Accordingto Doroodian, Ab Rahman, Kamarulzaman, Muhamad (2014), quick changesto globalization and technology has changed the rules regardinginnovation and competition within organizations and the importance ofeach within organizations today. Innovation is viewed as differentand not as an idea that is generated or a method of works. It shouldbe regarded as a sustainable and continuous process. Thus, due to thenature of innovation having an assessment of innovation is pivotal inensuring an ongoing development of these managerial efforts. Notably,Shapiro (2006) indicated there is no particular yardstick used tomeasure innovation since previous researchers have recommended many.The percent of revenue earned from new products is one common measureused in measuring innovation. Another measurement of innovationindicated by Doroodian et al. (2014) was the patent data.
Today,the rate of competition rises every moment, and only the mostinnovative companies survive. Through such, therefore, innovation ismore regarded as a sustainable and continuous process of which eachorganization should possess for success in the current businessplatform (Gorodnichenko et al., 2009). Indeed, due to the drasticchanges experienced in the global markets, there is no particulartool used to measure the levels of innovation. One of the mostappropriate measures of innovation is the effectiveness of theprocesses employed in the production of goods and services incontribution to the success of an organization. Certainly, innovationcan be measured through the use of patent data as indicated byGorodnichenko et al. (2009).
Inaddition, Grand Canyon University (2011) reported the use of thebalanced scorecard as another measuring technique for innovation. Theuse of the balanced scorecard frequently used by many organizationsin a process of translating strategies such as innovation to reality.The tool can be utilized in measuring the performance of anorganization value that is added to the organization customers,stakeholders, employees, various groupings like the government. Inessence, the balanced scored card provides leaders and staff a bettercomprehension of how their organization is progressing.
Thebalanced scorecard is agreeably a tool for measuring the performanceof an organization and therefore its innovativeness. A balancedscorecard system employs a collaborative development of thestrategies laid by a company and the outcomes which are indicated bythe body’s capacity for creativity, product development processes,enhanced stakeholder and customer value, and the financial results(Davila et al., 2012). The score card is also developed based onstrategy, which is a core consideration for innovation as suggestedby Davila et al. (2012). It is the policies of an organization orbusiness that necessitate the presence of innovation.
Tucker(n.d.) offered several strategies to be used within organizations andwhich can also be considered in my organization however, it is up tothe leaders on determining which one is applicable and fits the needof the organization when in use. The recommended strategies are:1.Involving all in search for ideas2.Include customers in the process3.Include customers in new methods4.Benchmark ideas/methods5.Look for ideas from new customers
Fromthe strategies provided by Tucker, one of the best strategy for theefficient performance of an organization is the involvement of allparties in search of new ideas. In a business organization, ideas forthe success of the entity can be derived from different stakeholdersand parties linked to the organization (King & Lakhani, 2013).Customers can be viewed as a better source of ideas on how to improveproduct quality. Such is derived from the feedback given by theclient, whether they are new customers or old. Also, ideas can begenerated from within the organization where junior employees andexecutives generate ideas that help the growth of the organization.
Davila,T., Epstein, M. J., & Shelton, R. D. (2012). Makinginnovation work: How to manage it, measure it, and profit from it.Upper Saddle River, NJ: FT Press.
Gorodnichenko,Y., Svejnar, J., & Terrell, K. (2009). Globalization andInnovation in Emerging Markets. PolicyResearch Working Papers.Doi: 10.1596/1813-9450-4808
King,A., & Lakhani, K. R. (2013). Using open innovation to identifythe best ideas. MITSloan Management Review, 55(1),41.