The Importance of Innovative Decision Making
Question:
Discuss about the Knowledge-Oriented Leadership In Management.
Innovative Decision Making is the individualized methodology of self-assessment which is workshop-based. The creative process that addresses the needs of the business people in the way by which they can arrive at their decision is known as innovative decision making. The decisions that are made by the management involve the knowledge about the factors that will get support from the company or the organization. The wrong decision taken by the management will result in non-cooperation from the employees of the organization and the decision makers may also have to face immense defiance from the employees (Behrens 2016).
The decision making process of the organization is related to the Vroom-Yetton-Jago Normative Leadership Decision Model which is a decision tree method. The model is mainly related to four major qualifiers which are, Time-driven group problem, Time-driven group problem, development-driven group problem, development-driven individual problem. The different factors that affect the decision making process of the management are commitment and quality, leader’s information, information and conflict. The decision-making of the management is important to ensure the smooth operations of the organization (Camagni 2017).
The two products or organizations that will be analysed in the report are Apple Iphone X and Samsung Galaxy Note 8.
Apple Iphone has been taking the whole mobile market by storm with the help of the its remarkable operating system named IOS. The multiple features of the operating system have been able to give the phone the tag of a “Smart phone”.
Strengths – Apple is the considered to be one of the top greatest organizations in the world in terms of brand equity. The brand has grown larger and larger since its inception in the year 1976. Innovation has been another major advantage of the organization and been applied in all the major products of the organization. The consumer base of Apple is also quite strong and they have a huge group of loyal consumers who feel proud to be the owners of Apple products. The IOS software that has been devised by the organization is one of the most respected platform for mobile phones in the world. The flexibility, user interface and speed of the IOS operating system makes it different from the others (Donate and de Pablo 2015). The developer network of Apple is said to be the strongest community in the mobile world. The consistency of the design of the products of Apple has been another feature that supports the sales and popularity of the organization.
Weaknesses – The organization only targets the A grade customer segment of the smart phone industry. The high cost of the products of Apple is a major advantage for the sales of the organization. The phones have many restrictions that are not quite necessary for the operations and are quite out of the box as well. The lack in the variety of the mobile phones is also another problem that is related to the sales of the phones as the young population tends to change phones quite often (Dunlap et al. 2016). Many users or followers of Apple were mainly huge fans of Steve Jobs and the change in the management has also caused some loss in the attractiveness of the organization.
Understanding the Vroom-Yetton-Jago Normative Leadership Decision Model
Opportunities – The potential of the market of smartphones is a huge opportunity for Apple to increase its sales and customer base as well. The advancement of technology in the smartphone market can help in the increase of innovative and unique products that can be launched by the organization. The increasing dependency of people on smartphones and technologies has increased the market for Apple. The organization can also aim for expanding their operations geographically in the rural areas as well. The accessories that are offered by the organization can give more profits to the organization (Govindan et al. 2015).
Threats – The greatest threat to the Apple is the Android operating system which has been occupying more than 70% of the total smartphone market. The operating system that provided by Google and android together are growing with a huge speed and this can pose a threat to the sales of Apple as well.
Strengths – The improved style of the body of the phones and the metal body is a major strength of the product. The resolution of the screen is also much more as compared to the earlier models. The camera quality of this model is higher than the previous sets, with a 12-megapixel rear camera and 5-megapixel front camera. The operating system of this model is supported by Android 6.0. The storage of the phone is also quite high with 4 GB Ram and 32 GB expandable memory and the memory card type is Micro SD. The processor of the phone is made quite high end which is the 1.6 GHz octa-core. The network capability of the phone is developed to 4G LTE. The advanced features that are available in the phone are all quite capable to compete in the market with all the other organizations. Samsung dominates the smartphone industry along with 30% of the total market share in the world (Haneda and Ito 2018).
Weaknesses – The organization lacks significant number of retail stores all over the world so that the products can be matched with that of the rivals. Samsung has immense reliance on their Galaxy series to provide the revenues to the organization and this has acted as a huge disadvantage. The company has been involved in many litigations and cases related to the patents which is another major weakness related to its profitability. The problem that was related to the Galaxy Note 7 series of the mobile has weakened the reputation of the organization. This issue was enough to bring down the share prices of the organization as well (Henri and Wouters 2017).
Opportunities – The highly emerging market of smartphones all over the world is a huge opportunity for the growth of the organization. The customer base of Samsung is not limited to the high-end buyer. The organization caters to the needs of the customers of all types of customers. Although the Galaxy S7 edge model of Samsung is priced quite high as compared to the other models offered by Samsung, the features of the phone can still give competition to the features offered by Apple Iphone 6.
Analysis of Apple iPhone X
Threats – The challenge that are posed the economic conditions in the key markets for smartphones are decreasing the money that is spent by the buyers. The high growth of the rivals of the organization has also posed huge threats to the profitability of the organization. The market of smartphone has been saturated by the entry of many organizations (Johnston and Marshall 2016). The agreements that are made by Apple in China so that they can bring the Iphones has acted as a threat for Samsung.
The application of a successful innovation framework can help in increasing the profitability of the organization. The two organizations which are taken into consideration for this analysis are Apple and Samsung. The products of the organizations that are to be analysed with the help of innovation frameworks are Apple Iphone 6 and Samsung Galaxy S7 Edge. The innovation framework comprises mainly of seven steps which are discussed as follows,
- Step 1 – The platform that is required for success needs to be created so that the creative talents that are possessed by the employees are harnessed. The organizational culture is impacted positively and the employee engagement is also increased. New and innovative ideas are generated constantly in case of the application of innovative frameworks (Klingebiel and Rammer 2014). The tools that are related to the implementation of these frameworks are mainly the social media which helps in increasing the collaboration between the global employees.
- Step 2 – The implementation of the innovative frameworks helps in promoting innovation in the organization so that the employees can establish an innovative community.
- Step 3 – This step is related to the engagement of employees in the different activities of the organization. The ways of bringing the right type of people together is based on the implementation of these innovative frameworks.
- Step 4 – This step helps in the management of the most critical part of the framework of innovation. This makes the process quite easy for the employees so that they can participate in the organizational activities. The innovative ideas that are presented by the employees are reviewed by the management and the feedback is thereby stored in the system of the organization (Melnyk et al. 2014).
- Step 5 – The innovation framework can be also implemented to solve any specific issue which can also be called targeted innovation. The targeted innovation is related to the formulation of new ideas for resolving any specific problems within the organization.
- Step 6 – This step is related to the review and analysis of the different innovative ideas, to ensure that the ideas are useful. The concepts which are promising and are aligned to the business strategy are applied and the others are rejected (Proctor 2014).
- Step 7 – The implementation of the innovation frameworks thereby promotes new ideas and helps in the advancement of the organization as well.
The increasing engagement of the employees in innovating new ideas can help in the advancement of profits that are generated by the organizations. In case of the two products that are taken into consideration which are Apple Iphone 6 and Samsung Galaxy S7 Edge, the latter is the market leader in terms of revenue in the whole world with a market share of 22% and Apple has around 11.2% of the total market share. The fall in the shares of Apple has occurred after the departure of Steve Jobs from the position of CEO (Rosemann and vom Brocke 2015). The lack of innovation in the organization has been the major reason for the fall in its shares.
The creative analysis of the organizations was based on the data that was collected for the last five years of operations of the mentioned organizations. The sales of Apple had fallen in the year 2011 after the death of the founder and CEO of the organization Steve Jobs. On the other hand, the sales of Samsung have reached new heights in the year 2017 after the company was able to come back from the debacle that was caused due to the Galaxy Note 8.
The analysis of the products of the two organizations and their products have shown that due to the lack of innovation in the operations of Apple the organization had to face a fall in the market shares. Another major reason behind the fall of the organization is the lack of a huge customer base and high prices of the products without any innovation.
The critical success factors of Apple were the innovative products of the organization and ways of catering the high-end sector of customers. On the other hand, the major reasons behind the success of Samsung is the huge customer base and the product offerings for all tyoes of customers (van de Kaa et al. 2014).
The ways that can be recommended for Apple so that they can increase the market shares is by innovating their products and adding more different products of all price ranges in their product line. This will help the organization in increasing their profitability and market share as well.
Analysis of Samsung Galaxy Note 8
The innovation strategy that can be suggested for Apple will be the development of average range of products so that they can cater to the needs of bigger customer base. The increase in the size of the customer base will further increase the market share of the organization (Wheelen and Hunger 2017).
Conclusions
The report can be concluded by stating that the products of an organization are directly linked to the market share. The quality and the innovativeness of the products offered by an organization can affect the amount of market share that is captured by the company. The lack of innovativeness in the products of Apple have affected the shares of the organization in the market.
The main recommendation that can be given to Apple is to increase the product line and the variety of the products so that consumers can get variety in the products that are offered. This will further help in increasing the profitability of the organization as well.
References
Behrens, J., 2016. A Lack of insight: An experimental analysis of R&D managers’ decision making in innovation portfolio management. Creativity and Innovation Management, 25(2), pp.239-250.
Camagni, R., 2017. Technological change, uncertainty and innovation networks: towards a dynamic theory of economic space. In Seminal Studies in Regional and Urban Economics (pp. 65-92). Springer, Cham.
Donate, M.J. and de Pablo, J.D.S., 2015. The role of knowledge-oriented leadership in knowledge management practices and innovation. Journal of Business Research, 68(2), pp.360-370.
Dunlap, D., McDonough, E.F., Mudambi, R. and Swift, T., 2016. Making Up Is Hard to Do: Knowledge Acquisition Strategies and the Nature of New Product Innovation. Journal of Product Innovation Management, 33(4), pp.472-491.
Govindan, K., Rajendran, S., Sarkis, J. and Murugesan, P., 2015. Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, pp.66-83.
Haneda, S. and Ito, K., 2018. Organizational and human resource management and innovation: Which management practices are linked to product and/or process innovation?. Research Policy, 47(1), pp.194-208.
Henri, J.F. and Wouters, M.J., 2017. Coexistence of Management Control Practices and Successful Product Innovation.
Johnston, M.W. and Marshall, G.W., 2016. Sales force management: Leadership, innovation, technology. Routledge.
Klingebiel, R. and Rammer, C., 2014. Resource allocation strategy for innovation portfolio management. Strategic Management Journal, 35(2), pp.246-268.
Melnyk, S.A., Bititci, U., Platts, K., Tobias, J. and Andersen, B., 2014. Is performance measurement and management fit for the future?. Management Accounting Research, 25(2), pp.173-186.
Proctor, T., 2014. Creative problem solving for managers: developing skills for decision making and innovation. Routledge.
Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer Berlin Heidelberg.
Sharma, R., Mithas, S. and Kankanhalli, A., 2014. Transforming decision-making processes: a research agenda for understanding the impact of business analytics on organisations. European Journal of Information Systems, 23(4), pp.433-441.
Spieth, P., Schneckenberg, D. and Ricart, J.E., 2014. Business model innovation–state of the art and future challenges for the field. R&D Management, 44(3), pp.237-247.
van de Kaa, G., van Heck, E., de Vries, H.J., van den Ende, J. and Rezaei, J., 2014. Supporting decision making in technology standards battles based on a fuzzy analytic hierarchy process. IEEE Transactions on Engineering Management, 61(2), pp.336-348.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. pearson.
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