How a firm can become innovative ?

- Advertisement -

In a Globalized world and fast changing technological enviornment and a competitive world market firms survival and growth depends on the capacity to innovate and produce new goods and services and enter in to markets quickly as possible than their competitors. If innovative capacity of a firm is not increased on a consistent basis, then they may not survive in a dynamic world market environment.

- Advertisement -

The top management must be asking this question and must also encourage the middle level managers to ask this question and provide resources and ideas so that they can implement policies to improve the innovative capacity of the firm as whole. The innovative capacity of firms differ due to their own unique situation. However, some factors are common to all firms irrespective of their situation as drivers of innovative capacity.

The very important factor in innovative capacity is that ideas from any level of staff must be considered so that they instill imagination and must not have communication chennels top down all the time and channels must be twoway communication. If this this not the case and rigid procedures are in place then innovative capacity will not grow because too much procedural controls stifle imagination and it restricts creativity. Creativity is the mother of invention. If this is overlooked, then a firm will not improve its capacity to innovate even they have all teh resources at their disposal. In other words, the organization must accept change as a norm and welcome changes to its practices and changes must be channelled to improve innovative capacity.

Skilled employees are an asset to all organizations. If they are not retained and policies to retain them a firm will not be able to increase innovative capcity because they are the source of briilinat ideas for innovation or novel ideas of innovation for a firm. They must consider not only salaries to motivate them but also improve their capacity to make decsions and allow them to be heard by all sections of the organization and reduce organizational controls to over supervise their work. Skilled employees are motivated by the work they do itself and whether their ideas are taken in to account in decsion making. If this is not the case then a firm will not be able to increase its innovative capacity on a consistent basis. As well, top management must consider management style and leadership issues and organizational structure suitable for innovation.

If these factors are taken in to account, then a firm will have a tru chance of improving its innovative capacity compared with its competitors. if they only concentrate on only one or two factors they may not succeed in improving their innovative capacity as a competitive weapon.

- Advertisement -
How a firm can become innovative ?, Seekyt
General Contributor
Janice is a writer from Chicago, IL. She created the "simple living as told by me" newsletter with more than 12,000 subscribers about Living Better and is a founder of Seekyt.