Organizational innovation is a method or process for providing a product or service in a new and original way with using new ideas. In a sense in line with this concept, we have organizational creativity, which means presenting a new plan. But organizational innovation means the implementation and execution of this plan. Organizational innovation means that we can implement a creative thinking in our organization. Talking about innovation is not only limited to the field of producing products and providing services. Innovation in management in the field of marketing and intro-organizational functions is also important. It is possible to use and apply innovation in a globally competitive environment.
In today’s ever-changing world, we need innovation in the entire organization’s processes. This innovation should include all aspects of the organization; From support and production to management. The result of innovation and organization of all these parts will be the production of an innovative product. In addition to trying to create an innovative environment, we should also dedicate a part to measuring our innovative performance.
Types of Innovation
1. Technological Innovation
The meaning of this innovation is the connection between components, methods and techniques that are used in the production and presentation of products or services. In this type, we may or may not need organizational innovations.
2. Market Innovation
Applying a new and fresh method in product distribution departments and meeting the needs, demands and expectations of customers. The main goal of market innovation is to improve marketing conditions.
3. Incremental Innovation
Applying changes to the business model or technologies under control.
4. Intrusive Innovation
Implementing fundamental changes in the business model or technology.
5. Radical Innovation
It shows the level of success of the company manager in the conditions of simultaneous changes in the business model and technology.
Creating an innovative environment does not happen through the organization and the product production process. Rather, to create such an environment, we need strong and creative personnel. It depends on the management power of senior managers and personnel of an organization to be able to form an innovative environment. For this purpose, we need 8 conditions:
1. Risk taking
2. The rule of trust
3. Job commitments
4. Employing people with freedom of speech and action.
5. Lively spirit among the people of the organization.
6. Supporting the idea
The task of creating an organizational culture and atmosphere based on innovation is the responsibility of the organization’s management. The management of the organization should prepare an environment so that the employees in that environment are familiar with new thoughts and encouraged to create innovative ideas. Otherwise, we will face an obvious contradiction. On the one hand, we have an organization that needs innovation, and on the other hand, the relevant organization does not have the preparation and conditions for such a transformation.
The Importance of Innovation in the Organization
With the definition of innovation, we will realize this important fact that one of the basic requirements of today’s businesses is the need for innovation. In the following, we will mention some of the reasons for the importance of this innovation:
1. Leading the organization in the market
2. Our regular customers are always waiting for a new surprise related to our business and they are delighted about it.
3. This capability in the organization brings the commitment of employees. It gets them out of the situation and increases their productivity.
4. In organizations following innovation, every detail is carefully considered. As a result, the probability of discovering the problem at the beginning and solving it will be higher.
5. We will be more successful in attracting people who are capable in the field of innovation. This issue can provide an opportunity for further growth and development for our organization.
Up To Sum
Today, we see intense competition between organizations and businesses. In the meantime, new businesses with creative ideas and more creative products are coming. In such a situation, organizational innovation can be a good helper for businesses lagging behind in the competition. Businesses that rely on innovative measures can appear in the field of competition in a new way by changing the pillars and different parts of their organization. For this, it is necessary to first provide an environment that is ready to accept innovative actions. Then, according to the needs of the organization, we choose one of the types of innovation.