The Management of Innovation Essay Example | Topics and Well Written Essays - 3000 words

The Management of Innovation - Essay Example .. the act that endows resources with a new capacity to create wealth† (Drucker, 2011). Considering the growing importance for innovation, this paper aims at identifying three organisations from a single industry and to study and analyse the innovation attempts by these companies. Chosen Industry and Companies: The industry chosen here is the IT and Computing Industry. The chosen companies here for this study include a) IBM, b) Microsoft and c) Google. The main reason to choose this industry is the every changing market for these products and services. Also, IBM, Google and Microsoft are multinational companies with a wide presence across the globe hence these are the best companies to be studied for their attempts and approaches towards innovation. Industry Analysis: Several studies have confirmed over the past few years that innovation is becoming an important aspect of the businesses. Almost 90% of the businesses treat innovation as a priority and this has led to a significa nt increase in the innovation and the need and importance of innovation (Shukla, 2009). It has clearly been noted that innovation has a major impact on the strategic planning in the industry and is also a major factor in wealth creation as well. The information technology industry as a whole is an ever changing environment. According to Peter Drucker, a company which is unable to innovate in the current age of necessitating innovation then the company can face decline and extinction. The information technology industry is one where the companies need to be able to be innovative to be able to compete in the markets. A recent issue in the IT industry was where Microsoft has been faced with a high pressure due to the new Apps created by Google. Microsoft owns as much as 33% of the total markets and the company caters to a majority of the market (Vellante, 2010). Studies have also shown that the determinants of innovation and productivity are mainly competition. The IT industry has a hi gh level of competition and everyday one business or another seem to innovate something new, products, services or even new business systems. As very well identified by Peter Drucker, innovation is generally based a few main factors. Each of these has been discussed in brief in relation to the IT industry. Firstly, every company in the IT industry has faced several unexpected successes and failures. These as explained by Drucker is one of the few reasons and also an opportunity for companies to adopt innovation. Secondly, as seen the IT industry is one which has a constantly changing market, demographics and also market structure. Hence when a company is a part of this industry it is crucial that innovation is focused upon. Also, with the current knowledge and information based world, customers are looking for the best and latest options and prefer to have more innovative options rather than the old products and services with no improvements (Luebke, 2010). Hence a company participa ting in the IT industry requires innovating not only to meet these new knowledge needs but also to be able to develop and sustain itself in the industry against the competition. Hence considering these factors and elements, it is crucial to be innovative and to device innovative products and serv