The three types of organizations selected for analysis are production organization, healthcare organization and online book store. The uniqueness of production organization is that it demands innovation in all spheres of product life cycle: production processes, product development and delivery systems. In production, innovations have a profound impact on competitive advantage of a company because they lead to new products and services appealing to consumers. The example of Production Company is Toyota. In order to compete on the global market, it developed and introduced a “green car” which helps to save energy and prevent environmental degradation. These innovations allow the company to attract competitors’ target audience and propose lower prices and higher quality of products and services. The exact nature of the innovation process may vary in these different settings, as will the problems faced and the solutions required, but economically innovative acts that create value for individuals and society can still take place. It is the act and its outcome, not the environment nor the setting that is the essence of innovations. Strategic objectors lead to competitive advantage. Toyota succeeds with many of its products because of solutions proposed to the target market. First of all, from a marketing and entrepreneurship perspective, an innovation must be defined as having sustainable profit potential, beyond pure windfall profits, and "one-shot" deals.

Healthcare organization can be characterized as a service type.  Innovations matter in medical services because innovative solutions and improved quality of services influence customer’s loyalty and satisfaction. An environmental change demands that medical and healthcare services cut costs and improve their service. Innovations influence the strategic choice of healthcare institutions and their approach to health. It is combined with the presence of profound knowledge, innovative behavior, and strategic thinking, that opportunities become identified. If the new venture idea is based on a "new-to-the-world" product or service, then by definition it is unlikely that the entrepreneur will be experienced with the marketplace or how to market the product/service involved. In healthcare innovations help to improve the process of treatment and reduce work overload. Innovations help medical professionals to increase quality of services and introduce new strategies in traditions environment. Innovations help healthcare organizations introduce new product such as immediate blood testing devices and new types of durable contact lens. These different segments may offer distinct network assets that include resources, monetary (prestige) rewards, and contributions to personal growth and development. In this regard, networks become value-added contacts.

An online book store can be defined as a selling company operating in the virtual environment. For this type of organization, innovations define a market position, that is, a field of activity in which a company is competitive beyond the short run, and able to reap a profit. is the best illustration of this organizational type. For the online book store, a market position can be viewed both from its value context and from the perspective of competition. A market position is supported by a combination of resources, and obviously a market position is only sustainable if the underlying resource combination is competitive. From the perspective of strategic marketing, competitive advantage is normally seen as the domain of business strategy, that is, at the product/market (industry) level, because direct competition takes place at this level. The online book store has to take into account environmental changes and an important role in the creation of opportunities, and profound knowledge in virtual industry. By strategic innovations managers mean the intuitive ability to understand the dynamics of market structures, competition, customer needs, timing, synergies, and the like. It is an ability to proceed with tentative, incomplete information, always leaving one's options as open as possible, waiting for the right moment. Formal strategic planning (with its emphasis on analysis) was only used in two of the case companies and only in the later stages in the life cycle as a matter of setting priorities and securing coordination. For online company, innovations should be considered as an art and a science. Innovations cannot exist without scientific explanations and economic theories (related to price, market structure and wages, etc). Thus it requires unique and pioneering application of traditional concepts and theories. As the markets change, or the services matures, the role set also shifts. To continue successfully, the entrepreneur must adjust to the emerging managerial role by learning new behaviors. Unfortunately, Innovations that once were adaptive may now interfere with the changed expectations. Each party to the online interaction seeks to maximize outcomes, whether these be social or economic.

Related essays

  1. Demerits of Offshore Drilling
  2. Transformation of CFO
  3. Natural Disaster
  4. Internal Alignment
Chat with Support