Questions:
• Critically discuss with the relevant theory and examples that why the chosen product/service can be called an innovative product/service?
• Critically analyse the commercial and business environmental challenges (for innovation) that the chosen organisation is facing or may face in the future?
• Critically evaluate a range of solutions with the appropriate theoretical concepts, models and real life examples to overcome the identified innovation challenges?
Bluetooth headset was something that people have been looking for long. When they connect their mobile phone to their mobile then people use to get irritated with the wire that use to start from the pockets to the ears. It wasn’t difficult to manage but it was irritating to some extent. Specifically if one is travelling with their headset on. If one is listening to music and walking in the crowd then the wire of the Bluetooth headset may be pulled off by some random person who just passes and this may lead to frustration. Bluetooth headset has sorted out all the problems. Instead of wires, waves will be used to connect the headset and the mobile.
The Bluetooth headset has a small Bluetooth radio chip and this chip creates the wave required for the purpose of connecting the headset and mobile. Apart from that, it also has a software installed in it. This is how the two Bluetooth enabled product, mobile phone and headset, will connect with each other. Pairing the headset and the mobile is a very easy thing to do and hence, it can be done by any person who got a basic understanding about the usage of mobile phone (Abraham 2013).
Why Bluetooth headset can be considered to be an innovation?
Bluetooth headset was the need of the hour as people like to be connected with the mobile at all point of time but it is merely impossible while using headset but that is not the case with Bluetooth headset. People can just move around comfortably with Bluetooth speakers as they are wire-free. Few of the reasons due to which Bluetooth headset is considered to be an innovation are discussed below.
Bluetooth headset was something unique and people wanted something like this always. People use to always think that life would be really simple if they are given a chance to communicate with each other without those wires and that is what Bluetooth headset has helped them with. This was something that people wanted but it was never explicitly said. The manufacturers of Bluetooth headset understood the problem that can be caused by the usage of wire and hence, the wire was removed (Baden-Fuller 2013).
The ultimate goal of the Bluetooth headset was to help people to talk on their mobile and listen to music from their mobile even when there are no wires. The strategic goal of the Bluetooth headset was achieved with the help of Bluetooth headset. Bluetooth headset was recently introduced in the market and in the past, they were not into existence. Bluetooth headset has just come into picture, a few years ago looking at the needs and the requirements of connecting to mobile phone without a wire.
Timing of innovation matters the most. If Bluetooth headset would have manufactured few years back then there are possibilities that it wouldn’t have been liked by people. The usage of phone increased in the last decade and this is when Bluetooth manufacturer though that they will have to do something to the people so that they can help them to get rid of the wires. The timing was innovation was perfect and the product was innovated on the basis of need and not just randomly. Due to the need, people accepted the product immediately.
Bluetooth headset was a great innovation as the innovator was well aware that this is the need of the future and if not now, in some time, everybody will be looking for this innovation. Diffusion of innovation theory can be considered to be the best by which the innovation of Bluetooth headset can be explained. Diffusion of innovation theory is divided into stages that will help the user to understand the stages through which innovation went through so that the product can be accepted among the users.
Awareness is the first stage in the diffusion of innovation theory. The research and development department of many company realized that people are using mobiles to a great extent but people are really frustrated with the headset as it is connected to mobile with the help of the wire. People cannot use wired headsets when they are traveling in a public transport due to the crowd present. The research and development knew that they will have to produce something that is wireless but none of them were sure on how to go ahead with it as they were not aware about the technology that they can use.
Most of the research and development departments in the organization were well aware that if a Bluetooth headset is introduced in the market then people will be happy for sure and at the same time, the reputation of the company will increase in the market. The research and development team started to look for ideas and they decided to launch a headset without wires in the market. They tried to gather all the information about the technology can be used. The technologies those are currently available so that the people can love to have the product that they are willing to.
Research and development team wanted to be rest assured that this product will be liked by people. They tried to understand the expectations of people so that they can be sure that people will accept the product and the demand for the product in the future will be increased. The research department just wanted to be sure that the product will be liked by the people and they will accept the future. They anticipated the demand for Bluetooth headset in the future so that the product can be success in the market. The research team realized that people will like the product and the product will also add monetary value to the company.
The research department decided to use the Bluetooth headset so that they can be rest assured that this product will be success in the market. They started to use the product internally before the product is introduced in the market. This helped the researcher to understand the faults that were present in the product. The problems in the Bluetooth headset were identified internally and corrected so that the users can get a more corrected product rather than that of getting a faulty product with few malfunctions.
This is how the product was introduced in the market. The research and development department launched the product and it was seen that people were most than happy to adopt the product. The importance of this product was well understood by the other electronic companies as well and hence, they decided to launch the product again. Few companies tried to make further improvement in the product so that the people can opt for their product rather than that of the product that was launched first in the market. The research and development department was successful in launching a new product as it was accepted by the people.
While the Bluetooth headset was innovated, there were few challenges. Few of the commercial challenges that have been creating an impact on the innovation of Bluetooth headset are discussed below.
Finding an idea itself is a problem with many electronic companies. Today there are plenty for electronic companies and each company wants to do something new so that they can survive in the competitive market. Many companies come up with many ideas but they are all well aware that all the ideas cannot be considered to be successful. Most of the ideas weren’t liked by the people and hence, the products just vanished from the market. The research and development team frequently comes up with ideas but aren’t accepted and hence, they look for ways by which they can come up with something new that will be accepted by the people so that the company can make monetary benefit out of it.
Bluetooth headset was a plan that may not be easily accepted by people and hence, the research team of the organization may not be sure of approving the plan. The management of the organization should be convinced so that they can approve the budget that will be required for the purpose of completing the research. The new product requires a lot of efforts and finance as well. Getting approval for finance is a difficult thing and this is one of the biggest challenges that any innovation has to face and Bluetooth headset is not an exemption (Eiriz 2013).
Bluetooth headset is a new technology and hence, getting government approvals was one of the things that had to be taken care by the organizations. The organization had to communicate the plan with the government officials and accordingly approvals were taken. Apart from that, the management and legal officials of the organization just checked with the existing policies so that the organization can be sure that they are in line with the existing policies of the organization. This is a challenge as a lot of time, energy and financial resource is invested so that the management can be rest assured that they aren’t manufacturing and introducing something illegal in the market.
Lastly, Bluetooth headset was a very catchy technology and hence, most of the people wanted to have something similar. It was seen that in no time that this technology was adopted by others and hence, it was very difficult for the company to regain the money that they had invested. The management had to make huge investments in the intellectual property rights. Talking about the innovation in Bluetooth headset, it was seen that all the companies had adopted this product in no time and hence, the early innovator wasn’t able to make much profit from the product that was launched in the market.
There were plenty of environmental challenges which were associated with the Bluetooth headset. The innovator had to put in efforts so that they can convince the government, the customers and also the society that the side-effects of using Bluetooth headset are not very high. These challenges were well considered and handled by the innovator so that the product can be launched in the market. Few of the environmental challenges which the innovator of Bluetooth headset had to face are discussed below.
Bluetooth was considered as one of the most harmful rays that can create an impact on the environment. Bluetooth technology was relatively new and people were not convinced with the excess usage of Bluetooth technology. Even there were rumors that the rays will create an impact on the environment. People were skeptical about using Bluetooth but later, people were convinced with the technology and they adopted it.
There are plenty of people who are great supporters of environment and hence, they weren’t convinced with the introduction of Bluetooth headset. These people started anti-bluetooth campaign and this created an impact on the sales of the headset. It is very important for people to have a product that is accepted by everyone around and hence, few of the people who were willing to buy the product were also skeptical about buying it (Zott 2010).
Bluetooth headset disposal plan was not in place and hence, most of the environmental supporters started to believe that this product is just going to add further to the e-waste. Most of the electronics manufacturers have come up with ways by which they can dispose the electronic products after the usage and hence, the potential market slowly and steadily accepted by the people.
Bluetooth headset is an electronic product and hence, they will emit gases during the manufacturing process, usage and also during the disposal. The manufacturers of Bluetooth headset weren’t able to answer on the ways by which they can dispose the Bluetooth headset in an environmentally friendly manner.
There are plenty of regulations regarding the manufacturing and disposal. These regulations are to be considered when the innovator is manufacturing these products. These considerations may be expensive and hence, the innovator will have to consider those costs as well while they are planning to launch the product in the market (Mahmood 2004).
Various implementation strategies were implemented by the Bluetooth headset manufacturing companies so that they can be established in the market. Few of the strategies that helped the organization to overcome the innovation barriers are discussed below.
Bluetooth headset is not something that is just innovation and hence, the companies decided to help the customers understand that this product was produced by looking into the needs and requirements of the people. Publicizing the product helped the customers to understand about the product and also the benefits that one can get with the usage of product. Bluetooth headset was first given to opinion leaders and also the early adopters so that they can be happy with the product that they are using and this helped other people to adopt this product. The Bluetooth headset industry was well aware that producing the headset and sharing it with the customer is not the end of the innovation. Continuous opinion of people on the product was taken into consideration and hence, continuous improvement in the product was made. The connectivity between the Bluetooth headset and the mobile phone was improving due to the continuously improvement in technology. Uncertainty can create an impact on the Bluetooth headset industry and hence, serious consideration was given to it before the product was introduced in the market. Even after the product was introduced in the market, the innovators were continuously looking for products that can be considered as a direct competition for the company.
Bluetooth headset is nowhere related to the cultures of the customers but the marketers were well aware that the marketing strategies for the company will have to be designed in such a way that people from different community can accept the product. If the cultural norms of people are hurt then they may not buy the product even when they are convinced with the quality and also the requirement of the product. The innovators decided to be in touch with the society so that the feedback of people can be taken seriously. On the other end, there were plenty of companies which were just trying to copy what the innovators were doing and hence, it was the responsibility of innovator to protect their intellectual property rights and also the copyrights so that they can enjoy monopoly rather than that of leaving the market freely. The marketers of Bluetooth headset were well aware that the first perception that people develop about the product can create an impact on the sales of the product and hence, marketing was undertaken accordingly (Hennessey 2010).
The innovators were well aware that looking at the problem from the customer’s view is not sufficient and hence, they looked for ways by which they can motivate the internal employees in the organization to identify the problems in the Bluetooth headset so that modifications in the product can be made accordingly. Forming a good perception about the product was the first thing that all the innovators were looking into and hence, they started to understand the problems from the internal customers so that the reputation of the product is not spoiled in the market.
The innovator was also mentally ready to face the resistance that they may receive from the customers. The company ensured that none of the medical treatments, environmental regulations or the religious norms are hurt so that the innovator can convince the customers. The innovators decided to give sometime so that the resistance can be reduced and the acceptance will come into picture. The innovator decided to make a note of the mental perception that people hold about the product. This helped the innovator to understand the areas which aren’t accepted the audience. The innovators also put in efforts to change the perception that the people hold about the Bluetooth headset. They helped the audiences to understand that it is always better to carry some research rather than that of having a wrong perception (Teece 2010).
The marketers decided to project the Bluetooth headset as a status quo and hence, people were motivated to buy this so that they can maintain the status that they hold in their society. Understanding the attitude and perception of people towards the product helped the marketer to understand the features of Bluetooth headset that is liked by the customer and also the features that aren’t accepted by the customer. The marketer had come up with marketing campaigns so that the perception that the end-user hold about the product can be changed as this will help the company to make better products and they can also plough the profits that they have invested in. The innovators were completely aware of the fact that certain products may not be accepted by the users during the initial stages but during the initial stages, the marketer should put in efforts to make the people accept the product. After a certain point of time, people will accept and use this product and this will be a part of their life. Once this becomes a routine, Bluetooth headset will become a part of their life and hence, people will search for the Bluetooth headset before they start for the day. It was the responsibility of the marketing team to ensure that people like the product so that this can become an integral part of their life.
Any change in the organization or in the society will be resisted and this is what happened when Bluetooth headset was introduced in the market. People were well aware of what they require but people weren’t willing to accept the change. It was the responsibility of the innovator to make people to accept the change so that the product can be successful and at the same time, the innovator didn’t want the audiences on miss on something that is beautiful and something that can form an integral part of people’s life (Silvana 2013).
The innovator was well aware that the customer will make the decision to buy or not to buy the product based on the information that they have with themselves. The marketers of Bluetooth headset decided to help people with information regarding the advantages of using Bluetooth headset and also the consequences that they may face due to the usage of this product. This helped the marketing team to clear the wrong perception that people were holding about the product. The marketers decided to undertake this as they were aware that if they decide to continue with the same market then there are possibilities that people will boycott the product. The marketers made it very clear that are some hazards associated with the usage of Bluetooth headset but the positives are more than that of the negatives. The customers were put to think that if they should avoid the product to avoid the hazards or they should be motivated to accept the product so that they can take benefits of the product.
Information processing model is created by the innovator so that the right amount of information can reach the people. The marketer tried to understand the appraisal process that is undertaken by the customer so that they can motivate the customer to buy the product rather than that of just holding to negative perceptions. Emotions can also create an impact on the information processing model. The customers try to understand the emotions that the customers may come across while they are talking about the product. The marketers also tried to understand the emotions that the end users hold by way of communicating to them and also making a note of their body language and facial expressions (Freund 2009).
Even after the product was introduced in the market, the innovators were continuously looking for products that can be considered as a direct competition for the company. The innovators decided to be in touch with the society so that the feedback of people can be taken seriously. On the other end, there were plenty of companies which were just trying to copy what the innovators were doing and hence, it was the responsibility of innovator to protect their intellectual property rights and also the copyrights so that they can enjoy monopoly rather than that of leaving the market freely. Forming a good perception about the product was the first thing that all the innovators were looking into and hence, they started to understand the problems from the internal customers so that the reputation of the product is not spoiled in the market. The marketers of Bluetooth headset decided to help people with information regarding the advantages of using Bluetooth headset and also the consequences that they may face due to the usage of this product. This helped the marketing team to clear the wrong perception that people were holding about the product. The customers try to understand the emotions that the customers may come across while they are talking about the product. The marketers also tried to understand the emotions that the end users hold by way of communicating to them and also making a note of their body language and facial expressions.
Few areas of business or few businesses give a lot of importance to business models. E-businesses are giving a lot of importance to business models. Information technology is playing a major role in all the businesses. It is seen that the businesses are implementing information technology so that manual errors can be avoided. Strategic issues can be addressed only with appropriate implementation of business models. Business models and processes can create value addition and competitive advantage for the firms. This is one of the major reasons due to which the businesses are looking for ways by which the processes can be improved to increase efficiency (Christensen 2000).
E-business means that the complete business process is managed electronically. It is merely impossible for e-businesses to survive without technology and hence, e-businesses look for various innovations to be implemented in the business. The cost of internet and telecommunication is reducing continuously and this is leading to increase in the number of e-businesses. The interaction between the supplier and the customer is changing. In fact, e-businesses are one of the best innovated business models because the cost is reduced. This cost advantage is shared between the firm as well as the customer.
Business model plays a very important role in creating value for the firm. The process of value creation can be beneficial to the customers as well as the organization. With the help of value creation processes, value is created for the customer and the organization gets paid for the same. Every innovation that can improve the interaction between the business and customers will be successful. Organizations should look for business models that will improve the integration between various departments too. This kind of collaboration is more suitable for organizations that have been in existence for long rather than that of the organizations which are just young in the industry (Chesbrough 2003).
Business model and strategy go hand-in-hand. A strategy can be successfully implemented only when plenty of information is available. The decision maker should have access to all the information so that appropriate decision can be made. The decision maker should consider the views and interests of all the stakeholders before any strategy is implemented (Zott 2010).
Organizations generate value for the society and profit for themselves by way of using the raw materials to create outputs. These outputs are used by the end user and this creates value for the organization. Generation of outputs from raw materials is possible only when proper processes are in place. Processes need to be innovative so that the organization can reduce the wastage of raw materials. Processes can be either formal or informal. Informal processes are documented and hence, all the employees in the organization are well aware that they will have to strictly stick to the stated process and informal processes aren’t written anywhere but every employee is aware that they will have to follow it (Chesbrough n.d.).
There are various ways by which innovation can be implemented in an organization. The organization must consider its strengths and weaknesses before they choose a strategy for the implementation of new process or business model. New process or a new business model may include a lot of technical complications so the team which will be involved in the implementation of new process or business model should be chosen accordingly. If the organization has already implemented a new process and if they want to sustain the innovation then lightweight team would be more than enough. A lightweight team which has already been a part of the organization can be used for the purpose of sustaining innovation. If the innovation that has been implemented in the organization is not in place then a heavyweight team from the organization will have to be chosen. Heavyweight team will include professionals who are technically very strong and they will put in extra efforts to keep things in place. If the existing values of the organization and the values required for the new process is different then a heavyweight team which will be dedicated for the implementation of new process will have to be hired. If the organization thinks that even a specialty heavyweight team will not be able to successfully implement the new process then heavyweight team which will be solely responsible for the success of the new process should be hired. Implementation of new process can also be done with the help of acquisition. The organization will have to look for an organization with similar values so that both the organization can merge together and implement the same set of values.
References
Abraham, S, 2013, Will Business Model innovation replace strategic analysis? Strategy & Leadership, Vol. 41, No. 2, pp. 31-38
Baden-Fuller, C, 2013, Business Models and Technological Innovations, Long Range Planning, Vol. 46, No. 6, pp. 419
Burkus, D, 2012, Schools of Innovation: How Academic Organizations Foster Creativity, Strategic leadership review, 2(1), pp. 8-11
Chesbrough, H, The Era of Open Innovation, MIT SLOAN Management Review, Accessed on 5th February, 2014, https://didattica.unibocconi.it/mypage/upload/48567_20081209_071712_THEERAOFOPENINNOVATION.PDF
Chesbrough, H, 2003, Business Model Innovation: Opportunities and Barriers, Long range planning, Vol. 43, no. 2/3, pp. 354-363
Christensen, C, 2000, Meeting the challenge of disruptive change, Harvard Business Review, Accessed on 5th February, 2014, https://www.zurichna.com/internet/zna/SiteCollectionDocuments/en/media/FINAL%20HBR%20Meeting%20Challenge%20of%20Disruptive%20Change.pdf
Eiriz, V, 2013. Firm growth and innovation: towards a typology of innovation strategy, Innovation: Management, Policy, & Practice, 15(1), pp. 97
Freund, F, 2009, Business Model concepts in Corporate sustainability contexts, Centre for sustainability management, Accessed on 5th February, 2014, https://www2.leuphana.de/umanagement/csm/content/nama/downloads/download_publikationen/FlorianLuedeke_Freund_Business_Model_Concepts_in_Corporate_Sustainabilty_Context.pdf
Hennessey, B, 2010, Creativity, Annual Review of Psychology, 61(1), pp. 569-598
Mahmood, I, 2004, Business groups: entry barrier–innovation debate revisited, Journal of Economic Behavior & Organization, 54(4), pp. 513-531
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Teece, D, 2010, Business Models, Business Strategy and Innovation, Long Range Planning, Vol. 43, No. 3, pp. 172-194
Zott, C, 2010, The Business Model: Theoretical roots, recent developments and Future research, Accessed on 4th February, 2014, https://www.iese.edu/research/pdfs/di-0862-e.pdf
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