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SMT. CHANDIBAI HIMATHMAL MANSUKHANI COLLEGE.

SUBJECT: TOPIC:

STRATEGIC MANAGEMENT. ROLE OF INNOVATIONS IN MAKING STRATEGIC MANAGEMENT EFFECTIVE.

GROUP NO.: SUBMITTED TO:

06. PROF, JAYA GHEMANANI.

SUBMISSION DATE:

1ST. FEBUARY, 2012.

GROUP MEMBERS.

NAMES Diksha Mirani. Chander Chawla. Kanchan Valecha. Pawan Nagdev. Sudhir Satav. Vikshetha Jain. Vivek Teli. Harshada Palve.

ROLL NO. 41. 42. 43. 44. 45. 46. 47. 48.

ACKNOWLEDGMENT.
We are very thankful to prof. Jaya for giving us such opportunity to present the topic role of innovations in making strategic management effective before her as a group project, we learnt a lot during making this project. During the project we gain a lot of knowledge about the ethics and regulation in auditing profession And we are now very well prepared for all that and all the credit goes to prof. jaya as she is the one who gave us this topic to present.

INDEX.
Sr.no. 1. 2. Introduction. Types of innovation taken place in making strategic management effective 3. 4. Measurement of innovation success. Criteria with relation to market dynamics is based upon three questions? 5. 6. Innovation in supply chain of strategic management Desbarats (1999) summarizes the changes in following attitudes. 7. The advantages of supply chain management implementation management. 8. Future innovations in making strategic in innovating strategic Contents.

management effective. 9. Some questions might me asked while making the strategic management effective & innovative. 10. Conclusion.

INTRODUCTION:
Over many the past half-century models of

significant

innovation have emerged making innovation management extremely fundamental to corporate success. Modern strategic thinking involves in itself the role of innovation and change distinctive management, role in the which profile

eventually play a meaningful and formation of any organization. The competency of any worker is now valued more by the number of new ideas and suggestions envisaged, presented and executed by the person. Innovation can be viewed as both process and product related. It also brings with it the concepts of leadership, open communication, customer focus and more access to top management. The importance of understanding the concept of innovation is beginning to be realized as the flawed logic that innovation is coincidentally linked to information technology (IT) solutions are exposed. concept suggests This of paper explores innovation the and apply generic

that these concepts

equally within the FM role driving its role as a dynamic business tool.

It moves away from the classical view of continuity planning which looks at damage limitation in everyday and emergency damaging business events and aims towards defining best practice in supplier contract management to find, maintain and protect the optimum position rather than simply limiting the damage. Now we concludes that the role of innovation management in SM is not about producing innovative solutions but about the provision of a creative environment in which solutions can be conceived, developed and applied.

DEFINITION:
Strategic management is an ongoing process that evaluates and controls the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors; and then reassesses each strategy annually or quarterly to determine how it has been implemented and whether it has succeeded or needs replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.

TYPES OF INNOVATION TAKEN PLACE IN MAKING STRATEGIC MANAGEMENT EFFECTIVE:


Type of innovation Product innovation. Example The development of a new or improved Product. The development of a manufacturing Process. A new venture division; a new Organizational innovation. internal communication system; introduction of new accounting procedure. Total quality management (TQM) Management innovation. systems, Business process re engineering (BPR). Quality circle; just-in-time (JIT) Production innovation. manufacturing system; new production planning software. Commercial / marketing innovation. Service innovation. New financing arrangements; new sales Approach. Internet based financial services

Process innovation.

For an organization which does not innovate or encourage its employees to work towards new product development, alterations and changes, the lesson is clear and that is to innovate or fall behind, this is further confirmed by Naughton (2004) who highlights that time has come to convert the new business challenges into opportunities. Doyle and Bridgewater (1988) state the importance of continuous innovation

and change by explaining that if a companys product or services are not continually improved, competitive pressures invariably lead to falling prices, declining margins and the commoditization of its offer. Doyle and Bridgewater (1988) lay stress that innovation should be regarded as the critical path to achieving growth in sales and profitability.

Resources.

Strategy

Culture. Technology acquisition.


Innovation.

Leadership Market orientation.

System and process.

MEASUREMENT OF INNOVATION SUCCESS:


Burgelman (1996) stresses that the determinants of success can be found both in technology and the business context and enlists various factors that should be taken into account while assessing innovation success;

 There must be an application for the new device, product or system, which is waiting for it.  Consideration must be given to the operational consequences of the new technology or system on the manufacturing marketing or distribution.  The extremity of market dynamics is given high importance, which according to Burgelman (1996) is often highly complex in nature and extremely important too.

CRITERIA WITH RELATION TO MARKET DYNAMICS ARE BASED UPON THREE QUESTIONS WHICH ARE: Does the product incorporating new technology provide enhanced effectiveness in the market place serving the final user? Does the operation reduce the cost of delivering the product or service?

Does

latent

demand

expansion

or

price

elasticity

expansion determine the characteristics of new market? INNOVATION IN SUPPLY CHAIN OF STRATEGIC MANAGEMENT:
Supply chain can be defined as the sequence of processes and activities that are involved or performed in an entire manufacturing cycle or in a complete distribution cycle, this was also known as operations management earlier and most of the components that form a supply chain were a part of operations management. A new management speak as put by Frank (2000) reflects the significant changes that have taken place due to variations in the business environment. Various other factors that have an effect on the changing business environment as per the findings of Frank (2000) are as follows:

 Increase in globalization Increase in dependency, Money transfer, Knowledge transfer Savage price competition.  Increased customer demand of higher and better quality of final good and services.

 Changes in technology. New forms of working and trading, E-commerce, Increased outsourcing. According to Desbarats (1999) by examining attitudes along the innovation supply chain, the required changes can be clearly figured and also know that how each discipline helps the collective to deliver better consumer experiences.

DESBARATS (1999) SUMMARIZES THE CHANGES IN FOLLOWING ATTITUDES: MARKETING: having a core strategic
responsibility towards customer supplier relationship, marketing personnel need to set clear goals for others to understand and follow willingly in order to achieve wellmanaged consumer experiences.

INDUSTRIAL DESIGN: specifications


created by modern designer add. Frank (2000) further suggests that innovation can take place at both design level or at the process level. Designer needs to be proactive in seeking potential barriers to implementation.

ENGINEERING

DEVELOPMENT:

engineers need to add more value and develop professional instincts in order to escape from becoming low value commodity professionals; this would also require closer collaboration with the designers

MANUFACTURING:

To

remain

integrated with marketing, manufacturing needs to deliver strategic advantage that can be easily perceived by the consumers. High flexibility sometimes works better than high productivity.

DISTRIBUTION CHANNELS: Retailers and distributors always have


vast knowledge of what sells, as they are closest to the consumer. To create a balance between the retailers and the manufacturers is always difficult and the higher margin always goes to player who dominates the consumer experience.

INVESTORS: Stroking (2001) insists


that in todays fast changing business environment it is extremely essential for all organizations to understand the link between IT, innovation and supply chain structure. In his research of supply chain management, Stroking (2001) concludes that the conditions for success in IT, innovation and supply chain structure concern the extent of vertical and horizontal integration, the comparative importance of information, the extent of (international) pressure and innovative regulations.

THE ADVANTAGES OF SUPPLY CHAIN MANAGEMENT IMPLEMENTATION MANAGEMENT:


1. Better knowledge and understanding of market trends and key customers needs. 2. Enhanced problem solving. 3. Faster response times. 4. Flexibility and a strategic capability to plan and innovate. 5. Improvement in forecast accuracy. 6. Improvement in inventory reduction. 7. Lower operating costs and reduction in real costs. 8. More efficient and effective use of technology. 9. Shared risk. 10. Waste reduction and more effective use of resources and skills.

IN

INNOVATING

STRATEGIC

FUTURE INNOVATIONS IN MAKING STRATEGIC MANAGEMENT EFFECTIVE:


1. Demonstration of value added through innovation. 2. Innovation under multiple contract management and with various suppliers. 3. Difficulties with innovation under cost pressure. 4. Innovation as part of performance from day 1of a contract. 5. Learning from the experience of industry, companies that have already followed such concepts. 6. Strategic importance of supplied item, affecting innovation. 7. Innovation value during supplier selection process.

SOME

QUESTIONS

MIGHT

ME

ASKED

WHILE

MAKING THE STRATEGIC MANAGEMENT EFFECTIVE & INNOVATIVE:


1. 2. 3. Which best describes your level of responsibility? Which market sector best describes your organizations SM structure? Do you agree that innovation management process should be the SMs remit? 4. 5. 6. Does your organization have a specific innovation management policy that applies to Strategic Management? Is there much scope for innovation in Strategic Management? Do In-House and outsourced SM teams have same approach towards innovation management? 7. Do you think that the primary objective should be innovation in vital business functions?

The vast amount of literature that addresses the increasing significance of innovation as an important entrepreneurship tool has till date not been able to yield a widely held consensus regarding how to define innovation. The wishful thinking of having immediate results and no failures hamper the want to innovate and change. It is essential for the managers wanting to improve innovation performance to not just blindly apply the first technique that they encounter or think to be as a change/innovation, or methods, which have been successfully adopted by their competitors. Important is to determine whether those innovative techniques or methods are or appropriate not. In for to their above own the company/organization/product respect

conclusions are based on the innovation management and to suggest a strategy for obtaining and protecting optimum multiple contract management and performance. The author believes that the study would not only help Facilities Managers to exemplify their knowledge and skill, by apprehending the role of innovation management in strategic management at operational and strategic levels, but also it would help in concluding the factors that led to the growth and development of innovation as a field and an important part of the strategic management world, including relationship with suppliers and multiple contract management. The focus of the study is mainly on the prominence of communication, awareness required within business environment to ensure effective innovation, hence

determining the various factors that would guide innovation in multiple contracts in the future and maintain its role in the ever-changing business patterns and customer demands. With this as the main aim the objectives under, which currently researching, are:  To explore and understand generic innovation and innovation in multiple contract management  To propose an innovation strategy, defining best practice in supplier contract management