Category: Innovation

The purpose of this paper is to examine a tech-driven innovation and its benefits using the example of PowerDoc and compare it with a human-centered type.

In general, the innovation at PowerDoc may be regarded as technology-driven. The companys management decided to centralize its word-processing system on stand-alone computers through the creation of a common word-processing pool with the use of modern networking facilities (PowerDoc, no date). The organization aimed to reduce its operational costs and improve secretaries productivity based on a client bases extension (PowerDoc, no date). Indeed, using a word-processing pool, PowerDoc has managed to increase its output. In the present day, more and more companies choose a tech-driven innovation in order to stay competitive (Leaver and Milligan, 2019; Goncalves et al., 2010). First of all, this type of innovation allows the optimization of business processes for efficient management control and the implementation of organizational change for appropriate transformation (Clegg, Harris and Hopfl, 2011). In addition, a tech-driven innovation facilitates employees performance by excluding unnecessary tasks and improving their performance. In turn, a company receives an opportunity to concentrate on corporate vision, missions, goals, and strategies for attraction and retaining customers as inner processes will be automatically processed (Dodgson, Gann and Satter, 2008; Goffin and Mitchell, 2017). In addition, a technology-driven innovation allows to introduce of unique services and products or improves existing ones.

For tech-driven innovation and efficient change management, several critical factors are required. First of all, the necessity of innovation along with its opportunities, strengths, and weaknesses, should be analyzed for the implementation of the most appropriate variants (Frishammar et al., 2018). In addition, the commitment of the members of a team that leads changes to a companys transformation and employees understanding of its necessity is essential for the reduction of refuse and the smoothness of the process (Galbraith, 2018; Warrell, 2017). Finally, leadership plays a crucial role in change management as leaders articulate the companys vision and motivate subordinates.

There could be several reasons why the implementation of the technology-led innovation at PowerDoc was unsuccessful. First of all, there was no team that could lead changes. In addition, a thorough analysis of innovations necessity and potential technological variants that could address the companys need more efficiently was not organized. Moreover, the company did not consider the outcome of changes for customers and did not involve them in the process of organizational change. PowerDocs approach contrasts with human-centered innovation, according to which an organization innovates together with the people it serves. One of the most successful examples of a human-centered innovation is Starbucks strategy to ask its customers their opinions and the implementation of changes on their basis (Periyasamy, 2022; Starbucks celebrates five-year anniversary of My Starbucks Idea, 2013). In this case, customers allowed Starbuck to identify real issues related to its performance and helped find appropriate solutions  that is what makes a human-centered innovation successful (Hayes, 2018). Thus, in the case of PowerDoc, the company may cooperate with its customers as well and involve them in the process of transformation by implementing new technologies and asking for their feedback.

Reference List

Clegg, S. R., Harris, M. and Hopfl, H. (2011) Managing modernity: beyond bureaucracy? Oxford: Oxford University Press.

Dodgson, M., Gann, D. and Satter, A. (2008) The management of technological innovation: strategy and practice. Oxford: OUP Oxford.

Frishammar, J. et al. (2018) Opportunities and challenges in the new innovation landscape: implications for innovation auditing and innovation management, European Management Journal, 37(2), pp. 151-164.

Goffin, K. and Mitchell, R. (2017) Innovation management: effective strategy and implementation. New York, NY: Red Global Press.

Goncalves, A. et al. (2010) How to use information technology effectively to achieve business objectives, Chapter 1.2, pp. 1-16.

Hayes, R. (2018) The theory and practice of change management. Basingstone: Palmgrave Macmillan.

Leaver, S. and Milligan, V. (2019) Tech-driven innovation: the inevitable and revolutionary future of IT. Web.

PowerDoc: a case study examination of information technology, strategic choice and the management of change (no date) pp. 1-4.

Galbraith, M. (2018) Dont just tell employees organizational changes are coming  explain why. Web.

Periyasamy, R. (2022) 4 successful enterprise change management examples. Web.

Starbucks celebrates five-year anniversary of My Starbucks Idea (2013) Web.

Warrell, M. (2017) How the best leaders get people on board with change. Web.

This paper aims to support the statement that a team is more efficient in leading of organizational changes in comparison with just one person.

From a personal perspective, a team is more efficient in this process than a single person. It goes without saying that collective leading has particular limitations, such as a lack of control over its members and potential differences in members strategic views that may lead to serious disputes and confrontations (Dodgson, Gann and Satter, 2008; Goffin and Mitchell, 2017; Hayes, 2018). However, these barriers may be overcome, and the leading of organizational changes by a team has more substantial benefits.

Regardless of potential conflicts, the differences in team members approaches, opinions, perceptions, and perspectives traditionally lead to more effective solutions and ways of change implementation. In addition, the organization of processes and total control by a single person may be suitable for the slow-moving companies of the past (Gleeson, no date). In the present day, a highly competitive environment and the complexity of business aspects make individual approach almost impossible as one person cannot have enough knowledge, skills, and experience for to solve of all corporate issues (Clegg, Harris and Hopfl, 2011; Al-Haddad and Kotnour, 2015). Finally, a collective approach is essential for preparing people for changes. In a considerable number of organizations, innovations meet employees refusal due to a lack of understanding in relation to their purpose (Galbraith, 2018; Warrell, 2017). In turn, several team members may facilitate the spread of awareness and attract people to new organizational principles, strategies, and activities.

The advantages of the collective approach may be observed using the example of Starbucks. In 2008, the company experienced a significant earnings loss and the closure of multiple locations (Periyasamy, 2022). However, Starbucks initiated a campaign attracting its consumers and asking them to share their ideas on how it may be improved (Starbucks celebrates five-year anniversary of My Starbucks Idea, 2013). The implementation of some suggestions allowed Starbucks to regain its popularity. Although the companys approach cannot be regarded as a teams leading in the classic sense, it demonstrates how the involvement of people positively impacts change management. In addition, the same approach is essential in PowerDoc, in which changes were initiated by a single person  the finance director (PowerDoc, no date). In turn, the process would be more efficient if the necessity of change and various options were discussed between directors and secretaries.

Reference List

Al-Haddad, S. and Kotnour, T. (2015) Integrating the organizational change literature: a model for successful change, Journal of Organizational Change Management, 28(2), pp. 234-262.

Clegg, S. R., Harris, M. and Hopfl, H. (2011) Managing modernity: beyond bureaucracy? Oxford: Oxford University Press.

Dodgson, M., Gann, D. and Satter, A. (2008) The management of technological innovation: strategy and practice. Oxford: OUP Oxford.

Galbraith, M. (2018) Dont just tell employees organizational changes are coming  explain why. Web.

Gleeson, B. (no date) Organizational change, and why you cant go it alone. Web.

Goffin, K. and Mitchell, R. (2017) Innovation management: effective strategy and implementation. New York, NY: Red Global Press.

Hayes, R. (2018) The theory and practice of change management. Basingstone: Palmgrave Macmillan.

Periyasamy, R. (2022) 4 successful enterprise change management examples. Web.

PowerDoc: a case study examination of information technology, strategic choice and the management of change (no date) pp. 1-4.

Starbucks celebrates five-year anniversary of My Starbucks Idea (2013) Web.

Warrell, M. (2017) How the best leaders get people on board with change. Web.

Introduction

Creativity refers to the ability to come up with a unique solution that can solve a problem. Creative ideas arise in different ways and under different circumstances. Sometimes, they occur after an individual work hard to find a solution to a problem by investing all the effort and resources that one possesses. In other instances, it happens as a stray and opportunistic thought that comes up in an individuals mind and the person realizes that it is unique.

Many people develop creative ideas daily. The need to come up with better solutions to challenges that people encounter invokes creativity. Many of these ideas end up appearing and disappearing in peoples minds because they are either unrealistic or the owners do not give them a second thought. Most people are pessimistic whenever they come up with ideas that are different from the norm. Pessimism is one factor that kills innovative ideas that might be of significant help to society.

When creative ideas are implemented, their uniqueness brings out innovation. They offer a new and better way of doing things. Innovations have attracted commercial value because they help to resolve critical problems. Therefore, whenever changes arise, innovators look for ways to commercialize them. Thus, innovations are currently considered as business opportunities due to their demand in the market. The discovery of innovation as a business idea has led to social investing in research and development. Today, people identify problems and allocate resources to resolve them deliberately. Most solutions that are created and sold in the market can be deemed unsolicited. This paper will discuss creativity and innovation in a business environment.

The Dadaab Film

The film that the group will base its discussions on is a short documentary by a research student about conditions in a refugee camp in Kenya. Dadaab is founded in the northern part of Kenya and hosts thousands of refugees from the east and central Africa. The camp is made up of makeshift shelters and mud-walled houses that are home to refugees who have lived there for over two decades.

The northern part of Kenya is a desert with temperatures rising to 42 degrees Celsius in a better part of the year. Most shelters used to accommodate the refugees are mainly made of plastic tents and iron sheets. Therefore, they become too hot during the day. The tents tend to wear out within a short period. The shelters that last long like the mud-walled houses get too hot during the day. Refugees are entitled to every human right and fundamental rights like proper housing should reign supreme.

Therefore, there is a need for creative solutions to address the shelter problem in the camp. Such a solution should be cheap and temporary because the Kenyan government cannot allow refugees to construct permanent structures on the land. Whereas the short film has many areas that need creativity and innovation to resolve the current challenges, the housing issue is given priority because it is a humanitarian problem.

The Approach

The group used different techniques to sift through the issues before settling on shelter as a critical challenge. A refugee camp can be described as a melting pot for problems that are difficult to conceive. Thus, an attempt to resolve all the issues that affect the camp can be a difficult hurdle to surmount. The group decided to search for the most fundamental problem that required creativity and ingenuity to solve and could be turned into a business idea (Bharadwaj & Menon 2000, p. 426). Working in a group offers individuals an opportunity to think wild as different members share ideas.

The group comprises an explorer whose role is to identify a problem and communicate it to other members. Different people have unique ways of identifying problems. At times, all people may not see similar problems (Shaw 2006, p. 147). In this group, one member identified shelter as the most critical issue in the refugee camp. Even though all members had identified shelter as a challenge, not all of them could regard inadequate housing as a severe problem.

Some members identified diseases, clothing, and food as the fundamental problems. The need to define a problem that required creativity was arrived at by sifting through the listed problems, brainstorming on them, and identifying one that met out criterion and interests. The team comprised artists who offered insights into how the problem could be handled (Hogan & Coote 2014, p. 1613). The team had to come up with housing materials that were not only cheap but also efficient to address the challenge.

The materials were also meant to be heat resistant as a way to regulate the temperatures inside the shelters. Our team had several members who knew such materials. Thus, they offered significant assistance in the formulation of ideas to resolve the problem. The group leader assisted the team to analyze all the identified solutions. The answers were sorted based on their feasibility.

The team leaders input was informative as it helped members to arrive at the most viable option. In a group set up, members of the group provide a lot of information depending on how much they know (Hogan & Coote 2014, p. 1613). It is imperative to note that different members of the team played different roles in the process. Some members were involved in all the processes while others had no idea of what the team required doing to meet its objectives. The most important issue was coming up with resolutions. After identifying the problem to handle, the warrior of the group was bestowed the responsibility of finding a way to execute the idea (Hogan & Coote 2014, p. 1614).

The warrior was supposed to explore the market to identify the best, cheap, and temporary housing materials that meet international standards. The team would later sell its idea to the humanitarian organizations that manage the camp. The organizations were likely to buy into the idea. Thus, they served as a suitable client for the group. Refugees depend on aid because they do not engage in commercial activities. A few refugees who are enterprising enough run small businesses that enable them to earn a living.

Techniques Used

Gap Analysis

One of the methods that the team applied to arrive at its innovative idea was the gap analysis. The group used this approach to identify the differences in the market. By then, no other business provided better shelter materials than the ones that the team identified. The materials that were in use included nylon tents and iron sheets. The idea to come up with light and cheap prefabricated materials that could be used to construct shelter was an outstanding thought.

Hitherto, no Kenyan company has presented any proposal similar to the one that the group did. The team was confident that the organizations that assist the refugees would quickly adopt the idea because it was creative and viable (Giannopoulou, Gryszkiewicz & Barlatier 2014, p. 24). The group decided to work on the idea. The team was to commercialize the idea once the humanitarian organizations embrace it.

Analogy

The analogy is another technique that the team applied in the project. The team members assembled and had a constructive conversation on how to transform the living standards of the people in the camp. Throughout the discussion, members explored different scenarios and possible solutions. An analogy provides a forum for an extensive discussion that leads to the identification of numerous ideas which a team can adopt (Anderson, Potocnik & Zhou 2014, p. 1299). At the end of the discussion, the group agrees to proceed with the most viable idea. The best idea is chosen based on cost, ingenuity, and potential benefits. An idea can be good but yield poor returns. Therefore, any creative idea that a team adopts should have good results.

Challenges and Constraints Encountered

The group faced numerous constraints as it worked struggled to come up with an innovative idea. Members of the group were divided into vertical and lateral thinkers. The vertical thinkers were quite conservative with ideas, and they had a penchant for viewing everything from a scientific perspective (Glover, Ronning & Reynolds 2013, p. 54). Conversely, the lateral thinkers were extremely wild when it came to idea generation.

Some thoughts that the members gave were quite impractical. Nevertheless, the team decided to give them a chance. Identification of the appropriate problem took time because the group members could not agree on the items that demanded their attention. The challenge was resolved after the members decided to vote on three elements that they considered as most critical. Additionally, the group encountered problems because it had limited information about the refugee camp.

The team members had to conduct extensive research to assist them to get adequate data on the field and relate it to the film. Background research is necessary for such instances because it enables individuals to evaluate a problem using the radial diagram technique (Crumpton 2012, p. 101). The group realized that it was not difficult to come up with a creative and innovative idea. However, transforming the idea into a profitable venture and marketing it to relevant people was a challenging endeavor.

Execution of the idea entailed going on the ground to oversee its implementation. Besides, the team required establishing a physical manufacturing plant on the site. Indeed, the group encountered many challenges to come up with a creative and innovative idea. The group had to consider all factors that had a direct and indirect effect on the idea.

Values of Different Approaches

Different approaches to creativity and innovation enabled the group to merge different ideas that required ingenuity to achieve the purpose (Trimi & Berbegal-Mirabent 2012, p. 450). The different techniques provided the team with a broad margin for coming up with a business idea that could generate money. The analogy method offered the group insights into some ideas in which members thought that they were insignificant to the project. It enabled members to use different perspectives and case studies to evaluate all issues.

Conclusion

Creativity and innovation are vital facets of contemporary society because they offer solutions to many challenges. Creativity allows individuals to dedicate their time to researching and developing new ideas that can be commercialized. The modern market is full of science and technology experts who come up with creative ideas daily. One would like to see a society where people give a chance to all ideas even if some are not commercially viable.

Some thoughts that are applied in the developed nations are difficult to utilize in the developing countries. Therefore, the developing states can quickly dispose of ideas that seem to be beyond the comprehension of the developed countries. The entire exercise taught our group that it is imperative to have a universal way of sharing ideas. Some ideas may not be useful to one society or nation but significant to others. It can enable the world to accommodate innovative ideas at different levels. The exercise brought to light the fact that some ideas that seem obsolete in continents like Europe and America can be invaluable in Africa.

The cost of innovation should be made friendly so that many people in the society can benefit. Most creative changes are expensive when they land in the market. Globalization has made it easy for countries to exchange ideas. Thus, countries should look for ways to minimize the cost of innovation by encouraging many people to be creative. The module enabled the student to figure out how to hatch creative and innovative ideas. As I proceed, I would like to carry forward the concept of interpretation of the thought process. Interpreting a persons process of reflection helps to identify creative and innovative ideas. Failure to understand our thought process inhibits creativity.

Reference List

Anderson, N, Poto
nik, K & Zhou, J 2014, Innovation and creativity in organizations a state-of-the-science review, prospective commentary, and guiding framework, Journal of Management, vol. 40, no. 5, pp.1297-1333.

Bharadwaj, S & Menon, A 2000 Making innovation happen in organizations: individual creativity mechanisms, organizational creativity mechanisms or both? Journal of product innovation management, vol. 17, no. 6, pp.424-434.

Crumpton, M 2012, Innovation and entrepreneurship, The Bottom Line, vol. 25, no. 3, pp.98-101.

Giannopoulou, E, Gryszkiewicz, L & Barlatier, P 2014, Creativity for service innovation: a practice-based perspective, Managing Service Quality: An International Journal, vol. 24, no. 1, pp.23-44.

Glover, J, Ronning, R & Reynolds, C 2013, Handbook of creativity, Springer Science & Business Media, Singapore.

Hogan, S & Coote, L 2014 Organizational culture, innovation, and performance: a test of Scheins model, Journal of Business Research, vol. 67, no. 8, pp.1609-1621.

Shaw, 2006, Creativity and innovation, managing service operations: design and implementation, Sage, London.

Trimi, S & Berbegal-Mirabent, J 2012, Business model innovation in entrepreneurship, International Entrepreneurship and Management Journal, vol. 8, no. 4, pp.449-465.

Introduction

Creativity and innovation are essential for the enhancement of organizational performance and is a vital ingredient for long-term sustenance. The process of generation of a new and innovative idea is a way of creation of competitive advantage for people within the organization. Studies in the area of creativity and innovation in business can be of various types. Innovation can be design-centric, wherein the product undergoes a radical change.

Adoption of creative and innovative product design and/or changes in organizational design, corporate strategy, or leadership style can boost performance. Overall, there are two distinct divisions in the theories presented by creativity and innovation researchers  one group supports product innovation while the other cluster believes there is a need to revamp the complete business model and leadership style in order to establish a culture of innovation.

In the case of product innovation, it should be understood that radical change in a product is possible only by a change in technology and not by labor-intensive design (Norman & Verganti 2014). The latter can only create incremental innovation but not radical change. Some researchers believe that product innovation is the key to renewing performance and profit to the organization (Slater, Mohr & Sengupta 2014). Researchers believe radical product innovation can provide customer benefit and reduce cost thus creating an opportunity to create a new business (Slater et al. 2014).

Innovation in a business model brings innovation and commercialization, together. Such a model relates to corporate practices or in simpler words, the commercial viability of the firm. Technology is a key driver of innovation. However, innovation in business models is essential to garnering the commercial value of technological innovations (Schneider & Spieth 2013). Business model innovation is believed to have become a potent source of value creation, especially at times of environmental volatility (Schneider & Spieth 2013).

Innovation in the business model changes the way the company operates. When the conventional corporate strategies fail to create profit, there is a definite requirement to change the old corporate ideas (Teece 2010). Thus, this necessity creates the need to reassess the methods by which the existing resources and capabilities can be redistributed after looking into all external and internal factors affecting the organizations. Thus, the idea of the business model innovation rests on changing the core, the fundamental corporate model instead of making changes to a single product (Schneider and Spieth 2013).

Creativity and innovation have become an important part of the business. Most organizations strive to become creative and innovative and it helps organizations to improve performance. However, the employment of innovation within organizations may differ. Some may aim for radical product innovation like 3M or Apple while others may aim at innovation in a business model like Uber. Given this background, the paper will provide a plausible strategy for a start-up to employing creativity and innovation.

Challenge 1

As a start-up, the idea would be to create an organization that will fill in the gap in the already existing businesses. Further, one has to look for competitive advantages while beginning a start-up (Freeman and Engel 2007). Therefore, here is proposed a smartphone repair chain that can be developed as an online model.

For generating an innovative idea for our start-up, we will undertake a gap analysis. First, we will have to conduct a study of the existing customer services provided by smartphone companies and find out if there are any other companies that provide only repairing services. Gap analysis is essential to understand what areas of service are not provided to the customer. Identifying the gap will help us to ascertain the products that our start-up can offer. Gap analysis of the smartphone repairing market will help us to identify the existing fissures in the market where we can position our services.

We will brainstorm about the possible services that can be provided to our customers. In addition, we will come up with the most innovative ideas based on the identified needs. Further, we will compare the ideas generated to the existing concepts in the industry. This will help us to ascertain the degree of innovativeness of our product. Based on this comparison, we can make our products more creative and interesting.

Based on the results of the gap analysis, which can be done through a survey of smartphone users, we will come up with the services that a repair company can provide. For this start-up, I propose an innovative business model. I choose this model because business process innovation adds value to the overall performance of the organization (Trimi & Berbegal-Mirabent 2012). Another reason is to impress start-up investors who have a strong preference for technology-based enterprises. However, it should be kept in mind that inventions and discoveries will not ensure the commercial viability of the company (Freeman and Engel 2007).

Since there is no smartphone repair market, it was difficult to gather information about existing companies and therefore creating analogies. Further, while doing a gap analysis, we encountered the problem of gathering information, as the concept of smartphone repairing is new to the customers.

Challenge 1 provides us many opportunities to brainstorm and come up with innovative ideas that are financially viable. The main target was to find the unexploited market through gap analysis.

References

Freeman, J & Engel, JS 2007, Business Model Innovation: towards an integrated future research agenda, California Management Review, vol. 50, no. 1, pp. 94-119.

Norman, D & Verganti, R 2014, Incremental and Radical Innovation: Design Research vs. Technology and Meaning Change, Design Issues, vol. 30, no. 1, pp. 78-96.

Schneider, S & Spieth, P 2013, Business Model Innovation: towards an integrated future research agenda, International Journal of Innovation Management, vol. 17, no. 1, pp. 1-34.

Slater, SF, Mohr, JJ & Sengupta, S 2014, Radical Product Innovation Capability: Literature Review, Synthesis, and Illustrative Research Propositions, Journal of Product Innovatio Management, vol. 31, no. 3, pp. 525-566.

Teece, DJ 2010, Busienss MOdels, Busienss Strategy and Innovation, Long Range Planning, vol. 43, pp. 172-194.

Trimi, S & Berbegal-Mirabent, J 2012, Business model innovation in entrepreneurship, International Entrepreneurship and Management Journal, vol. 8, no. 4, pp. 449-465.

Why Lego Almost Went Bankrupt in 2003?

Lego has been associated with core family values and constant innovation and development. However, in the early 2000s, the company almost went bankrupt due to its innovation strategy. In 2003, the company lost $300 million and the prognosis for the next year was even more frightening (Time 2012). This was a result of the companys focus on innovation. Lego introduced new products and diversified the range of its products. Nonetheless, this change was not supported by the change in distribution and logistics. Therefore, the expenditures were rising whereas revenue decreased. The company did not develop new marketing strategies to sell their innovative products. This was the major mistake that led to significant losses.

Key Elements Underlying Legos Successful Innovation Strategy

At present, the company has a thoughtful innovation strategy. The companys management has taken into account the faults of the strategy used in 2003. It was acknowledged that new theme products were popular when the original stories and characters used were popular. However, customers soon lose interest in specific theme products. Therefore, now the company produces a quite limited number of products to satisfy the need. The company also outsourced its production to the Check Republic and Mexico and set up a network of its retail stores (Time 2012). Therefore, Lego developed an efficient distribution and logistics which helped the company reduce costs and increase revenue. The company also produced numerous board games and even DVD films. All these strategies support new products and make them popular among customers. Thus, innovation strategy has become more organized and, therefore, more efficient.

Reference List

Time 2012, Innovation almost bankrupted Lego  until it rebuilt with a better blueprint, Web.

Introduction

Financial innovation and its impact and has become a wide range topic at all levels of management and in the society as a whole. Financial innovation outlines new measures and ideas that come into place. It is aimed at improving trading techniques, supply chain systems and access to financial instruments and services (Poirier, Quinn and Swink 2010). These fresh ideas, brought about by the financial innovations, have several impacts on the economy as a whole. Top class management and effective supply networks are some of the traits brought about by financial innovation. This paper discusses some financial impacts that result into innovation as well as how these changes are triggered in the sector.

Reflection and background

The book, Diagnosing Greatness, discusses the ways how any organization can become successful and achieve benchmarks in the sector or economy they position themselves. Specifically, chapters four and five vividly explain how new forms and organizations in the financial sector achieve explicit and efficient supply chain network. It explains how companies support the flow of operations from one level of management to another and maintaining the right protocol.

In chapter four, the key trait that is being discussed is the massive focus on financial metric. It explains that there is an explicit collaboration between financial groups and the supply chain. Moreover, it has fostered a better understanding of direct and indirect impact of fresh initiatives on financial performance and position in an organization (Poirier, Quinn and Swink 2010).

On a further look at the chapter, one finds out that when interest on financial aspects is massively engaged in the supply chain, then positive outcomes occur. The value added to the organization is also rising. Also, it is noted that a lot of improvement initiatives always seem to outweigh firms financial resources since some are ambitious and unrealistic. The chapter, therefore, gives a clear picture of how the scarce and talented resources should to be applied in a cost-effective way and with healthy financial performance and greater client satisfaction.

Another trait, as mentioned in chapter five, is the determination to have innovations and process improvements in all operatives that take place in an organization. This attribute presumes that business should not be conducted as usual, but by doing good things through a range of initiatives that match with the clients needs (Poirier, Quinn and Swink 2010). It reveals important aspects and ways of employing new ideas and showing how to manage a company efficiently. Also, think-tank leaders have designed new techniques of optimizing their performances on every level of operations (Mention and Torkkeli 2014).

The new ways have boosted the performances of several organizations and allowed them to become more flexible to the market dynamics. Moreover, new ways offer insights into how leaders should not limit themselves to their previous traditions that remain embraced for a long time and have now little value. It shows that innovation gets successfully employed by those executives who embrace change and utilizes them to in order to have a bigger impact on their organizations (Mention and Torkkeli 2014).

A question for students to ponder topic

Are the sales and marketing segments doing all what they can to match the supply chain and the clients requirements? In either case, a conclusive answer should be explained.

Conclusion

Clearly, any organization with a supply chain network has goals and aims at growth of their market share within the economy sector. Financial innovations include such factors that require much-needed process improvements. It is upheld to be one of the working techniques to boost financial performance and positions of any firm employing it. Therefore, it brings success and a ranking factor in the organization with any step in all operations.

References

Mention, A. and Torkkeli M. (2014). Innovation in Financial Services. Newcastle: Cambridge Scholars Publishing.

Poirier, C., Quinn, F. and Swink, M. (2010). Diagnosing Greatness. Lauderdale: J-Ross Publishing.

Critical Discussion of the Importance of Creativity and Innovation

Creativity is a powerful thinking process whereby an individual focuses on new imaginations, intuitions, imaginations, ingenuities, and ideas (Byron 2006). Creative people find it easier to address the issues affecting them and others. Creativity is also associated with new risks. However, it presents new changes that can transform the lives of many people. On the other hand, innovation is what happens after an individual has been inspired with a creative idea (Byron 2006, p. 2). Innovation is what transforms creative ideas into new realities (Byron 2006).

These two terms are used interchangeably to describe how modern firms use new ideas to realize their potentials. Creativity has continued to drive human innovation. These processes are making it easier for economies to achieve their goals. To begin with, creative minds present new ideas that can be used to transform peoples lifestyles. Innovation and creativity can take different forms (Byron 2006). Innovation is currently making it possible for different companies and countries to come up with new products that can address their problems. Innovation guides firms to improve their processes. It also supports every organizational function.

Many economies will benefit significantly from different innovations. For instance, innovation makes it easier for human beings to have better lifestyles. Byron (2006) argues that innovation is a powerful force that makes it easier for societies to utilize their resources in a sustainable and efficient manner. Innovation focuses on the concept of science of economics (Byron 2006, p. 5). This concept is used across the globe to address the issue of scarcity. Innovative practices create more value while at the same promoting the integrity of the natural environment. New ideas can be implemented in order to transform the outcomes of many populations.

Innovative products and services have addressed numerous challenges across the globe. For instance, the past two decades have been characterized by new technological innovations such as the internet. Mobile devices, smartphones, and computers have transformed the manner in which people communicate. Globalization has changed due to the power of modern innovation (Byron 2006, p. 7). Effective communication makes it easier for more people to achieve their economic goals. More people will address their problems, empower one another, and focus on the best results (Byron 2006, p. 16).

Innovation has produced new tools that can make work easier. Such tools increase the performance of different companies and workers. Such practices will eventually improve the level of economic development. New machines are also addressing a wide range of human problems. Such products are used to improve the level of service-delivery. They are also being used to support the health outcomes of many patients. Many organizations use the power of innovation to improve the performance of their employees (Byron 2006). Human creativity and innovation has also improved the level of cooperation. People can now address a wide range of economic problems.

Byron (2006) believes strongly that innovation is a powerful process that can support the economic growth of many nations. The practice presents new opportunities for increased economic growth and performance. New jobs have emerged because of creativity and innovation. Individuals who get such jobs improve their lifestyles. The processes have the potential to improve the economic positions of many countries. New industries have emerged due to the wave of innovation. Multinational corporations (MNCs) have also identified powerful business models that can produce the best outcomes. New services and products continue to support the changing needs of many people.

Innovative decisions, products, business models, and policies have always supported many economies. The future of the global economy depends on the abilities of different nations to come up with innovative ideas. The modern economy is founded on the power of innovation. Every creative idea should therefore be transformed to something meaningful. The concept of innovation should be taken seriously in order to support the needs of many people (Byron 2006). A positive economic performance will eventually improve the lifestyles of many people across the globe.

Reflection of What I Have Learned About Innovation and Creativity

The class materials have equipped me with the best creative and innovative practices. The class materials explain how people tackle various problems using a structured approach. The course has outlined various ways through which creativity can be embraced to address different challenges. Many working environments are characterized by different problems. Some of these problems arise from poor decision-making and problem-solving strategies (Brinkley 2010). Creativity is therefore a powerful tool that can help more people to make appropriate decisions. Creativity also takes a different path depending on the anticipated goal. I have learned how people can use specific steps to address their problems or challenges.

Creativity should focus on different experimentations and trials. The processes should be embraced because they have the potential to produce new ideas, decisions, and even solutions. As well, I have understood how people can combine creativity and innovation. Creativity is a powerful process that should be guided by several stages. These stages include preparation, insight, incubation, elaboration, and evaluation (Byron 2006, p. 4). The important goal is to come up with the best thoughts that have the potential to address the targeted problem. These stages of creative problem-solving can be used to address various challenges that affect the targeted people. I have also understood how to use the Osborn-Parnes Process to solve problems in a creative manner.

The concept of knowledge economy also supports the manner in which human information and creativity are shared (Brinkley 2010, p. 2). Creativity is a powerful tool that guides and supports innovation. Individuals can therefore embrace their creative ideas and use available resources in order to produce the best products. Innovation will make it easier for many economies to achieve their goals. The classroom-based activities have outlined different ways through which people can use the power of creativity to solve different problems. The existing problems in the society should guide people to come up with creative ideas. Creativity is a useful tool for conducting different researches. Research findings can be combined to promote the most appropriate innovative processes (Byron 2006). The practice will produce revolutionary ideas or products that can improve the lifestyles of many people in the world.

The class assignments have also widened my views about the nature of creativity. People can use creativity to identify new leadership practices and activities. Innovation has also become a powerful tool for transforming the lives of many people across the globe. The internet is also playing a significant role towards supporting the power of innovation. Many emerging nations are benefiting significantly from the power of innovation (Brinkley 2010).

I am planning to use the concepts to promote my decision-making and problem-solving practices. Challenges force people to think creatively and find new solutions to the problems affecting them. The identified ideas can therefore be used to produce new products and processes (Brinkley 2010). The power of innovation will address numerous problems and eventually support the lives of many people across the globe.

My personal experiences have equipped me with new views about creativity. For instance, I know how to engage in creative decision-making. The process should be informed by evidence-based observations. The creative approach should follow specific paths in order to get the best outcomes. People should promote the best ideas in order to transform their lives. Innovation is also an inexhaustible topic that focuses on different functions such as organizational leadership, research and development (R&D), production, logistical operations, and sustainability (Byron 2006). These ideas will support my future goals. I will always use creative strategies to solve various problems affecting different people.

Creativity is a concept that can be applied in different areas or fields. For instance, the divergent and convergent thinking activity encouraged me to embrace the power of creativity. This approach can produce the best ideas and address a wide range of problems. The C&I Group Challenge made it easier for me to focus on several problems that can be addressed using creativity and innovation. I was able to come up with creative ideas to address the challenges associated with unemployment. As well, I learned new ideas about the importance of innovation. The fourth activity was to identify a number of innovative products. We picked buildings and outlined some of the most innovative measures that can be undertaken to make such structures more sustainable (Byron 2006). We also identified the materials that can be replaced in an innovative manner. In conclusion, such activities have widened my understanding of innovation and creativity.

List of References

Brinkley, I 2010, Defining the knowledge economy: knowledge economy programme report, The Work Foundation, vol. 1, no. 1, pp. 1-29.

Byron, K 2006, Creative Problem-Solving, ETC, vol. 1, no. 1, pp. 1-37.

Introduction

Queuing for service checkouts is a common experience among all shoppers. To address this obstacle, organisations employ self-service checkout machines. Such machines are important during peak times. They provide customers with an opportunity to make choices about how they would like to complete shopping processes. They can choose to serve themselves via the self-checkout systems or seek checkout services from the store employees. Self-service checkouts involve four processes, namely inspecting, stuffing, paying, and closing. Irrespective of the type of checkout services, customer satisfaction is an important aspect that determines clients decisions of making repeated purchase from a given outlet. Can self-service checkouts provide customer satisfaction? This paper seeks to answer this question.

Literature Review

Self-service Technologies

Self-service technologies attract immense attention in researches that address the subject of service marketing and management. When implemented in an effective manner, such technologies increase the efficiency of service delivery without involving an organisations employees (Curran & Meuter 2005).

Examples of self-service technology include automated teller machines (ATM), vending machines, and e-Commerce websites such as amazon.com and air travel ticket-booking sites among others. Meuter et al. (2000, p.50) use the term self-service technology to imply technological interfaces that enable customers to produce a service independent of direct service employee involvement. Amid the few concerns about this definition, Curran and Meuter (2005), Makarem, Mudambi, and Podoshen (2009), and Dean (2008) assert that the definition is an acceptable standard for self-service technologies.

Lin and Hsieh (2005) investigate the effects of peoples perceptions of technology readiness and/or how it influences client fulfilment. They find a direct relationship between perceptions on technology use in self-service checkouts and the perceptions of service quality. Nilsson (2007) studies the influence of customer technology readiness on the perception of the effectiveness of self-service checkout user interfaces. They find that positive perceptions of technology influence customer cognition of the design of the system interfaces. These findings support Zeithaml, Parasurman, and Malhotras (2002) assertion that preparedness to embrace technology comprises an important factor that influences customer perception of the quality of services that are offered through self-service checkouts.

Perceptions of the usefulness of a checkout system depend on peoples readiness to accept a given technology when it is introduced by an organisation. Parasuraman (2000) defines expertise promptness as individuals inclination to uphold and utilise fresh expertise to attain any set agenda regarding their residence, life, or job. This definition borrows from the work of Mick and Fournier (1998) who reveal how people reluctantly embrace technology when it changes the status quo. In the plight of new technology, people cope with issues such as obsolescence or novelty, competence and wastefulness, and capability and ineptitude among other factors that relate to technology use.

Self-service Checkouts

As earlier mentioned, self-service checkouts provide clients with an opportunity to decide on how they wish to execute their shopping processes. The readiness of customers to embrace self-service checkouts influences their perception of service quality and hence satisfaction. However, criticisms on the capacity of self-service checkout to influence customer satisfaction have been witnessed. For example, Chiu, Fang, and Tseng (2010) and Liljander et al. (2006) assert that technology readiness suffers drawbacks in terms of influencing self-service checkout adoption behaviours. Liljander et al. (2006) reveal how competence of service, management, supposed payback, partiality for individual closeness, and expediency stand out as key indicators of contentment.

Chiu, Fang, and Tseng (2010) emphasise the necessity for developing trust on self-service checkout to increase buyer fulfilment. Customers use self-service checkouts for different reasons. Meuter et al. (2000) identify ease of use, the need to save time, convenient locations, and avoidance of direct contact with service persons as some of the important reasons for using self-service checkout machines. Bitner, Brown, and Meuter (2000) confirm how the checkout may improve the quality of services that are delivered to a customer depending on his or her perceptions of quality, service flexibility, and individual needs.

However, customers can turn away from using self-service checkouts akin to their meagre design, technical failures, and processes breakdown (Meuter et al. 2000). Dabholkar, Bobbitt, and Lee (2003) say that even people who possess a positive reception for self-service checkouts may fail to use them when the technology fails to fully replace personal interactions between customers and the organisations employees. Checkouts also demand an immense participation of customers in the service delivery process. This situation makes them (checkouts) more risky compared to personal direct services (Lee & Allaway 2002). These expositions raise the question of whether self-service checkouts can provide customer satisfaction as discussed in the succeeding section.

Customer Satisfaction

The technological innovation of self-service checkouts influences the customer satisfaction. For instance, self-service checkouts literature establishes criteria such as the level of trust to self-service checkout machines, ease of use, and the perceived usefulness as important indicators of customer satisfaction. Self-service checkout machines substitute the place of employees in offering checkout services in shopping stores by enhancing quick and efficient delivery of checkouts services. Indeed, this observation constitutes the major reason why customers want to use self-service checkout machines instead of queuing for direct personal services. Customer satisfaction is a critical element of retaining an organisations existing clients and/or capturing new ones (Yelkur 2007).

Customers who possess good organisational reputation share it with other people. This aspect creates the urge amongst potential customers to experience the service or product that an organisation offers. The term customer satisfaction finds a wide application in marketing discourses. It refers to the degree to which an organisations services and merchandise exceed or meet customer expectations. Yelkur (2007, p.106) defines it as the number of customers, or percentage of total customers, whose reported experience with a firm, its products, or its services (ratings), exceeds the specified satisfaction goals.

In self-service checkouts, such goals may induce the speed of transacting and/or simplicity of use of the machines, including the friendliness of user interfaces. Customers are most likely to be satisfied when technology use for self-service checkouts increases the efficiency of the service delivery process in terms of speed and accurateness. This claim suggests that where self-service checkout system leads to increased queuing time compared to the traditional approaches that involved direct personal contact with employees who delivered the checkout services, people are more likely to be dissatisfied.

Customer satisfaction comprises an important indicator of the performance of organisations. Indeed, it plays a crucial role in a balanced scorecard. For instance, in competitive business environments, customer satisfaction helps in service differentiation (Yelkur 2007). In this extent, organisations want their employees to ensure optimal satisfaction of customers in the process of delivering services. Can self-service checkouts produce similar effects on customer satisfaction as witnessed in the case of direct interpersonal relationships between customers and service employees within an organisation? While responding to this question, researchers such as Wirtz and Chung (2008) consider customers satisfaction an abstract term, unless it is studied with respect to certain parameters.

Davis, Bagozzi, and Warshaw (1989) first introduced the concept of usefulness and ease of use as important variables for determining customer satisfaction during self-service checkouts. The researchers justified the concept upon a critical analysis of the literature on customer satisfaction on the use of automated machines. They defined perceived ease of using a checkout system as the degree to which a person believes that a particular system would be free of effort (Davis, Bagozzi, & Warshaw 1989, p.320).

This definition suggests customers will most likely use self-service checkouts systems, which require minimal physical and mental effort to achieve the desired outcome. The outcome can be withdrawal of cash or completion of the payment process in case of a supermarket. Similarly, perceived usefulness refers to the degree to which customers consider that self-service checkouts will help in speedy expeditions of the checkout process without failure or consuming excessive processing time.

Satisfaction depends on the capacity of the delivered service to meet customer expectations. Parasuraman (2000) asserts that readiness to embrace a given technology depends on the level of its innovativeness and customers hope that it will fulfil their expectations. Parasuraman (2000) also identifies insecurity and discomfort as important inhibitors of customer satisfaction with the rendered services via self-service checkout systems. This claim raises the question of whether self-service checkout machines are secure, even with the increasing threats of cyber security. High risks of customer exposure to cyber insecurity problems may lead to higher customer dissatisfaction with self-service checkouts.

An important theoretical construct that is considered in research on the capacity of self-service checkout to induce customer satisfaction is peoples preference for direct personal contacts. For example, Curan and Meuter (2005) and Lee et al. (2010) assert that the freedom to choose between personal contacts and self-service checkouts influences customer satisfaction with self-service checkout systems. Simon and Usunier (2007) extensively investigate this construct. The researchers find that experiential or rational cognitive style predicts customers preferences for personal contacts. This claim suggests that customers attitude is important in determining their choices and hence expectations of their level of satisfaction with self-checkouts.

The Role of Trust in Influencing Customer Satisfaction

Bitner, Brown, and Meuter (2000) lay the foundation for research on the role of trust in influencing satisfaction with self-service checkouts. The scholars assert that irrespective of technologies that are deployed in self-service checkouts, customers may not embrace them due to factors such as higher preferences for interpersonal relationships in service delivery process, discretion, and solitude. Researchers such as Yousafzai, Pallister, and Foxhall (2009) and McKnight, Choudhury, and Kacmar (2002) support the need to increase customers trust in electronic transactions. Trust levels depend on the type of self-service checkouts that an organisation uses.

Connolly and Bannister (2008) test the factors that influence trust in an online shopping environment in Ireland. They find that internet-shopping atmosphere, online salespersons level of dependability, and experience with the merchant influence the level of satisfaction with online self-service checkouts. Similar to the findings in market research studies, this observation suggests that customer satisfaction in an online shopping environment can be measured from the context of repeated quest to use a service. In this extent, trust on the self-service checkout depends on ones experience of its use.

Trust is also an important predictor of satisfaction in other self-service checkouts such as e-Commerce transactions. Indeed, research on trust and satisfaction in self-service checkouts has been shifting towards e-Commerce. Important studies in this area include the work of Wu and Tsang (2008) and Rayport (2009). Using McKnight, Choudhury, and Kacmars (2002) work that addresses the issue of building trust, Wu and Tsang (2008) measure the level of trust with self-service checkouts among virtual communities. Research outcomes indicate that trust in terms of the security and confidentiality of websites is an important factor that influences customer approval of self-service checkouts.

Conclusion

Satisfaction is an important aspect that determines peoples decision to continuously use a service. The study has given a detailed literature review on self-service technologies to show how they enhance service delivery without the involvement of a companys workforce. The paper has addressed self-service checkouts as an innovation that is helping many organisations to handle many clients effectively by giving them an opportunity to decide on what they need to buy. However, it has pointed several challenges that come with self-service checkouts in terms of how the client has to be actively involved in the service delivery process.

This issue has driven the need to address client satisfaction in the paper. For self-service checkouts, the paper has confirmed how customer satisfaction with the service depends on aspects such as the trustworthiness of the service, preference for interpersonal contacts, readiness to embrace technology, and the perception of the quality of the service givers. The effectiveness of the services in terms of the ease of operation, perception of their usefulness, and the speed of executing transaction processes is also an important determinant of satisfaction with self-service checkouts. This observation implies that self-service checkouts can provide customer satisfaction if they incorporate all these factors in the design of their operating systems and user interfaces.

References

Bitner, M, Brown, S & Meuter, M 2000, Technology Infusion in Service Encounters, Journal of the Academy of Marketing Science, vol. 28 no. 1, pp.138-149. Web.

Chiu, Y, Fang, S & Tseng, C 2010, Early Versus Potential Adopters: Exploring the Antecedents of Use Intention in the Context of Retail Service Innovations, International Journal of Retail and Distribution Management, vol. 38 no. 6, pp. 443-459. Web.

Connolly, R & Bannister, F 2008, Factors Influencing Irish Consumers Trust in Internet Shopping, Management Research News, vol. 31 no. 5, pp. 339-358. Web.

Curran, J & Meuter, M 2005, Self-Service Technology Adoption: Comparing Three Technologies, Journal of Services Marketing, vol. 19 no. 2, pp.103-113. Web.

Dabholkar, P, Bobbitt, L & Lee, E 2003, Understanding Consumer Motivation and Behaviour Related to Self-Scanning in Retailing, International Journal of Service Industry Management, vol. 14 no. 1, pp. 59-95. Web.

Davis, F, Bagozzi, R & Warshaw, P 1989, User Acceptance of Computer Technology: A Comparison of Two Theoretical Models, Management Science, vol. 35 no. 8, pp. 982-1003. Web.

Dean, D 2008, Shopper Age and the Use of Self-Service Technologies, Managing Service Quality, vol. 18 no. 3, pp. 225-238. Web.

Lee, H, Cho, H, Xu, W & Fairhurst, A 2010, The Influence of Consumer Traits and Demographics on Intention to Use Retail Self-Service Checkouts, Marketing Intelligence and Planning, vol. 28 no. 1, pp. 46-58. Web.

Lee, J & Allaway, A 2002, Effects of Personal Control on Adoption of Self-Service Technology Innovations, Journal of Services Marketing, vol. 16 no. 6, pp. 553-573. Web.

Liljander, V, Gillberg, F, Gummerus, J & Riel, A 2006, Technology Readiness and the Evaluation and Adoption of Self-Service Technologies, Journal of Retailing and Consumer Services, vol. 13 no. 4, pp. 177-191. Web.

Lin, J & Hsieh, P 2005, The Influence of Technology Readiness on Satisfaction and Behavioural Intentions Toward Self-Service Technologies, Computers in Human Behaviour, vol. 23 no. 6, pp. 1597-1615. Web.

Makarem, S, Mudambi, S & Podoshen, J 2009, Satisfaction in Technology-Enabled Service Encounters, Journal of Services Marketing, vol. 23 no. 3, pp. 134-144. Web.

McKnight, D, Choudhury, V & Kacmar, C 2002, Developing and Validating Trust Measures for E-Commerce: An Integrative Typology, Information Systems Research, vol. 13 no. 3, pp. 334-359. Web.

Meuter, M, Ostrom, A, Roundtree, R & Bitner, M 2000, Self-Service Technologies: Understanding Customer Satisfaction with Technology-Based Service Encounters, Journal of Marketing, vol. 64 no. 2, pp. 50-64. Web.

Mick, D & Fournier, S 1998, Paradoxes of Technology: Consumer Cognisance, Emotions, and Coping Strategies, Journal of Consumer Research, vol. 25 no. 2, pp. 123-143. Web.

Nilsson, D 2007, A Cross-Cultural Comparison of Self-Service Technology Use, European Journal of Marketing, vol. 41 no. 3, pp. 367-381. Web.

Parasuraman, A 2000, Technology Readiness Index (TRI): A Multiple-Item Scale to Measure Readiness to Embrace New Technologies, Journal of Service Research, vol. 2 no. 4, pp. 307-320. Web.

Rayport, J 2009, Our space: The Shift to a Social Web, Business Week, vol. 18 no. 4131, pp. 67-68. Web.

Simon, F & Usunier, J 2007, Cognitive, Demographic, and Situational Determinants of Service Customer Preference for Personnel-in-Contact over Self-Service Technology, International Journal of Research in Marketing, vol. 24 no. 6, pp. 163-173. Web.

Wirtz, J & Chung, M 2008, An empirical study on the quality and context-specific applicability of commonly used customer satisfaction measures, Journal of Service Research, vol. 5 no. 4, pp. 345-355. Web.

Wu, J & Tsang, A 2008, Factors Affecting Members Trust Belief and Behaviour Intention in Virtual Communities, Behaviour and Information Technology, vol. 27 no. 2, pp. 115-125. Web.

Yelkur, R 2007, Customer satisfaction and service marketing mix, Journal of Professional Services Marketing, vol. 21 no. 1, pp. 105-115. Web.

Yousafzai, S, Pallister, J & Foxhall, G 2009, Multi-dimensional Role of Trust in Internet Banking Adoption, The Service Industries Journal, vol. 29 no. 6, pp. 591-605. Web.

Zeithaml, V, Parasurman, A & Malhotra, A 2002, Service Quality Delivery Through Web Sites: A Review of Extant Knowledge, Journal of the Academy of Marketing Science, vol. 30 no. 4, pp. 362-375. Web.

One of the factors of consumer success and achieving a strong competitive advantage in todays companies is a commitment to innovation. Innovation should be thought of as any innovation in a company that aims to increase productivity and optimize labor. In other words, many of todays companies, especially the largest ones, try to use innovation in their operating practices to achieve commercial success. The automotive company Toyota is no exception: having a long history of presence in the industry market, the Japanese company has been able to accumulate enough experience to manage and implement innovations in its products and operational strategies. In addition, Toyota is indeed the largest automaker among all countries, which means that the organization has enough resources and opportunities for innovative development. Finally, one should not forget that Toyotas market industry is the automotive sector, which is one of the most competitive and profitable industries. Thus, it is correct to conclude that there are inquiries about Toyota in its commitment to a culture of innovation.

Innovative technologies are well traceable in the automotive industry, from the classic retro cars of the last century to the most modern electric sports cars that use machine learning intelligence for complete autopilot. While the functional role of the car, namely transportation from one point to another, is not changing, there are metamorphoses in the process of this movement. Almost every aspect of the modern car is undergoing innovative progress, from changes in engines to the actual form factor of the car and its design. Toyotas management is well aware of this, as the brand image is often associated with technology and product innovation. Among the key indicators that can show the success of the introduction of innovativeness into the companys working practices are profitability, customer engagement, and satisfaction as factors of the external environment. From an internal point of view, such metrics could be the annual budget spent on R&D and the number of patents.

From an external perspective, it seems that innovation is not the least of these at Toyota. As has been said, there is much competitive pressure in the automotive industry, and consumers tend to give money for the most advanced and technologically advanced yet functional machines with an excellent price-performance balance. Profitability then is a good metric, indirectly showing innovation in the company. At Toyota, annual profitability was $275.9B last year, compared with the closest competitors at $134.6B (Ford), $312.5B (Volkswagen), $131.8B (Honda), and $130.9B (GM) (Toyotas, 2021). Among consumer satisfaction, Toyota is firmly in third place for the Lexus sub-brand and 10th place for the mainline of vehicles (Arbor, 2021). Indirectly, this could mean that Toyota maintains a robust level of commitment to innovation.

In terms of internal indicators that illustrate the commitment to innovation within Toyota, many also confirm a cult of innovation for the Japanese company. In particular, the company remains a leader in R&D, steadily increasing the number of patents it receives. For 2020, the number was 2,819, up 4 percent from 2019 (Arbor, 2021). Budgeting for R&D-related expenditures is also on the rise. For example, in 2021, this spending was $9.57 billion compared to $9.20 billion in 2019, as shown in the Figure. This data is enough to understand that innovation at Toyota is an essential factor in guaranteeing the Japanese automakers success.

References

Arbor, A. (2021). Honda races into first and Lexus gains competition in luxury, as customer satisfaction with auto industry stays in neutral, ACSI data show. Businesswire, Web.

Arbor, A. (2021). Toyota remains R&D patent leader among automakers. Toyota. Web.

Carlier, M. (2021). Toyotas R&D expenditure 2007-2021. Statista. Web.

Toyotas. (2021). Owler. Web.

The goal of any production is to get as much profit as possible at the lowest cost. The modernization of management technologies can achieve such benefits since the final result directly depends on how effectively all processes are executed. The purpose of this paper is to critically analyze and evaluate the current management technology introduced at Frito-Lays Kern plant.

At the beginning of its existence, in 1986, the plant was located on an area of 175,000 square feet and had only five production lines. Currently, this Frito-Lays Kern factory is situated on an area of one square mile, and exists entirely independently, providing all the resources necessary for work (Attaran & Grijalva, 2001). The plant is combined with substantial storage facilities and is one of the leading productive manufactories in all of America. Such an extraordinary position was achieved by introducing high-quality and high-tech operation management tools, which allowed to increase both productivity and competitiveness.

The first significant innovation introduced with the first expansion of the enterprise is the use of independent computer control systems. The process of managing the processing and packaging of the product has been moved to a separate arrangement using computer-integrated management and a faster communication network (Attaran & Grijalva, 2001). Such a method allowed computers to exchange data and coordinate actions. A specially designed graphical interface that reflects current information on processing lines made the use of this system more convenient. The advantage of this approach is the separation of computer systems by their purpose, rather than combining them into one, since this would greatly complicate the operation of the structure itself.

The establishment of automated packaging and storage systems is equally important, which is also based on modern technologies. For example, photosensors were used to adjust traffic on the lines (Attaran & Grijalva, 2001). It is worth noting that all of the warehouse packaging systems are connected to a central computer called The Manager, which allows monitoring and changing the operating mode following the logistic situation. Those sections of lines that usually require a human operators presence are also performed autonomously (Attaran & Grijalva, 2001). Therefore, the distinguishing feature of this plant is the effective implementation of automatic systems. It leads to a decrease in the probability of error, since the employees perform a controlling function, maintaining the equipment, observing its condition, and adjusting its work to the situation. Accordingly, this enhances productivity and at the same time increases competitiveness, since, in the long run, expensive computer pays off with quality and efficiency.

The introduction of such design solutions was not a simple task, and the company encountered difficulties in the development and implementation of these systems. The challenge is the establishment of a large number of high-tech equipment since its use requires specific skills and should also be as error-free as possible. This problem was eliminated by retraining the staff members and introducing a more flexible employee management system. At the same time, financial management systems were also refined to adapt it to automated production (Attaran & Grijalva, 2001). Frito-Lays approach to solving the problem of introducing new equipment is, first of all, thorough training of personnel to ensure the preparedness to function in current conditions. A comprehensive and detailed technical work was also carried out, including the development of specific software, taking into account the peculiarities of the factory.

Thus, Frito-Lays Kern plants work is a superb example of how the competent implementation of high technologies may increase the efficiency and profitability of production. Although it cannot be said that their application has dramatically increased product quality, the factory now can maintain the same constant level and continue providing customers with excellent merchandise. This was made possible thanks to the competent design of the operation for the introduction of new equipment. Following this plants example, the best planning decisions are the thorough training and retraining of personnel and the restructuring of the management system under new conditions. Equally important is the quality work of engineers and programmers to establish a single computerized system that will function without failures.

References

Attaran, M., & Grijalva, S. M. (2001). Strategic management of technology at FritoLays Kern manufacturing facility. Industrial Management & Data Systems, 101(6), 264-272.