developing, capturing,
discussing and enhancing, evaluating, prioritizing alternative thinking or valuable insight that
would not have emerged by normal processes. Capturing the innovative ideas or concepts from
workforce, developing a collaborative and active manpower, recognising efforts of employees

and effective communication with stakeholders are very necessary for innovation management.
Managing innovation within organisation is very necessary as it helps business in remain
competitive for long term by always staying ahead from rivals and attain higher profit margins
(Why is innovation management important, 2019). If an organisation is not able to realise the
significance of innovation then it leads administration to being stuck with its outdated offerings.
At times, it becomes the cause of business failure as competitors lead the sector by providing
new products with greater value to customers.
Ways to manage innovation
There are various ways through which an organisation can successfully manage
innovation. Some of these are as follows:
Create conversations by involving everyone: Involving each individual is very crucial to
make the culture of innovation effective. Bringing all the staff members together may stir better
opportunity for success. Crowdsourcing is one of the best approach to engage workforce in
innovation and develop a pool of ideas (Dentchev and et. al., 2016).
Run awareness campaigns: Strategic orientation is required to be adopt by company to
adopt innovative culture and develop new ideas that drives growth of business. Running
campaigns is one of the proven way to create awareness and develop interest to utilize the
ideation space. This will highly influence on developing creative ideas, enhancing productivity,
cutting down costs of operations and drive improvements in shorter span of time (Edwards-
Schachter and et. al., 2015).
Value creation through innovation management
Innovation creates value for a business in various ways. To innovate, an organisation
requires to empower its team. Empowerment will be drive by a great leader among its staff. A
clear and concise objective that executes across departments ensures that each one works to
attain single solution. For encouraging empowerment, it is required to create a culture within
firm where staff are motivated and inspired to resolve issues by utilizing their own initiative
and drive. Therefore, enable an organisation to better respond to spot market needs or customer
feedback. This has done by Google in an incredibly well manner by allowing spaces for
empowerment (Dereli, 2015). Cross department interaction is encourages by Google Cafe in
which staff can email directly to the leaders of company, an innovation management tool name
as Google Moderator is use that allows any individual to ask a question. Apart from this,

Google's all hands meeting named as TGIF which is conducted weekly in which employees can
discuss anything (How innovation can create value in your business, 2017). All these solutions
helps Google in encouraging empowerment within firm and employees do not feel shy regarding
getting engaged if they think that they can assist in resolving a issue, thus creating value.
For the perspective of business, innovation is important as it is the way that fuels
organisation to change. There are five concepts that an organisation requires to understand.
These includes challenge, ideate, converge, prototype and test. Increasing value of business by
innovation is crucial for the success of organisation. The main objective of business innovation
is develop, deliver and capture value. For creating value, feasibility objective is considered
(Creating value through innovation, 2019). Innovation is more valuable as it increases
productivity of both labour and capital.
The success of an organisation is wholly depend over its performance in market place in context
of value that it represent in front of its customer by offering high quality product of services. The
value can only be created by the organisation when it offer the product or services as per the
demand of consumers and be able to brings variation in its operations as well as product
categories as per changes in demand of consumers. As per the information presented by Lavery
Pennell, innovation is about harnessing of good ideas and implementing them toward the
development as well as its implementation throughout the company. These ideas support in
increasing the revenue, improve the competitive edge and improve sustainability in company
when these ideas are maintained properly then it brings in changes and improvement with the
organisational processes that results into quality of operations in more effective manner (Kuratko
and Morris, 2018). For instance, companies like Google make innovation as a part of every one's
job description as it believe that good ideas can come from anywhere and everywhere when due
importance provided to the ideas. But in order to relieved the most positive outcome out of the
innovation ideas it is crucial for the an organisation to manage it in effective manner. For proper
management of innovation it must be adjusted in a manner that it be able to fit with the corporate
strategy or vision.
In addition to this it also crucial to perform certain steps in order to manage the
innovation effectively within the organisation which includes prioritisation of innovation,
determining its feasibility, internal and external capability evaluation, resources allocation,
processing and formation of sample to test and then launch the final innovation. This support in

ensuring best possible outcome out of efforts which are being presented in order to bring up
changes in either product or operations that results into better accomplishment of organisational
goals. This is because it support in determining the opportunities available in market that when
get identified by an organisation support in capturing the knowledge which help in triggering up
the most valuable actions to be taken into consideration in order to enhance the level of
performance at marketplace. But for baxctual success of a business while managing with
innovation it is crucial for an oragnisation to manage as well as priortise all its actions to be
taken in order to adjust them asd per the corporate goals and startegies. (Creating Value Through
Innovation, 2015).
On the other hand as per the information presented by Gary P. Pisano in his article, along
with the massive investment performed by the organisation in management, money, time, it is
crucial to divert the attention toward regularly innovating the practices (Parkman, Holloway and
Sebastiao, 2012). This is because the innovation mainly fail due to improper management and
the successful innovators have to spend harder time in order to sustain their performance. But the
problem, that get found within the innovation improves the efforts that are rooted within the lack
of an innovation strategies. This in turn help in improving the strategies which further result into
improving the performance by devising the strategy in an appropriate manner. Good strategy
help in promoting the alignment of operation among the group within organization efficiently,
clarifying the objectives and prioritising the operations which ensures accomplishment of
particular goals and objectives. Further the discussion is being extended toward the disruptive
innovation which state that an innovation help in approach a new market and value networks
while getting eventually disrupted in the existing market by displacing the organisation which
are already being dealing in that particular market. This strategy is mainly adopted by big
techno-players which offer high quality product or services at marketplace by targetting the
existing customers along with approaching the customers that are potential and can become its
customers in further when their need are being satisfied in effective manner (Piperopoulos,
2016). For instance, google mainly belongs to a software company which use to offer software
related with the system, application and utility software which ensures effective operations of a
system. But in order to expand its business operations it brings up innovation in order to offer
such services which deal with the customer demand in term of mobile devices. For this Google
launched its android operating system for operating the mobile devices in effective manner

which potentially affect the market performance of other big players who offer high quality
product or services such as Apple and Microsoft. This is not happen because of the any kind of
larger difference that google brings to the market but the main difference is about the business
model over which it has operated in order to provide a toughest competition to the players that
are already operating in the market and be able to enter into new area for approaching other
customers.
Therefore, it has been identifuied that the organisatyions which reguklarly put tehir
efforts toward bringing innovation and keep on managing them as per the expectation of its
customers then it become quite possible for them to deal with the challenges available in market
and changing expectation of customers toward the organisation (Teece, 2016). For instance,
google is continuously experiencing the rapid growth with the help of routine innovation in term
of its advertising business but on other side it is also consistent in term of exploring the
opportunity for the radical as well as architectural innovation which includes driverless care at its
Google X factory. These all become possible when the Research and Development practices of
an organisation act as complimentary practices and support organisation in determining the
number of opportunity available in market so that innovative ideas can be generated which
further contribute toward opening up the pathway through which new innovation can be bring
out (Tülüce and Yurtkur, 2015). These innovational introduction as well as its proper
management in the business is consider to be the most crucial practice which support a business
to always remain in the wish list of customers and be able to achieve competitive advantage at
market place. (You Need an Innovation Strategy, 2015)
Challenges of managing innovation
Apart from the benefits and importance of managing innovation within firm, there are
some challenges also that may hinder the productivity of organisation. Some of the common
challenges are mentioned below:
Employee are not empowered to innovate: This is one of the common challenge which is
faced by organisation in managing innovation. Managers have fear that innovation will distract
workforce from their roles and responsibilities. This fear resulted as employees are not feel
empowered to try new ideas and bear risks. Innovation needs leadership support and assistance
from administrators to take hold across the company.

Lack of collaboration: This factor is the key to innovation. Collaboration is equally
important at both internal and external levels. The ecosystems of innovations brings together the
customers, competitors and industry partners to drive forward the innovation in the sector
(Gundry, Ofstein and Kickul, 2014). Both internal as well as external collaboration is necessary
in order to encourage innovation within organisation.
Ways to overcome challenges of innovation management
In order to stay ahead with in competitive market, organisations are required to to
continuously bring innovation within its products and services in order to create value for
customers for which they pay. But, while managing innovation some challenges might be faced
by company that hampers its performance and productivity. These challenges needs to be
considered by organisation on time implement appropriate solutions to overcoming them. There
are some ways that helps organisation in overcoming the issues of lack of employee
empowerment and collaboration among employees. These solutions are mentioned below:
Empower employees: In order to overcome the challenge of employee distraction from
roles and responsibilities, it is necessary for organisations to empower employees by providing
them authority to take decisions. This will improves their risk taking ability and they are more
engaged towards business activities. It assist in making the employees realize that they are
crucial part of organisation that assist in improving productivity (Jones, Lorenzen and Sapsed,
2015).
Encourage sharing of ideas: Organisations are required to encourage sharing of ideas
within firm as this helps in increasing participation of employees in activities of company. This
will help in developing a sense of belongingness among employees that motivates them and
encourage them to work in collaboration with others and attain objectives and targets of
company (Ünay and Zehir, 2012). (Yashkova and et. al., 2016)
CONCLUSION
As per the above mentioned journal paper, it has been concluded that innovation is a very
crucial aspect for an organisation as it helps in its growth and success. It is the process that
organisation use for creating value for customers by adding features in the existing product.
Innovation helps in improving productivity and performance of company and leads towards high
growth and success. It provides various benefits to company in terms of increasing competitive

advantage, resolving issues and enhancing productivity. Managing innovation within
organisation help it in standing ahead from the competition and gain in long-term advantage in
market. Innovative products helps in serving society in better way by satisfying needs and
demands. there are some challenges that an organisation face why managing innovation
including lack of empowerment and collaboration. These challenges need to be considered and
overcome by company by using appropriate strategies like empower employees to take decisions
and encourage sharing of ideas within firm. All this will help company in gaining long-term
sustainability in market.

REFERENCES
Books and Journals
Ahlin, B., Drnovšek, M. and Hisrich, R. D., 2014. Entrepreneurs’ creativity and firm innovation:
the moderating role of entrepreneurial self-efficacy. Small Business Economics. 43(1).
pp.101-117.
Anderson, N., Potočnik, K. and Zhou, J., 2014. Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal
of management. 40(5). pp.1297-1333.
Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.
Chen, M. H., Chang, Y. Y. and Lo, Y. H., 2015. Creativity cognitive style, conflict, and career
success for creative entrepreneurs. Journal of Business Research.68(4). pp.906-910.
Crumpton, M. A., 2012. Innovation and entrepreneurship. The Bottom Line. 25(3). pp.98-101.
De Klerk, S., 2015. The creative industries: an entrepreneurial bricolage
perspective. Management Decision.53(4). pp.828-842.
Dentchev, N. and et. al., 2016. Embracing the variety of sustainable business models: social
entrepreneurship, corporate intrapreneurship, creativity, innovation, and other approaches
to sustainability challenges. Journal of Cleaner Production.
Dereli, D. D., 2015. Innovation management in global competition and competitive advantage.
Procedia-Social and behavioral sciences. 195. pp.1365-1370.
Edwards-Schachter, M. and et. al., 2015. Disentangling competences: Interrelationships on
creativity, innovation and entrepreneurship. Thinking Skills and Creativity. 16. pp.27-
39.
Gundry, L. K., Ofstein, L. F. and Kickul, J. R., 2014. Seeing around corners: How creativity
skills in entrepreneurship education influence innovation in business. The International
Journal of Management Education. 12(3). pp.529-538.
Jones, C., Lorenzen, M. and Sapsed, J. eds., 2015. The Oxford handbook of creative industries.
Oxford University Press.
Kuratko, D. F. and Morris, M. H., 2018. Examining the future trajectory of
entrepreneurship. Journal of Small Business Management.56(1). pp.11-23.
Parkman, I. D., Holloway, S. S. and Sebastiao, H., 2012. Creative industries: aligning
entrepreneurial orientation and innovation capacity. Journal of Research in Marketing
and Entrepreneurship. 14(1). pp.95-114.
Piperopoulos, P. G., 2016. Entrepreneurship, innovation and business clusters. Routledge.
Teece, D. J., 2016. Dynamic capabilities and entrepreneurial management in large organizations:
Toward a theory of the (entrepreneurial) firm. European Economic Review. 86. pp.202-
216.
Tülüce, N. S. and Yurtkur, A. K., 2015. Term of strategic entrepreneurship and Schumpeter's
creative destruction theory. Procedia-Social and Behavioral Sciences.207. pp.720-728.
Ünay, F. G. and Zehir, C., 2012. Innovation intelligence and entrepreneurship in the fashion
industry. Procedia-Social and Behavioral Sciences. 41. pp.315-321.
Yashkova, E.V. And et.al., 2016. Development of Innovative Business Model of Modern
Manager's Qualities. International Journal of Environmental and Science
Education.11(11). pp.4650-4659.
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