Abstract
This chapter chronicles the various issues and challenges organizations face when developing and implementing strategies to foster innovation. The concept encompasses the difficulties and complexities associated with devising plans and executing them to create new products, services, processes, or models. Addressing the identified challenges requires a combination of strategic planning, a supportive organizational culture, the right leadership, effective processes, a commitment to fostering a culture of innovation, continuous learning and adaptation, seeking external expertise, and staying agile in the face of evolving circumstances. Successful organizations are those that can navigate these challenges to drive sustainable innovation and remain competitive in their respective market.
TopBackground
Strategy and innovation are critical elements for the success and sustainability of business in today’s dynamic and competitive environment. Strategy involves the formulation and execution of plans and initiatives to achieve specific goals. Strategic planning is the process of defining an organization’s directions and making decisions on allocating its resources to pursue this direction, while innovation is an improvement in the organization or processes within the organization, the transformation of a new idea into a new product or service (Agodu, 2018). It is a great way to achieve success and maintain a competitive edge. Companies that support workers to take part in decision-making encourage workers to pursue new and creative ideas, and embrace risk-taking and experimentation are excellent at innovations and generally get the best from employees in terms of results.
Organizations that refuse change and innovation are less likely to increase their market share and competitive ability, and may ultimately be forced out of business because they lack innovative acumen (Agodu, 2018). Innovation capability is one of the major determinants of organizational profitability and survival. In today’s ever-changing business world, ideas that made no sense many years ago are making sense all of a sudden, and ideas that made much sense yesterday are no longer making sense today. This reality gives credence to why leaders must be visionary and innovative to adapt to an ever-changing world (Agodu, 2018). The success of any business depends primarily on making use of emerging or proven strategies and the ability to manage, utilize, or harness those proven strategies. One reason organizations do not innovate is the leaders’ inability to recognize the importance of their part in the innovation process. Thus, in determining the capability of a company to handle strategy and innovation, managers and leaders need to have a solid understanding of the company’s capabilities.
Organizations should perform an in-depth analysis of various features of their current innovation capabilities, strategies, and assess key measures, and authenticate strengths and weaknesses. Corporate executives need to periodically audit an organization’s strategy and innovation capability to get a true picture of the overall performance of the organization, the innovation process, and where this process needs improvement. The periodic audit is an authentic means of enhancing innovation throughout the organization (Agodu, 2018).
Key Terms in this Chapter
Compliance: Adherence to established rules, policies, procedures, or standards
Post-Pandemic: Refers to the period following the resolution or significant control of a pandemic. In the context of the COVID-19 pandemic, “post-pandemic” refers to the period after the widespread transmission of the virus has been brought under control, either through vaccination, herd immunity, effective treatments, or other means. During this time, societies may undergo significant changes in various aspects of life, including healthcare, economy, social interactions, and policies, as they adapt to the aftermath of the pandemic and work towards recovery and rebuilding.
Competitive: The desire or determination to win or to be more successful than others.
Strategy: A plan of action designed to achieve desired objectives. Strategies help organizations set their direction and goals.
Culture: Shared values, beliefs, norms, customs, behaviors, and social practices shape the way people within an organization interact and work together.
Innovation: Is an improvement in the organization or processes within the organization, the transformation of a new idea into a new product or service.
Sustainability: The ability to support or preserve a process over time without harming or endangering such process.
Resistance: The refusal to comply or accept things one disapproves or disagrees with.
Risk: Taking a chance at something or a situation viewed as harmful or dangerous
Inefficient: Failing to make the best use of resources or time, not performing as expected.