Strategic Innovation -The key to Global Competitiveness and
Value Maximization


By

Rana Singh
Reader
Delhi School of Professional Studies and Research (DSPSR)
Delhi
 


The corporate world is exponentially dynamic and the challenges of competition are increasing in the light of the growing rate of technology driven business processes. More and more companies are gradually operating in countries more than one and are dependent on technology driven business processes in one form or the other. The companies are competing in various areas of operations, products and services.

The value maximization process of an enterprise is a holistic process. The enterprises keen on value maximization give a special focus on the overall corporate planning process and a special attention to the overall strategy formulation from the corporate planning level down till the strategic business unit level with a special focus on innovation management.

The coherence in the thought processes of the top echelons of management have an important and decisive impact in terms of determining the overall value, growth and development trajectory and the overall place in the quest of attaining global competitiveness.

The areas of focus in innovation may vary in product-based, service-based, or manufacturing concern. But the underlying variables and dimensions would remain constant in all the organizations. The Institutions who have delivered world class products and services and have remained globally competitive for various years and have sustained global competitiveness have always had a special focus on having a dedicated team on Research and Development with a very high degree of commitment.

The practice of strategic innovation management shall ensure the global competitiveness, overall productivity and value maximization of the firm. The well structured deliverables from a well structured team.

The dedicated team for research and development carries on the research in different areas. But the most important area, which has an overriding impact on all other areas, is to do an excellent research in the area of reward management. The management of reward for the individuals, teams, units and organizations is very important. If the individuals and teams are optimally rewarded in financial and/or non financial mode, it has a brilliant impact on the morale of the individual and the team which in turn adds to the overall productivity of the whole unit and ultimately maximizing the overall value.

The spirit of innovation must be imbibed at all levels of organizational hierarchy. Some of the professionally managed organizations have made it compulsory to submit a weekly innovative idea/possible change. The percolation of the message of the innovation drive must be two way. The best way to start with would be to start the innovation mission will be from the corporate communications. The messages and communications emanating from the corporate communications department shall be well thought out and sufficiently charging for the members at different levels of organizational hierarchy it is targeting.

The innovation in the overall systems and processes of the corporate communications and the public relations team will have a manifold impact on the overall spirit and enthusiasm of the various other units/departments.

The mission of the corporate communications team is to be optimally backed, supported and inter-twined with the overall reward management process of the HR department. The innovations in the reward management process will give the catalytic boost to the employees, teams, units to be innovative in approach and to be keen on adopting new systems, ideas and processes so as to maximize the overall productivity of the organization.

The innovations in the HR department are of prime importance as they will be the most important and determining variables in acquiring and retaining the best talent pool in the organization. The key determinants in defining, determining the overall global competitiveness, productivity and sustainability of a firm in the international markets is the capability to attract, retain and optimally reward the best talents in the industry. The innovations in the various dimensions of Talent pooling and nurturing will be the key determinant to global competitiveness.

The innovation in the brand management practices is becoming increasingly important in the era of tough competition wherein various media are competing with each other. The market share of the products and/or services of an organization in different countries across the globe is one of the important variables while discussing the overall value of the organization. The market share of the product in turn depends on the overall image of the organization and its various brands in the mindsets of the people and the position the brands and the company has in the top of the mind awareness level. So the companies are vying for strengthening the brand image in the minds of the people. Innovations in Brand positioning and management is gradually becoming one of the key variables in determining the success and overall value of the organization.

The passion to innovate is to be imbibed at various levels in various units. It shall start from training the trainers programme who can bring about a revolutionary change in the psycho-analytical orientation of the Individuals.

The establishment of National Innovation Commission under the guidance of a professor from IIM, Ahmedabad is a welcome move of the current UPA Government. The detailed action plan and periodic monitoring and review on the various areas of innovation will give a catalytic boost to the studies, planning and implementation issues pertaining to innovation and management of innovation.

The most important and demarcating factors in the brand leaders of the world both in the area of products and services have been their sincere focus on Research and development, Innovation Management apart from a consistent focus on delivering the best quality products and services at the globally competitive prices.

A separate functional head in the corporate entities would be a welcome move in the fast growing companies, who can dedicate his whole department in bringing about a radical transformation to implement innovative business practices in all dimensions of business.

The innovation in strategic management warrants an out of the box thinking mechanism wherein the person concerned shall focus on issues of crucial strategic importance.

The brains that actually think differently and are innovative and are rare species on the planet earth. To quote an example, we have millions who use the aero plane to travel from one country to another, but the innovative minds like the inventors of the aero plane take birth once in a millennium.

A special focus must be given on scouting for the brains that actually have interest in the area of innovation management and should be facilitated with the entire possible infrastructure. The spirit to innovate is more important. The innovations which actually turn out be an important business model is very few. But the individual with an innovative bent of mind is to be favorably supported and rewarded optimally and handsomely to retain his interest in the area and optimum resource allocation to be made so as to ensure the experimentation and implementation.

Not all innovations may work out. But still the team working on innovation management practices should be patronized by the top echelons of management.

To conclude, we are blending two components. First one is the innovation in Strategic Management. And secondly, the strategic management of the innovative practices and processes.

The article is written with a motive to articulate the importance of strategic innovation in the heart and soul of the top echelons of management. The importance of innovation management in value maximization of a firm is very important in the light of the rapid changes in the business dynamics internationally in digital economies. To summarise, strategic innovation is an important key to attain global competitiveness and value maximization.
 


Rana Singh
Reader
Delhi School of Professional Studies and Research (DSPSR)
Delhi
 

Source: E-mail October 21, 2006

     

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