SMT. CHANDIBAI

HIMATHMAL

MANSUKHANI

COLLEGE.

SUBJECT: STRATEGIC MANAGEMENT.

TOPIC: ROLE OF INNOVATIONS IN

MAKING STRATEGIC

MANAGEMENT EFFECTIVE.

GROUP NO.: 06.

SUBMITTED TO: PROF, JAYA GHEMANANI.

SUBMISSION DATE: 1ST. FEBUARY, 2012.

GROUP MEMBERS.

NAMES ROLL NO.

Diksha Mirani. 41.

Chander Chawla. 42.

Kanchan Valecha. 43.

Pawan Nagdev. 44.

Sudhir Satav. 45.

Vikshetha Jain. 46.

Vivek Teli. 47.

Harshada Palve. 48.

ACKNOWLEDGMENT.

We are very thankful to prof. Jaya for giving us such opportunity to present the topic role of innovations in making strategic management effective before her as a group project, we learnt a lot during making this project. 

 During the project we gain a lot of knowledge about the ethics and regulation in auditing profession And we are now very well prepared for all that and all the credit goes to prof. jaya as she is the one who gave us this topic to present. 

INDEX.

Sr.no. Contents.

1. Introduction.

2. Types of innovation taken place in making strategic

management effective

3. Measurement of innovation success.

4. Criteria with relation to market dynamics is based

upon three questions?

5. Innovation in supply chain of strategic management

6. Desbarats (1999) summarizes the changes in

following attitudes.

7. The advantages of supply chain management

implementation in innovating strategic

management.

8. Future innovations in making strategic

management effective.

9. Some questions might me asked while making the

strategic management effective & innovative.

10. Conclusion.

INTRODUCTION:

Over the past half-century

many significant models of

innovation have emerged making

innovation management extremely

fundamental to corporate success.

Modern strategic thinking involves in

itself the role of innovation and

change management, which

eventually play a meaningful and

distinctive role in the profile

formation of any organization.

The competency of any worker is now valued more by the number

of new ideas and suggestions envisaged, presented and executed by

the person. Innovation can be viewed as both process and product

related. It also brings with it the concepts of leadership, open

communication, customer focus and more access to top management.

The importance of understanding the concept of innovation is beginning

to be realized as the flawed logic that

innovation is coincidentally linked to

information technology (IT) solutions are

exposed. This paper explores the

concept of generic innovation and

suggests that these concepts apply

equally within the FM role driving its role

as a dynamic business tool.

It moves away from the classical view of continuity planning which

looks at damage limitation in everyday and emergency damaging

business events and aims towards defining best practice in supplier

contract management to find, maintain and protect the optimum position

rather than simply limiting the damage.

Now we concludes that the role of innovation management in SM

is not about producing innovative solutions but about the provision of a

creative environment in which solutions can be conceived, developed

and applied.

DEFINITION:

“Strategic management is an ongoing process that

evaluates and controls the business and the industries

in which the company is involved; assesses its

competitors and sets goals and strategies to meet all

existing and potential competitors; and then reassesses

each strategy annually or quarterly to determine how it

has been implemented and whether it has succeeded or

needs replacement by a new strategy to meet changed

circumstances, new technology, new competitors, a new

economic environment., or a new social, financial, or

political environment.”

TYPES OF INNOVATION TAKEN PLACE IN MAKING

STRATEGIC MANAGEMENT EFFECTIVE:

Type of innovation Example

Product innovation. The development of a new or

improved Product.

Process innovation.The development of a

manufacturing Process.

Organizational innovation.

A new venture division; a new

internal communication system;

introduction of new accounting

procedure.

Management innovation.

Total quality management (TQM)

systems, Business process re

engineering (BPR).

Production innovation.

Quality circle; just-in-time (JIT)

manufacturing system; new

production planning software.

Commercial / marketing innovation.New financing arrangements; new

sales Approach.

Service innovation. Internet based financial services

For an organization which does not innovate or encourage its

employees to work towards new product development, alterations and

changes, the lesson is clear and that is to innovate or fall behind, this is

further confirmed by Naughton (2004) who highlights that time has

come to convert the new business challenges into opportunities. Doyle

and Bridgewater (1988) state the importance of continuous innovation

and change by explaining that if a company’s product or services are not

continually improved, competitive pressures invariably lead to falling

prices, declining margins and the commoditization of its offer. Doyle and

Bridgewater (1988) lay stress that innovation should be regarded as the

critical path to achieving growth in sales and profitability.

Resources.

MEASUREMENT OF INNOVATION SUCCESS:

Burgelman (1996) stresses that

the determinants of success can

be found both in technology and

the business context and enlists

Innovation.

Strategy

Leadership

Culture.Technology acquisition.

System and

process.Market orientation.

Resources.

various factors that should be taken into account while assessing

innovation success;

There must be an application for the new device, product or

system, which is waiting for it.

Consideration must be given to the operational consequences of

the new technology or system on the manufacturing marketing or

distribution.

The extremity of market dynamics is given high importance, which

according to Burgelman (1996) is often highly complex in nature

and extremely important too.

CRITERIA WITH RELATION TO MARKET DYNAMICS ARE

BASED UPON THREE QUESTIONS WHICH ARE:

Does the product incorporating new technology provide

enhanced effectiveness in the market place serving the

final user?

Does the operation reduce the cost of delivering the

product or service?

Does latent demand expansion or price elasticity

expansion determine the characteristics of new market?

INNOVATION IN SUPPLY CHAIN OF STRATEGIC

MANAGEMENT:

Supply chain can be defined as the sequence of processes and

activities that are involved or performed in an entire manufacturing cycle

or in a complete distribution cycle, this was also known as operations

management earlier and most of the components that form a supply

chain were a part of operations management. A new management speak

as put by Frank (2000) reflects the significant changes that have taken

place due to variations in the business environment. Various other

factors that have an effect on the changing business environment as per

the findings of Frank (2000) are as follows:

Increase in globalization Increase in dependency, Money transfer,

Knowledge transfer Savage price competition.

Increased customer demand of higher and better quality of final

good and services.

Changes in technology.

New forms of working and trading, E-commerce, Increased

outsourcing. According to Desbarats (1999) by examining attitudes

along the innovation supply chain, the required changes can be clearly

figured and also know that how each discipline helps the collective to

deliver better consumer experiences.

DESBARATS (1999) SUMMARIZES THE CHANGES IN

FOLLOWING ATTITUDES:

MARKETING: having a core strategic

responsibility towards customer supplier

relationship, marketing personnel need to set

clear goals for others to understand and

follow willingly in order to achieve well-

managed consumer experiences.

INDUSTRIAL DESIGN: specifications

created by modern designer add. Frank

(2000) further suggests that innovation can

take place at both design level or at the

process level. Designer needs to be

proactive in seeking potential barriers to

implementation.

ENGINEERING DEVELOPMENT:

engineers need to add more value and

develop professional instincts in order to

escape from becoming low value

commodity professionals; this would also

require closer collaboration with the

designers

MANUFACTURING: To remain

integrated with marketing, manufacturing

needs to deliver strategic advantage that

can be easily perceived by the

consumers. High flexibility sometimes

works better than high productivity.

DISTRIBUTION CHANNELS: Retailers and distributors always have

vast knowledge of what sells, as they are closest to the consumer. To

create a balance between the retailers and the manufacturers is always

difficult and the higher margin always goes to player who dominates the

consumer experience.

INVESTORS: Stroking (2001) insists

that in today’s fast changing business

environment it is extremely essential for

all organizations to understand the link

between IT, innovation and supply chain

structure. In his research of supply chain

management, Stroking (2001) concludes

that the conditions for success in IT, innovation and supply chain

structure concern the extent of vertical and horizontal integration, the

comparative importance of information, the extent of (international)

pressure and innovative regulations.

THE ADVANTAGES OF SUPPLY CHAIN MANAGEMENT

IMPLEMENTATION IN INNOVATING STRATEGIC

MANAGEMENT:

1. Better knowledge and understanding of market trends and key

customers needs.

2. Enhanced problem solving.

3. Faster response times.

4. Flexibility and a strategic capability to plan and innovate.

5. Improvement in forecast accuracy.

6. Improvement in inventory reduction.

7. Lower operating costs and reduction in real costs.

8. More efficient and effective use of technology.

9. Shared risk.

10. Waste reduction and more effective use of resources and skills.

FUTURE INNOVATIONS IN MAKING STRATEGIC

MANAGEMENT EFFECTIVE:

1. Demonstration of value added through innovation.

2. Innovation under multiple contract management and with various

suppliers.

3. Difficulties with innovation under cost pressure.

4. Innovation as part of performance from day 1of a contract.

5. Learning from the experience of industry, companies that have

already followed such concepts.

6. Strategic importance of supplied item, affecting innovation.

7. Innovation value during supplier selection process.

SOME QUESTIONS MIGHT ME ASKED WHILE MAKING

THE STRATEGIC MANAGEMENT EFFECTIVE &

INNOVATIVE:

1. Which best describes your level of responsibility?

2. Which market sector best describes your organization’s SM

structure?

3. Do you agree that innovation management process should be the

SM’s remit?

4. Does your organization have a specific innovation management

policy that applies to Strategic Management?

5. Is there much scope for innovation in Strategic Management?

6. Do In-House and outsourced SM teams have same approach

towards innovation management?

7. Do you think that the primary objective should be innovation in vital

business functions?

The vast amount of literature that addresses the increasing

significance of innovation as an important entrepreneurship tool has till

date not been able to yield a widely held consensus regarding how to

define innovation. The wishful thinking of having immediate results and

no failures hamper the want to innovate and change. It is essential for

the managers wanting to improve innovation performance to not just

blindly apply the first technique that they encounter or think to be as a

change/innovation, or methods, which have been successfully adopted

by their competitors. Important is to determine whether those innovative

techniques or methods are appropriate for their own

company/organization/product or not. In respect to above the

conclusions are based on the innovation management and to suggest a

strategy for obtaining and protecting optimum multiple contract

management and performance.

The author believes that the study would not only help Facilities

Managers to exemplify their knowledge and skill, by apprehending the

role of innovation management in strategic management at operational

and strategic levels, but also it would help in concluding the factors that

led to the growth and development of innovation as a field and an

important part of the strategic management world, including relationship

with suppliers and multiple contract management. The focus of the study

is mainly on the prominence of communication, awareness required

within business environment to ensure effective innovation, hence

determining the various factors that would guide innovation in multiple

contracts in the future and maintain its role in the ever-changing

business patterns and customer demands. With this as the main aim the

objectives under, which currently researching, are:

To explore and understand generic innovation and innovation in

multiple contract management

To propose an innovation strategy, defining best practice in

supplier contract management