Jan 28, 2020 in Exploratory

Innovative Strategies

Every private business or government agency, whether profit or non-profit, must innovate. The development of the contemporary business is impossible without innovations. One of the reasons for innovation is the need for the development of the company or agency. The other one is to be competitive on the market. One can characterize modern business markets as the ones that have a rapid tempo of development. Innovations in different spheres contribute to such boost stimulating the growth and influence of the business and corporations. At the same time, non-profit organizations face with the raising demands of the clients s well as their quantity. Having the defined budget, they cannot afford spending vast amounts of money on such needs. Thus, they have to innovate to preserve their functions and assure the future existence of a prospective and respectable organization. Consequently, innovation is one of the persistent trends in the business stimulating the business rivalry and growing quality of services. Thus, the paper investigates the innovative strategies of organizations defining the key trends and their peculiarities. Additionally, it provides an example of the strategic framework for the innovation of one of the companies. Moreover, one presumes that if any initiative for innovation has a relevant and well-developed strategic plan for its implementation, it would be competitive and successful. 

What is Innovation?

To design an effective innovative strategy for any organization one requires defining its notion. The reason for this is that sometimes its meaning has different interpretations in various sources. Thus, Montgomery and Perry indicate that there are two kinds of innovation. For instance, nanotechnology is the example of a modern innovation. At the same time, some decades ago the breakthrough of the technology was due to the appearance of personal computers and the Internet. Moreover, scholars indicate that there is a myth that the innovational breakthrough involves the work of individuals separated from the government and politics. One the contrary, the real life examples demonstrate that the government sees its actual interest in the introduction of such innovations.

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The second kind of innovation is sustaining innovation. One may define it as gradual development of the products or services that lengthen the existence of or contribute to the concepts that once were a breakthrough. The example of this type of innovation can be the production of new models of cars in the automobile industry or the software updates release in the IT. Montgomery and Perry claim that sustaining innovation is a process that can be easily regulated. Thus, large corporations like Apple or Google usually practice it. They develop, improve and extend the old concepts of the devices and software sometimes reframing them. Often it produces an effect of a breakthrough innovation. The example of this might be the iPad because tablet computers existed long before its release. However, Apple “reinvented” it from the scratch stimulating the customers’ desires towards the sector of tablet computers. At the same time, scholars indicate that breakthrough innovations are often unpredictable and difficult to manage, which provokes the conflicts within organizations. 

At the same time, there are people that claim that sustaining innovations are not innovations in the mutual sense of this word. These claims are partially valid because it does not produce the “wow effect” and impact as breakthrough innovations. However, one presumes that the majority of all modern innovations are of the “sustaining” kind. Modern business and non-profit organization holders tend to practice it because it is more predictable and can be easily managed. Thus, practically no one is interested in the rapid but unpredictable and risky growth apart from the constant but gradual elevating changes. Moreover, the organization leaders tend to practice innovations in various spheres of business such as technology, people, and process.

Innovation Strategies for a Selected Organization

Furthermore, one has to provide the example of the innovation strategies for a selected organization. Thus, one proposes the innovation strategy for Tesla Motors. This is a manufacturer of automobiles that run on electricity. As one can see, the basic innovational concept of this company rose from the old concept of the automobile. Furthermore, the company “re-invented” this concept refusing from the usage of fossil carbohydrates in their engine cycle. Currently, the company is successful because of its focus on the concept of the power system. Thus, one should address further innovations in the spheres of technology, people and process to assure the company’s success in the future.

First, one should consider the concept of technology. Currently, Tesla Motors is one of the corporations that succeeded because of the energetic innovations. Its general rivals, such as Ford Motor Company, General Motors, and others rely on the old technology for propelling their vehicles. However, one predicts that in the future the direct competitors using the same electric technology may arise. Thus, the regulators of Tesla Motors should invest into the technological researches that would result in:

  • enhancing the capacity of the batteries;
  • reducing the charge time of the batteries;
  • providing the ability to charge the batteries of the vehicle from the natural resources, such as the sun and wind energy;
  • enhancing the life cycle of the batteries;
  • providing the services for the recycling of the batteries. 

The mentioned innovative initiatives would assure the ability of the company to be competitive and dominate on the future market of the electric cars.

Next, one should address the issues of staffing and management. Further innovative strategies addressing people would assure the long-term interest of the staff to work for the company. Thus, Tesla Motors should consider or introduce such aspects as:

  • coaching HR personnel to assure the admission of qualified specialists;
  • assuring the convenience of the workplace;
  • introduction of the bonus system for the staff that would rise the quality of work;
  • provide the broad range of coaching services for the personnel at all levels of the organization. There is a persistent need for the staff to raise its professional competence;
  • stimulate the cooperation between different departments. The understanding of the concepts of work by all departments reduces the time for the design and tests of the new models of vehicles;
  • assure the provision of the support of the retired workers. The reason for this is that the staff has to be motivated to work for the company and refuse from the possible proposals of the competitors. 

Finally, the innovations should consider the process of production. Thus, there is a need for the company to:

  • assure the constant update of the robotic technologies that guarantee the speed and the quality of work without mistakes;
  • guarantee the safety of the personnel from the robotic equipment;
  • address the issues of logistics in terms of production and distribution. One presumes there is always a possibility for the development of this sphere regarding the introduction of new technologies.

One would advise the company to establish the department of initiative strategies (IS) to assure the implementation of the proposed roadmap. It should control the process, predict the possible constraints and assure their troubleshooting. Among the possible constrictions one can mention the problems of financing, the lack of qualified personnel and the counter strategies provided as a response by the competitors. In case of the establishment of the IS, the company would manage these issues, which would assure its long-term success.  

Conclusion

Analyzing the discussed issues one comes to the conclusion that the comprehensive roadmap of strategic innovations may guarantee the long-term success of any company. Moreover, it is important for the innovations to consider the three pillars, which are technology, people and process. The proposed example of the roadmap of strategic innovations considers the Tesla Motors company. One presumes its characteristics assure the contemporary and future competitiveness. Moreover, the introduction of the department of initiative strategies guarantees the management of the possible constraints for the implementation of the proposed strategies. Therefore, one regards the analyzed innovative strategies as efficient in a long-time perspective.

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