Institute of Business Administration

-Jahangirnagar University

Topic Name: What Is Innovation? Why Innovation is

Important in Changing Organization? Discuss Various
Variables That Are Necessary for Innovation.

Name: Farhad Hossain

Student ID: 202401059
Batch: 31st
Course Name: Organization and Management
Course Code: BUS 507
Course Instructor: Mr. Palash Saha (Sir).
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What Is Innovation?
Imagine a world without light bulbs. How did light bulbs come to existence?

If we go a little bit further, how did electricity come to exist?

Can we imagine a world without electricity? The digital forms of technology

we know would cease to exist.

Electricity was never invented, it’s a form of energy which has always
existed throughout the universe. So, it was discovered. However, the term
‘electricity’ was coined by a guy called William Gilbert in 1600 to describe
static electricity and there were also two other men, Benjamin Franklin and
Michael Faraday who were at the forefront of its research and
implementation.

Light bulbs, however, was invented by Thomas Edison.

What Is an Invention?

Invention is the action of inventing something, typically a process or

device.

What Is Innovation?

Innovation is the action or process of innovating a new method, idea,

product, etc.

In other words, innovation is the process of using creativity to devise

something completely new or better than the previous ones.

Why Is Innovation Important?

Company like Google has turned into billion dollars company by
innovating new ideas, technologies that have drastically changed the
world in variegated ways. Google have brought new dimensions of a
search engine. Whenever someone would search something from internet,
he/she is most likely search on google and google would send the most
appropriate links according searched keywords. Other search engines
have gradually become defunct because they were unable to keep up with
Google in terms of innovation. Google’s dominion over search engine

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industry has reached to an extent that most of the people uses Google to
refer to search engine.

That’s how Google’s dynamic approaches completely change the industry.

Moreover, Google’s Android OS is the most used mobile operating system
to this day.

When it comes to innovation it is impossible to walk off Apple. Apple has

not only revolutionized the computer industry but also the mobile industry
drastically by reinventing mobile phone in 2007.

Before entering mobile phone industry Apple was known as a computer/pc

manufacturer company. In 1976 Apple entered computer industry with its
first ever computer Apple-I, the first computer with a single circuit board
and ROM, to which a keyboard, a power supply and case was to be added.
In 1977 Apple introduced Apple-II, which was a great success. Apple-II was
an 8-bit computer and came with switching power supply, keyboard case,
game paddles, and a box containing the “Breakout” game. Apple launched
Apple Lisa in 1983, the first computer to have graphical user interface.

A year later Apple introduced the Macintosh, the first successful computer
mouse with a graphical user interface.

The 1990s were also marked by innovation introduced by Apple, their new
iMac, the 1998 G3, came with a clear and customizable case.

It included a 4GB hard drive, 32MB RAM, a CD-ROM, and a 15-inch monitor.

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Over the years Apple brought many new things to computers that were
later used in other personal computers. Apple has always been a prolific
innovator company destined to change technological industry.

In 2001, Apple launched iPod that did not just change the way of listening
to music, changed the whole music industry.

In Jan 9, 2007 Steve Jobs, CEO and also a founding member of Apple,
surprised everyone by announcing Apple’s entry in mobile industry.

At the beginning of the presentation by Steve Jobs, he told the audience

that,” today we are introducing three revolutionary products, the first is a
revolutionary wide screen iPod, the second is a revolutionary mobile phone,
and the third is a breakthrough internet communication device.”
Later he revealed that the three devices were not distinct products rather a
single product, a mobile phone that was integrated with all the features of
those three devices.

iPhone was the first phone to introduce multi touch in a mobile phone, and
it did not have to be operated by buttons unlike other traditional
smartphones. Mac OS 10 was used as the operating system of iPhone.

Apple’s innovations changed both the computer and mobile industries

over the years. The iPhone saw Apple ascend to one of the most valuable
companies in the world, with revenue increasing from $37.4 billion in 2008
to $65 billion in 2010. The success of the iPhone enabled Apple to launch
new product categories, such as the iPad. Apple envisioned the tablet as a
bridge between the smartphone and laptop, with the capabilities of both.

The innovation of iPhone changed the direction and future of Apple.

Although Apple entered as a computer manufacturer in 1976, now its most
of the revenues come from mobile phones. Apple generated $383.2 billion
revenue in 2023, of which 52% came from iPhone sales.

At the present whenever someone thinks of Apple, it is most likely that

iPhone is the first thing that would come to one’s mind.

Some people might attribute innovations of any organization to its

technical workforce, but the reality is hiring the right person for the right job
in the right time, and leading and coordinating them in the most
appropriate means is what makes differences. Some organization might
possess great workforce yet may fail due to its poor team performance

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and weak leadership. Apple’s CEO Steve Jobs is considered among the
greatest leaders in the business world, and has witnessed Apple’s greatest
innovations in his lifetime.

Netflix is another company that was drastically changed by its innovative

business ideas, and efficacious use of technology.

Netflix was launched in 1997 as a DVD rental service that charged a

per-rental fee. With tens of thousands of titles available, subscribers could
select movies and TV shows through the website and receive the discs by
mail. In 1999, Netflix offered an online subscription service; by the year 2000,
this included flat-fee unlimited rentals with no due dates, late fees, or
shipping fees.

In 2000, the company introduced a personalized movie recommendation

system, using an algorithm to predict an individual’s movie preferences
based on previous rental data. This system was improved after the Netflix
Prize contest in 2006 challenged 40,000 contestants to improve the
accuracy of movie recommendations by 10%. The $1 million Netflix Prize was
awarded in 2009 to BellKor’s Pragmatic Chaos, a team made up of seven
mathematicians, computer scientists, and engineers from the United
States, Canada, Austria, and Israel.

In 2007, Netflix heralded a new era with the introduction of streaming

services that allowed subscribers to access content directly over the
Internet. Streaming delivery quickly gained momentum, becoming
unlimited for most subscription plans. Netflix partnered with makers of
video game consoles, Blu-ray Disc players, and other electronics to enable
video streaming on those devices.

By 2010, Netflix introduced a streaming-only plan. The company initiated its

global expansion to Canada, Latin America, the Caribbean, and Europe by
2012, reaching over 190 countries and territories by 2016.

As streaming became its primary revenue generator, Netflix shifted its

focus to the production of original content in 2013. By 2023, Netflix boasted
more than 3,600 original titles.

In 2023, Netflix began live streaming with its stand-up special Chris Rock:
Selective Outrage. In January 2024, Netflix said it had inked a 10-year deal
with World Wrestling Entertainment (WWE) to stream a weekly live
professional wrestling program, Monday Night Raw, beginning in 2025. In
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March 2024, the company announced it would live stream a fight between
boxers Mike Tyson and Jake Paul in July. As of 22nd March, 2024 Netflix has
a Market cap or net worth of $271.78 billion.

4 Factors that Foster Great Innovation

1. THE OUTSIDE ENVIRONMENT.

A cultural environment can have a significant impact on whether a

fledgling idea takes off. What attitudes and support systems can allow a
business to launch?

Certain cities and countries seem to be especially hospitable to innovation

and entrepreneurship. Deborah Op Den Kamp, a consultant with Spencer
Stuart in Silicon Valley says,

“There are some wonderful things about Silicon Valley that make it
uniquely able to create the level of innovation: there’s no badge of
disgrace for your company failing, there is a wealthy outflow of capital, you
have access to lots of other creative people who can aspire you.

Innovative cultural environments can include:

• a culture that values learning and education;

• a sense of urgency or necessity, forcing solutions with limited tools;

• support from governments or an environment with resources,

guidance and access to markets.

2. VIBRANT INTERNAL CULTURE

A vibrant internal business culture often distinguishes the successful from

the unsuccessful organization. Legacy companies invest heavily in
recreating startup culture, such as agility and experimentation, within their
own businesses.

Pierre Fouques du Parc, Managing Partner for France at Boyden says,

“The scale-up and startup business which have been successful – they are
extremely agile and they are extremely fast…usually the startup and the
scaleup are always fighting against time, which is their worst enemy.”
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AESC’s members-only State of the Profession 2020 report includes insights
from 600+ top business leaders. Of the responses, only about half (56%) of
top business leaders globally feel agility is a strength within their
organizations.

By fostering qualities of agility, resilience, and experimentation, companies

and business leaders can cultivate openness, curiosity, and risk
embracing thinking. These are necessary to step outside of a cultural
comfort zone and both consider and understand broader markets.
Company cultures that embrace risk, failure, and experimentation innovate
more and get new products to market faster.

James Quincy, President and CEO of The Coca-Cola Company said, “If
we’re not making mistakes, we’re not trying hard enough.”

3. THE RIGHT LEADERSHIP

Building an innovation-friendly culture is often the result of good

leadership.

Richard Lin, Office Managing Director of Korn Ferry’s Taiwan/Cross Straits

Practice, sees great leaders “as having a vision, setting an agenda,
creating a mission,” and adds “it’s all about loving what you do, creating
that passion and energy. Those are the things that are intangible but can
drive an organization to new heights.”

An effective business leader is open-minded, recruits and builds good

teams, and projects empathy and humility. Good leaders are also good
internal communicators. Effective internal communication leads to
brainstorming, creativity, and innovation. Leaders who listen can inspire
and capture fresh thinking from all over their organizations.

Op den Kamp says, “I think some of the best founders out there are
students of the universe…understanding challenges they faced in the past
and really opening themselves up to new ideas and new ways of thinking.”

4. HIRING IS KEY

An innovative business leader cannot capitalize on a good idea without the

right people.

Attracting, hiring and retaining talent is critical. Fouques du Parc

believes, “There is an important quality in successful entrepreneurs – that

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they are very good at recruiting…hiring still remains the big success factor
for a leader.”

Creating and maintaining company culture and values is also essential to

success and fostering innovation. Op den Kamp says, “We think of culture
as the unwritten rules of how an organization operates, that what creates
the kind of fabric of a place.”

Confederate Colonel John Pemberton, wounded in the American Civil

War and addicted to morphine, also had a medical degree and began a
quest to find a substitute for the problematic drug. Inspired by that idea
Pemberton invented the formula for Coca-Cola, that has given the birth of
soft-drink industry. Over the years Coca-Cola encountered many
hindrances and tough times, which it came over by adopting innovative
ideas, and marketing approaches. Because of Coca-Cola’s adaptability
with changes, it’s still dominating the soft-drink industry.

With a brand value of over 33 billion U.S. dollars, Coca-Cola was by far the
most valuable non-alcoholic beverage brand in the world in 2023.
Pepsi ranked second that year, with a value of around 18 billion U.S. dollars.

Coca-Cola officially started its journey in 1892, yet in 2023 they are the
market leader of soft drink industry.

To survive the test of time, a company must adapt with changes, and bring
innovative ideas into its operations.

BlackBerry and Nokia, once were behemoths of mobile phone industry, did
not withstand the test of time because of their failure in adaptation with
change, and hindsight of innovations that later changed the fortunes of
their competitions.

The End