Tuesday, December 4, 2012

Extra Credit


Electronic Health Record

 

Electronic health record (EMR), not to be confused with electronic medical record is a comprehensive electronic method of maintaining the entire medical record of a patient.  In contrast, the electronic medical record is often simply medical practice specific, and offers little to no portability of information.  According to Medicare, there is now a carrot/stick approach to entice MD’s and other practitioners to adopt such software and it isn’t cheap.  Software can run 10’s of thousands of dollars on up, depending on scale of use.  Medicare is currently offering incentives to adopt approved software now rather than later.  If the practitioner waits until 2015 or later, he/she will face a 1% to 3% penalty per year.  Also, “meaningful” use must be proven to receive the incentives.  This usually happens in a doctor’s office by integrating prescriptions that are automatically sent to the pharmacy. 
The Idea is to be able to offer a one stop shop for a patient’s medical record regarding imaging, pharmacy, doctor visits, rehab, etc…In theory, this can drastically cut down on prescription errors, and duplication of effort patients dread so often when seeing multiple doctors.  The whole concept presents an opportunity cost for the practice.  Major Hospital chains and big practices have more resources to adopt such change, but many smaller “one doc shops” cannot afford to purchase, train, implement, and maintain such an investment even with the incentives.  Some smaller primary care practices are simply not seeing Medicare patients all together.  All in all, this brings up a valid point regarding healthcare and associated costs, especially the imposed costs of doing business. 
citations:

Monday, December 3, 2012

Extra credit post: Motorcycle Innovations


 

    In my small hometown, the first group of people who bought motorcycles were all killed in motorcycle related incidents. Ever since then, I have always considered the motorcycle as a very dangerous transportation vehicle and difficult to drive. But now a new type of motorcycle that looks like a mini car will be launched in 2014. This marks the end of a traditional motorcycle era and the beginning of a more innovative era. This event is significant in that it will bring more safety, energy efficiency and potential climate benefit for this world.

 

    Daniel Kim, the owner of San Francisco-based Lit Motors, is developing a new type of motorcycle that is safer than the traditional one. They named this motorcycle C-1. It is enclosed with steel-reinforced shell and doors. It can reach a speed of 120 miles per hour. The metal shell gives drivers better protection during a collision. In addition, the gyroscope technologies enable this motorcycle to keep its balance. The benefits it brings to people is safety; people can drive in bad weather such as rain, snow or windy days. Moreover, this motorcycle use electric batteries to save energy. Gasoline powered cars, a nonrenewable resource, are sources of pollution and contributor to climate change. The development of this electric motorcycle is a good solution for global warming.

 

    The company has developed a prototype and hopes to launch commercial products in 2014 with a $24000 price tag per motorcycle. The price would be cut down to $14,000 in 2016. The company's target markets are older motorcyclists and younger commuters. But I think they need to move into markets in China and India. It is difficult for further automobile development in these countries because of their large populations and limited city land. Motorcycles are always a good transportation tool for people who live in these countries. Although the price cannot compete with the cars, this type of motorcycle will become popular in niche markets. Practicing managers should grasp this opportunity to develop the new motorcycles.

 

Citation

1. A Motorcycle that won't wipe out. By Olga Kharif on November 21, 2012

http://www.businessweek.com/articles/2012-11-21/danny-kims-motorbike-wont-wipe-out

2. For Some Drivers, an Electric Motorcycle Could Be the Best of Both Worlds.

By BRIAN X. CHEN  on October 10, 2012

http://www.nytimes.com/2012/10/11/technology/start-ups/for-some-drivers-electric-motorcycle-could-be-the-best-of-both-worlds.html?pagewanted=all&_r=0

3. Lit Motors unveils all-electric, fully enclosed motorcycle

http://www.youtube.com/watch?v=Z0m-cUxMcJw

 

 

Thursday, November 29, 2012

Extra Credit Blog - Current Event

This blog post is intended to fulfill an extra credit assignment for Professor Voelker’s Strategic Management Seminar course (MGMT 6731) at University of Houston Clear Lake this Fall 2012 semester.  The extra credit assignment is to provide an additional overview of a current event associated with an assigned topic area, in this case relating strategic management and innovation.  To fulfill this requirement I have chosen what I have found to be an interesting current event regarding how businesses innovatively leverage new venues for selling products and encourage their advocacy during the holiday season to create additional sales, in this particular case what has now come to be known as “Mobile Tuesday.”
Along with our Thanksgiving holiday American’s have come to look forward to Black Friday sales as a way of officially recognizing the Christmas season is upon us.  What used to be the treasure trove all retailers looked forward to for moving their year end performance out of the red and into the black has been further extended with the invention of the web along with a means for secure online transactions by the resulting innovative creation a new sales holiday we have come to look forward to known as Cyber Monday.  Now if two back to back sales holidays weren’t quite enough to spur the ever budget conscious public into easing up on the purse strings controlling their pocket books, we now have a back to back to back sales holiday to look forward to - this time known as “Mobile Tuesday.” 
What drives the creation of these new sales holidays?  A new factor that must be considered when deliberating the four P’s of the marketing mix.  Technologies that create new venues for marketing and securing sales.  Whereas people used to have to go in person through store after store shopping around for the best deals, with the internet they were able to reside comfortably at their personal computer perusing many different online providers to choose the best deals for the products they desired to give during the holiday season.  Now with the creation of mobile networks and hand held cellular devices such as smart phones and tablets that most everyone can now afford, shopping is more convenient, easier and speedier that ever before.  Mobile Tuesday makes it possible to use your cellular devices wherever you are and whenever you want to quickly scan through a multitude of new deals and make associated purchases should you have been reluctant to make those initial holiday purchases earlier on either in person on Black Friday or online on Cyber Monday.
This is an important and evolving innovation development because it means business managers creating new strategies for marketing and to secure sales will need to stay abreast of the latest choices in information technology available to their customers.  The new technologies create the possibility for new venues driving sales.  This provides leverage to help keep organizations a step ahead especially when applying the appropriate level of marketing hype at opportune times such extending national holidays beyond their normal presence of sales duration.  This is also important not just for the business community as charitable organizations seeking to increase their share of contributions are quick to take up the new marketing opportunity themselves too. 
Citations:
1.       Zephrin Lasker, November 6, 2011.  Cyber Monday? How About Mobile Tuesday. Forbes.  Accessed at http://www.forbes.com/sites/marketshare/2011/12/06/cyber-monday-how-about-mobile-tuesday/  on November 29, 2012.
2.       Author Unknown, October 16, 2012.  Brooklyn Website Taking A Stab At ‘Mobile Tuesday’. New York Business Journal.  Accessed at http://www.bizjournals.com/newyork/news/2012/10/16/brooklyn-website-taking-a-stab-at.html  on November 29, 2012.
3.       George Koprowicz, November 27, 2012.  Giving Tuesday Is The Mobile Charitable Alternative After Cyber Monday.  Examiner.com.  Accessed at http://www.examiner.com/article/giving-tuesday-is-the-mobile-charitable-alternative-after-cyber-monday  on November 29, 2012.

Tuesday, November 20, 2012

RFID- Post number 4


RFID

 

As prices for RFID continue to fall, this technology becomes a part of our lives more and more whether we like it or not.  Implications are broad, and include medical management, inventory control, passport/ID protection, etc…  Larger players such as Wal-Mart have profound impacts on smaller companies regarding RFID.  Regarding inventory control, Wal-Mart requires suppliers to provide RFID as part of its shipment packages.  Some suppliers are not otherwise incentivized to incur such an expense, but must do so anyway to continue doing business with Wal-Mart.  Over time, however, this seems to have lost momentum, and many stores do not use this technology yet.  RFID appears to be a great idea on the surface, but it is not without its critics.  As with most technology, there are others who can exploit weaknesses in RFID to steal identities of others, conduct corporate espionage, and pose risks to military/government organizations that use this technology.  There are also issues with standardizing chips that are used, so that they may be readable from company to company, and from any overseeing agency that needs to regulate a given industry.  Although there are a fair share of potential issues, RFID has many uses in the future, and managers of all industries may likely be exposed to this technology and must be aware of its implications. 

 

 

 

“RFID Technology Transforming Food Retailers Like Walmart”,


RFID's Second Wave, BusinessWeek, retrieved 11/20/2012.

Monday, November 19, 2012

Blog Post 4 – Current Event

This blog post is intended to fulfill a requirement for Professor Voelker’s Strategic Management Seminar course (MGMT 6731) at University of Houston Clear Lake this Fall 2012 semester.  The requirement in question is to provide an overview of a current event associated with an assigned topic area, in this case relating strategic management and innovation.  To fulfill this requirement I have chosen what I have found to be a very interesting current event on how busisnesses leverage social media to innovatively improve teamwork via internal communication, in this particular case as a system called “Colab” by General Electric.
How can a firm leverage the experience of all their employees in one fell swoop?  GE has the way.  It’s called “Colab”.  A social networking system internal to the company that allows employees to post items of interest they are in need of resolving and provides a mehanism where other employees who might have unique insights can offer helping advice.  The system was started up by the chief information office in the beginning of 2012 and already has over one hundred thousand users.  Emphasis has been on getting power users to try out the system and make value added feedback to the developers on what functionality they would find most useful.  Idea here is that if the power users actually take hold of the new system and refer there associates, then they system will take hold and be of value.  Evidently this concept is working great because GE reports they adding on the order of a thousand users ever few days.
Finding innovative ways to get the most out of your human capital is a key to sustained competitive advantage.  Leveraging technology such as social media to bring your people together who have common interests and complimentary experience is such an example.  Unleashing the creativity that comes along with such diveristy will yield great returns.
Citations:
1.      Robert Berkman and Ron Utterbeck, November 7, 2012.  GE’s Coab Brings Good Things to the Company. MIT Sloan Management Review. Accessed at http://sloanreview.mit.edu/feature/ges-colab-brings-good-things-to-the-company/ on November 12, 2012.
2.      Paul Wolf, November 12, 2012. Harnessing The Power of Thousands of Brinas.  Reinventing Government.  Accessed at http://reinventinggov.org/2012/11/12/harnessing-the-power-of-thousands-of-brains/ on November 13, 2012
3.      Karen Goulart, August 7, 2012. GE Brings Social Collaboration to Live with Colab. SearchCIO.  Accesseed at http://searchcio.techtarget.com/feature/GE-brings-social-collaboration-to-life-with-GE-Colab   on November 13, 2012.

Sunday, November 18, 2012


Innovation of Robotic Lawn Mowers

 

Many American families have been using iRobot Corp.'s Roomba vacuum cleaner for many years. Now the technology has spread to lawn mowers. Robert Bosch, an auto parts giant,  began to sell robotic lawn mower last month. The well known auto company Honda Motor also released its robotic lawn mower product named Miimo, which looks similar to iRobot Roomba,   in Europe in August 2012. The robotic lawn mower is a combination of sensors and GPS technology. Not only can the robotic lawn mowers cut turf in random patterns or distinct lines, they can also reverse directions to avoid obstacles such as trees or lawn chairs. This is an important event that represents the regular mower's innovation. The robotic lawn mower is changing human life and becoming a part of our life.

 

The first model of robotic lawnmower was invented in 1995 by Husqvarnal Corporation, Europe's biggest high quality lawn mower and related products maker. This company currently dominates the robotic lawn mower market and its technology in robotics lawnmower is the best in the world. Other two companies Deere (DE) and Global Garden Products Italy also have launched commercial products in 2012. The most likely outcome is that traditional lawnmower will be substituted by Robot lawnmower if the price is competitive. It may become the fastest-growing outdoor garden tool in some markets, especially in Europe luxury end market. The total revenue of the robotic lawn mower in 2012 is $170 million, increased 30% compared to 2011. If the retail price can decrease from  2,000 to 1,000, "the market will become mainstream."  

 

Although it is a niche market and robotic mower's total market share cannot compete with the conventional mowers now , there are a lot of opportunities for those followers. Practicing managers should be ready to seize this opportunity to develop new robotic mowers. For the traditional lawn mower manufacturers, they should be aware of the threat from robotic lawn mowers.

The early robotic mower market entrants should establish entry barriers such as core technology and patent to increase innovation lead time. If they have enough lead time, they will be able to shape consumer preferences and build consumer brand loyalties to earn more market share and more profit.

 

Citation

1.Honda launches robotic lawn mower

http://usatoday30.usatoday.com/tech/news/story/2012-08-21/honda-robot-mower/57185858/1

2. Rise of the Lawn-Cutting Machines

http://www.businessweek.com/articles/2012-10-25/rise-of-the-lawn-cutting-machines

3. Lawn mowing robots bid for a share of a growing market , By Zoe Kleinman, 31 October 2012

http://www.bbc.co.uk/news/technology-20102090

 

Tuesday, October 23, 2012

Blog Post 3_Justin Heard


Determinants of an Innovation Process: A Case Study

of Technological Innovation in a Community Sport

Organization

Journal of Sport Management, 2012, 26, 213-223

©2012 Human Kinetics, inc.

 

The article looks at a community sport organization (CSO) undergoing a technological change.  This implementation of innovation was looked at as a case study.  Managerial, environmental, and organizational levels were looked regarding how innovation was handled at each level.  3 stages were used as adopted from research from Damanpour & Schneider (2006), as notated from the article.  These 3 stages are initiation, adoption, and implementation.  From a managerial prospective, having a pro-innovation leader proved to be a strong determinant regarding adoption of innovation.  Leadership commitment was also important. Projects have been cancelled with lack of strong commitment from leadership in this case study, and would otherwise not progress through all stages.  Financial resources and organizational capacity was another determinant in this study, and also had a strong influence regarding success of the implementation of new innovation within a CSO.  When adoption of new software is involved, involvement of outside influence is “paramount” in the implementation stage.  This is attributed to the training involved, and making sure end users are competent and confident with the new programs.  These findings are recommended by the authors to be used with a range of CSO’s, and across differing types of CSO’s seeking to adopt technology.  Having strong and committed leadership during this process is said to have a strong impact on the success or failure of adopting innovation, along with financial support and external assistance. 

 

Hoeber, L., & Hoeber, O. (2012). Determinants of an Innovation Process: A Case Study of Technological Innovation in a Community Sport Organization. Journal Of Sport Management, 26(3), 213-223.

Monday, October 22, 2012

Blog Post 3 - Practitioner Article

This blog post is intended to fulfill a requirement for Professor Voelker’s Strategic Management Seminar course (MGMT 6731) at University of Houston Clear Lake this Fall 2012 semester.  The requirement in question is to provide a review of a peer reviewed academic article associated with an assigned topic area, in this case relating strategic management and innovation.  To fulfill this requirement I have chosen what I have found to be a very interesting practitioner article from Financial Executive published by de Jaruzelski in 2012 entitled “Building a Culture That Energizes Innovation” the copyright for which is held by Financial Executives International.   

This article conveys the importance of relating the culture inherent at a firm with the strategy for innovation they are attempting to implement.  If the firm mistaken seeks to implement a high risk path embracing innovation when they do not have the cultural foundation that is necessary, then they are more than likely doomed to fail.

The author lays out a “culture evolution framework” to help guide practicing managers in setting the appropriate strategy for innovation.  First the author emphasizes taking time to truly understand the existing culture at the firm.  And when doing this understand how the organization and people truly behave when it comes innovation.  Do they embrace the possibility of failing or are they afraid to death of the embarrassment that doing so may bring?  Then the author emphasizes defining the “few critical behaviors” that provide the biggest bang for the buck.  Idea here is to not dilute yourself trying to tackled everything all at once.  But to focus your energies on where you can make a noticeable and hopefully substantial difference to how your organization behaves relative to innovation.  As their third major part of the process the author emphasize comes from a “cultural evolution program.”  This is where as the initial movements towards changing behavior are expanded upon and reinforced, both through formal as well as informal process.  Informal process could mean simply how individual decide to work together to most efficiently and effectively achieve the near term objectives.  More formal aspects could be a pay for performance reward system that helps reinforce behaviors with tangible lasting rewards.  And finally as the fourth and last point of emphasis the author emphasize implementing a system for measuring actual progress in quantitative terms.  This helps keep the focus on what the organization is trying to achieve, shows exactly which factors are deemed most important, what levels for those factors the organization believes not only are achievable but also important to aspire to, and sets a time table for making the accomplishments by.

The most important implication that I believe a practicing managers should take away from this article is the need to truly understand whether the culture at your company will embrace a strategy related to innovation before setting such a strategy in concrete for implementation.  Just because innovation may be a hot topic today for staying ahead of your competitors does not mean it is something that your company will be successful at.  Make sure you know yourself and what you are capable of when setting your strategy.

Citation

Jaruzelski (2012). Building a Culture That Energizes Innovation. Financial Executive, V28, No.2, 32-35.

Friday, October 19, 2012

Corporate Entrepreneurship and Innovation in Silicon Valley: The Case of Google, Inc


Corporate Entrepreneurship and Innovation in Silicon Valley: The Case of Google, Inc.

Author: Finkle, Todd A. Source: Entrepreneurship Theory and Practice, Volume 36, Number 4, 1 July 2012 , pp. 863-884(22)

 

Do you know which company is the most innovative high tech company in the world? I  believe Google is really top tier innovation company. Everyone uses Google's products almost every day, such as Google Search, Google Map, YouTube, and Gmail etc. Moreover, Google still dedicates in developing innovative products and technologies to change our daily life and improve the world. What are Google's keys to success?  This article tells you how Google make success through its innovation and entrepreneurship strategy. This article is very important because it is the real world case that you can learn a lot from it about how to use innovation strategy to make business successful. It is also a benchmark for the managers to follow when they operate their companies.

 

Three factors contribute to Google's innovation. The first factor is culture. Google established a culture of open innovative environment  to encourage people to generate new ideas and creations. The second, Google has a "Less-layer" management system and many reward programs including high paid salary, stock options, employees services such as free dinner. This kind of system supports people to create, and make innovation more effectively and efficiently. The third factor, the most important one, is people. Google hires the smartest , highly self-motivated people in the world. They have the capability to innovate and create new products and technologies.

 

The author provided supports to these findings by analyzing the economic, competitive environment, through abundant  evidences including Google's financial statements, stages of growth, pictures, and entrepreneurs' and employees' interviews. For example, the Table of Google's Corporate History showed a list of innovations from its founding year 1998 to 2008. These innovations included releasing Google Toolbar, Adwords, Google Maps features satellite live view, Google Earth, and Google Apps and so on. Google’s philosophy is “Never Settle for the Best.” Google's 20% free time policy allows employees do whatever they are interested in. The author also analyzed Silicon Valley region's education environment and high tech companies  as well as Google's hiring process. A picture of the employee's work table shows abundant materials to help recreate new stuff. All these evidences strongly support above finding.

 

The implications for practicing managers are that you should think about if you create an environment for employees to try new things and ideas when your company wants to use the innovation strategy. You should ask yourself if your business internal mechanism and structure matches with the innovative culture, and encourages this quick change. Lastly, the managers should be aware that people is the  most important factor in innovation.

 

 

 

 

Sunday, September 23, 2012

Impact of Direct Marketing Activities on Company Reputation Transfer Success


Impact of Direct Marketing Activities on Company Reputation Transfer Success: Empirical Evidence from Five Different Cultures

Corporate Reputation Review (2010) 13, 20 – 37.doi: 10.1057/crr.2010.5
 
If a company specialized in hospital medical devices wants the clients to buy its new pharmaceutical products, how would the company successfully introduce the new product category with its existing brand name as a brand extension? It is not difficult for a company who has a favorable reputation. A peer reviewed hypothesis testing article presents direct marketing activities impact on reputation transfer. This article is important because the author provides empirical evidence on the significance of different cultural dimensions on companies' reputation, reputation transfer and brand extensions.
 
This article tested four different hypotheses. The first hypothesis is that " There is a positive relationship between the perceived fit of the new product range and the successful transfer of reputation in the pharmaceutical industry." The second hypothesis is that " Customer satisfaction has a strong, positive effect on reputation and is influenced by Word of Mouth(WOM)". The third hypothesis is that " Direct marketing media have a substantial impact on company reputation and reputation transfer". The fourth hypothesis is that "The impact of different cultural dimensions on the reputation construct is expected to differ significantly among the surveyed countries". The surveyed countries are Germany, Finland, Spain, Russia, and Australia, all with different scores on culture differences in the categories: Individualism vs Collectivism, Masculinity vs Femininity, Power distance and Uncertainty avoidance (all the aspects are part of Hofstede's cultural dimensions). The direct marketing activities included fairs, symposia, visits of sales representatives, brochures, internet and mailings. The paper studies the impact of culture on purchase behavior of consumers of pharmaceutical products.
 
The result of this study shows that the perceived fit of new products to the existing product range has substantial impact on reputation transfer in feminine countries rather than masculine countries. The perceived fit can significantly enhance company's reputation. The reputation is also highly impacted by personal recommendations of product through word of mouth and customer satisfaction in collectivist countries. Additionally, the influence of company's reputation is significant for the countries with high power distance and high masculinity scores.
 
Culture environment differs from country to country, practicing executives and managers should know how to adjust the direct marketing activities by matching different culture to generate good reputation in international marketing.

 

Blog Post 2

This blog post is intended to fulfill a requirement for Professor Voelker’s Strategic Management Seminar course (MGMT 6731) at University of Houston Clear Lake this Fall 2012 semester.  The requirement in question is to provide a review of a peer reviewed academic article associated with an assigned topic area, in the case relating strategic management and innovation.  To fulfill this requirement I have chosen what I have found to be a very interesting article from The Journal of Product Innovation Management published by de Brentani, Kleinschmidt, and Salomo in 2010 entitled “Success in Global New Product Development: Impact of Strategy and the Behavioral Environment of the Firm” the copyright for which is held by the Product Development and Management Association.   

The purpose of this article is to advance the understanding of how certain resources available to a firm may interrelate with choices of strategy in the domain of new product development aimed at global markets and thereby impact resulting performance.  The reason why this is important to leaders is that they will come to better understand potential factors and their interrelationships that need full consideration when making decisions for improving firm performance.  Primary focus is on factors potentially posing underlying advantages a firm may possess and potential strategies a firm may leverage to effectively field new products in the global market place..    

The type of research involved with this article both hypothesis testing as well as model advancing.  The article specifies that it draws on what is called “the resource-based view” (Brentani, p. 143)   The article also references prior work relating new product development strategy.  The emphasis in this article is integrating key aspects from the resource-based view with strategic choices for new product development as applied to the global market place.  The authors propose a three part model relating “behavioral environment” with “global new product development strategy” and how in doing so that impacts resulting “global new product development program performance.”  The model is designed in a fashion that provides testing antecedent relationships between the individual aspects composing the factors and firm performance. Behavioral environment is broken into two parallel subcategories, namely “global innovative culture” and “senior management involvement.” Global new product development strategy is broken into two parallel subcategories, namely “global presence strategy” and “global harmonization strategy.”  And global new product development program performance is broken into three subcategories with a parallel and serial relationships implied, namely “time to market” is in parallel with “windows of opportunity” and both together are in series with “financial outcome.”    (Brentani, p. 146)  Altogether there are eleven different hypotheses tested.  Four hypotheses test the relationships between the two behavioral element subcategories and two global new product development subcategories. Six hypotheses test the relationships between the global new product development subcategories and the global new product development program performance subcategories.  And two hypothesis test the relationship in global new product development program performance subcategories between time to market and windows of opportunity with that of financial outcome. 

Key findings from testing the eleven hypotheses is that most presented held true and supported the there was an antecedent relationship between the firm’s resources, the strategies chosen for new product development in the global market place and resulting performance.  The two hypotheses that were not supported by the data included the relationship between global product harmonization strategy and time to market as well as the relationship between global presence strategy and financial outcome.  The former is likely due to the complications that arise when try to appropriately roll out a product in ways that leverage advantage coming form standardization yet allowing for tailing necessary to accommodate local preferences.  The later may be from that having new product deployed everywhere in the global marketplace does not necessarily correlate directly with significant improvements to a firm’s bottom line.  
There are several implications associated with this article that practicing executives should be aware of in their deliberations for how best to steer their firms.  First, there is relationship between the underlying resources that a company has at its disposal and the strategies they chose to deploy.  They need to be aware that not all strategies may fit their firm.  Second, while the paper presents two subcategories for the behavioral environment and two more subcategories for the global new product development strategy there are most likely others that are (or should be) of interest to the firm given their particular context.  Likewise, while time to market and windows of opportunity were also two subcategories in the performance factor area, there may be others that drive the resulting financial outcome.  And third, through reading this article a practicing executive will come to better appreciate what is entailed with a developing a culture embracing innovativeness as well as more fully understand how involvement of senior management can be leveraged.  I really liked those two specific examples chosen as the behavior environment subcategories and better understand why a firms specific resources facilitate creating strategic advantages.


Citation
de Brentani, U., Kleinschmidt, E., and Salomo, S. (2010).  Success in Global New Product Development: Impact of Strategy and the Behavioral Environment of the Firm.  Journal of Product Innovation Management 27: 143-160.

Blog post 2


Innovation Blog Post 2:  Organizational incentive and effect on Innovation

This article, entitled “Do Organizational Incentives Spur Innovation” by Henrique M. Barros and Sergio G. Lazzarini, addresses whether there is a relationship between employee innovation and various incentives offered by the employer.  Since it is important to both remain competitive with other firms, as well as retain productive employees, it stands to reason a firm would benefit from rewarding employee innovation.  This article tests two different hypotheses regarding incentivizing innovation. 

The first hypothesis is stated in the article as “Firms that adopt incentive systems that include higher performance based pay will be more innovative.”  Hypothesis 2 is stated from the article as “Firms that adopt incentive systems associated with higher performance based promotion will be more innovative.” 

The method of testing the above hypotheses consisted of randomly surveying 370 firms across multiple functional areas.  Innovation was measured in survey form by questioning whether a relationship exists between innovation and increased revenue within the firm. 

Key findings regarding incentive pay and promotion in relation to innovation are consistent with past studies regarding pay, and shed new light regarding promotion.  According to the article’s findings, providing incentive pay for innovative employees provides marginal benefit to the firm, while promotion of said employee appears to have more of an impact.  The article also states that as a caveat, there is a level if diminishing returns regarding promotion.  Up to a certain point, innovativeness tends to level off, while this is dependent upon the type of firm, size, and scope. 

Implications for managers are vast.  This article supports the notion of maintaining open communication between management and employees.  It also helps to justify some level of research and development within the firm.  Training is also important, especially in quickly high-tech industries such as software and computers.  Employee retention and employee perceived equity are also improved when the employee is able to not only contribute to the firm’s success, but share in its rewards.  According to the article, implementing a promotion based program tied to innovation also fosters new ideas, providing a mutually beneficial relationship between the firm and the employees.  Recruitment is another factor positively related to promotion based innovation.  The article suggests that firms and their managers will see an increase in revenue tied to innovation by rewarding employees with both compensation and promotion for their innovative ideas once they prove to generate an increase in revenue.  The sharing of this increased revenue along with promoting those employees who are innovative is shown to be beneficial to all parties involved according to this article. 

Article reference: BAR, Rio de Janeiro, v. 9, n. 3, art. 4, pp. 308-328, July/Sept. 2012


 

 

 

Monday, September 10, 2012

Introduction

Hi everyone.  My name is Justin Heard.  I am in my final semester here at UHCL in the MBA program.  I just recently switched from the MHA/MBA to the MBA.  I am currently working as a physical therapist in the home based/orthopedic environment and I like it a great deal.  I do, however, intend on exiting patient care and moving into a more admin/consultative role pretty soon.  I hope to learn a lot from everyone here, and hopefully I'll be able contribute as well from the health/clinical side of things.  I look forward to working with everyone.

Saturday, September 8, 2012

Introduction


Hi everyone,

I'm Hui Liu (Luna). I am a graduate student majoring in Accounting.  This will be my last semester at UHCL. This past summer, I worked as an intern at a small but busy and fast paced  CPA firm. I learned quite a lot about how a small CPA firm operated. In addition, I've had several years of marketing experience in the pharmaceutical industry in China. In my opinion, Strategy Management will be the one of the most interesting course within the Accounting program. I hope this course will integrate accounting and management knowledge and enhance my strategic and critical thinking.

Luna

Tuesday, September 4, 2012

Introductions

Hi! My name is Joe. I'm in the last semester of my graduate studies at UHCL finishing up the MBA cirriculum with an expectation of graduating this December (2012).  While I'm just about at the completion point for my MBA program, I have been and probably will continue to be a part-time student going on to another advanced field of study that will help me be a more valuable contributor to my workplace and possibly open up new opportunties for my career.

I work in the aeropsace industry as an engineer.  I'm basically at the mid-point of my career.  I'm looking forward to continue applying the knowledge I've learned and skills I've developed towards the successful accomplishment of new projects for my employeer while improving the effectivness of our organization as the nature of our workplace changes in the coming years. 

I'm new to Blogging.  I'm hoping our Blog project this semester will help me to quickly become acquainted with Blogging environments.  Hopefully by the end of the semester I'll have developed sufficent skills with Blogging to leverage these forums in a way that allows me to efficiently stay on top of recent events and understand advancements if the fields of study that are most pertinent to my career.

Tuesday, July 17, 2012

The Strategy Seminar

The Strategy Seminar

The Strategy Seminar: New Product Development: Risk & Reward

The Strategy Seminar: New Product Development: Risk & Reward

The Strategy Seminar: New Homes and Technology

The Strategy Seminar: New Homes and Technology

The Strategy Seminar: Ohio Rolls out the Welcome Mat for Physician Inventors

The Strategy Seminar: Ohio Rolls out the Welcome Mat for Physician Inventors

The Strategy Seminar: Innovation-ATM Usage in Jordan

The Strategy Seminar: Innovation-ATM Usage in Jordan

The Strategy Seminar: Inovation- Benefits of Server Virtualization

The Strategy Seminar: Inovation- Benefits of Server Virtualization

The Strategy Seminar: Innovation- Practitioner Article- Innovation in turbulent times

The Strategy Seminar: Innovation- Practitioner Article- Innovation in turbulent times