Organizational Innovation is a process of receiving and using new ideas to satisfy the stakeholders of an organization. It is the conversion of new knowledge into new products and services. Organizational Innovation is about creating value and increasing efficiency, and therefore growing business. It is a spark that keeps organizations and people moving ever onward and upward. “Without innovation, new products, new services, and new ways of doing business would never emerge, and most organizations would be forever stuck doing the same old things the same old way. “Innovation here is defined broadly, to include both improvements in technology and better methods or ways of doing things. It can be manifested in product changes, process changes, new approaches to marketing, new forms of distribution, and new conceptions of scope.” (Porter, 1990, p. 45) The term organizational innovations covers a wide spectrum of innovations; for example, it can mean innovations in Continue reading
Modern Management Practices
Shareholder Wealth Maximization Vs. Stakeholder Interest
Until now, the discussion between shareholder value perspective and stakeholder perspective has still been argued critically. Some people think that stakeholder interest should be superior over shareholder wealth maximization, but others argue that shareholder wealth maximization should be the prime concern. However, it is obvious to realize that shareholder wealth maximization is the objective of a firm and shareholder wealth maximization should be superior over stakeholder interest in the concern of the both shareholder interest and stakeholder interest. Firstly, it is necessary to understand some definitions of shareholder, stakeholder and the theory of shareholder and theory of stakeholder. Why there has been many debates between two theories ? Shareholder is an individual or corporation owning stock in a public or private company. Shareholder decides the membership of the board of directors by making a vote. Maximizing shareholder wealth means maximizing the flow of dividends to shareholders through time – there Continue reading
The Concept of Co-Sourcing
New methods of outsourcing are today redefining the way of working. Co-sourcing is a situation of partial outsourcing, in which a business function or process is performed by both internal staff and by an external party or external resources, such as consultants or outsourcing vendors, with specialized knowledge of the business function. Compared to full outsourcing, for the traditional owner of the processes, co-sourcing has advantages of staying in control, a non-transactional partnership and the ability to grow the own knowledge level of the co-sourced process. One such way is co-sourcing which is an investment relationship marked by shared objectives, shared risks and shared rewards between two companies, one of which is a service provider. Specifically, the service provider would have to help restructure the company and be willing to make new investments, while driving out costs from the co-sourcing company’s existing ways working. Although it may seem similar to Continue reading
What is Customer Analytics?
Data in any form is considered as the new gold in the 21st century. Organizations that primarily focus on data-driven approaches have the potential to be ahead of their respective game. One of the important and core objectives of any company would be to maintain a solid and strong relationship with its customers, understanding them and providing them what they want. Customer Analytics is this field of analytics, where one dives deep into the consumer data and brings about useful insights on their clients. Customer Analytics finds its utmost use in the marketing as well sales departments where the customer data is the key to understand the customer behavior for them chart their marketing as well advertising strategy. Customer Analytics supports business decision-making through targeting specific groups based on income groups, age groups, and customer segmentation as understanding customer groups would help the businesses to create more strong strategies for Continue reading
DSMC/ATI Organizational Performance Improvement Model
Out of the organizational performance improvement planning process come specific performance improvement interventions, tactics and techniques. Note that these interventions happen at five checkpoints. Upstream systems, inputs, process, outputs and downstream systems. Quality management efforts must be defined relative to these five checkpoints. In effect, transformation and continuous improvement efforts are commitments to a practice of managing all five-quality checkpoints. The management team then develops, through the performance improvement planning process, a balanced attack to improve total system performance, not just system sub-components. After interventions are made to the system, measure, assess and analyze organizational performance at the five checkpoints to determine whether the expected impact actually occurred. Based on these data, make an evaluation relative to the business strategy, the environment (both internal and external), the vision, the plan and the improvement actions themselves. Note that the process of evaluation is separate from the process of measurement. In addition, Continue reading
Why do Firms Go Green?
Environmental issues have gained importance in business as well as in public life through out the world. It is not like that a few leaders of different countries or few big renowned business houses are concerned about the day to day deterioration of oxygen level in our atmosphere but every common citizen of our country and the world is concerned about this common threat of global warming. So in this scenario of global concern, corporate houses has taken green-marketing as a part of their strategy to promote products by employing environmental claims either about their attributes or about the systems, policies and processes of the firms that manufacture or sell them. Clearly green marketing is part and parcel of over all corporate strategy; along with manipulating the traditional marketing mix (product, price, promotion and place), it require an understanding of public policy process. So we can say green marketing covers Continue reading