Discuss about the discuss concept of innovation and the way it is being used in the various organisation.
The “process of globalization and the recent changes in the fields of innovations as well as the technological advancements has drastically changed the way the different business organisations and the companies transact their business in the recent times” (Cheng, Yang & Sheu, 2014). Thus, it is generally seen that the organisations of the present business world take the help of various kinds of “innovations and technology” to further enhance the process of their business (Ngo & O’cass, 2013). The use of innovation for the process of business not only allows the organisations to effectively manage their organisation but also to provide quality services to the end users of the services or products offered by them. Therefore, it would be apt to say that the organisations of the present times are using the concept of innovation and creativity “to bring about the overall growth as well as the development of their business organisation” (Holm, Günzel & Ulhøi, 2013). The report will discuss about the concept of innovation and the way it is being used by the organisation “Virgin Australia” for the process of their business. The report will propose also propose the idea for an innovative product or service which the organisation can utilize to further enhance the prospects of its business in Australia.
Founded by Brett Godfrey and Richard Branson in 2000 “Virgin Australia” is the 2nd largest airlines organisation of the country of Australia (Virgin Australia, 2018). The organisation, initially called by the name of “Blue Virgin” is currently based in the city of Brisbane and offers 52 destinations to the people of Australia (Virgin Australia, 2018). The organisation provides the largest number of fleets to the customers of Australia, that is, 101. The organisation under analysis here also called by the name of “New World Carrier” is famous for the use of strategies of “cost leadership and product differentiation” (Virgin Australia, 2018). However, many scholars are of the opinion that the use of innovation as well as creativity and also the effective leadership provided by Godfrey and Branson has significantly enhanced the prospects of the organisation and has enabled it “to become the 2nd largest airlines organisation of the nation of Australia” (Virgin Australia, 2018).
The organisation “Virgin Australia” is one of the global leaders in the use of innovation as well as technology for the process of their business operations (Gundry, Ofstein & Kickul, 2014). Many scholars are of the opinion that the use of innovation and creativity has significantly improved the prospects of the organisation in the recent times (Gundry, Ofstein & Kickul, 2014). The organisation takes the help of the strategy of “Innovative Value Chain” for the process of their business (Wei et al., 2014). Through the help of this particular method the organisation not only creates as well as identifies the creative ideas but also transforms them as per the requirements of their business (Wei et al., 2014). The opinion of the CEO of the organisation about the concept of innovation is significant to note in this particular context when he says that “innovation for Virgin is a change for the better – with a focus on consumers” (Virgin Australia, 2018). Some of the most innovative ideas used by the organisation are the “Boeing 777aircraft which is also called by the name of “The Business” which provides state of the art facilities to the travelers who travel in them, the use of “vision impaired user interface for in-flight entertainment”, use of the concept of “Innovation Competition” which was propounded by Branson himself and others (Virgin Australia, 2018). Many scholars are of the opinion that the use of these innovations has considered improved the prospects of the organisation in the recent times (Wei et al., 2014). In addition to these, the organisation also takes the help of the strategies of sustainable approach as well as the stakeholders approach. The sustainable approach enables the organisation to gain competitive advantage over their competitors in an ethical manner whereas the strategy of stakeholders approach enables the organisation to maximize or prioritize the interests of the stakeholders. The organisation takes the help of these two strategies not only to enhance the profit gained by them but also to make an ethical use of the innovations developed by them which is likely to provide various benefits to the customers.
The concept of innovative is one of the prerequisites of the airlines industry and the various organisations related to this particular industry constantly needs to upgrade themselves in terms of innovations and creativity to provide effective services to the customers (Griffin et al., 2013). One of the major problems with the majority of the organisations face is the problem of the enormous weight of the airplanes. The organisation “Centre for Process Innovation” which is based in the nation of the United Kingdom has come up with an innovative idea to solve this particular problem faced by the airlines industry (Visnjic, Wiengarten & Neely, 2016). The organisation came up with the unique idea to replace the windows of the airplanes with screens which will not only act as windows but also as touch screen sensors which can be utilized for entertainment needs and also for safety and other regulations (Visnjic, Wiengarten & Neely, 2016). The organisation has further come up with the idea to replace the majority of the metal used for the structuring of the airplanes with these see-through glasses. Many scholars are of the opinion that this particular idea is to drastically modify the way the airlines are operating in the present times not only in terms of the manufacture of the airplanes but also in terms of the customer experience (Ritala, Hurmelinna-Laukkanen & Nätti, 2012). This particular innovation is in synchronization with mission of the organisation to use innovative ideas for the process of their business and also to provide the best quality services to the customers.
The organisation can utilize this particular innovation not only for the purpose of the designing of its airplanes but also for enhancing the experience of the customers who take the help of the services provided by them (Bourreau, Gensollen & Moreau, 2012). The major airlines organisations of the world end up spending a considerable amount of capital on the manufacture of the aircrafts and a considerable amount of that capital is being spent on the metal which is being used to prepare the body of the aircraft. Therefore, if the organisation utilizes this particular facility then it is likely to considerably reduce the cost of manufacture of the aircrafts. Furthermore, the use of this innovation will be in synchronization with the mission of the organisation. The organisation is currently exploring various kinds of technologies to come up with new ideas therefore it is likely that this particular innovation will be easily streamlined into the organisation (Bourreau, Gensollen & Moreau, 2012).
The passengers who take the help of the services provided by the airlines industry generally get bored during the flight. Therefore, this particular technology is likely to give them something new to entertain themselves. The people can enjoy the view outside or they can even use the glasses as screens for the purpose of watching movies and others or the screen cam also be used as reading screen (Amit & Zott, 2012). The customers can also read about the safety regulations and other important regulations about the aircraft over these screens. The below given figure provides an image of the proposed airplanes designed using this technology-
Figure: An image of the proposed aircrafts
Source: (Created by the Author)
The main design which will be used for the aircraft is given below-
Figure 2: Design of the aircraft
Source: (Created by the Author)
One of the major focuses of this particular innovation will be to entertain the customers during the passage of the flight in the most effective and to provide entertainment to them (Amit & Zott, 2012). It is with this particular objective that the glasses will be see-through ones and can be used as screens as well the purpose of entertainment. Therefore, it will be apt to say that the primary focus of this particular innovation will be to engage or involve the customers in the most effective manner. The involvement of the customers is very important as it is likely to enhance the satisfaction level of the customers which in turn will help the organisation to earn the loyalty of the customers.
The organisation needs to take the help of the concept of the “Innovative Value Chain” for the process of integration of this innovative idea within the framework of their organisation. The innovative idea has already been generated and identified as an essential one of the organisation to gain competitive advantage over its rivals (Boons & Lüdeke-Freund, 2013). Therefore, the organisation needs to diffuse this particular innovation through the various hierarchical orders of the organisation. The integration of this particular innovation within the framework of this organisation is not only to require the approval of the higher authorities of the organisation but is also likely to require a considerable amount of expenses (Boons & Lüdeke-Freund, 2013). The integration of this particular technology is also likely to require a considerable amount of technical expertise on the part of the organisation for the successful incorporation of this particular technology within the framework of the organisation. The integration is likely to cost the organisation a very significant amount of capital and would be close to one billion including the charges of the technicians and others. The integration apart from the engineers and other technicians is going to require a significant number of manual laborers who would help in the process of the installation of the glasses on the body parts of the plane. This particular process as well as the various testing processes which would follow immediately after is going to require a time period of at least one and a half years to two years.
The organisation before the full-fledged use of this particular innovation for all the 101 fleet which belongs to it needs to prototype the model in a mini scale (Schaltegger, Lüdeke-Freund & Hansen, 2012). This will require the organisation to create a demo version of a fleet with this particular innovation and test it on a repeated basis to check its success. The organisation will also operate it for commercial purposes on a small scale and if it has proved its success in this particular period of time then only the innovation will be used on a large scale. The organisation can also follow the process of reverse innovation for the process of testing the sustainability of this particular innovation.
The organisation “Virgin Australia” takes the help of the concept of “Cross functional management” for the purpose of redesigning of their business model not “only for the purpose of gaining competitive advantage over their rivals operational in the same field of business but also for providing better quality services to the customers from the different parts of the world” (Schneider & Spieth, 2013). Therefore, it would be apt to say that this particular innovation will act as a significant boon to the organisation for the process of “Cross functional management”. The organisation taking the help of this particular innovation can gain a significant amount of competitive advantage over their rivals.
The world of technology is a constantly changing one and it is seen that almost every year new significant innovations emerge. Therefore, it is likely that the future developments in the field of innovation are likely to wield a significant influence on this particular innovation. For example, experts are trying to find ways by means of which the major body portion of the airplane would be made of the glass and not just the windows and the top portions. This particular development once again would have a significant impact as it would not only reduce the weight of the aircraft which would enable to fly in a much better but at the same time reduce the cost of the manufacture of the plane in a significant manner. this particular innovation will have a significant impact on the passengers as well.
Conclusion
The concept of innovation is being increasingly used by the various organisations of the world for delivering better quality services to the customers. The use of innovation as well as creativity at the same time helps the organisations to gain a competitive advantage over their business rivals. Therefore, the primary focus of the organisations of the contemporary business world should be on the use of the concepts of innovation and creativity for the process of their business.
References
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Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9-19.
Bourreau, M., Gensollen, M., & Moreau, F. (2012). The impact of a radical innovation on business models: Incremental adjustments or big bang?. Industry and Innovation, 19(5), 415-435.
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production, 64, 81-90.
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Gundry, L. K., Ofstein, L. F., & Kickul, J. R. (2014). Seeing around corners: How creativity skills in entrepreneurship education influence innovation in business. The International Journal of Management Education, 12(3), 529-538.
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Ritala, P., Hurmelinna-Laukkanen, P., & Nätti, S. (2012). Coordination in innovation-generating business networks–the case of Finnish Mobile TV development. Journal of Business & Industrial Marketing, 27(4), 324-334.
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