MANAGEMENT INNOVATION 2
Somehave made the case that business units that are highly focused oninnovation should be kept safe from the main operational units of abusiness in order to make sure that the business does not tramplethem. Every organization has its own priorities and so are theiroperational units which need to balance in their specific issues(Amit& Zott, 2012). This doesn’t mean that innovation should not be considered, in factif the organization will be at a risk of losing key staff, ground tocompetitors as well as inefficient operations.
Innovationhelps in discovering future opportunities which will help indevelopment of products and services that will be in a position tomeet clients’ future needs. Innovation also helps in staying aheadof your competitions. Business units that have their key focus oninnovation are better of standing on their own and making their ownstrategic decisions. This is because it has been established thatthese business units are in a better position to develop innovationsand keep up with the technology trends without the distortion of theother operational units(Brown& Anthony, 2011)
Inany case, this separation culture of such units has led to the newbusinesses having opportunities to create their own adaptive cultureand leaving behind the ridged structure of the precedingorganization. Delegating the responsibility for innovation to theorganization is key, this is because for it to grow and be in thegame changing ventures, it needs large numbers of great ideas fromevery employee rather than only the top decision makers (Machine,2012)
Thefact has also been uncovered that centralization has a significantnegative impact upon management innovation. One of the majorquestions that organizations must encounter is that of centralizationor decentralization of business units and to what extent they shoulddrive innovation. Though centralization of the management innovationhas its benefits for instance it saves on cost and efficiencybenefits of scale and specialization, it also has its disadvantagesthat seem to overlap the advantages.For instance it does not provide efficacy benefits and marketexploitation as opposed to decentralized management innovation whichgenerally enables the business parts to detect emerging marketopportunities. Decentralized management innovation also provides aplatform for quicker communication venues with the rest of theorganization. (Krajenbrink,2012)
Itis true to say that the organizational structure of the managementinnovation should be based on a culture that is conducive forinnovation which should also be the responsibility of all employeesrather than some of the employees (Campbell, 2011). As a consequence,the organization will be exposed to satisfactory business performanceand enhance an entrepreneurship culture in the organizationgenerally.
DrRolf Machine.(2012)Centralizationor decentralization of innovation management: what Google, 3M, IBMand P&G teach ushttp://die-innovationsmaschine.de/EN/centralization-or-decentralization-of-innovation-management-what-google-3m-ibm-and-pg-teach-us/BrownB, Anthony SD (2011) How P&G Tripled Its Innovation Success Rate,Harvard Business ReviewAmit,R., & Zott, C. (2012). Creating value through business modelinnovation. MITSloan Management Review,53(3),41.
Krajenbrink,T. (2012). When to use a centralized or decentralized networkapproach for collaborative product innovations? The influence ofbetweenness on the performance of architectural and non architecturalinnovations.
AndrewCampbell, Sven Kunisch, and Günter Müller-Stewens. (June 2011).Tocentralize or not to centralize?http://www.mckinsey.com/business-functions/organization/our-insights/to-centralize-or-not-to-centralize