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Chapter 4 IM

Uploaded by

Nur amirah
Copyright
© © All Rights Reserved
Available Formats
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Learning Outcomes

At the end of this chapter, students should be able to:


1.Describe the organization infrastructure needed to support
innovation.
2.Discuss the importance of vision, mission and objectives in
an organization.
3.Explain the external and internal routes of innovation
4.Compare mechanistic and organic organisational
structures.
Topic Outline

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4.1 The importance of a vision

 Vision statement addresses the inquiry, "What


do we want to become?"
 vision gives the basis to create a complete
mission statement.
 the first step in strategic planning.
 short and single sentence.

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Examples:

To be the leading
entrepreneurial
technical
university

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Examples:

To be the No.1 Green Innovation Company


in the Electronics Industry in 2018

To be Malaysia’s leading new generation


communications provider, embracing
customer needs through innovation and
execution excellence.
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4.2 The importance of a mission

 characterizes what an organization is and its


explanation for being.
 mission addresses the inquiry, "What is our
business?"
 A clearly stated mission statement is
fundamental for viably building objectives
and strategies.

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4.2 The importance of a mission

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4.3 The importance of a objectives

 specific outcome that an organization looks to


accomplish in seeking after its fundamental
mission.
 the organization hope to attain in the short
and long term and by what implies in
connection to growth, products,
technologies, and markets.

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4.3 The importance of a objectives

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4.3 The importance of a strategy

 process of planning that takes into account the


objectives, goals and policies for the
organization.
 should consider environmental factors and
resources owned by the relevant organization.
 gives broad direction to the organization.
 can focus on many different organizational areas,
such as marketing, finance, production,
research and development, and innovation.

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4.3 The importance of a strategy

The hierarchy of
strategies

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Innovation strategy

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Innovation strategy: External
Routes
 Licensing
– open to organisation that can practice control over
their intellectual property rights.
– With patent protection set up one firm can give an
alternate a license to fabricate products utilizing its
technology.
– Under the terms of a license the patent holder typically
holds intellectual property rights over the
technology, yet permits the licensee to utilize the
technology within the products or services it
creates, in exchange for a royalty fees.
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Innovation strategy: External
Routes
 Spin-off
 where one firm quite literally creates another in order to exploit the
innovation.
 an attractive option where the technology of the innovation is
not closely related to the core technology of the firm, because
it avoids unnecessary distractions.
 There are a variety of ways in which it can be sold off including:
– an initial public offering (lPO)
– a management buy-out (MBO) where the company is sold to its
managers
– sell to a venture capital (VC) organization who will invest in the company
with view to selling it off in the future
– sell to another company

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Innovation strategy: Internal Routes

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Innovation strategy: Internal Routes

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4.4 The importance of a structure

Candler Strategy-Structure Relationship

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4.5 Models of Organisational Structure

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4.5 Models of Organizational Structure

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Functional Structure

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Divisional Structure

a) by geographic

b) by product

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Divisional Structure

c) by process

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4.5 Models of Organizational Structure

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Matrix Structure

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THE END

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