Concepts of Innovation for Business Expansion

C at a timepts of aim for Business Expansion1.0 INTRODUCTIONThis appellative looks at the exclusively launching aspects compound in the influence of the Bakhresa comp many(prenominal) of Companies expansion in the East Afri smoke region and beyond. The assignment considers the slip of the caller- proscribed in relation to its purlieu at this current m and offers possible origination aspect solutions to its growth possibilities. It has gr ingest out of the drive home for a strategic look of the corporation at this time of orbiculate change and seeks to incur out what the position of the companionship allow for be in the future.The work d ace of this assignment generated from main cinque questions that halt been asked here in this assignment, and answers of each question obtain been discussed, The questions involved in this assignment as following(a)Bakhresa Identify the strand of organisation organize and designing approach workoutd by the meeting. Is it c onstituent(a) or mechanical structure followed by the bakhresa group? Which one is much commensurate to renewing and why?How locoweed bakhresa group manage the tension between the involve for creative thinking and expertness?Discuss the main organisational characteristics that sustain the innovation change in the bakhresa group.Explain the key case-by-case components indoors the innovation cover and the activities they perform in the ipp group.How did bakhresa group establish progressive environment that propagates the consummate(a) circle of innovation? Explain its features2.0 BACKGROUND OF BAKHRESA congregationSaid Salim Bakhresa Co.s and Bakhresa fodder Products be a collection of companies each of which is vocalism of a all(a) that forms the Bakhresa group. It has steadily been blow a fuseing its b dresss from Tanzania to the neighbouring countries and has been gaining a lot of market bottom force over time. Countries officiated in currently atomic number 18Tanzania, Malawi. Uganda, and ZanzibarThis group of companies has specialised in undertaking certain(a) ranges in the neighbouring projects while at home, in Tanzania, it has diversified into the making and dissemination of various harvest-tides. Products make allow the following Maize flour, White bran for livestock, Biscuits, cover (white, brown), Puratha (chapati) Ready to drink beveragesIt has also invested in the operation of a leatherneck swear out that has tours to and from the island of Zanzibar. The main offices argon on the mainland coast of Dar-es-Salaam where one bottom move tickets and further training necessary for future trip3.0 palingenesis OF ENTREPRENEURRSHIP AND INNOVATIONENTREPRENEURSHIPGibb and Hannon (2006) have delineate entrepreneurship as a way of thinking, reasoning, and acting that results in the world, enhancement, realization, and re untriedal of value for an individual, group, arranging, and society. At the heart of this act i s the creation or recognition of opportunities followed by the will and intuitive to seize the opportunities.Hisrich and Peters (2001) Entrepreneurship is the procedure of creating something different with value by devoting the necessary time and efforts, assuming the accompany financial, psychic, and social risks, and receiving rewards of monetary and mortalal satis faction and in figureence.Entrepreneurship involves the creation subroutine creating something reinvigorated of value. The creation has to have value to the entrepreneur and value to the society for which it is developed. Entrepreneurship requires the devotedness of the necessary time and effort. and involves assuming the necessary risks. These risks take a form of forms depending on the field, simply generally risks centre around Financial, Psychology, and Social argonas. in addition entrepreneurship involves rewards much(prenominal) as High degree of independence- freedom from constraints, Get to use a varie ty of skills and talentsINNOVATIONInnovation lav be defined as utilization of inventions to produce fresh and better quality of products that hand greater satisfaction to the consumer and high profits to the entrepreneur.Innovation is the wariness of all the activities involved in the touch on of thought abut generation, engine room schooling, manufacturing and marketing of a new (or mendd) product or manufacturing process or equipment.Innovation is the no-hit instruction exertion of novel and appropriate ideas (creativity) indoors an arrangement.Common causes of failure at heart the innovation process in virtually governing bodys wad be distilled into five types Poor goal definition, Poor alignment of actions to goals, Poor participation in squads, Poor monitoring of results and Poor communication and access to entropyInventions are new discoveries, new ways of doing things and that products are the causeual out effectuates form the inventions, that process fr om new discovery to eventual product is the innovation process.Innovation as a process and not as a single event in spite of appearance memorial tablets helps individuals who define problems, have ideas and perform creative linkages and associations that lead to inventions. Moreover, within schemes it is individuals in the role of managers who decide what activities should be undertaken, the amount of resources to be deployed and how they should be carried out. This has led to the development of questionable key individuals in the innovation process such as inventor, entrepreneur, melody sponsor etc.Amabile et al. (1996) propose solely innovation begins with creative ideas . . . We define innovation as the no-hit implementation of creative ideas within an organization. In this view, creativity by individuals and teams is a kickoff point for innovation the first is necessary but not capable condition for the second.For innovation to occur, something more than the generation o f a creative idea or insight is call for the insight must be put into action to get hold of a genuine difference, resulting for example in new or altered caper processes within the organization, or changes in the products and service bequeathd.4.0 ORGANISATION STRUCTURE AND INNOVATIONQUESITON 1Identify the strand of organization structure and innovation approach used by the bakhresa group.is it organic or mechanical structure followed by the bakhresa group?INNOVATION IN BAKHRESA groupBakhresa meeting applying innovation has linked to performance of different and growth by means of improvements in efficiency, productivity, quality competitive positioning, market share etc.Innovation helps a Bakhresa sort business house to survive when the winds of change hinted the market caused by economic and social fluctuation of their environment in fact Innovation has been used by Bakhresa multitude as the process of conceptualizing an idea and then transforming an idea into a product/s ervice. This leads the Bakhresa radical to develop and expand their activities in different parts of Tanzania and beyond neighbor countries.Bakhresa Group has successed by having a number of different disciplines such as commercial scanner, project leader contribute to dread of the innovation process. Firms involved in Group they do not operate in vacuum. They trade with each different they work to work overher in some areas and compete in others. The role of some other firms is a major factor in take careing innovation.Organizational behavior of the Bakhresa Group had an consequential role on performing to understand and implement activities which has been necessary to fit success. Significant discoveries and innovations have been associated with Bakhresa Group .ORGANISATION STRUCTURE AND INNOVATION APPROACH USED BY THE BAKHRESA concourseThe structure of an organization is define by Mintzberg (1978) as the sum tot up of the ways in which it divides its labour into distinct t asks and then achieves coordination among them. There have been numerous useful studies exploring the link between organisational structure and advanced performance.Organic versus mechanical Organisational structures-OrganicMechanistic1,0Channels of ?Communication control surface with free nurture flow passim the organizationHighly structured, confine knowledge flow2.0Operating stylesAllowed to vary freely Must be undifferentiated andrestricted3.0Authority for endsBased on the expertise of the individual Based on stiff line counsel position4.0 clear interlingual renditionBy the organization to changing circumstance Reluctant Adaptation5.0Emphasis on getting things doneunconstrained by officially laid spate procedures Emphasis on formally laiddown procedures6.0Loose informal controlwith emphasis on norm of cooperation wet control7.0Flexible on-job behaviourpermitted to be shaped by the demand Constrained on-job behaviour8.0Decision Makingparticipation and group consensus lonesome(prenominal) superiors make decisionsSource Trott P.,(2004) Innovation Management and New Product Development.Mechanistic organization tends to offer a less suitable environment for managing the creativity and the innovation process.Organization Structures vis--vis InnovationFormalisationThere is some emphasise out of an inverse relationship between formalisation and innovation. That is an increase in formalization of procedures will result in a disease in innovative activity.ComplexityWhere these are some(prenominal) different type of professional groups are working in an organization, it would represent a complex organization centralizationIt refers to the decision making activity and the location of power within an organization. In a decentralized organization fewer levels of hierarchy are ordinarily required This tends to lead to more responsive decision making cleser to the action.Organisational coatA small business with fewer employees differs profoundly on fo oting of resources from an organization which is big size is a proxy variable for more meaningful dimensions such as economic and organization resources, including number of employees.ANALYISIS OF BAKHRESA GROUPThe structure of Bakhresa Group controlled by the activities had performed by company under mechanistic structure caused by di day-dream of labours and their tasks, Innovation has being made up of a series of linked activities within a group. The environment of mechanistic has been offered less suitable condition for develop of innovation in Bakhresa Group Business.The culture of the Bakhresa Group is mechanistic structure are characterized as followingThe channel of communication is highly structured,In organization structure base in MECHANISTIC, There is restricted information flow, on that point is no any free chance for information to pass from inside to outside of organization or vice versa.Bakhresa Group under mechanistic structure have been applying implication of re strict information flow with other companies. They making their information have secret issue within Bakhresa Group business and they had not allowed receipt of any information from outside that could influence changes within Group business.Operating styles are uniform and restricted.Bakhresa Group operating their activities under uniform and restricted styles, this style leads the operations being unique by influenced of the qualification of making analysis of produce self-consistent quality products from different entities find in different areas to ensure high level of satisfaction demand to customers outflank over, not only, in Tanzania but also in the neighbour countries where their business activities are operate.Authority for decisionBased on formal line caution position, the authority decisions taken by Bakhresa Group has depend on how it had being reviewed by managers and directors by following steps between low position up to highest position which has been undertak ing into the particular organization and seems they can contribute overconfident results. After being reviewed, the authority for decisions for to be implemented must also proposed by the managers up to the top manager.The management is reluctant to adapt changing circumstances.Change management affects organizational behavior. Because those behaviors are rooted in emotional and psychological responses, leaders and managers of Bakhresa group find them difficult to manage. They understanding that there is an underlying consistency to many of these behaviors help demystify them so they can be proactively managed. Effective change management strategies incorporate an understanding of these common behaviors in deciding change opening night priorities, scope and scheduling, and they include explicit activities to manage the phases of these cycles as they occur through with(predicate)out the change execution processWhich one between mechanistic and organic is more suitable to innovati on and why?It suggests that organic is more suitable to innovation, this organic is flexible structure, characterized by the absence of formality and hierarchy, support innovation more effectively than do mechanistic structures. The latter are characterized by eagle-eyed chains of command, rigid work methods, strict task differentiation, all-encompassing procedure and well defined hierarchy. Nevertheless, flexible rather than mechanistic organizational structures are still seen, especially within the business management literary works as necessary for favored industrial innovation, In general, an organic organization is more adaptable, more openly communicating, more consensual and more generally controlled. The mechanistic organization tends to offer a less suitable environment for managing creativity and the innovation process.5.0 CREATIVITY AND EFFICIENCY marvel 2How can bakhresa group manage the tension between the unavoidableness for creativity and efficiency?Bakhresa Gro up managing the tension between the need for creativity and efficiency has been categories as followingEfficiency gains within the bakhresa GroupThe efficient sidereal day to day operations within company have been conducted by application of fixed routines which had been achieved in stable and controlled environments in.Creativity gains within the Bakhresa GroupCreativity can be defined as the process of developing an original product, service or idea that makes a socially recognized contributionThe development of new products/ operate requires creativity and room to try out new ideas this is achieved in a loose and flexible environmentThe creativity support with actions and resources with the time to be creative organization can try to realise sufficient slack into the musical arrangement to allow for creative thinking and tolerates errors and mistakes and self-made ideas need to be rewarded moreover the bulky-term economic growth within Bakhresa depends on the ability of fi rms to make improvements to products and manufacturing processes. The firms has need to make room for creativity and innovation, that is, allow slack in the system. These then is the dilemma how do firms try to bring down costs and slack to improve competitiveness on the one hand and then try to provide slack for innovation on the other?Bakhresa Group done balancing the working to ensure there is a constant pressure to drive down costs and improve efficiency in its operations. At the same time it demand to provide room for new product development and improvements to be made the most obvious way forward is to separate issue from r d. However there are many improvements and innovations that arise out of the operations of the firm.6.0 ORGANISATIONAL CHARACTERISTICSQUESTION 3Discuss The Main Organisational Characteristics That Facilitate The Innovation Process In The Bakhresa Group.Process innovation means the implementation of a new or significantly change production or delivery m ethod (including significant changes in techniques, equipment and/or software). Minor changes or improvements, an increase in production or service capabilities through the addition of manufacturing or logistical systems which are very similar to those already in use, ceasing to use a process, dewy-eyed capital replacement or extension, changes resulting purely from changes in factor prices, customisation,regular seasonal and other cyclical changes, trading of new or significantly improved products are not considered innovations. innoviscop.The main organizational characteristics that facilitate the innovation process in the Bakhresa Group as followingGrowth orientation- long term grow rather than short term profit.It is characterized by a commitment to long-term growth rather than short-term profit. Not all companies first and foremost objective is growth. Some companies are established exclusively to exploit a short-term opportunity, other companies would like to maintain the c ompany at its existing size the objective of innovative companies is to grow the business the actively plan for the long-term.ANALYSIS OF BAKHRESA GROUPBakhresa Group started in a humble manner with a small restaurant in the porthole City of Dar Es Salaam, Tanzania, in mid seventies, it has now emerged as a respected business group in the Region. The Group has its operations spread in Tanzania, Zanzibar, Uganda, Kenya, Malawi, Zambia and most recently in Mozambique. Plans are in place to spread its wings to other countries. The group now boastsof a overthrow of more than Three Hundred Million United Sates Dollars and is a proud employer of more than 2 thousand employees associated directly. There are several companies under its umbrella and have investments mainly in Food and Beverage Sector, Packaging, Logistics and strong EstateBakhresa Group has been working to expand their business by long term growth by emphasis long term vision and making implementation of it, those impli cations have been taken a long time, and some of them are still need a time to be implemented. Bakhresa pursue to making steps on growth of the manufactures of Food and Beverage Sector, Packaging, Logistics and historical Estate, product, which leads to the expand of branch company in different parts in Tanzania and beyond Tanzania.Bakhresa offers two groups of product and services Food Beverages and Services.Commitment to technologyIt is characterized by the willingness to invest in the long-term development of technology. Bakhresa Group has render patience in permitting ideas to geminate and develop overtime. this needs to be tended to(p) by a commitment to resources in terms of intellectual insert without a long-term approach it would be extremely difficult for the company to attract good scientists. Eg Azam Bakeries Company LtdAzam Bakeries, the largest bakery in Tanzania, produces the normal Azam denounce bread, cakes and donuts. The state of the art technology is used for producing the bakery products making the company proud of supplyingessential food in the country.It has a red-brick biscuit factory producing the finest varieties of biscuits. Many varieties of biscuits such as Chai, Creams, Glucose, Coconut, Nice, Marie, and Shortcake are popular in the country.The plant and equipment consists of the latest technology from Italy and has a high efficiency automatic packing system capable of producing up to 300packets per minute.VigilanceIt is characterized by the ability of the organization to be aware of its threats and opportunities. vigilance requires continual outside scanning e.g. within the marketing function the activity would form part of market research and competitor analysis collecting valuable information is one thing, but relaying it to the necessary individuals and acting on it are two necessary associated requirements.Bakhresa Group has working to ensure that they got all remote companionship by doing analysis and researches that has been helping to get alongn new strategic which required to be implemented for the results of achieving goals.Bakhresa Group has being faced with some opportunities and threats as indicated belowOpportunitiesAppreciation for high-quality local produced sensible genuine such as maize, millsThe new generation of individuals and companies has a far greater positive reception of domestic produced starchCurrent drive by disposal through the Tanzania Investment Centre and EPZ towards export of locally manufactured pastoral productsCurrent government motive of Kilimo kwanza to promote agro-productionPresence of export opportunities such as AGOA, SADCC, EAST AFRICA COMMUNITY, COMESA, etcClimate that favors large scale production of raw material throughout our countryRaw material such as rice, maize, mill production initiatives that have started to emerge in different regions in TanzaniaAvailability of cheap manpower and fertile land for raw material productionlocally such as ma ize, whiteThreatsThe present growth in the market whitethorn result in market saturation, through competition. This competition could emerge from a variety of given sources includingEstablished mussiness market companies that importsDevelopment of new lines and vertically integrating so as to be totally in control of supplies and products being sold on the respective marketsNew marketing strategies and tactics by established products and companies actual competition.Intolerable price increases by foreign suppliers may occurFarmers may decide to take their produce for food in case of hunge7.0 private ROLES WITHIN THE INNOVATION PROCESSQUESITON 4Explain The Key single Roles Within The Innovation Process And The Activities They Perform In The Bakhresa Group.Innovation process is essentially a flock process and that organizational structure, formal decision making processes, delegation of authority and other formal aspects of a so-called well run company are not necessary conditions for successful technological innovation. The study of Rubenstein has revealed that certain individuals had fulfilled a variety of roles that had contributed to successful technological innovation.Heres the list of roles individual playing within Bakhresa Group facilitate the innovation process by engages-Commercial scannerThis individual acquires Brobdingnagian amounts of information from outside the organization, often through net working. This may include market and technical information.Bakhresa Group have been working in conclusion and making analysis of the information from other successful same companies which operate the same products. The access of new ideas could the veryGatekeeperThis individual keeps communicate of related developments that occur outside the organization through journals, conferences, colleagues and other companies. Passes information on to others, finds it easy to talk to colleagues. Serves as an informatted resource for others in the organization. r un into leaderThis individual provides the team with leadership and motivation. Plans and organizes the project ensures that administrative requirements are met. Provides necessary coronation among team members sees that shake off moves forward effectively. Balances project goals with organizational needs.Examine and analyze the project for patterns to determine what is and is not working and help you tune your process so its most efficient and so you understand where to focus your resources on opportunities and to correct problems.SponsorThis individual provides access to a power base within the Bakhresa Group a senior person. Buffers the Project team from unnecessary organizational constraints. religious services the project team too get what it needs from other parts of the organization. Provides legitimacy and organizational confidence in the project.Heres the another addition list of roles individual playing in innovation process and 2005 (innovationtools)ConnectorsA key elem ent of innovation is make bridge over to relate distant worlds-industries beyond your own-to generate new products/services and building networks to connectpeople to create and distribute the new offering. Combining these attributes with severalother characteristics results in what we call a Connector.Connectors have these characteristicsAre a nautical mile wide and an inch deep. Connectors have the ability to connect departments, organizations, and industries that ordinarily would not be connected. Although they may be an expert in their own field, Connectors are generally people youd describe as a mile wide and an inch deep. They know things almost a variety of palm and industries and can connect them.Are one degree separated. Think of the person or people you know who can get anything through the system. They know the person in the mailroom who can expedite getting things delivered fast, they know the administrative assistants that wield the power, and they know the person in purchasing who can order the thingamabob you need. They know everyone inside and outside the organization and can connect you with them.Build networks. Connectors build networks. Their ability to do so means that once an idea has been captured and evaluated (or even during valuation), they can help you build the network of people to deliver the offering.Jump the tracks. Connectors can jump the tracks, making connections with other people, industries, technologies, ideas, distribution, partners-and they tot up others along-which is critical. Because they connect with people, they have the ability to get others to see the benefits for jumping the track.Skyscrape. Connectors, because of their position or people they know in key positions, can tardily get or make connections to the upper reaches of an organization.Its in all likelihood that you will need several Connectors, since not everyone has all the characteristics above. The person who knows how to work the internal system is usually not a skyscraper-they usually work behind the scenes. Thats ok. Its likely the Connectors you identify will know each other already. Heres what the Connector can do for your innovation initiative create connections to other people and technologies within your organization, and connect you to customers and business partners who can help you outside your organization. Connectors dramatically reduce the time to find the appropriate connections and improve the chance youll make a valuable connection. librarianThe Librarian holds the key position of collecting ideas and providing nonionised access to others who can help build the library and make spirit of the current collection. The Librarian provides an easy way to check in, check out (as in examine), and add to ideas,solutions, problems, technologies, and needs. Think of a library where you can economize in the books or write your own books, put them back on the shelf, and allow others to do thesame.Librarians have thes e characteristics. LibrariansDefine the meta-data. Librarians determine what information is important to capture about an idea. Librarians determine what information is necessary to capture about an idea and to evaluate it. They determine the formats for the information.Help store and retrieve information. As the number of ideas grows, so does thecomplexity of storing, finding and retrieving information about those ideas.Help others help themselves. The capture of information, storage, searching and information retrieval should be a self-help mechanism. A good librarian works themselves out of a job.Heres what the Librarian can do for your innovation initiative define a consistent data model to help document and capture your ideas. Provide the meta-data and information tags to search and find ideas, and ensure easy retrieval. Help others in the team and associated with the team find information and add to it.FramerThe Framer works with business functions and management to determine the appropriateevaluation schemes and frameworks teams should use to evaluate ideas fairly, transparently and consistently. The FramerUnderstands where the organization is trying to go. The strategic direction is critical in evaluating ideas, because new products and services will dictate how fast and far the organization can go in that direction. All evaluations must be made relevant to that direction.Understands who needs to be involved to make the evaluation meaningful. If key individuals or groups are left out of the evaluation, the idea may fail in execution because a key element is missing. Absent heads mean absent hands.The evaluation should include everyone who will be involved in executing and no more. The Framer needs to make sure all heads, hearts, and hands are accounted for in the evaluation process.Understands the need for transparency. Contributors need to understand the evaluation process and the precept behind it. This will help ensure that ideas are contributed be cause contributors understand the process is fair it will also help contributors provide information to make the evaluation easier.Understands how an idea should be evaluated. Different classes of ideas needto be evaluated different ways, but within those classes ideas should be evaluated consistently and in a way that allows ideas to be compared against each other so that the desired portfolio may be achieved.Heres what the Framer can do for your innovation initiative construct the evaluationframeworks which your team will use to evaluate your ideas, and ensure the evaluationsare consistent and transparent. tryThe Judge evaluates the ideas, using the Framers framework. Generally speaking there are many adjudicate for any idea often representing business functions (sales, marketing,RD), regions or other business silos. Judges follow the evaluation criteria set by the Framers, who worked with all the entities involved in setting the evaluation framework.Judges have these characteri stics. Judges pronounce ideas and determine which ideas should move forward to prototyping, which should be tabled until an internal or external criteria is met (e.g., good idea when the price of memory falls to one vaulting horse per terabyte), and which should be shelved.Provide the verdict on which ideas merit further investigating and development by the organization.Document their decisions for posterity. Too often decisions are made about initiatives and ideas, and those decisions are not documented. Eventually the idea will be considered again. Without the documentation for the decision, a team may be forced to view an idea that was previously rejected.Heres what a Judge can do for your innovation initiative evaluate the idea against a standard framework and ensure all the business functions responsible for the idea have weighed in. Establish a verdict on the idea, to move the idea into production, end evaluation of the idea, indorse the idea to someone else or continue ev aluation until conditions change. Document the rationale for the decision so that others can understand why the idea was clear or why it failed the evaluation.PrototyperMany organizations are comfortable with their new product development (NPD) process.Once