Critical Analysis of Innovation and Change Management

This essay critically analyzes the relative benefits of internal and external drivers in implementing innovation and change within organizations to survive and thrive in an automated future. The introduction sets the context of globalization, technological advancements, and increasing competition, emphasizing the need for businesses to innovate. The essay defines business innovation, highlighting product, service, and process innovations. It then explores internal drivers such as organizational culture, technological frameworks, employee attitudes, and financial frameworks, and external drivers like economic and commercial scenarios, and the technological environment. The essay emphasizes the significance of both internal and external factors, providing a comprehensive overview of how businesses can adapt and innovate in the face of technological progress and automation, drawing on various research papers and studies.

Running head: MANAGING CHANGE AND INNOVATION
Managing Change and Innovation
Name of the Student
Name of the University
Author Note

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Introduction
The global commercial and organizational framework have over the decades, changed
and developed considerably, much of which can be attributed to the international phenomena
like that of Globalisation, trade liberalisation as well as technological and infrastructural
innovations, which in turn, have cumulatively contributed in making the international
commercial environment more integrated, inclusive and interconnected (Goetsch and Davis
2014).
With more and more businesses going global and with the global marketplace
developing over the years, almost all industries have been observing increasing dynamics in
both the demand and supply side and the firms in every industry have been experiencing
increasing competition, from both domestic as well as international competitors (Denti and
Hemlin 2012). Thus, in the contemporary age of increased competition and awareness as well
as uniform distribution of information across the globe (both among the producers and the
consumers), it is of utmost importance for the business organizations to stay efficient and
consistently innovating in their production as well as operational frameworks. As Baden-
Fuller and Haefliger (2013), argue, innovations in the organizational framework are of crucial
significance as much of the profitability, operational efficiencies as well as long-term
sustainability and competitiveness of the organizations depend on the same.
There exist several factors and drivers, in general, in the organizational scenario,
which help in implementing innovations in the operational frameworks of the businesses and
which may be both internal as well as external (Norman and Verganti 2014). Keeping this
into consideration, the concerned essay, tries to highlight the internal and external drivers
which are expected to be present in the aspects of implementing innovations and changes in
the organizational frameworks of the businesses for the purpose of thriving in the

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technologically progressing and automated future, thereby discussing the relative importance
and benefits of these factors and trying to infer whether external or internal drivers are more
efficient and beneficial in these aspects.
Innovations in Businesses
The notion of innovations in the overall global framework and particularly in the
business operations, have been becoming increasingly popular and relevant in the recent
period, when the world is gradually heading towards automation and higher reliance on
technology for every day activities. In this context, there exist different perceptions regarding
the meaning and implications of the term “Innovation in the Business”.
In this context, Dawson and Andriopoulos (2014), define the concept of business
innovation as the process in the operational framework of the business organizations, of that
of introduction of new ideas, methodologies, technologies, work-flows aa well as new
services or product, so as to increase the market share, profitability and competitiveness of
the concerned business, by gaining a competitive edge over their rivals. The primary
objectives behind implementations of innovations in the businesses, as highlighted by
Crumpton (2012), are that of improvement of the existing products or services, introduction
of new products or services, introducing new and efficient processes, solving existing
problems and also that of reaching out to new product markets and customers.
According to Visnjic, Wiengarten and Neely (2016), innovations in a company, can
be brought by concentrating on the following forms:
Product innovation- This includes the designing and development processes of different and
innovative products offered by the businesses, which in turn attract greater clientele and help
the companies in earning economies of scale.

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Service innovation- This refers to the changes in the ways of providing the services to the
customers, which can be attributed to the increasing age of digitalisation and the improving
aspects of service distribution through the mobile channels and greater involvement of the
customers in the entire process (Souto 2015).
Process innovation- This aspect of organizational innovations, involve the implementation of
new technologies and methods in the overall processes and operations of the companies, with
the objectives of increasing the operational efficiency of the organizations as a whole (Keeley
et al. 2013).
In the contemporary period of increasing automation and technological reliance in the
overall global framework and in the age of increased digitalisation, it has thus become
extremely crucial for the organizations to incorporate innovations in their operational and
production frameworks, so as to increase their revenue generation, profitability,
competitiveness and long-term sustainability in the markets (Bucherer, Eisert and Gassmann
2012).
Drivers for innovations in business organizations
There exist various factors and drivers which facilitate the implementation of
innovations in the organizational frameworks and different operations of the businesses and
these factors may be both internal as well as external. The internal drivers, in this context,
refer to those attributes and factors which are present within a particular business and are
subjective to the concerned business organization itself (Bock et al. 2012). On the other hand,
the external drivers of change, in an organization, refers to those situations and factors which
exist outside the business organizations, in the external business environment, but have
considerable implications on the organizational changes and operations. Keeping this into
consideration, the various internal as well as external drivers which are relevant in the aspects

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of implementation of innovations in the operational framework of the organizations are
discussed as follows.
Internal drivers for implementation of change and innovations
The primary internal drivers or factors which are inherently present within the
operations of an organization and which have considerable influences in the aspects of
incorporation of changes and innovations in the process, products and services of the
organizations, as highlighted by Love and Roper (2015), are as follows:
Organizational culture- As asserted by the author, the culture of a business organization
refers to the overall assumptions, the underlying beliefs, values and the set of unwritten but
existent guidelines which help in creating the unique social as well as psychological
environment in which the concerned organization and its members operate. According to
Triguero, Moreno-Mondéjar and Davia (2013), assert that the culture of an organization
develops from the aspects like the employees, nature of operations, products and services
offered, markets of interest and the strategy frameworks of the organizations and the culture
of an organization incorporates the vision, locations, habits, environment and norms in which
the concerned organization operates. For implementation of any kind of change and
innovations in the operations of an organization and for sustaining the same in the operations,
the organizational culture, thus, plays a crucial role as it determines the level of acceptability
of such innovations and adoption of the same (Stange, Olsson and Österblom 2012).
Technological Framework- As discussed by Jacobs, van Witteloostuijn and Christe-Zeyse
(2013), another crucial driver for organizational changes and incorporation as well as
implementation of innovations in these scenarios is the technological framework of the
organizations and technological capacity of the same. With constant new discoveries and
technological progresses in the global scenarios, the old processes become obsolete and

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inefficient, which in turn, makes it crucial for the companies to adopt abruptly and efficiently
to the changes in the technologies and innovations and to incorporate the same in their
operational frameworks (Choo 2013). In this context, the technological capacities and
frameworks in the organizations play crucial roles as the level of ease and efficiency of the
organizations of that of incorporation of innovations in their operational framework depends
on the same.
Employees and their attitudes- Another crucial internal driver to any kind of change or
innovations in the operations of organizations, subjective to the organizations themselves, is
that of the types of employees present in the organizational and their overall behavioural
patterns and attitudes (Zhu and Engels 2014). As highlighted by Al-Haddad and Kotnour
(2015), the level of dedication, confidence and loyalty among the employees of an
organization and the extent to which they are motivated and accepting to changes, determine
the level of success of the implementation of any kind of organizational change and
incorporation of innovations in the production and operational aspects of the organizations.
In this context, Steiber and Alänge (2013), discussed the incorporation of innovations
in the process and products or services of business organizations, with reference to one of the
most robust companies in the global framework, in the aspects of continuous and efficient
innovations, the Google Company. According to the authors, much of the success which the
concerned company enjoys, in the aspects of continuous innovations and successful
application as well maintenance of the same in the concerned company, can be attributed to
the presence of highly motivated, skilled, dedicated, happy as well as ambitious employees
and an overall flexible and creative organizational culture in the concerned company.
Financial Framework- The financial framework of a company and the level of efficiency,
transparency and accuracy in the same, also play crucial roles in the aspects of bringing any

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kind of organizational change and incorporation of innovations, as the incorporation of any
new process or development of any new product and service, requires investment of money,
the possibility and prospects of which can be clearly ascertained with the help of a robust and
effective financial management system within the businesses (Inauen and Schenker-Wicki
2012).
Apart from the above-discussed ones there also exist other internal drivers which have
significant implications and influence in the incorporation of innovations in the organizations
and also on the level of success of such innovation incorporations. Innovation and changes in
an organization, the flexibility and level of acceptance of such changes in the organizational
frameworks and also the success of incorporation of such innovations depend on the internal
drivers like that of the employees, the overall organizational culture, the financial
management as well as the technological capacity of the organizations, which in turn
indicates towards the considerable significance of such drivers in the aspects of
implementations of innovations in the organizational frameworks.
External drivers for implementation of change and innovation
Acur, Kandemir and Boer (2012), in their research paper, opine that apart from the
internal factors and drivers present within the operational framework of a business
organization, there also exist various external factors and drivers, which in spite of not being
components of the organizations themselves, play crucial roles in determining the operations
and decision-making aspects of the same, especially in the aspects of changes and
innovations in the organizational framework of the businesses. In this context, Tarí, Heras-
Saizarbitoria and Dick (2014), highlight the primary external drivers which, in a generalised
framework, influence the incorporation of innovation in the business organizations to be as
follows:

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Overall economic and commercial scenarios- As per the arguments put forward by Qian
(2013), the overall economic environment and markets in which a business organization
ventures and also the commercial scenarios and developments in these aspects, have
considerable implications on the decision-making strategies of the organizations, especially
in the aspects of incorporations of changes and innovations in the organizations.
Technological environment- Another external driver of immense importance, which
influences the incorporation of innovations in the operational frameworks of the
organizations, is that of the overall technological scenario in the country as well as in the
global framework and the developments in the same with time. In the contemporary period of
continuous developments and progress of technologies and innovations, across the globe, the
need for implementation of innovations in processes, products, service and overall
operational frameworks are also felt by the business organizations.
In this context, Zaied, Louati and Affes (2015), draws the examples of different
technological improvements in the global business organizational frameworks and
incorporations of innovations in the same, which can be attributed to the technological
progresses in the overall global framework. For instance, the authors, highlight the increasing
usage of computers and software for the purpose of carrying out different operations in a
business as well as the recent usage of internet and social platforms for the purpose of
marketing and promotion of the products and services of the businesses, in the age of
increasing digitalisation and internet usage by increasing number of people across the globe
(Camisón and Villar-López 2014).
Socio-political conditions- The political frameworks in a country and the operations of the
governments, their ideologies, policies, strategic frameworks and also tax and subsidy
policies play crucial roles in the operations of the businesses operating in a country and in

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their decision-making processes. Ackermann (2012), in this aspect, asserts that when a
company operates in a market or a region, whose government is pro-technology and supports
technological progress and innovations, by encouraging the firms to invest resources in these
aspects (encouragement being provided through incentives like tax cuts, subsidies, assistance
in research and development and protection from acute foreign competitions), the businesses
become more interested in developing their infrastructural and operational frameworks by
developing and implementing new innovations in their activities.
However, this argument can be seen to be countered by Wang et al. (2012), according
to whom, presence of protection and subsidisations as well as other benefits from the
government, in general, tend to make the business operating in that country, more relaxed and
less enterprising as they tend to enjoy high security from external competitions. However,
when the governments of the countries play in a competitive framework, by encouraging the
foreign multinationals to invest and operate in the domestic periphery, this forces the
domestic firms to increase their efficiency to survive and sustain in the face of stiff
competitions, which in turn, encourages implementation and incorporations of innovations in
different domains of the operational frameworks of the business organizations in those
regions.
Competitions- Hashmi (2013), rightly asserts that one of the primary external drivers of
organizational changes and incorporation of innovations in the operations of businesses is the
level of competition which the businesses face in the industry and market in which they
venture. As per the arguments of the author, when the level of competition is considerably
high, due to large number of suppliers and alternatives present for the customers, the business
organizations tend to concentrate more on increasing the level of efficiency, cost
effectiveness and desirability of their products or services in the eyes of the customers

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(Bröcker, Dohse and Soltwedel 2012). This in turn influences the companies to incorporate
innovations and other changes in their organizational frameworks.
Customer Satisfaction- For any business to be profitable and sustainable, it is of immense
importance for the same to have a happy and loyal customer base, with high levels of
customer satisfaction. This, in the age of dynamic and diverse consumer behaviours,
preference patterns and increasing number of options, implies that the companies
continuously need to develop and innovate their products, services, processes and marketing
and promotional activities (Calzolari et al. 2015).
Thus, like that of the internal drivers, the external drivers and factors can also be seen
to hold equal level of significance in the aspects of implementation of change and innovations
in the businesses across the globe.
Conclusion
From the above discussion, it can thus be asserted that that in the contemporary
period, innovations in the organizational frameworks have been becoming increasingly
significant for any kind of businesses. There exist both internal as well as external factors or
drivers, within or outside the business organizations, respectively, in the aspects of
implementation of changes and incorporation of innovations in the operational frameworks of
the businesses. As is evident from the above discussion and the scholarly and literary
resources, both of these internal as well as external driver are considerably significant and
beneficial for the aspects of implementation of innovations in the operational frameworks of
the businesses and there also seems to exist a bilateral relationship between these two types
of drivers as both of them affect and get affected by the other.

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