Analyzing Innovation Theories, Leadership Styles, and RTO Performance

This report provides a comprehensive analysis of innovation theories and leadership styles within the context of Registered Training Organizations (RTOs) in Australia. It begins by outlining traditional and modern innovation theories, emphasizing the importance of creativity and innovation for organizational success. The report then explores the influence of various leadership styles, including transformational, supportive, and democratic approaches, on fostering innovation. The relevance of innovation in RTOs is discussed, highlighting its impact on creative development, continuous improvement, brand reinforcement, effective working, awareness of current trends, and quality performance. Furthermore, the report examines the impact of both internal and external factors on the implementation of innovation, including risk management and the drivers of innovation. It also provides examples of innovation enablers and describes mechanisms that support innovative practices, along with the challenges and barriers to innovation and strategies for overcoming them. The report concludes with a summary of the key findings and references relevant literature.

Lead innovative thinking and
practice

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Background of Innovation Theories............................................................................................1
Importance of Creativity and Innovation.....................................................................................2
Influence and Impact of Leadership Style on Innovation............................................................3
Relevance of Innovation in Organization....................................................................................4
Impact of Internal and External Factor on Implementation of Innovation in Organization........6
Risks management in Innovation.................................................................................................7
Drivers of Innovation...................................................................................................................8
Examples of innovation enablers.................................................................................................9
Describing the mechanism at system that support the innovative practices..............................10
Describing challenges and barriers to innovation and ways to overcoming these....................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation is considered as a process of translation of an idea or invention into a service
or good that create value for which customer pays the organization. Purpose of innovation is a
process that is used by different organization to increase efficiency of various organizational
procedures and also to make those functions economic for company (Goffin and Mitchell, 2016).
There are various types of innovations that are used by the organization to improve their
productivity and performance. Innovation can be applied in the organization in different ways, it
could be technical or it could be related to engagement functions. It is not always about
launching a brand-new product but it is also including current processes and operations of
company.
The RTO Australia is known as Registered Training Organization. This organization is
providing vocational training and education to students. This training and education make them
efficient professionally to make them capable to enter in industries and match their standards.
There are total 5000 registered training organization in Australia and these RTO's providing
education and training of different field and subject to students to prepare them for their
professional carrier. Different traditional and current models and theories of innovation that are
used by RTO's in Australia. Role of different theories is explained for application. Impact of
leadership style is explained for innovation. This is also explained that how innovation work for
organization.
TASK
Background of Innovation Theories
Traditional method of innovation are considered as invention of new things and
development of new processes that can be used in different ways to improve the quality of
delivering process of education and training. Traditional method of improvement are slightly
different from the modern theory of innovation. The traditional theory of innovation is based on
jobs to be done frame work (Mahmoud-Jouini, Midler and Silberzahn, 2016). This is also known
as traditional method or theory innovation. In jobs to be done approach organization develops a
simple frame work and work according to the particular plan to achieve better performance and
delivery of knowledge and information to students. In this theory management or operational
authorities discuss the requirement of changes in the current process and as per the requirements
they develop specific plan to implement and process innovation in their current operations. This
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is simple planning of implementation of new changes and improvement in organization. As per
the name of theory this is goal oriented theory and work according to particular plan. This type
of innovation is bounded with in the boundaries of frame work and it is not allowed to step out of
it. This is how the traditional theory work for different organizations to implement innovation in
their various operations.
The modern theory of innovation also known as technological innovation. This is slightly
different form the traditional theory of innovation cause there is no boundary of free thinking in
this theory. New theory is focused on the technological advancement with in the organizational
process that can improve the performance of organization and its capacity to provide a
productive result. Most of the organization are now using digital technology to improve their
current performance in market place (Mir, Casadesús and Petnji, 2016). Technologies that are
used in the organization are designed as per the need of RTO organization. Technology changes
with time and regular updates make technology more efficient. In the modern or technical
innovation technology is used by company to plan innovation in company. There are various
tools are available that can help RTO to get suggestions to plan innovation for specific procedure
and operations. Innovation tools provide information of opportunities and scope of changes
company can made to gain maximum performance and efficiency in their operations. This is how
the technology or modern theory of innovation is different from traditional theory of innovation
in industry.
Importance of Creativity and Innovation
Goal of organization is to implement most effective transaction of product, service and
money in organization procedure. For better performance of organization innovation and
creativity is required must. Both of these are important for company to ensure the path of success
and solve different issues in working procedure (Kock and Georg Gemünden, 2016). Most
important thing for the organization is how they deal with different problems with in the
organization. Without creativity this is not possible to solve difficult problems and situations.
Creativity and innovation provide support to organization and their employees to gain efficiency
in problem solving. Creativity help the company to understand type and order of difficult of issue
and also provide them with different solutions. Here innovation provide way and path to
implement creativity of employees to solve particular problem in the organization.
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Both innovation and creativity in work procedure provide specific direction to company
to work in. with creativity it is easy to locate a direction and plan the innovation and changes as
per suggested solution. By understanding problem and difficulty of situation the solution can be
evaluated in very initial stage and this can minimize the losses due to problems. Imperative
thinking and creativity help employees to use company resources in effective way to find
solutions.
Target of any organization is to generate maximum profit by performing different
activities that is consists of providing product and services to customers. There are different
ways to improve productivity of company in effective manner but to plan them more cost
effective innovation and creativity is required (Tidd and Bessant, 2018). By working in creative
and innovative way organization can increase their productivity with same resources that are
used by company previously just by making certain changes in procedure and technology. This
also can provide extra support top organization to perform with high quality and provide the best
possible product or service to consumer. Last and most important thing about innovation and
creativity is this both are essential for organization to gain competitive advantage in market
place. This can help to evaluate the market conditions in effective way to better understand
market conditions and technology used by competitor. This can help them to implement various
changes to improve productivity and provide better services to customer. Improved service of
quality of product will lead to gain higher market share and provide market advantage to RTO.
Influence and Impact of Leadership Style on Innovation
Leadership style is considered as approach of leader to perform various tasks in
organization. This leadership styles shows their pattern of work and how they use their power
with in work place (García-Peñalvo, Blanco and Sein-Echaluce, 2015). Their approach to full fill
responsibility define their leadership style. There are various styles used by leaders in
organization and these styles are transformational, supportive and democratic style. Impact of
each leadership style is different for innovation in organization.
Transformational Leadership Style
transformational leadership and in this leadership approach leader used to inspire the other
employees with their behaviour and performance in organization. This approach is best to make
change and innovation in organization. In this leadership style leaders or company shows interest
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in innovation and inspire other people to support process of innovation. Transformational style is
effective to implement technical changes in vocational and education system of RTO.
Supportive Leadership Style
In supportive leadership style leader of organization ask employees to support them to
make certain changes in organization. They also provide employees with relevant opportunities
to learn new skills and knowledge that is important for implementing innovation in organization.
Leaders work for higher degree problems and issues of employees and provide their attention
and coaching to employees to solve management related issues (Tidd and Thuriaux‐Alemán,
2016). This leadership style is also effective for RTO cause in this approach students also will be
involved in process of innovation. This will make innovations more successful for organization
and this will improve their productivity in delivering training to student.
Democratic Leadership Style
Democratic leadership style can also be considered as participative leadership style. In
this approach when organization makes any change in process they use process discussion for
decision making. In this decision making process employees of organization are also included to
provide their personal views about innovation in organization. To implement innovation in RTO
this can be considered are the best suitable method cause employees are also part of the decision
and this will lead to higher employee motivation. Leader also will be able to under different
perspective of innovation and this will improve implementation process of change and
innovation in company. This procedure help the leaders to make effective decision for higher
performance.
This is how various kind of leadership style make impact on innovation and change
implementation process. All the leadership styles are good for Registered Training Organization
in Australia.
Relevance of Innovation in Organization
There are different changes are make by organization to improve their productivity in
market place and better customer satisfaction. For RTO technical changes are more important
cause they are in business of providing training and education to students to make them efficient
to work in professional organization (Goller and Bessant, 2017). Digital changes and innovation
in education system can improve their delivery of training and education to students. Innovation
can help RTO in different manner.
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Creative Development
Basic development is required for all businesses and this can be achieved by
implementation right technology to provide effective training to students. To stay attractive and
efficient in business innovation is most important. This can develop organization in different
aspects to increase its productivity.
Continuous Improvement
this is important for an organization to update its features regularly to perform continuous
development. Innovations can help RTO to repacking and rebranding (Trapp, Voigt and Brem,
2018). This repacking and rebranding through innovation make company process more effective
and productive. Innovations also helps the students to stay aware of current changes in market.
Reinforce the Brand
For an organization it is essential to make good image in market place to perform
successful business. Brand value of company can increase the market share and profit. By using
innovative digital technology can be used as marketing to attract more students towards the
RTO. Use of technology like internet and digital tools can improve the productivity of tutor in
organization.
Effective Working
Education system have limited scope of growth and resource. With this limited resource
it is difficult for company to make higher revenue. Innovation in technology and management
can provide better opportunity to organization perform out of box with same amount of resources
(Donate and de Pablo, 2015). This will improve the productivity of education and training
system of Registered training organization.
Stay Aware of Current Trends in Vocational Education
The vocational training is consists of different personal and professional training
programs. Needs of organization changes as per market trends. For vocational training centre it's
important to stay aware of changes in organization needs. This will help them to make relevant
changes and innovation in process. Technology like information system and internet can help the
organization to gather information of current market situations and organizational needs.
Quality Performance
For educational system quality of delivered skills and training is most important.
Professional development of student. Innovation in education and training program will help the
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RTO to provide higher opportunities to develop different technical and p0ersonal skills to
perform successfully in organization.
Innovation provide support to RTO to perform their training and development program of
students in the best suitable way for success of both student and vocational training institute.
Impact of Internal and External Factor on Implementation of Innovation in Organization
There are different factors affect the implementation of innovation in organization (Oeij,
Rus and Pot, 2017). The external factors are not in control of organization and internal factors of
RTO are related to stakeholders.
External Factors
External factors of organization are also known as macro factors and these factors are
classified in various categories as per their source. These categories are political factors,
economic factors. Socio-cultural factor, technological factors, environmental factor and legal
factors. Political factors are including the decisions that are affecting education and training
system of RTO. Economical factor related to issues of available fund. The political decisions and
economic changes in current time can prevent the organization to implement changes in
organization. Technological limitations also can affect the implementation of innovation in
technology (Scott and McGuire, 2017). This interruption is possible if there is mismatch in
current technology and innovative technology. Innovation suggested for RTO is technical
innovation if technology used in organization does not support the latest technology then this
will prevent RTO to implement technological changes in company. The environmental factors
are related to the local conditions of business. The location organization can make interruption
and physical limitation can stop the organization to implement innovation. Legal factors for
vocational centre are data protection and security law. That is how external factor affect the
implementation of innovation in RTO.
Internal Factors
The internal factor for the organization are created from stake holders. To implement
innovation in organization company or educational organization needs support of employees and
students. If both of them are not supporting the innovation procedure then this will affect the
implementation process. Knowledge and skills are also a factor for change management and
innovation implementation process (Wan and Ding, 2019). The functional efficiency of
organization and coordination in employees and management also can affect innovation process.
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Other internal factors also can affect this process. Organization culture and power distribution
with in management and employees can prevent the organization from innovative change in
organization. Availability of enough technical staff is required in organization to make change
effective after implementation. The structure of organization and infrastructural challenges also
can affect this process. Different issues and conflicts between management and employees is also
an internal factor that can affect implementation of positive changes and implication of
technology in organization. Internal factors of organization are important to handle cause
efficiency of organization depends on this factor.
Risks management in Innovation
Implementation of innovation in organization procedure is important for growth and
development company. Innovation can affect RTO in different manner. There are three aspects
that are majorly affected by innovative changes in organization. These aspects are operational,
commercial and financial (Tang, Zhou and Chen, 2015). There are different strategies are used
by organization to minimize the impact of risk in organization. These methods are professional
advice, experience sharing, Contracting, training and development and research.
Professional Advice- initially changes in organization and new technology is difficult to
understand. It is not easy to get compatible innovative changes. Employees and students can get
stuck while they are using this innovative digital technology. For this organization can use a
professional trainer that can help both student and tutors to use digital and e training process in
effective way.
Gain Experience by Practice- This is really difficult to understand technology in initial time.
By performing continuous practice this can help the tutors and trainees to understand technology.
This will provide technological advantage to them to get comfortable with new technology.
Contract- Contracting is a way to minimize risk of loss or declining in performance. In this
process organization can higher different people who are having enough experience with same
technology that is implemented by RTO Australia. They will help the tutors to get familiar with
innovative changes.
Training and Development- This is the best suitable way to reduce the chances of failure of
innovation. In this procedure RTO can prefer different training and development sessions for
employees to make them enough skilled by providing them enough knowledge of innovative
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technology. This will make tutor comfortable with new technology and improve their operational
efficiency.
These are few methods are explained that can be used by organization to minimize risk of
innovation in educational and vocational centre.
Drivers of Innovation
The drivers of innovation are factors that force the organization to implement change in
their organizational procedures and methods. These drivers are finance, growth, lacking of
resources, technological needs of organization, globalization, improvement in business
procedures.
Finance
To earn higher profit is goal of any organization and this is important for them. This is
major driver of innovation. Company can earn higher profit by implementing changes in
organization. By implementing new technology higher productivity of vocational centre can be
achieved. By using new technology efficiency and capacity of RTO will be increased and this
will provide them opportunity to organization to serve more people and earn more profit from
them.
Growth
To boost the performance of organization it is important for growth of company. To gain
growth in market place company need to implement changes in technology and methods. This
way growth factor drive the organization to implement innovation.
Technological Needs
Technology is one of important driver of innovation. Technology is growing and
developing continuously. This regular updates in technology force RTO to implement new
technology in operation. This is important to gain competitive advantage and higher profit.
Company is providing technical and theoretical training to students for their professional carrier
in corporate sector. To meet their skills with other organizations they need to improve current
technology they are using to train students.
Globalization
When a company go for international business then they ned to change their methods to
conducting training and educating process. Globalization process force Registered Training
organization to implement innovation in its training technology (Denicolò and Polo, 2018). The
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innovative implementation of digital technology is currently used in all over world. And to meet
this global standards company need to use process of innovation.
Examples of innovation enablers
 Vision: It is consider one of the most powerful enabler of innovation which describe the
viable solution which solves different existing customer problem. The manager of RTO
had a compelling vision regarding innovation so that it will help a business to leads
towards further level of success. A strong vision also enable the inventor by providing the
best inclusive and open environment with some resources (Kafetzopoulos and
Gotzamani, 2019). Even by using advance techniques into the working place will also
help the manager to united and inspired the diverse group of employees.
 People: if he company did not have creative mind and passion of people with the
purpose, then innovation is not possible. That is why, company uses lean start-up concept
which help to think in different way related to the work. This concept also provide
different ways which can be engage with their work (Menna, Walsh and Ekhtari, 2019).
Such that while implementing innovation, the manager of the firm should provide
effective training session that helps employees to understand about new innovation which
is provide positive impact upon business success.
 Resources: It has ben analysed that internal start-up and also faces challenges due to lack
of resources and for the company, money is one of the most important resource and then
comes equipment, supplies time. It has been further evaluated that if the company did not
have enough resources then it may lead to affect the negative impact upon business.
Further, by obtaining fast feedback on design ideas also helps to support the lean start up
principles and at that time, team needed hardware prototypes which had less success
without the centre.
 Environment: It is critically evaluated that an inclusive culture and collaborative
environment is considered another innovation enablers. As a result, the frequency and
quality of interaction between the internal start- up teams also increases conflict (Li,
Rausell and Tosoni, 2019). Therefore, if the company have positive working environment
then it also leads to affect the innovation towards positive way and on the other side,
company did not gain high competitive advantage, if the business not have any
innovation into working place. Hat s why, environment plays as a innovation enabler.
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Describing the mechanism at system that support the innovative practices
Idea generation and Mobilization: Thoughts and new ideas are generated at the time if
idea generation and mobilization occurs when these thoughts are moved to different physical
location. When RTO generate new ideas such that online education to the students which attract
wide range of peoples and they can use the system when they are free. Many organization follow
this model and also provide employees with the time and resources to innovate.
Advocacy and Screening: This is the next stage of mechanism which help to evaluate
the idea and also measure all the benefits as well as problem. During this stage, decision can be
made for future (Epshtein and Mikhelson, 2019). The biggest advantage of using this stage is
refinement because if the idea of innovation has a potential then the discussion and arguments
also enhance these. As per the new idea, RTO must have plenty of avenues to receive advocacy
and feedback so that it will help to understand the difficulties and success of this idea.
Experimentation: This stage test the idea using pilot test and determine that whether the
idea is suitable for the organization or not. In this, advocates and screeners re- evaluate the idea
and it has been analysed that sometimes this idea may also leads to new idea due to information
which is gathered in order to check the feasibility of the original idea. If the online training is
successful, then it is also used by other organization in order to reach wide range of customers
because time is the crucial in this process and through online training system, individual can
easily learn different things.
Commercialization: The main aim of this stage is to create the market value for the idea
which is particularly focus in the potential impact. The stage mainly clarify how and when the
idea is used and describe the benefits as well. Therefore, in this stage, the company also focus the
shifts from the development to persuasion and when the idea is clearly identified then the plan is
created and it will be ready for diffusion as well as implementation (Abid, Zahra and Ahmed,
2015).
Diffusion and Implementation: It is the last stage in which diffusion means company
accepts the innovative idea and implementation means developing and utilizing the idea into
workplace. At the time of accepting the innovation, the organization has to be transparent
towards its organization culture with strong advocacy. Company also get proper feedback and
also set benchmark which helps to enable the organization to stimulate the innovation process.
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