How Business Administrators use innovation an integral part of leadership and management activities


Make innovation an integral part of leadership and management activities

Change has, of necessity, become the norm for most organisations and effective change relies, to a large extent, on innovation and creativity. There is a wide range of data and many models that can be utilised by organisations wishing to increase their innovative capabilities. Data will be collected from a range of sources—both internal and external to the organisation. Environmental scanning must be regular and effective. Data collected from such scanning processes will point to threats and problems that must be managed or resolved and opportunities that can be exploited.

Effective data collection and research activities will result in a clear understanding of the market in which the organisation operates and will enable staff to tap into best practice and benchmarking data that will contribute to the development and application of new technology, processes, products/ services and/or methods of doing things. You can learn how business owners or administrators deal with innovation by studying a Certificate IV in Business Administration view this website if you work within an organization as a leader or manager you can study Leadership and management diploma navigate to this website

The concept of innovation stresses that the flow of technology and information among people, enterprises and institutions should be used to develop ideas and to turn an idea into processes, products or services on the market. Networking, competitor analysis and research processes are therefore key capabilities of organisations wishing to develop and grow innovative ideas.

Business organisations need to rethink strategy development approaches, to better adapt to today’s competitive environment. Successful companies are stretching their processes along three dimensions to generate more timely insights and to foster organisation-wide preparedness and agility.


Executives unhappy with strategic planning processes that they feel have become ossified and bureaucratic—are reinventing the ways in which they develop strategies. It has been reported that many leading companies such as Lafarge, ING, Groep, Nokia, Shell, Toyota, and United Parcel Service are stretching their strategy development approaches along three mutually reinforcing dimensions.

They are:

  1. Stretching their time horizons to give the short, medium, and long term each its due.
  2. Stretching their thinking with new techniques that boost creativity and insight.
  3. Stretching their engagement model to foster dialogue, capabilities, and alignment across the organization. 

Executives who are faced with increasingly changeable markets are not abandoning strategy and long-term thinking. On the contrary, they are embracing new strategy development approaches that help them not only to see new opportunities sooner, but also to seize them more decisively.

More and more, organizations are taking distinctly different approaches to strategizing for the long, medium, and short terms. When thinking long term (five or more years out), a broadly shared strategic vision of possible futures and the company’s ideal position in each is the goal. In the medium term (three to five years out), the goal is a business plan that describes the investments and moves required to realize and create value from the strategic vision. In the short term, the objective is to ensure consistency in terms of what the customer/ client receives and to make smart trade-offs between the business plan and budgetary realities.

In all of these strategic aspects, innovative ideas will be needed—to develop approaches and to achieve results that will differentiate the organization from its competitors and give it market presence that achieves its objectives.

Organisations need to expand their thinking repertoires to:

  • invest in the art of questioning
  • foster discussion on critical issues
  • strengthen the organisation’s capacity for strategic thinking
  • inculcate innovative ideas into short, medium and long-term forecasts
  • fight inertia, complacency and groupthink
  • build scenarios to prepare the organisation to compete in a number of plausible futures


‘Whether new methods are permanent additions or one-time experiments, the goal is to shake things up lest routine becomes the enemy of creativity and insight.’

Being innovative in business is being different in a profitable way—doing something new, applying new ideas or new inventions, or developing new ways of doing things—and taking new ideas through to satisfied customers/ clients. It is the conversion of new knowledge into new products and services or into new ways of doing things.

Innovation is about creating value and increasing efficiency and therefore growing the business. Without innovation new products, new services, and new ways of doing business would not emerge. Those organisations which cannot innovate would find themselves left behind and unable to compete in the business world.

It must be noted that innovation necessarily implies change. Change, however, does not always imply innovation. Innovation might involve either or both incremental (small and continuous) and radical and/or revolutionary (transformational) changes in thinking, product/ service development, process design, and application, or organisational structure.

In business, an innovation should add value, increase value or produce value for the organisation. The goal of innovation is a positive change, to make someone or something better. The need for innovation is grounded in the need to develop and maintain a suitable competitive edge.



Posted in Default Category on February 26 at 05:46 AM

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