Discuss about the Product Innovation of Johnson &Johnson.
The report elucidates on the significance of managing product innovation within the organization. The company that is chosen for this study is Johnson & Johnson. In today’s changing world, innovation plays an important role within the organization. Innovation changes the way of doing business around the world. Innovation has been increasingly considered as the core competency that the enterprise must develop. Although it has been one of the most complex problems that every enterprise faces in the present era, it is a key to success of the enterprise. Some researchers also consider innovation as the culture of participation in the enterprise and capability to create new ideas of producing good and service. Implementation of new ideas in the business determines the innovation level. Innovation basically involves changes in technology that business should adopt for manufacturing products (Akintoye, Goulding, & Zawdie, 2012).. This study highlights on the development of framework that is to be used to assess Johnson &Johnson in terms of innovation. This assessment also identifies the gaps and the areas that are required to be improved within this organization. The last section of this study also reflects on the development of plan that addresses the areas of weakness of this enterprise.
Johnson &Johnson is one of the biggest American multinational corporations that provide medical devices, consumer as well as pharmaceutical products. Its main stock is the component of Dow Jones Industrial Average and is also recorded among the Fortune 500 listed companies. This enterprise is headquartered in US and includes near about 250 subsidiary enterprises. This organization has also made third biggest pharmaceutical settlement with the Department of Justice of US. The brands of this enterprise include several names of first-aid as well as medical supplies. There are three categories of their products that include – consumer products, pharmaceutical products and general surgery products. The aim of this company is to embrace innovation and bring in new ideas, services and goods to life for advancing the health of individuals across the globe. Their mission is to facilitate people live longer and healthier lives always. As the success of their business mainly depends on their capability to collaborate with the suppliers, who not only gives best quality goods and services but also strategically aligns with their commitment to their social as well as environmental responsibilities (Brown & Osborne, 2012). Through their 130 years of business, the management of this company focuses on innovation of products, which improved their business growth over the years. In addition, they are basically harnessing new technologies and creating new innovations, which in turn leverage their expertise in design thinking for delivering personalized solution across the globe. For the last few years, they have been showcasing the host of technologies at CES (Consumer Electronics Show) in US (Al-Jabri & Sohail, 2012). However, the new products that are innovated by them strive to address vital aspects of their people’s well being. Apart from this, they also provide services to their customers by helping hem transform their body, soul and mind in the future.
In the present day economic world, innovativeness has become one of the vital factors that influence strategic planning of the business. It has also been acknowledge by some researcher that innovation usually leads to creation of wealth in the business. In addition to this, it has also been indicated by them that competition along with huge demand of customers leads the enterprise to concentrate on innovation. It has been opined by Goffin & Mitchell (2016) that, the intensity of competition has been one of the determinants of innovation as well as productivity. As the organizations in the today’s world are facing business issues owing to effect of globalization, technology advancement and knowledge revolution, innovation adds value to the enterprise and thus increases the base of employment. Furthermore, as the competition in the present market becomes intense, the companies tries to innovate new products and services at increasing speed, As a result, this creates pressure on the existing companies for keeping up with the product features of their rivalries. It has been stated by Adner (2012) that, innovation enhances the performance of business as it enhances the competitiveness of firm. Integration of innovation facilitates to disseminate new methods in manufacturing goods and services. Moreover, the innovation process also transforms the internal capabilities of firms and thus making it highly adaptive to change.
Some of the most generally used measures of the innovative activities involve- patent counts, R&D expenditures and innovation counts. The values that are created by innovations are usually manifested in different ways of doing the process, which contributes to wealth. The impact of innovation is to transform the inner capabilities of the organizations and making it highly adaptive to changes. This increased flexibility within the company helps the company to face the changing market conditions.
Johnson &Johnson mission is to create global innovation network for generating transformational healthcare solutions with the help of value-creating partnerships (Edquist, 2013). Innovation made by this company positively affects the health of human beings and improves several lives of people across the globe. For over the last few decades, this enterprise has been pioneering innovation in healthcare in that fields that ranges from dental care to cancer treatments. The innovation management of this enterprise mainly believes that scientific as well as technological innovation plays huge role in attaining shared targets of better health as well as quality and lower costs (Dereli, 2012). However, innovative technology generally also makes them possible for the development of less invasive methods with less recovery times, effective treatments and improvement in the patient outcomes. Even the employees of this enterprise, consumer business and medical devices are pushing boundaries of innovation for serving their customers in better way. Thus, they are investing huge amount of money in development of innovative method to the disease interception techniques for identifying the patients at risk and also prevent illness at earlier stages.
The ability to enhance value in business through innovation is one of the vital success drivers for most of the enterprise. The market in which Johnson &Johnson operates provides them both opportunities as well as risk from the perspective of innovation owing to rapid change in the competitive business environment. Appropriate model helps the company achieve better results from the product innovation efforts. The “innovation Diamond” is one of the useful model that mainly assess complexity and addresses few challenges in the innovation of product by classifying them into four themes that involves- innovation strategy, management of portfolio, new process of product development and culture of the organization. Johnson& Johnson strategizes to implement this model in order to attain success in their innovation efforts.
This model involves four strategies that the enterprise must implement in order to drive the performance of new product in business is illustrated below:
Innovation of product and technology strategy – Adoption of effective strategy is important for innovation of product as it helps in attaining success in the competitive market. Some of the top business enterprise implements innovation of product and technology strategy in place that is driven by leadership team and strategic vision of business (Adner, 2012). In addition to this, commodity innovation strategy usually guides the direction of product innovation and thus aids to steer allocation of resource and project selection.
Portfolio management strategy-This highlights on the investment of resources and focus on the appropriate projects. Most of the enterprise commits enough resources for effectively undertaking new product projects. However, they boast effectual portfolio management system, which in turn facilitates the leadership team focus these resources on appropriate strategic arenas and thus short list high valued projects.
Idea- to -launch process strategy- This theme indicates the system or the procedure that drives new commodity projects from idea stage through launch stage (The Innovation Performance™ Framework. 2018). This process mainly emphasizes on the total quality of execution, voice of the consumer input and difficult decision points. This factor is one of the important success drivers for the nest performers of business.
Proper climate and culture for innovation-Some of the senior executives of the top performing organizations creates positive culture and climate for the innovation within the business. They also fosters effectual cross -functional project teams for new product and also engages in decision making procedure of product innovation.
However, Johnson& Johnson strategizes to implement these four strategy in the business in order to attain success in innovation management. The adoption of this strategy is highlighted below-
For the last few decades, the company has attained good reputation in the business for their exceptional performance of innovation of products and services. The application of this innovative diamond model to this enterprise has been explained below:
Product innovation and technology strategy for business- The innovation strategy of Johnson & Johnson is driven by their leadership team highlighting on strategic vision of business. This company showcases their product innovation and technology strategies basically in their medical device and consumer business (Kotsemir & Meissner, 2013). Their customer medical device business creates new categories through innovation involving present pipeline of goods. Their innovation catalyzes new technology in the pharmaceutical, consumer healthcare spaces and medical devices.
Management of portfolio- For the last few years, this company has ramped up ambitious project in order to expand the business in the international market. JLINX ( Johnson & Johnson innovation) is the collaboration between bioqube ventures and Janssen Pharmaceutucak NV provides the management team to run their JLINX operations involving management of investment portfolio, building relationships with their external venture investors and supports scale up of new initiative (Dodgson, Gann & Phillips 2013). Their portfolio management basically involves defining, adopting, maintaining and improving the project standards and practices for delivering the projects based on the plan and budget. Moreover, they also work with the business partners for co-ordinating the planning and prioritization procedure of innovation.
Idea- to launch procedure- This Company focuses on the customers that are supported by the research of voice- of consumers. They even develop superior and differentiated products for meeting the needs of consumers better than the rivalries goods. Besides this, the leaders of this enterprise execute the cross- functional activities from the basic idea to launch.
Proper climate and culture of innovation- The business culture, employees and environment are the main performance drivers of innovation performance model. The senior executive of this enterprise leads innovation effort and hence are committed to the development of new product. The innovation management of this company creates positive climate as well as culture for the innovation. They also foster cross-functional teams and also provide empowerment to teams for achieving good results in innovation projects.
It has been found out by some of the researchers that this framework has been a valuable in the business as it helps the leaders focus on their efforts to enhance their new commodity development productivity as well as performance (Innovation, 2018). Recent evidences reflect that senior leaders of this enterprise adopt product innovation strategy based on the requirements of their customers and other rivalries. Their innovation strategy is based on bringing about highly differentiated healthcare solutions, which extends as well as improves the lives of patients. For doing this, the leaders of this company identify their right partnerships as well as deal structures and also permits their innovators to integrate several resources. The strategy adopted by these leaders helps to advance innovative product by allowing access to the incubation ingredients that is supplied by strategic partner’s network (Dereli, 2013). However their leaders are working towards accelerating scientific innovation at every development stages worldwide for delivering cutting-edge solutions, which solves unmet requirement for patients.
The innovation team leaders of this enterprise assemble their map for driving their innovation strategy (Johnston & Bate 2013). Their leaders also adopt the strategy to advance news solutions for health care through collaborations. In addition, disciplined portfolio management of this company benefits their leaders to achieve target within the specified time. Apart from this, their idea- to launch strategies mainly begins with understanding of their customers’ requirements. They however begins the search of technologies for meeting their needs. Furthermore, they also focuses on the safety as well as quality of products by clinical testing it in order to confirm their efficacy. Lastly, they test these finished products before launching it in the market. The leaders of this enterprise try to adopt effective strategies for creating appropriate climate and culture of innovation. However, their leaders adopt transformational leadership style for improving the innovation culture of the enterprise. This in turn also motivates the employee’s behavior to innovate more products and services.
Customer insight refers to the interpretation of human behavior trends that aims to enhance effectiveness of the product for customers and also enhance sales for benefit. This company mainly customizes its content of social media that is based on both the product as well as audience. The feedback obtained from their customers through social media regarding their product helps to design and improve their product according to their preferences and requirements.
Technology plays important role in the business as it helps to innovate new product and services. This enterprise innovation catalyzes new science and technology in medical device, pharmaceutical and diagnostic healthcare spaces. Moreover, implementation of new technologies helps the company to streamline as well as improve its production.
Employees also plays significant role within the enterprise as they are ones whose work performance leads to improvement in business performance. The Johnson&Johnson company basically offers huge services range to its workers. Moreover, the employees of this company works with their health care partners to touch several people lives per day across the globe.
Innovation in the big companies faces obstacles owing to huge divisions and innovation culture within the companies. Gaps generally occur between risk avoiding vs risk- taking groups and varied business units. Open innovation also adds fourth kinds of division that is between buyers of innovation and sellers of innovation. Although this enterprise has gained good reputation and success in the competitive market, some gaps occur in the innovation procedure within the enterprise. Johnson &Johnson highlights the gap that occurs between the groups that are involved in short- term operations and the groups that are involved in long -term operation of innovation. The short term operations of this company mainly depend on reducing risk as well as cost of new products while consistently providing value to their customers. On the contrary, the long –term operations of this enterprise depends on the money spends in finding new and competitive ways of delivering customer value. However, the gap within this innovation process leads to failure of attaining success for the new product.
There is another kind of gap that occurs in most of the diversified enterprises including Johnson &Johnson. In this enterprise, there are near about 250 division, which make all the things from over- the- counter painkillers to the body artificial hips. However, this variation of regulations, technologies and markets signifies that innovation has been one section of this enterprise (Meyer & Meyer, 2018). For addressing this gap, this company’s COSAT facilitates ferry ideas generally from inside as well as outside the enterprise to the potential applications at their various divisions. This ferrying procedure should involve- aggregation of innovative ideas from outside the company, validating ideas, providing low funding levels for keeping good ideas, brokering ideas to various divisions.
The Johnson& Johnson company has few areas of strength, which involves-
Two major areas of weakness of this enterprise are given below-
This company must focus on their supply chain process since fewer employees in the enterprise are better equipped for serving this vital role in the enterprise. In fact, they should also focus on some key areas that need to be improved including – retention and attraction of individuals, innovation culture within the workplace, new collaboration models between the health authorities and industry. It has also been found out by some researcher that they should focus on managing their talent in order to serve their diverse customers in better way. In addition to this, the leaders of this enterprise should also focus on few areas on prevention, curative treatment, therapeutic solutions and so on (Johnston & Marshall, 2016). Furthermore, another challenge that this firm faces is the management of mobile wellness challenge. The present advancement in the health technology provides several touch point for positively affecting their patients. The management of this company should develop in some of their health technology particularly within mobile that provides ability to scale enhanced health care of people around the world. In addition to this, the senior leaders of this company must improve the communication process for bridging the gap in innovation.
Conclusion
From the above report, it can be concluded that innovation is necessary for every companies to bring about change within the workplace improvement. At the present years, the innovation management of the company strategizes to create sustainable products in order to drive larger collaboration and innovation across their enterprise. Moreover, the leaders of this company focus on the needs of customers before creating the product in order to enhance customer satisfaction. They also leverage new technology for innovating new products and services, which in turn increases efficiency of their employees. Furthermore, leaders also plays vital role in Johnson & Johnson for innovating their product and improve culture within the workplace.
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