The Principal Difference Between Rbd And Dynamic Capabilities Theory

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

When the former CEO, Paul Sagan, decided to step down, the Board of Directors started looking for a suitable replacement for him. Thus, having been involved in the company’s affairs for many years, Tom Leighton was offered a chance to help the company move forward and step up to the CEO role. One of the first things he did as CEO was widely criticized, as he took the unpopular decision to decrease EBITDA margins in order to invest more in R&D what could take several years to pay off. Nevertheless, the long-term holders approved his initiative and even encouraged him to continue investing in future innovation. By most measures, the first two years of Dr. Tom Leighton’ management of Akamai Technologies Inc. can be considered successful if to take into account the company’s stable net income and increasing revenue (Bray, 2015).

“A resource is a competitive asset that is owned or controlled by a company; a capability is the capacity of a company to competently perform some internal activity. Capabilities are developed and enabled through the deployment of a company’s resources”

IBM was already a big name in the market of mini, middle range and mainframe computers. The perspective and promising small computer market, greatly gaining ground due to Apple II and other few, was still a difficult task despite their multi-millionaire efforts.

In 1992, IBM incurred a loss of $5 billion and underwent a CEO change which began a turnaround for them in their revenue. The drive to generate greater profits and maintain its status as a giant in the industry, led to the discovery of the service business through IT solutions. As a result of this, the company obtained $90 billion in revenue in 2006 from its Global Services department (Chesbrough, 2007). However, its main focus has been innovation for decades.

In this book the authors provide clearly defined methods and guidelines for creating and sustaining innovation strategies that best fit a specific company. The book covers a lot of topics about innovation from the management’s prospective. It starts from evaluation the innovation state of one company to how to design an innovation strategy while integrating /balancing innovations between technology and business model; it talks about how to manage innovation by fighting organizational antibodies (from bureaucracy to not-invented-here syndrome) and leverage technology to design innovation process; and finally it touches on how

Veneet Nayar, then-CEO of HCL Technologies, recognized the need for his India-based IT servicing company to expand globally. He utilized his discovery skills to inspire innovation, analyzed the factors in the global environment that would directly affect the expansion of the company, and developed a strategy to turn his company into a global leader in the IT industry. In this assignment, I will identify the factors in the global environment that directly influenced Nayar 's need for innovation, explain how the five discovery skills can be used to impact innovation in an organization, evaluate Nayar 's use of the discovery skills, and offer recommendations for improvement.

International Business Machines Corporation (IBM) is an information technology company that uses their expertise to provide customer solutions. The company operates primarily in a single industry using several different segments that create value by offering a variety of solutions that include, technologies, systems, products, services, software, and financing (10-K report).

To prepare the organization for potential unstable situations, it is important to consider five competitive forces of the company as well as global technological trends, in accordance with the specialization of a business entity. First, the influence of customer and supplier power, established rivals, new entrants or substitutes may notably impact the productivity and profitability of IBM (Porter, 2008). To neutralize the supplier’s power, the IT company needs to put efforts into improvement of its production process because it mostly relies on staff. To attract consumers, IBM can focus on the idea of multiplatform consisting of several technological start-ups, where each one has a different function. As a result, with the versatile range a products, it would be easier for the company to pressure new entrants and spend more resources on research and development (R&D).

Resource Based View is still a hot topic although the theory is more than 20 years old. The Resource-based view's foremost proposition is that an organisation's capacity for competitive advantage is limited to the management of its own bundle of resources (Wernerfelt, 1984;Rumelt, 1984).

In today’s fast-changing economy, companies have to focus on their capability to meet constantly evolving customer expectations. Therefore, managers have to adapt their way of running a company to promote a supporting environment for innovation. As defined by Van de Ven, innovation is “the development and implementation of new ideas by people who over time engage in transactions with others in an institutional context” (1986). This involves the employees and managers within the company, and all the external area like the clients and shareholders. The challenge is also to find the more conducive structure to achieve the goals of increasing individuals and organisation effectiveness.

Management in an organisation might take the view that to be successful, the organisation must be innovative, and continually look for new markets, new and better products and improved processes.

Firstly, it is important to highlight that Amber airline’s strategy was based on the differentiation concept. Then organizational culture and workforce capability and engagement are important strategic competencies of the company. Dynamic capabilities is not just resources, but how the companies renew the internal and external capabilities to rapidly respond to the environment change and achieve competitive advantage. In this case, Human Resource is an important capability to the company maintains competitive advantage through the differentiation, providing a distinct service to the customers.

The history of innovations traces back to the origin of the earth, and since then it has been evolving from day to day. The number of innovations and new ideas developed in this world is countless, and therefore it is not quantifiable. However, some changes keep occurring each day which is used to establish projects and businesses that help in shaping the life of humanity. Many significant changes were delivered in the past by some great visionary entrepreneurs. The basis of business in this world is the diversity of innovation that creates a difference in the type of goods available within the different geographical locations. This paper mainly focuses on the five characteristics of an innovator: such as associating, questioning,

In addition, Amit, R. & Zott, C. (2012) described that there are many reasons for what the generation of new ideas is becoming critical for different businesses. Though, every company has its own main concerns and issues to handle and balance. The companies that cannot avail opportunities and fail to innovate mostly lose their ground to their competitors, lose their efficient and talented human resources and decrease their organisational efficiency and productivity. Most importantly, innovation can be a competitive advantage and a key differentiator of an organisation. Additionally, innovation can be a remarkable difference between leaders of a specific market and the rivals.