Innovation and change

Innovation and change are important tightly integrated aspects of organizational development. Change involves active shaping the future of the company, consisting of developing and maintaining the relationship between the objectives and resources and the needs of the market. This development would not be possible without innovation and R&D activities to create new competitive products and services.

Every innovation implies some change in the company: change in technology, processes, people, competencies, skills, management techniques, etc. Disruptive innovation requires disruptive change in the form of re-engineering or restructuring of whole company to adapt do new circumstances in the environment or internal processes.

Innovation

An innovation must not be a routine change, it have to aimed at producing benefit to the organization and the wider society.

"An innovation must be public in its effects. If an individual introduces a change to his or her work which has no discernible impact on, or implications for, other people in the organization, it would not be considered an innovation" .

It's hard to identify innovation as a separate area within organizational change research but it's harder still to characterize the of organizational change. The term 'change' is so wide that it may be taken to embrace nearly every topic .

Changes and innovation in organization

Many scientists have try explain how and why organizations change and innovate. Change is at the heart of such important organizational occurrence as:

• organizational strategy making
• teamwork,
• individual careers,
• the growth and decline of industries.

"To understand organizational change is to understand organizations as we experience them, and to explain organizational change is to articulate what makes organizations what they are and to suggest how we may shape and re - shape them". Innovation is an valid partner to change. Innovation is the source of social and economic progress and a product and a facilitator of the free exchange of ideas. It is shown in:

• new products
• new production processes,
• advances i communications technology,
• new organizations and services n the public and nonprofit sectors

Change can take a lot of many forms, it may be:

• planned or unplanned,
• incremental or radical,
• recurrent or unprecedented.

In over time we can be observed tendency in process or sequence of changes. These trends can be speed up or decelerating in time, and they may move toward equilibrium, chaos, or randomness in the behavior of the organizational entity being examined. Concept of organization change involves three areas:

• difference
• at different temporal moments
• between states of an organizational unit or system

"organizational change generally indicates a macro-level approach, which is more concerned with the organization as a whole and its major subsystems than with the experiences of small work groups and individuals. Similarly, the focus is very much on large-scale changes, whereas innovation research sometimes concerns itself with changes which are quite localized in their impact within an organization".

Examples of Innovation and change

• New Product Development: Companies often focus on developing new products or services to meet the changing needs of their customers. This can include the introduction of new technology or the development of new processes to increase efficiency. For example, Apple's introduction of the iPhone was a revolutionary product that changed the way people interacted with their phones.
• Process Improvement & Automation: Process improvement and automation can also be a form of organizational change. This can include streamlining existing processes to reduce waste and improve efficiency. Automation can also be used to automate manual processes to reduce costs and improve productivity. For example, Amazon's use of robots to automate the picking process in its warehouses is an example of process improvement and automation.
• Culture Change: Culture change is another form of organizational change. This involves changing the way people think and behave in the workplace. It can involve creating a new set of values and expectations for employees, as well as introducing new policies and procedures. For example, Google's focus on creating a learning culture and encouraging collaboration between teams is an example of culture change.
• Digital Transformation: Digital transformation is an important form of innovation and change. This involves introducing new technologies to improve the way an organization operates. For example, Microsoft's use of cloud computing and machine learning to automate tasks and increase efficiency is an example of digital transformation.

Advantages of Innovation and change

The following are some of the key benefits of innovation and change.

• Increased Efficiency: Innovation and change can help organizations increase the efficiency of their operations by introducing new processes and systems that streamline and automate tasks, thereby reducing their time and cost.
• Improved Customer Service: Innovation and change can help organizations provide better customer service by introducing new products and services that meet customer needs and expectations.
• Increased Profits: By introducing new products and services to the market, organizations can expand their customer base and increase their profits.
• Improved Employee Morale: By introducing new processes and systems that make their jobs easier, innovation and change can help improve employee morale.
• Increased Innovation: Innovation and change can help organizations stay ahead of the competition and remain competitive in the marketplace by introducing new ideas and processes that are more efficient and effective.

Limitations of Innovation and change

Innovation and change are important aspects of organizational development, however they come with certain limitations. These include:

• The cost of implementing new ideas and changes may be high and the rate of return uncertain, meaning that the company must carefully consider its resources and the potential benefits.
• Time constraints may limit the amount of research and development that can be conducted, thus limiting the pace of innovation.
• Change can be met with resistance from employees due to unfamiliarity and fear of the unknown.
• People may be reluctant to accept new ideas and there can be a lack of knowledge or understanding.
• Rigid organizational structures and cultures may limit the ability to innovate and change.
• Changes may cause disruptions to regular operations and processes, leading to potential inefficiencies.
• Changes may not be compatible with existing systems or technologies and require costly investments to upgrade or implement.
• It may be difficult to accurately measure the success or failure of changes.

Other approaches related to Innovation and change

Organizational development requires several approaches in order to effectively innovate and bring about change. These approaches include:

• Design Thinking: Design Thinking is an approach that uses creative problem solving and an iterative process to develop innovative solutions to complex business problems. It is focused on understanding the users and their context in order to create products and services that are valuable and desirable.
• Lean Thinking: Lean Thinking is a systematic approach to problem solving and improving processes. It is focused on minimizing waste, eliminating non-value added activities, and creating a continuous flow of value-added activities.
• Agile Management: Agile Management is an approach to project management that emphasizes flexibility and adaptation to changing requirements. It is focused on continuous improvement and iterative development, with frequent feedback from stakeholders.
• Kaizen: Kaizen is a Japanese philosophy that emphasizes continuous improvement of processes and procedures. It is focused on small incremental changes that lead to long-term success.

Innovation and change are important aspects of organizational development and require a variety of approaches to successfully implement. These approaches include Design Thinking, Lean Thinking, Agile Management, and Kaizen. Each approach has a different focus and set of techniques, but all are aimed at improving processes, eliminating waste, and creating value-added activities.

Innovation and change — recommended articles

Organizational innovation — Total Innovation Management — Innovation models — Innovativeness — Innovation cycle — Innovation process — Methods in management — Suggestion for improvement — Process of innovation

References

• Greve H. R. (2003). Organizational learning from performance feedback: A behavioral perspective on innovation and change. Cambridge University Press.
• Henry J., Mayle D. (2002), 'Managing innovation and change', Sage.
• Hekkert M. P., Suurs, R. A., Negro, S. O., Kuhlmann, S., & Smits, R. E. (2007). Functions of innovation systems: A new approach for analysing technological change. Technological forecasting and social change, 74(4), 413-432.
• Poole M.S., Van de Ven A.H. (2004), ‘’Handbook of Organizational Change and Innovation’’, Oxford University Press

Footnotes

Author: Agnieszka Pytel