Innovation & Entrepreneurship in Managementâ€Myassignmenthelp.Com

Question: Discuss About the Innovation Entrepreneurship in Management? Answer: Introduction In this competitive business market, innovation and entrepreneurship are two of the significant aspects of business that enables the organisation to be creative and unique. Business organisations try to be innovative in terms of business strategy, marketing plans and launching their products. Implementing innovative ideas provides an opportunity for the business organisation to stand out among the other competitors and attract customers (Ngo OCass, 2013). Therefore, the customer base of the business organisation increases by making it more preferable and also increases the market share of the organisation. Entrepreneurship promotes innovation thereby, facilitating change in the business strategy and management of an organisation. In this report, innovation and entrepreneurship are discussed in terms of a telecommunication organisation. Optus is the second largest telecommunication organisation in Australia and is a subsidiary of SingTel (Optus, 2017). In this competitive market, Optus has used innovation and entrepreneurship to manage the business efficiently. Nature of Innovation In this competitive market, business organisations tend to be innovative at regular intervals. As mentioned by Bock et al., (2012), innovation provides opportunities for the business organisations to be creative and innovation in terms of the products and services offered to the customers. Moreover, this also enables the business organisations to stand out among their competitors and attract the potential customers. In the past two decades, innovation has been one of the major driving forces for shaping the competition and ensuring the survival of the organisation. According to Rohrbeck, Konnertz Knab (2013), the three stages that facilitates innovation are revolution, renewal and resilience. Revolution with a business organisation is brought by modifying basic fundamentals of the industry. Based on the present market demand and situation, the basic fundamentals of the business organisation are amended in order to increase sales, attract potential customers and expansion of the business. Telecommunication is a fast growing industry in the world that is been used for both personal and professional purposes. However, as argued by Adeleke Suraju (2012), telecommunication market has become saturated as there is no scope of market expansion. Optus, a telecommunication organisation in Australia needs to bring in revolution within the basic fundamentals of the organisation to sustain in the competitive market. Similarly, the concept of renewal highlights in amending the existing business model used by the organisation. At certain instances, the existing business model might not help in bringing progress and expanding business. As a result, the organisation fails in fulfilling the business aim and objectives (Cosic, Shanks Maynard, 2012). Therefore, the existing business model is renewed for the purpose of sustaining in the competitive market. Resilience is defined as the continuous reconstruction of the working values, behaviours and processes used within the organisation. According to Carvallho, Azevedo Cruz-Machado (2012), in todays world, business organisation needs to be resilient in order to sustain in the business. Therefore, resilience not only suggests improvement but indicates suitable modification of the existing behaviours and processes. Accordingly, renewal is a key strategy undertaken by business organisations to take a lead over their fellow competitors by adopting and implementing a new business approach. The change is generally brought in the operating system of the business organisation. On the contrary, revolution is considered to be huge modification as the business organisation completely changes the nature of the industry. For example, a telecommunication organisation might change the industry to electronics due to increasing customers and market demand. All the above-mentioned innovation types has been noticed in the telecommunication industry. Revolution in telecommunication industry has been noticed by moving to VOIP telephony Renewal in telecommunication industry is noticed by decreasing the call rates but also offering fixed price for a particular telephone line Resilience is noticed in the telecommunication industry by coming up with new offers and products for the customers in order to meet up their current needs. Therefore, the different types of innovation can used by Optus, a telecommunication organisation to expand their business. By knowing the present demand of the customers, Optus can launch new products in terms of facilities such as call number back and call waiting. Moreover, Optus can also undertake strategy of lowering the call rates both national and international thereby, providing an opportunity for the customers to communicate around the world. Such innovative ideas can make Optus stand out among the competitors and expand their business accordingly. As mentioned by Davenport (2013), the business markets has certain improvement rates that is realised and used by the customers. For example, some customers are not satisfied even when the best of services whereas some customers are satisfied with the least services availed by them. Some customers want mobile phones to perform the activities of a computer whereas some customers requires phone for texting and making calls. A different path of improvement is present in every market as business organisation implements their innovative ideas by introducing new and improvised products for their customers. Therefore, along with satisfying the previously existing customers, they aim towards attracting new customers. Moreover, this also allows the business organisation to fulfil the current demand and predict the future demands of the customers for fulfilment. As mentioned by Boons Ludeke-Freund (2013), this phenomenon takes place as the business organisations continuously aim towards making better products for their customers. This eventually increases the net profit of the organisation. Therefore, using innovation can help Optus improve their existing products, provide new and improvised products thereby, satisfying existing customers and increasing the net profit. Disruptive and Sustaining Innovations However, a difference has been noticed between disruptive and sustaining innovation. As asserted by Reinhardt Gurtner (2015), business organisations aim their high end customers with better products and services than previous in the case of sustaining innovation. Sustaining innovations are improved services each year that business organisations present to the market and the customers in terms of applications and operations. In this case, the competition is won by the established competitor. This is because the established competitor has all the required resources and motivation for selling their products at higher margins to their best and potential customers. However, as argued by Crockett, McGee Payne (2013), disruptive innovation does not emphasise on introducing improved products in the existing market. Instead, the products and services introduced are much convenient, simple and cost-effective compared to the existing product. This facilitates the cycle of improvement once the disruptive products achieves a foothold in the low end market. In the case of sustaining innovation, the business organisation emphasises only on the high end customers that narrows down the market. Disruptive innovation is more of an entrepreneurial approach that emphasises on basic customer groups thereby making products and services for them. This is huge market and eventually disruptive product expands extensively leaving behind sustaining innovation. Therefore, disruptive innovation will provide an opportunity for Optus to create new market and also reshaping their existing market. Open Innovation The concept of closed innovation model highlights that business organisations need to develop own ideas to market, manufacture, distribute and service their own products by taking self-control. On the contrary, the concept of open innovation beg to differ. As mentioned by Bigliardi, Ivo Dormio Galati (2012), business organisations considered both internal and external ideas to commercialise by positioning pathways to the market. Therefore, for generating organisational value, companies can commercialise internal ideas through external channels. In open innovation, business organisations considers own ideas along with innovative ideas of other organisations and finds ways to incorporate both within their business. This will provide an opportunity for Optus to compare innovative ideas both externally and internally and implement the best one and emphasise on building better business model rather than getting better market for business. Standards promoting innovation As innovation involves risks and non-standardised solutions, business organisation needs to follow certain standards to promote innovation. As mentioned by Von Schomberg (2013), six key standards of innovations include emphasising on generating new idea, supporting continuous learning culture, ability to take risk, tolerant to mistakes, supporting change and ability to handle conflicts. However, innovation is considered difficult due to the increased amount of risk and uncertainty involved. Entrepreneurship Unlike innovation, the entrepreneurship cannot be easily defined but however, entrepreneurs are defined by what can be achieved by them. As mentioned by Barringer (2012), the mind set to recognise an opportunity followed by pursuing it for producing new economic value is termed as entrepreneurship. In order to be innovative, an entrepreneurial mind set is essential as this will help in identifying the opportunity for growth for Optus. There are five key standards for implementing entrepreneurial approach with in the business organisation. The key standards are: Creating an environment for facilitating continuous opportunity looking Framing Stocking an opportunity register Focus Considering adaptive execution of the opportunity (Ramadani et al., 2015) Conclusion In this report, it can be concluded that both innovation and entrepreneurship are plays a significant role in reinventing their business at a regular interval. Both the features has been noticed in the telecommunication industry for the past two decades. Implementing innovation provided an opportunity to be creative and unique in the way of operating their business thereby, satisfying the existing customers. This helped in increasing the net profit of the business organisation. Similarly, entrepreneurship allowed business organisation to seek for new opportunities and find ways to pursue the opportunities. Therefore, implementing innovation and entrepreneurship has helped Optus in creating new market and reshaping the existing market. 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