Discuss about the Business Innovation Is The New Phenomenon.
Business innovation is the new phenomenon that refers to the introduction and implementation of new ideas and techniques in organizations. These new ideas and services are targeted towards the consumers. Similar to IT innovation, business innovation enables the organizations to achieve their goals across businesses by using new ways to conduct business (Sassen, 2016). Developing new systems is an effective way to introduce business innovation. System refers to the “procedure, process, method, or course of action designed to achieve a specific result”. In business, systems refer to lead generation, customer service, and purchasing, sales conversion, hiring and inventory management amongst others. This essay discusses the knowledge and skills needed to conceptualise and create new systems that support and enhance innovation. The essay will focus on a specific company while discussing the introduction of the new system and its effectiveness. The company chosen for the project is Starbucks, one of the world’s leading coffee companies based in the U.S.A (“Starbucks Systems”, 2018). It follows the company-owned business model, which has earned it billions of dollars in profits. However, with changing business environment, it is important for the company to better its business model as well by introducing new systems.
The new system of an organisationalways focusses on the improvement in all aspects. This may be through change management or though innovation. In the case of Starbucks, this new system innovation will be developing workforce skills and enhance customer service quality because the method of its coffee service mainlydifferentiates it from its competitors. The new system will be also improving competitiveness in both the domestic as well as international markets. It as aims to win more projects.The new system will also diversify the business in order to attract more customers from different tastes and expectations.
The current setting of the organisationis more or less profitable however, the competition in the coffee market has been increasing with time and popularity, Starbucks has been a facing harsh competition in the global market. This is due to the fact that the company is not ready to bring changes in its products as well as service methods. It focusses on increasingnumber of stores in the market which has created problem of self-destruction. It has increased market presence which is affecting the business of their own stores. Managers are not ready to accept new ideas and follow the policies similar to those of the beginning.
Starbucks through have a very strong hold in the coffee business in the world but it is always under the pressure of failure. For example, in USA the market is concentrated with similar companies which threat this company harshly. Moreover, resistance to change the method of serving the customer can eb a great barrier for the organisation. For each of the market the company needs to have something special to offer for which change is mandatory.
For understanding the position of Starbucks in the market of the world, it is necessary to judge what impression does this company has on its competitors. These organisationscan be of any size and structure. This is because each of the competitor company will aim to overshadow the growth of this internationally reputed organisation hence will have all the information about the internal as well as external information about Starbucks. Moreover, current information can be gathered from the wider community or business contexts in which this company has been working.
In order to improve the service or products all the companies introduce innovation in various aspects. In case of Starbucks, there is no financial obstacle to innovation but prepared ness to change is. As the competition in the coffee industry has been growing, this company needs to bring changes through technological developments and production. The company has a resistance to change as the employees are not that much encouraged to swap jobs to broaden their experience. Therefore, employee training and motivation is need to foster innovation in Starbucks.
The key stake holders of the company range from the boardsandcommittees who take responsibility to introduce new policies in the organisation how service can be improved. Customers are one of the most important stakeholders of Starbucks as the company operates round them. As the company operates globally therefore, it has a huge number of employees among which the management teams are the main stakeholders. The company policies mandate that each of the employee will be involved directly with the operations of the company. Moreover, it has a team of advisors who take care of the quality of the products of Starbucks.
In order to reach more customers, the company has already invested a large amount in the digital media so that they can attract the target market. It has provided facilities to deliver products and services though online applications. Now the company can introduce innovation by taking orders from the most powerful social media that is Facebook. Though this it will have a huge number of target customers available online and create community to increase market penetration.
Starbucks is one of the giant coffee serving company in the world and it has popularity in all the developed as well as developing countries. The glamour associated with Starbucks is unmatchable and its expensive product has added more to its admiration as well as demand. Despite all these positive facts, the company has been suffering in the foreign markets. The company does not follow the changing pattern which other global companies follow. It neither changes its policies to cope up with the differences in the environment of the market nor it bring variations in the products to match the expectation of the customers of that particular market. Therefore, to needs to invest more on the target customers and provide all the facilities which others in the same market place can never give. The idea is to make an alliance with Facebook as this is the best place where a community of coffee loving people can be built. The company already has a huge customer base and most of them prefer spending time in the social media. This idea will have a positive response from the customers in one hand and the employees of Starbucks on the other.The workplace will be completely change through this innovation. The service method that the company applies in its online services take more time and effort. Though social media order, the workers will get the immediate feedback and take initiative immediately. This will also reduce the pressure of customers in the stores which obviously reduce the complexity of the service. The workers will be able to perform better and feel attached to the company.
This idea of creating alliance with social media in order to serve the customers directly has never been applied by any coffee serving company hence it will definitely be an innovative mark (Martins, Rindova & Greenbaum, 2015). Facebook for Starbucks can be a highly profitable medium because more people will be able to know about its products and services. It will definitely increase the customer pool which will affect the workplace of the organisation. It will run the workplace more efficiently as this will directly connect the customers with the management and workers. This idea will reduce time and effort which is never applied by the company before.
Once the ideas are discussed with the relevant stakeholders of Starbucks, it is time to test the ideas that will be followed by exploration of the ideas and the challenges related to it. The ideas will be tested if they are relevant for the new system. The ideas that are discussed with the stakeholders are clear in perception keeping in mind the future benefit of the organization. At first, data will be gathered regarding the ideas that will be tested to evaluate if they would work. The system ideas decided for the company will then be put to practice run. This would allow the company officials to assess if the system ideas would work or fail.
Exploration of the ideas involves comparison of old systems with the new decided ones. At Starbucks, the old system is centred on one leader for an entire section, which will be tested against the new system of having multiple leaders for different departments.
Feedback is the best method to challenge the ideas decided for implementing the new system. Starbucks is a large organization and hence the people will have difference in opinions that would be helpful for the systems developers to have a credible feedback.
After testing, exploring and challenging, one specific idea will be selected as the one that will be implemented as the new system. The idea chosen for Starbucks is – developing a system that could enable consumers to order Starbucks items directly from their social media handle. System ideas should then be refined to meet the requirements of the company. The feedbacks received from the Starbucks staff helps in refining the systems ideas and adjusting those to the company’s requirement.
At Starbucks, any new system is duly checked and tested prior to implementation and similarly, the new system will be analyzed as well. First, the management will determine if specialized assistance is required for implementing the new system. After that, the potential impact of the new system will be analyzed. The impact can be assessed by conducting an impact analysis. It includes defining the new system clearly, estimating the level of impact and consequences of the new system and so on. When this is done, then the systems developers must highlight the positive and negative aspects of the new systems.
Impact analysis is followed by consultation with stakeholders. The stakeholders that involve the consumers, committee boards, government, management and specialist advisors amongst others will be asked about the new system of enabling consumers directly order form their social media account. Consultation with stakeholders will bring forth the areas that might be missed by the developers. Further, it would help the developers clearly identify the areas that need improvisation or modification as per the concern of the stakeholders.
A plan has to be developed for the implementation of the new system at Starbucks. Without a proper plan, the system could suffer because any new idea is most likely to face issues before it is fully implemented. The operational plan would help in understanding the requisite budget, the timeframe required, the people accountable for implementing the plan and other resources required for the system.
Communication strategy is essential in ensuring the support of each stakeholder involved in the development of the new system. The communication strategy must be designed in such a way that enables everyone to effectively communicate while introducing the system. Details like the purpose of the new system, current situation, objectives, persons needed to interact with and methods must be included while developing an effective communication strategy.
After the system is set to be implemented, it is important to assess the coaching and training needs of the employees at Starbucks. Until now, they have not been exposed to handling customers live on social media sites. Hence, they need to be trained for it. The coaching and training needs include identifying the new roles, understanding responsibilities, knowing what is expected from them, understanding their potential and so on.
The system idea that has been selected as the one that would be implemented at the Starbucks organization, will now have to be proposed. System proposal is the ultimate step of attaining the approval. Developing the system proposal needs coverage of points like features new to the system, objectives, benefits, costs, resources, risks, schedule and so on. Then, while presenting the proposal, it is important to make a visually attractive report that is easy to read. It must be written in a thoroughly professional style and should be precise ad well constructed as well.
Prior to going for trial, the context in which the trail should occur and the parameters that have to be kept in mind must also be addressed.
Context will depend on the Starbucks organization and what the management decides as per the situation. The parameters for trial include resources, finances, time and staff. All these parameters have to be checked for their functionality and availability for the trail.
The trial is then monitored to find out any drawbacks or loopholes. It is important to monitor the trial from the beginning until the end in order to ensure perfection. Reviewing involves assessment of the processes that are taking place during the trial.
The system trial is followed by improvement process that is achieved through reflection on own reviews about the system’s performance (Edquist, 2013). Each employee at Starbucks will have to collaborate and involve in the improvement process as everyone’s views matter. The group has to analyse the things that worked, those that did not work, things that can be improved and things that could be done differently.
Conclusion:
The introduction, implementation, and development of a new system thus can be seen undergoes a lengthy and complicate process. The reason for this is the organization’s responsibility to deliver the best system to its consumers. The new system must have the potential to draw attention of the stakeholders as well as the rivals. In this paper, the new system has been developed for Starbucks. The initiation, introduction, implementation and development of the new system have followed systematic steps before it could be implemented. It has been evident from the report that developing a new system is an intricate task and requires commitment and dedication from each employee. Starbucks is known for having a great bunch of people and thus implementing the new system is going to be easy for it. The report further has also identified certain important areas like developing communication strategy for the new system because communication is the most important part of the entire process. It is however recommended that further readings on the topic be taken up for more innovative ideas.
References
Edquist, C. (2013). Systems of innovation: technologies, institutions and organizations. Routledge.
Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a cognitive approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99-117.
Sassen, S. (2016). The Global City: Strategic Site, New Frontier. In Managing Urban Futures (pp. 89-104). Routledge.
Starbucks Systems. (2018). Retrieved from https://www.capcoff.com/Starbucks-Systems
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