Bss057-6 : Corporate Innovation And Assessment Answers

The Live Project folder in the Guided Learning area of the Breo site includes multiple sources that provide further details on MBA:

• Power Point slides for the Live Consultancy Project
• Video recording of the brief by Gary Higson, Business Development Manager, MBA
• Company documentation 

Key issues relevant to Corporate Innovation and Entrepreneurship:

• Challenges of rapid growth – from new start-up to Strategic and Operational leadership and management - supported by quality academic approaches.
• Architects as qualified professionals versus effective and contemporary leadership and management
• Founder to Board level leadership – Top down versus bottom-up?
• Aspire to multi-functional collaboration of in-house specialists – added value
• Are creative thinking / creative problem-solving processes - Individual creative thinking skills – limited to the design team?
• How might MBA exploit the potential of its human resource/capital?
• How might MBA promote creative thinking across all functions and levels?
• How might MBA encourage and support creativity and innovation across all functions and levels?
• Agile and Scrum are PM methodologies with an emphasis on software development (Trello?) - To what extent might such methodologies constrain rather than promote creativity across multiple organisational levels     

• • Individual blocks / Organisational barriers to creativity and innovation – multiple levels?
  • Prescriptive

• How might MBA address current problems
  • Over on budget
  • Under on quality
  • Unproductive meetings
  • Firefighting
• Goldman Sachs model – prescriptive?     

• • Training / coaching in management – what does this comprise?
  • Leadership?
  • Context specific/tailored?

• Learning organisation – aspirations and progress
• Climate for creativity and innovation – KEYS survey
• Conscious versus unconscious abilities/skills

Introduction:

Traditionally, the success of individual organizations and corporations has been dependent on one single product or service. However, in order to create a sustainable business practice, a corporation would have to incorporate new innovative products or elements of creativity into their operations. Innovative entrepreneurship would also provide companies with a competitive edge in the market. As a matter of fact, the customers’ perception of an organization would depend on the innovative strategies and creativity that the company is able to demonstrate. It must be asserted that entrepreneurship is absolutely essential for the economic growth of a nation. Start ups or organizations that are innovative by nature would offer serious competition to traditional and existing organizations. The business sector is highly dynamic and volatile in nature. As such, business owners would have to adopt measures for innovative entrepreneurship to achieve the long term and short term goals of the organization. In the following paper, a detailed review of literature pertaining to innovative entrepreneurship, importance of creativity and innovation will be examined with respect to the organization, Matchbox Architect.

An overview of the organization

In the field of corporate innovation and creativity, MatchBox Architect is one of the most well known organizations. It has garnered an international reputation for creating exemplary and beautifully crafted and engineered buildings which would revolutionize the future of architecture around the globe. The organization recognizes that architecture is the hub of creativity and innovation and attempts to create inspiring and revolutionary designs which would set an example for architects in the future. The company is empowered by a vision to leave a lasting legacy for having changed the field of architecture for the better. The company is known for taking up challenging projects, which would alter the face of architecture around the world.

Literature review

Factors affecting climate for innovative entrepreneurship and corporate creativity

In the business sector, a new trend of innovative entrepreneurship is on the rise. In a highly unpredictable business environment where policy makers and business owners are trying to overcome global economic crises and restore economic growth, innovative entrepreneurship may be termed as the ultimate option for most businesses (Archibugi, Filipetti and Frenz, 2013). Amore, Schneider and Zaldokas (2013) argue that innovation is not simply about novel ideas and concepts. It also stresses on successful methods of commercialization and must take into consideration the needs of the market.  It must also be understood that innovative entrepreneurship is an ongoing process (Autio et al. 2014). It continuously attempts to renew and grow a business, by equipping it with enhanced business systems, more effective processes and better and improved products (Audretsch, Coad and Segarra, 2014).

Chen et al. (2014) argues that in a majority of entrepreneurs, innovation or the ability to conceive novel ideas is not an innate quality. On the contrary, the innovative instincts of an individual are refined and shaped through experience and knowledge. The advent of technology has been a major source of support for entrepreneurs who seek innovative business strategies. Technology has been immensely helpful in displacement of incumbents and replacement of such outdated, traditional business models with ones that are better and faster. Dentchev et al. (2016), on the other hand, stresses on the importance of corporate creativity in an organization. Corporate creativity may be defined as the ability of enthusiastic entrepreneurs to convert novel and original business ideas into reality. A creative entrepreneur would be able to perceive the situation around him in newer ways, discover hidden patterns and be able to make connections and links between unrelated phenomena and accordingly generate solutions. Creativity in entrepreneurship would involve the two processes of critical thinking and producing. It would also require commitment and passion on part of the individuals. There are five aspects of corporate creativity which must be discussed:

• Corporate creativity should be able to provide valuable new insight into the needs of the customers and prevalent market trends.
• Persistence is instrumental in ensuring long term innovation and creativity in an organization. Devising new innovative concepts would be insufficient if the organization is unable to sustain it on a long term basis.
• The business model of the organization should be agile and versatile enough to accommodate new changes and innovative practices.

Innovation and creativity and its importance in business

The term, “innovation” may be defined as something that is new or previously not thought of. It would be very easy to classify innovation as simply something “new”. However, innovation also refers to new ways or new methods of doing things. It also comprises modifications in existing business models and practices to render them more versatile and flexible. Innovation, thus, forms the very essence of human existence. In fact, innovation must be differentiated from creativity. Kuratko, Hornsby and Covin (2014) emphasizes on this difference. Creativity may be explained as the ability to unleash the infinite potential of one’s mind and conceive new and innovative ideas. In the world of business, an innovative or creative idea would have to be one that can easily be replicated, is cost effective and strives to resolve a specific need of the organization.  

According to Sahut and Peris Ortiz (2014), creativity and innovation forms the essence of any kind of organization, be it architecture or manufacturing. According to the authors, an organization should be able to incorporate creativity in all its aspects, irrespective of the size of the business. As a matter of fact, innovation and creativity is imperative for any business to grow and flourish in the industry. There are various categories of innovation that an organization may implement into its operations. Corbett et al. (2013) argues that the main advantage of innovative business practices would be competitive advantage (Urbancova, 2013). An organization should be able to implement new innovations and novel concepts if they are to stand head and shoulders above their rivals in the industry. It must be remembered that customer demands are constantly evolving. Industrial innovation would boost the organizations and enable them to meet the piling demands of the consumers. They would be able to scrutinize and implement new technologies or incorporate new management strategies. Accordingly, such innovation would increase the profitability and revenue outcome of the organization as well. Casadesus – Masanell and Zhu (2013) elaborate on this concept and claim that corporate innovation would help organizations manage their finances in a more holistic fashion.

It must be understood that innovation is indeed one of the fundamental principles of any organization. The role of innovation in development and enhancement of the industry is unparalleled. Within an organization, corporate innovation is all encompassing and would be applicable in fields of management, product development and human resources as well. Innovation and creativity in the organization would enable companies to penetrate newer markets, develop their resources and capabilities and eventually pave the way for more prosperous opportunities. Innovative entrepreneurs should be able to devise original concepts, while simultaneously tackling potential risks. Kuratko, Covin and Hornsby (2014) argue that implementation of creativity and innovation in an organization is not an easy process. On the contrary, it is an intrinsic process that demands caution on part of the entrepreneur, change management and efficient and sturdy operational systems.

Schumpeter’s theory of innovation

According to ?ledzik (2013), it was Joseph Schumpeter who first devised the concept of corporate innovation and entrepreneurship. Schumpeter devised a theory of business cycles which stated that an organization that failed to incorporate innovations and creativity would be rendered stagnant and stationary. According to Schumpeter, the entrepreneur is entirely responsible for the fate of his or her business. He also believed that innovation could inject instability within a business, which would indirectly affect the investments of stakeholders. In turn, innovation would affect the cycle of economic growth in an organization. Aghion, Akcigit and Howitt (2014) elaborated on this concept and stated that Schumpeter’s theory of innovation lists the various types of innovation that are possible in an organization. Innovation may include the launch of a new product, a renovation of existing products and services, new methods of manufacture or production, penetration of an entirely new market, identification of new suppliers and resources and so on (Snyder et al. 2016). Schumpeter opined that the best way to acquire maximum profits from a business would be through corporate innovation (Dai and Zhang, 2016). Customers are constantly seeking for new products and services that they have not experienced before. Therefore, organizations that are able to incorporate such elements of creativity and innovation would be more likely to lure in potential customers.

Louçã (2014) opines that consumer preferences may be evolving at a rapid rate, but they do not change spontaneously. As such, they cannot contribute to economic progress or growth of an organization. However, Schumpeter was of the opinion that innovation would play a crucial role in the economic development of an organization since it would involve structural changes, alterations in the production systems of an organization and also affect the dynamics of economic growth (Galindo and Mendez Picazo, 2013). He also coined the term creative destruction to suggest that innovation and creativity destroy the traditional and outdated means of business operations and is thus at the heart of organizational development (Mazzucato, 2013).

Practices to promote a suitable climate for sustainable innovation and creativity

The main purpose of innovation and creativity in an organization is to convert novel ideas into practical solutions, so as to make the business practice sustainable in the long run. Anderson, Poto?nik and Zhou (2014) state that innovation in an organization should not be impractical or only for the short term success of the organization. It should instead attempt to provide long term and wholesome solutions to the various challenges that an organization might face. Innovation in an organization could be related to marketing, product and organization processes. Similarly, there are two major kinds of innovation that can promote sustainability in an organization. They are administrative innovation and technological innovation. Administrative innovation would involve the myriad business practices of an organization and which would include management of operations and resources. Change management is an important aspect of innovation and creativity in an organization. Euchner (2013) claims that innovation is directly related to change management in an organization. Whenever new products or services are introduced to a business, the business processes undergo a change. Ground breaking innovative strategies, product development and penetration of new markets – these are all innovative strategies that require exceptional change management policies for successful implementation. Any kind of innovation in an organization would comprise complicated organizational changes. The culture of creativity and innovation in an organization must be supported by implementation plans and change management strategies. However, as Hornstein (2015) argues, innovation and sustainable innovative practices can be quite difficult for new organizations or start ups to implement. Innovation, as mentioned above, would require effective change management policies. Start ups, on the other hand, are too new to incorporate such practices. They lack the finances or human resources required to accommodate such changes.

Application of the concepts of creativity and innovative entrepreneurship to MatchBox Architect

The main objective of the organization is to change the face of architecture in United Kingdom and around the globe. The company is driven by an urge to create and design exciting and unique buildings and structures which would not only reflect the personality of their clients but would also complement the surrounding environment. The company recognizes that although buildings are big investments, people should be able to find themselves in the building design. The business strategy of the company is a fine blend of commercialism and lifestyle. The company believes that its human resources, the architects, are the chief assets and the main source of creativity and innovation. It is this dedicated group of individuals who work towards a continued improvement and innovation of existing practices. The individuals working at MatchBox Architect are encouraged to have an open mind and are allowed to freely express their ideas and concepts. Originality is one of the fundamental principles of the organization’s operations. The organization attempts to create buildings which have not been thought of before. A culture of learning and continuous improvement is promoted at the organization.

Creativity and innovation for MatchBox Architect

Agogué, Yström and Le Masson (2013) opine that architecture is the process of designing and creating space enclosures for use by humans. As is common knowledge, the sphere of architecture is closely associated with aesthetics and creativity. It may be called a kind of social art, which calls for technological advancement and highly skilled individuals who are creative and capable of chalking out innovative designs (Oman et al. 2013). MatchBox Architect realizes that the main purpose of architectural design is to alter the physical environment of human beings in such a fashion that they can efficiently carry out their activities. As such, architecture of any form can never be an automated decision (Nguyen,Yosinski and Clune, 2015). In fact, it calls for a degree of creativity, instead of mechanical and automated decisions. In other words, the organization realizes that each building is unique, with a persona of its own. Dul and Ceylan (2014) argue that technological advancement plays a crucial role in determining the creativity of a firm. The practice of open innovation is evident in the organization. Such a practice can be referred to as the use of outflows and inflows of knowledge which can be used to enhance internal innovation. It would further enhance the external innovation as well. By adopting open innovation the company has been able to widen its horizons, providing it with more scope for growth. The company can promote open innovation in the business operations by removing restrictions on use of resources. If only internal resources of the organizations are used for innovation, it would limit the creativity process.  

Before one studies the creative process at MatchBox Architect, it is first important to understand the climate of creativity and innovation that is evident at the organization. The climate of creativity refers to the overall ambience within the organization which promotes innovation on part of the employees, architects in this case. The organizational culture, the working environment of the company and the psychological states of the employees would determine if creativity can flow freely in the work place. The extent to which an individual can exert his individual freedom, psychological safety, creative encouragement by the leaders, vision of the company, positive working relationships between employees and clarity of mission are just some of the factors which promote a creative climate in an organization. The creative process at MatchBox Architect has a holistic approach towards business. It is assumed that creativity and innovation is an inborn talent in every architect. However, barring that, there are certain demands of the job that architects must abide by. For instance, an architect is restricted by the demands of the clients, the budget, the resources available and other such factors. Yet, at MatchBox Architect, architects strive to design buildings and structures that are unique, revolutionary in terms of design and innovative and at the same time in compliance with the needs of the client. The architects at the organization are trained in such a manner that they are able to execute the following:

• They should be practical and rational and must take into account the available resources before devising designs.
• The designs must be creative and intuitive in nature. They must also reflect spatial ideas which would bear the intentions of the architect and that of the client (Kell et al. 2013).

The creative climate in an organization mainly refers to its human resources or the architects. Creativity in the organization may be segregated into three aspects. One, architects are encouraged to come up with ideas that are original and novel and have not been thought of before. However, simply conception of such an action or idea would not be sufficient. In other words, the key is to be able to convert it to reality. Thus, the innovative and creative processes at MatchBox Architect must cater to a specific problem or work towards the accomplishment of a recognizable goal. A creative architect must possess the exceptional ability to conceive innovative and original designs. It is also intimately associated with the ability of an individual,, to think with clarity and intensity with which he would be able to analyze and provide efficient solutions to a challenge. In architecture, any change in the business operations or any new design or concept would have to be creative to a certain extent. It is the responsibility of the architect to come up with aesthetically pleasing ideas and concepts. The architects who are a part of the company try to go beyond the accepted and mainstream traditional concepts and designs in architecture and instead come up with outlandish, slightly eccentric and modern designs which would further the progress of architectural development and also cater to the needs of the modern consumer.

The creative process at MatchBox Architect would be twofold. In the first phase, an architect would be expected to come up with or imagine a new and original idea or design. In the next phase, the architect would concretize or give shape to his idea and fabricate it by giving it form. Cruickshank (2016) argues that creativity is conscious and voluntary in nature. It requires volition and as such, it would be impossible to reduce it to automation. For an architect, it is imperative to go beyond the mainstream concepts and approach a design from an unconventional point of view.

MatchBox Architect recognizes that architecture, creativity and innovation are intrinsically connected. The business of architecture would cease to exist without innovation and creativity. Entrepreneurial activity or the act of starting one’s own business would involve certain calculated risks in these cases. It is the innovative capability of an individual that would make a difference. The company recognizes that architectural design is more concerned with how things should be done instead of how they actually are. The role of an architect is thus to come up with more efficient ways of doing things, which are cost effective, innovative and more suited to the business operations.

Recommendations for MatchBox Architect

• MatchBox Architect has stated in its vision and mission that its employees are the main resources for the company. The working conditions of the employees, or the environment they are exercising their brains in, would play a crucial role in determining their innovative abilities and creativity. Architects usually work in extremely high pressure situations and are constantly driven by the urge to satisfy the increasingly complex demands of the customers. As such, the company should attempt to create a relaxed and stress free working environment for the employees. It is the responsibility of the human resource department to ensure maximum employee engagement. Various initiatives and training programs have been implemented by the organization. However, measures must be pave the way for performance measurement.
• Diversity should be encouraged in the workplace. It must be remembered that architects coming from different backgrounds would bring different ideas and concepts to the table. The field of architecture is one that demands passion and commitment. Unless the people recruited for the jobs are passionate about what they do, it would be impossible to inculcate a sense of innovation and creativity. The organization should encourage its members to embrace their individuality and come up with original ideas and concepts.
• Innovation and creativity in the workplace would depend on the quality of creative leadership. The leader of the organization should establish a clear set of goals and objectives and should also maintain open lines of communication with the employees. Employees should be able to trust their management and thus freely communicate their ideas and designs. For instance, the management can hold weekly meetings where architects would be asked to devise innovative strategies or come up with brand new designs that had not been thought of before. This would solve the problem of unproductive meetings. Also, surveys and questionnaires may be used by the management to receive feedback from the employees. This would facilitate open lines of communication and at the same time promote a healthy working environment that promotes creativity. Moreover, a bureaucratic style of leadership, or one where a top to down level of hierarchy is followed, must be avoided. Instead, the management must work in accordance with the employees to come up with innovative solutions.
• MatchBox Architect certainly has requisite measures for sustainable innovation practices. However, the company would have to improve its quality of change management. Change management within an organization refers to the managerial policies and strategies that guide and assist the process of change in an organization. At this company, various changes are implemented from time. These changes may include administrative changes, changes in business models and implementation of new technologies. Irrespective of the case, the organization would need to devise effective policies that would direct individuals and guide them through the change process. As such, the Goldman Sachs model of risk management can be used by the organization to assess the level of performance of the organization and to highlight opportunities for improvement in the future.

Conclusion

To conclude, it can be said that the business or industrial sector cannot hope to make progress without creativity and innovation. It must be asserted that innovation and creativity is the essence of all human life. In entrepreneurship, a business owner would be entrusted with the responsibility of devising their own original and innovative concepts that were previously unheard of. In other words, a person who intends to start his own business should be able to deal with unpredictable industrial conditions, tackle unprecedented risks and eventually find innovative and cost effective solutions to these issues. In the field of architecture more than other fields, the creative and innovative capability of an individual is of prime importance. The role of an architect is to design and create buildings that are unique, beyond the mainstream and the conventional and cater to customer needs. It is assumed that creativity is an innate talent of every architect. However, as the organization in question, MatchBox Architect demonstrates, creativity is shaped and enhanced by learning and by acquiring relevant knowledge. The report emphasizes that the main purpose of corporate innovation and creativity is sustainability. The article studies in detail the creative process at MatchBox Architect and the need for innovative practices which would align themselves with the organization’s mission and objectives. Based on the review of literature and concepts pertaining to the topic, certain recommendations have also been made which would help the company sustain its innovative and creative entrepreneurship practices on a long term basis.

References:

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