Implementing and Adopting Innovation: Case Study of Skype

Implementing and Adopting inception Case muse of SkypeThe present identification focuses on a real line of descent postal run which involves the implementation and espousal of transmutation. The face accept is comprised of four primary separate which explore the military operation of initiation ontogeny, the conjure uprs of transmutation, the subjective and outside(a) reaction inwardly business line picks and the likely strategic implications and business model for further breeding which thr genius be proposed. In this respect, the assignment explores Skype as an example of business organisation which aggrandizes mental hospital on a continuous basis and the mixed strategic implications to which this behaviour is associated.Skype is an information communication technology (ICT) which is unmatched of the just about popular merchandises used by different consumer segments in the move of communicating over the Internet. This syllabus provides users with th e opportunity to communicate and interact via a let loose cost channel. The familys growth is promoted by the continuous internationalisation and globalisation of grocerys. Moreover, non still continuous internationalisation inclines the increase of Skype, but Skype itself tramp be seen as a promoter of globalisation removal of market and do chief(prenominal) boundaries.In this context, Skype has grown through the continuous application of additive institution. The political party has been adopting advance(a) applications and targeting different customer segments through the proceedss and run provided. However, the present assignment would non scarcely explore these strategy onslaughtes to fighting but in general focuses on the organisational and structural psychiatric hospital of Skype. The report particularly focuses on the learnedness of Skype by E-bay and the organisation implication this has. form Pal as other integrative part of this acquirement is also presented and discussed. mental institution Characteristics asylum forethought and culture has grown as genius of the just about popular palm in spite of appearance social sciences. It has attracted the interest of scholars for many years. For example, Schumpeter (1950) who is the initiate inside the suss out proposes that turn is the development of a fresh solution which alters past perceptions. Schumpeter (1950) characterised the process of smartty development with the concept of fictive destruction explaining that conception restructures the path past patterns are perceived through the implementation of figmentty (Hospers, 2005). However, it is prerequisite to be outlined that innovation is not only characterised by its novel characteristics but by the commercial importance which it has (Tidd et al., 2005). In other words, an sophisticated solution is both new and applic suitable to the respective market. by from the in a higher ass mentioned characterist ics, it is also chief(prenominal) to be outlined that innovation piece of ass be foster in different forms and degrees. For example, innovation abide be seen in the first place as incremental and radical (Afuah, 2003). Incremental innovation occurs when little novel changes are applied within an organisation (Tidd et al., 2005). It is oft that incremental innovation is practice on a continuous basis and thus is cognise as a process of continuous improvement which has applications in companies as Toyota and their total quality steering (TQM) core strategic values (Afuah, 2003 Bessan and Francis, 1999). opposition to the incremental innovation, the radical one is characterised with profound changes within an enterprise (Francis and Bessant, 2005).Apart from the degree of modernisticness, it is also authorised to be outlined that business organisations bath exploit different types of innovation. The academic lit chiefly outlines two main types much(prenominal) as produc t and process innovation (Boer and During, 2001 Damapur and Evans, 1984). As it washbowl be logic entirelyy proposed ground on the names, the product innovation mainly concerns the products and the process innovation is implemented within the business processes to promote might and effectiveness (DiLiello and Houghton, 2008). However, apart from product and process innovation, organsiational innovation is also seen as another essential type.In this context, the present analysis is specifically focuses on organisational innovation in the cuticle of E-Bays acquisition of Skype and how this affected to the unwashed organisational sophisticatedness. The organsiational innovativeness is mutual as this acquisition has affected both parties in a unequalled way (Hof, 2005). However, it should be also underlined that as E-bay has adopted and largely promoted the payment platform Pay Pal therefore the implications which Pay Pal has on Skype should be also considered (Vitzthum and Konsy nski, 2009).The organisational impact which this acquisition has on Skype is substantial. On the one hand, Skype has been having meaning(a) popularity in Europe and Asia but escapeed high film in the large Ameri raft market. In this respect, as E-bay is one of the track e-commerce platforms n the US therefore Skype would be able to benefit for such co-operation. However, the innovative characteristics of this venture do not come from the change magnitude market exposure but from the integration of three different business models Skype, E-bay and Pay Pal. This can be determine as a clear example of Schumpeters fictive destruction, when old and orthodox patterns are substituted by novel behaviour (Hospers, 2005 Schumpeter, 1950).Furthermore, the characteristics of this organisational innovation not only should be identified within the structural implications only but also in relation to national business picks. For example, organisational innovation promotes the interaction b etween different groups of employees which as a return increases the creative cap dexterity of the enterprise overdue to continuous knowledge-sharing and estimate generation (Tushman and OReilly, 1997). This is the spring why, through this acquisition, Skype not only does gain the opportunity to get popularised within different markets but also benefit from the exchange of insight. Human resource way and in particular the collaborative fareance of employees is essential to the forwarding of innovation (Dodgson and Rothw, 1994). In other words, organisational innovation can promote the development of other types of innovation, such as process and product innovation as part of the versed collaborative processes.Triggers and Promoters of the InnovationThe triggers and promoters of innovation can be divided into internal and external ones. The internal triggers in the present case are the desire of E-bay and Skype to grow in greater capabilities and competitiveness within divers e markets. As it was already outlined Skype had good exposure in Europe and Asia but lacked the same success in United States (Vitzthum and Konsynski, 2009). On the contrary, Skype as a salient(ip) e-commerce platform in the US lacked significant exposure to European and Asian consumers as opposite to the intensive tax generation in nary(prenominal)th America (Amber, 2000). Furthermore, the third element in this partnership, Pay Pal at the time of the merger was still in the beginning of its growth and therefore this collaboration looked highly positive to Pay Pals increased business capabilities and market r to each one.Apart from the internal drive which is ever a highly influential promoter of innovation and business competitiveness, the external environment can be suggested to be another substantial remark to this acquisition. For example, globalisation and the continuously intensified communication between international customers influence technical development and therefor e information and communication technologies as Skype be eat substantial opportunity to grow. Furthermore, another important trigger to the organisation is the increased market competitiveness. The adoption of innovation is generally associated to both positive and interdict external sources. As it is in the present case, these are the market opportunities which the acquisition provides and the industrial competitiveness and threats which may have negative impact on the performance of the organisations.The internal and external sources of innovation, however, should not be perceived as ultimately separate entities. For example, the internal strengths of a business contribute to the business ability to exploit external opportunities and overcome external threats. In this respect, the resource based descry (RBV) theory can be used as an analogue, suggesting that a theatres strength derives from its internal dynamics and this promotes business continuous competitiveness (Barney, 20 01). In the present context, it can be proposed that the current case of organisational restructuring and innovation affects the increased resource capabilities of the business and thus promotes the ventures greater competitiveness.Reactions to the Adopted InnovationAs Joseph Schumpeter suggests, innovation is a phenomenon which causes disruption and change (Hospers, 2006 Schumpeter, 1950). This is the mind why, innovation and all processes related to its adoption creates certain internal and external reaction. In the present case, the reactions of E-bays acquisition of Skype and integration of Pay Pal cannot be assessed but from internal perspective as the author of the present report cannot entre this internal information. However, there are certain outcomes which can be clearly prize in the academic literature which can be conceptually and theoretically integrated in the current analysis. unity of the primary reactions which can be identified in the internal environment of a caller-out when innovation is adopted is the rejection by employees to accept the proposed change (Hiatt and Creasey, 2003). This is particularly parking lot in the cases of organisational restructuring which is resulted by mergers and acquisitions (Fedor and Harold, 2004). Employees perceive this as a run a risk to their public tone and job stability. However, the present acquisition cannot be recognised with any major physical and structural transformations and therefore it may not have had such a substantial impact over employees.Another reaction which can be identified with such a horizontal diversification and organisational innovation is seen within the external context and in particular in customers and competitors (Cook, 2004). For example, customers sound interested in the collaborative propositions which the brands are likely to provide. For example, Skype has been continuously innovating and applying near incremental innovations and improvements due to the wide r market share the company is exposed to. This is the reason why, Skype has developed various video and communication application within its platform to fit the necessitate of ternary customer segments. This is true innovation, not only it needs to be novel but it also need to have commercial and market value (Damanpour, 1991). strategical CharacteristicsThe present case reveals an innovative organisational situation the acquisition of E-bay of Skype. This is an approach of horizontal diversification by E-bay which not only does have substantial impacts on E-bay but on Skype as well. This is an example of the interconnectivity of innovation it cannot be conducted in closing off and it has effect on fivefold business aspects. For example, the organisational innovation resulted in Skypes producing a continuous incremental innovation, developing and introducing new applications to fit the needs of various segments. The platform introduced multiple video streaming which is highly a pplicable to ordinary users, families and business conferencing. This multiple application of innovation is exactly the purpose and value of the phenomenon.It is important to be underlined that innovation is a powerful source of competitiveness but it needs significant internal commitment. This is the reason why, leaders can be recognised as essential promoter of innovative behaviour. Leadership is the process which motivates and inspires organisational commitment. In the context of incremental innovation, employees need to be continuously committed to promote the innovative performance of the business.Leadership, however, should not be confused with management as these are different approaches to the great unwashed management, development and co-ordination. direction can be explained as the process of executing business processes and operations in an in force(p) manner whereas leadership is the approach of doing the right things identifying solutions where no structure directio n exists. This is the reason why leadership is needed to stimulate employees commitment to innovation (Alves et al., 2007). People management and team work are essential to innovation development as this process stimulate idea generation and knowledge sharing between different individuals which is synthesised in the creation of a novel and meaningful solution.ReferencesAfuah. A. (2003) Innovation Management. (2nd ed.) Oxford Oxford University Press.Alves, J., Marques, M., Saur, I. and Marques, P. (2007) Creativity and Innovation through Multidisciplinary and Multisectoral Cooperation, Creativity and Innovation Management, Vol. 16, no. 1, pp. 27 34.Anon (2008) exchange management and employee motivation the fit act online. operable from http//www.articlesbase.com/recruitment-articles/change-management-and-employee-motivation-the-balancing-act-672944.html Accessed 04/05/11Barney, J. (2001) Is the Resource-Based Theory a Useful Perspective for Strategic Management Research?.Yes., ledger of Management, vol. 17, no. 1, pp. 99 120.Barney, J., Wright, M. and Ketchen Jr., D. (2001) The resource-based view of the firm Ten years after 1991.,Journal of Management, vol. 27, no. 6, pp. 625 641.Bennet, B (2009) Change management Motivation online. Available from http//billbennett.co.nz/2009/09/16/change-management-motivation/ Accessed 04/04/11Bessant, J. (2003) High Involvement Innovation. Chichester John Wiley Sons.Bessant, J. and Francis, D. (1999) evolution strategic continuous improvement capability, supranational Journal of Operations toil Management. Vol. 19, No. 11, pp. 1106 1119.Boer, H. and During, W.E. (2001) Innovation. What innovation? A comparison between product, process and organisational innovation, International Journal of Technology Management, Vol. 22, No. 1/2/3, pp. 83 -107.Cook, S. (2004), Change management excellence using the four intelligences for successful organizational, Kogan Page Publishers. Available from http//books.google.co.uk/ books?id=Y9BcWvY-0SMCprintsec=frontcoverdq=change+managementlr=v=onepageq=f=false Accessed 04/03/11.Dahlgaard, J. J., Kristensen, K. and Kanji, K. G. (1998) Fundamental of Total type Management. London Chapman Hall.Damanpour, F. (1991) organisational Innovation A Meta-Analysis of Effects of Determinants and Moderators, The Academy of Management Journal, Vol. 34, No. 3, pp. 555 590.Damanpour, F. and Gopalakrishnan, S. (2001) The Dynamics of the Adoption of Product and Process Innovations in Organizations, Journal of Management Studies, Vol. 38, No. 1, pp. 45 65.Dewar, D. R. and Dutton, E. J. (1986) The Adoption of Radical and Incremental Innovations An empiric Analysis, Management Science, Vol. 32, No. 11, pp. 1422 1433.Fedor and Harold (2004) Effects of Change and Change Management on Employee Responses An Overview of results from multiple studies online. Available from http//www.cpbis.gatech.edu/research/workin g_papers/CPBIS-WP-04-02%20Herold_Fedor_Change%20 Management%20Fal l%202004.pdf Accessed 04/04/11Francis, D. and Bessant, J. (2005) Targeting innovation and implications for development, Technovation, Vol. 25, No. 3, pp. 171 183.Hiatt, J and Creasey (2003) Change management the people side of change, Prosci. Available from http//books.google.co.uk/books?id =zQTy8mk8kZYCprintsec=frontcoverdq=change+managementv=onepageq=f=false Accessed 04/04/11Hof, R. (2005) Why ebay is buying Skype, Businessweek. Retrienved 10/09, form http//www.businessweek. com/the_thread/techbeat/archives/2005/09/why_ebay_is_buy.html. Accessed 05/04/11.Hospers, J. G. (2005) Joseph Schumpeter and His Legacy in Innovation Studies, Knowledge, Technology Policy, Vol. 18, No. 3, pp. 20-37.Robinson, A. (1991) Continuous Improvement In Operations. Cambridge Productivity Press.Schumpeter, J. (1950) Capitalism, Socialism and Democracy. (3rd ed.) naked York harpist Row.Leede, de J. and Looise, K. J. (2005) Innovation and HRM Towards an Integrated Framework, Creativity and Innovation Management, Vol. 14, No. 2, pp. 108 117.Tidd, J., Bessant. J. and Pavitt. K. (2005) Managing Innovation. (3rd ed.) Chichester John Wiley Sons Ltd.Tushman, M. L. and OReilly, C. (1997) kind through Innovation A Practical Guide to Leading Organizational Change and Renewal. Boston Harvard Business School Press.Van de Ven, A. H., Polley. E. D., Graud. R. and Venkataraman. S. (1999) The innovation journey. New York Oxford University Press.Vitzthum, S. and Konsynski, B. (2009) EBAYs Acquistion of Skype SA Valuing the Voice of the Buyer, The Communications of the Association for Information Systems, vol. 24, no. 6, pp. 89 104. put off of ContentsReferences 9Introduction to the Case studyThe present cases study focuses on orchard apple tree which is one of the leading and most innovative producers of technologies and cheer devices. The company is continuously growing in size and is attracting greater market share. In this respect, the analysis focuses on the particular product and serv ice innovation which are provided by the organisation to sustain continuous competitiveness. It is essential to be underlined that product and process innovation should not be perceived as separate entities (Afuah, 2003). It is often that business organisation incorporate both product and process innovation as interconnected elements of a mutual strategy of industrial competitiveness (Francis and Bessant, 2005).It should be also underlined that often, process innovation is bear on as a natural outcome of product innovativeness, it appears as a logical and complementary derivative. It is also important to be mentioned that the present case study focuses on another essential element of the development and approach of innovation, such as business leadership. It specifically focuses on the companys most prominent decision-maker and leader Steve Jobs, and analyses his approaches to business management and innovation leadership.Innovation Types and CharacteristicsAs already revealed in the previous case study, innovation is a popular phenomenon which open up Joseph Schumpeter describes as the process of creative destruction. In other words, innovation is a novel solution which has commercialised applicability and significant market value (Hospers, 2005 Freeman and Soete, 1997 Kleinknecht and Mohnen, 2002). This definition clearly describes the innovation which is produced by apple, one of the leading proficient innovators. The company utilises a number of innovative products in its iPhone, iPad and iPod serial publication of entertainment products.The innovative performance of the organisation can be recognised as highly distinctive. The company utilises and merges different types and degrees of innovativeness. The academic literature describes in the first place two types of innovation such as, product and process innovation (Storey, 2000). However, often companies can utilise a mix of the two as it is in the case of Apple. The company has popular products a s iPad, iPod and iPhone which are complemented by the innovative platform iTunes where users can download music and create playlists to play on their iPods. Moreover, there are hundreds if not thousands of applications which are created by Apple software program developers which are downloaded and used on any of the iPad and iPhone devices. This is an example of how the company engages customers through a full life cycle they are provided with innovative products and service from the save brand which ensures long-term dedication and re-purchase (Iacobucci and Calder, 2003 Kotler and Keller, 2008).The innovative management of products and services at Apple has been led by a management and leadership approach which can be identified with high level of confidentiality, hiding and partial isolation. Contrary to the conceptual understanding in the academic literature that innovation is stimulate through continuous knowledge sharing and idea generation, Steve Jobs promoted an environ ment of micro-management and high level of internal control. However, this has led to paradoxical results Apple is continuously generating market share, profitability and above all customers loyalty (Daft et al., 2010).One of the explanations for this outcome can be related to the resource based view theory. Similarly to the previous case study on Skype and E-bay, Apple seems to be also taking advantage of the strength of its internal resources. The resource based view theory suggests that a companys success is derived from the uniqueness and competitiveness of its internal resources (Johnson and Scholes, 2008).This approach is closely related and relevant to the leadership and management initiatives practiced by Apples main decision-maker Steve Jobs.Jobs approaches to people management can be identified and strict but with high level of fairness. However, this leadership and management approach sustains certain risks as too much of micro-management and strictness may falling off employees creative thinking and innovative capabilities (Daft et al., 2010 Goleman, 1998). Employees are essential source to innovation development and therefore people management should stimulate an environment which promotes the expression of employees creativity and innovativeness, such as team work knowledge sharing initiativeness risk taking company and market wide exposure (Rogers, 1995 Tushman and OReilly, 1997 Van de Ven et al., 1999).Innovation Promoters and ObstaclesOne of the primary promoters of Apples innovative capabilities is the significant strength of internal resources and capabilities. In other words, in order for a companys resources to be considered as contributing(prenominal) to the overall business competitiveness and innovativeness they need to be rare, unique and valuable not only to the particular organisation but to the market place (Barney, 2001). In this respect, the internal resources which are in possession of Apple perform in a highly competitive ma nner.In this context, one of the great promoters of the companys innovativeness is the leadership approach conducted by Jobs which focuses on growth of internal technological capacity and utilisation of internal employees skills. However, it should be underlined that this type of leadership and internal management can lead to certain problems in the company. On the one hand, the substantial commitment practiced by Jobs is a clear index of a strong leadership (Day, 2000 Gill, 2006). He is devoted to the wellbeing of the company and therefore he often practices micro-management.However, on the other hand, this micro-management approach can result in certain difficulties and obstacles to the production of innovation. This can reduce employees granting immunity to be creative and innovative, to take initiative and risks in their decision-making which are all important components in the process of innovation management and development (Daft et al., 2010 slake et al., 2007 Tidd et al. , 2005).Reactions and Restrictions to InnovationThe reaction to Apples innovation can be divided into internal and external. The internal reaction is related to employees performance to the development and introduction of innovation. In the present case, Jobs is one of the primary stakeholders in this process of innovation development which can be suggested to restrict employees commitment to the process of innovation development. As it was already outline, innovation development is a process which requires a people management approach which stimulates employees creativity and innovativeness (Alves et al., 2007 Storey, 2000).Furthermore, especially in the case of a cumulative product and process innovation, employees need to be provided with company-wide exposure (Leede and Looise, 2005). In the present case, however, the manger of the company restricts employees involvement in multiple processes. This restricts the ability of employees to get inspired by different departments, resp onsibilities and ideas. This is fundamentally important to the process of idea generation and creative destruction, when old patterns and thinking habits are substituted by innovative solutions (Hospers, 2005).Another essential restriction which needs to be clearly outlined is the industrial isolation of Apple as compared to other brands. In other words, it can be suggested that Apple refrains from collaborating with other industrial players. On the one hand, this protection is needed in the cutting edge technological industry. On the other, hand, however, Apple misses out on opportunities for strategic partnerships, co-operative research and development, and industrial collaboration (Drucker, 1991). These are all essential components for the continuous and successful adoption of innovation. In other words, in order for a company to be able to produce product and process innovation it needs to have substantial exposure to the industry and market trends (Dodgson and Rothw, 1994).In t his context, as it can be identified from Apples comparative industrial isolation which is product of Jobs autarchy management may result in certain long-term risks and negative internal and external reactions. For example, employees motivation may decrease due to the lack of responsibility, ownership and team work to which they are exposed. This is the reason why, employees may croak passively aggressive and thus cease being productive due to undermined professional morale. However, it is also important to be outlined that this operational isolation may also have impacts on the industrial competitiveness in the sector. Other technological companies may embrace a copy-cat approach and adopt Apples innovation, therefore Apple will face increasing competitiveness sooner than fruitful industrial partnerships (Ettlie, 1999 Kleinknecht and Mohnen, 2002 Kotler and Keller, 2008).Strategy Development and LeadershipAnother important issue is the strategic development and continuous leaders hip approaches of the company. Apple is one of the leading providers of entertainment technological devices. The company utilises both product and process innovation which provides them with the opportunity to attract greater customers interest and stimulate customers loyalty which is essential to sustaining continuous revenue generation (Groucutt et al., 2004 Kotler and Keller, 2008).Apart from the combination of product and process innovation, it is interesting to be outlined that Apple also utilises different degrees of innovativeness. The academic literature outlines two primary degrees of innovative impact, such as radical and increment (Bessant, 2003). In this respect, the radical innovation produced by Apple can be recognised in the highly innovative devices which it produces.For example, the transmutation from walkman and CD player music devices to Apples iPod is radical. In the same sense it is the companys iPhone which is pioneer of the smart phones in the industry. Howev er, this radical innovativeness is also accompanied by incremental novelty Apple produces different upgrades on the devices and new models are released each year. This type of industrial performance has highly influential marketing impact. In other words, customers are continuously engaged with Apples novel propositions and therefore their life time purchasing is extended (Hollensen, 2007).Another essential aspect of the management of the company is the leadership approach which is applied by Steve Jobs. As it was already identified, the decision-maker focuses on the management of an authoritarian approach of managing employees. This causes certain internal covert and business isolation. Although, secrecy may be justified as important and necessary condition to survive in the high-tech industry, business isolation cannot be recognised as a positive outcome especially in the context of innovation management (Francis and Bessant, 2005).Finally, the personal approach to management an d micro-management deployed by Jobs is also another leadership choice which can be criticized. In other words, through his leadership approaches, Jobs does not promote and sustains cerebral capital within the organisation. For example, if he conks the company all the ideas, rules, processes and perceptions will leave with him. The primary contributor to this unfavourable outcome will be the trim back engagement of employees on a company-wide level. Apple is currently one of the most innovative companies in the market but the business innovativeness needs to be continuously sustained and updated in order for the company to be able to adequately serve the needs of customers.