Innovation In Business - Assignment Example

INNOVATION IN BUSINESS (Author’s name) (Institutional Affiliation) Introduction The organization under consideration for this project is Sony Corporation. Sony was formed over 70 years ago (on May 7th 1946) by Masaru Ibuka and Akio Movita (Sony 2017). Its headquarters is in Tokyo (Japan), with 16 other locations around the world, as of 2016. This Japanese multi-global conglomerate, among other things, deals with insurance, banking, credit finance, financial services, advertisements, and entertainment, while also largely known for its products such as computer hardware, video games, semiconductors, consumer electronics, and a host of other telecommunications equipment (Sony 2017). With over 130,000 employees across the world (as of 2016) and total assets worth a staggering 17 trillion Yen (Sony 2017), Sony provides a very insightful case study for management and business learning. Part 1: Programs, Systems and Processes Review (a) Changing Trends Sony is always faced with different opportunities and threats from time to time. For one, the company stands a good chance of entering and firmly integrating itself in the sector of healthcare imaging in a very big way through the potential acquisition of over a third of the stake in Olympus (Sony 2017). Moreover, Sony will continue entering various markets through joint ventures and strategic acquisitions. The joint venture with Sharp, the alliance with the Hon Hai Precision Industry in Taiwan, and the recent acquisition of Epson’s TFT LCDs are just instances of how Sony continues to benefit from such mergers and acquisitions (Sony 2017). Sony is also now able to independently act and bring innovations to the tablet and smart phone market following the recent buying off of the entire joint venture with Sony Ericsson. The four screen strategy also promises new experiences for video game, music and movie lovers. However, Sony continues to face stiff competition from rivals such as LG and Samsung, which provide low-cost products like mobile phones and televisions. The idea of an Apple TV is also bound to create a formidable competition for Sony in the global markets, even as Sony continues to contend with hackers with leads to costly consumer information leaks (Thompson 2013). (b) Systems and Processes Basically, a system denotes a course of action/ method/ process/ procedure that is established to achieve a given outcome (Thompson 2013). The components of a system are interrelated and function together for the good of the company. Sony has numerous systems. One such important system is its quality management system (Sony 2017). This system entails processes such as product planning, product development, product design, product manufacturing, sales and customer service (Sony 2017). The system includes establishing authorities, responsibilities, and roles of the personnel in charge of product, and those who ensure quality customer service, in addition to the establishment of guidelines for the various processes. Other systems include environmental audits, research and development, risk management, and corporate social responsibility (Sony 2017). (c) Monitoring and Evaluating Systems and Processes In order to monitor and evaluate the systems and processes in place, it is necessary to first create review dates, then develop a tracking system (that monitors change), co-ordinate marketing and business plans, and where necessary, make changes (Thompson 2013). The systems should be checked if within the parameters of the objectives and aims. All systems and processes should be consistent with the values, mission and vision of the organization. For CSR initiatives, data should be collected to determine how the public is benefiting from the initiatives (Thompson 2013). (d) Analyzing Financial Performance Much of Sony’s focus concerns its future. Yet still, the financial performance for the year that ended in March 2016 showed great improvement compared to the recent years. The financial reports indicate that Sony increased its revenue to 8.3 trillion. This was a 5.8% increase in revenue (Sony 2017). In addition, the company was able to reduce its losses from 128 billion Yen to 126 billion Yen at the end of that financial year (Sony 2017). This improvement was largely attributed to the popularity of PlayStation 4 and the mobile devices’ image sensors (Sony 2017). However, with company shares dwindling, shareholders continue to express discontent with the current financial performances and the forecasts of the incoming financial year. Part 2: Options for Continuous Improvement (a) Ideas for Process/ System Performance Enhancement The performance of business processes and systems such as during product development can be enhanced in a variety of ways. Firstly, a management team for the systems improvement should be handy. These teams are responsible for the improvement projects, and make decisions along the way that are necessary for enhanced performance (Thompson 2013). Secondly, there should be weekly system improvement workshops in which the business process is regularly evaluated and monitored for weak links and bottlenecks (Thompson 2013). During these meetings, brainstorming is done to mull over, express, modify and discard various ideas that have been implemented. A dedicated and skilled chief improvement officer should be hired to manage the improvement and development of the processes. Moreover, a planning tool should be implemented that will facilitate the tracking of improvement initiatives (Thompson 2013). (b) Stakeholders The major primary stakeholders at Sony include shareholders, suppliers, employees and customers (Sony 2017). As of September 2016, the largest shareholders at Sony included the Bank of New York Mellon, the Master Trust Bank of Japan, JPMorgan Chase & Co., Japanese Trustee Services Bank, Citigroup Inc., and State Street Corporation, while some suppliers include Rovi Corporation, Ericsson, Devolver, Ubisoft, Nickelodeon, Xperia Ion, DuoSense, and many more (Sony 2017). On the other hand, secondary stakeholders include the local communities where Sony offices are located across the world, lobby groups, competitors (such as Samsung and LG), and various governments and media outlets of the world. According to governments and local communities, there is still room for Sony to enhance its job creation capacities for the locals, and engage in more rewarding corporate social responsibility endeavors, such as sponsoring needy students through school, building healthcare centers, and so on (Thompson 2013). (c) Strategies for Fostering Innovation and Creativity One strategy that can be used to foster innovation and creativity in the company is to establish a clear sense of direction and target which will help direct and organize creativity. Promoting open communication between employees and the management further helps create an atmosphere of trust which spurs employees to openly share their views (Thompson 2013). Innovation can also be fostered by reducing bureaucracy which is often an impediment to creativity and slows down action. On the other hand, quick implementation encourages the proliferation of innovative ideas. Rewarding innovation and tolerating failure and risk also encourages employees to constantly be creative (Thompson 2013). The opinion of each employee should be held in high regard and carefully deliberated upon, as a team approach is instilled in the ethos of the organization. Involvement of outsiders will also prove critical in fostering creativity and innovation (Thompson 2013). (d) Improving Staff Performance Several important tactics could be important towards enhancing employee performance. Such include celebrating achievements, delegating functions, collaboration and collective problem solving, utilizing employee ideas, and providing prompt feedback, instilling a sense of belonging amongst employees and encouraging open communication (Thompson 2013). Part 3: Implementation Plan (a) Objectives, Timeframes and Measures The objectives, timeframes and measures for improvement are important aspects of implementation. In order to develop these, a SWOT analysis, benchmarking and market research should be done, after which goals which are specific, measurable, achievable, relevant and timely, can be set (Thompson 2013). The plan is to begin by developing a vision statement, followed by the goals and objectives that basically support the vision. The strategy/ action is then determined, along with the performance measure (to assess progress towards the objective), the target, and the benchmark (for performance comparisons) (Thompson 2013). (b) Communication Plans Communication will include the use of online platforms (websites), documents, publications, speeches, conversations, reports, surveys, newsletters and testimonials (Thompson 2013). Communication should have a purpose that is directed towards the relevant audience, and messages can be delivered through face to face communication, social media, podcasts, recordings, multimedia presentations, e-mail, texts, and phone calls (Sony 2017). Having a revision history in the communication plan enables documentation of any alterations to communication strategies. Consistency in messages should be emphasized with integration between external and internal communications very useful (Thompson 2013). All communication should be two-way, and must be conducted in a proper tone (Thompson 2013). (c) Strategies for Continuous Improvement The six sigma approach could be utilized to promote continuous improvement. The six sigma approach utilizes various methods of quality management which are aimed at enhancing outputs through the identification of defects and errors (Thompson 2013). Equally, the TQM (Total Quality Management) aims for perfection in all business processes by focusing on communication, process enhancement, employee involvement, and customer satisfaction (Thompson 2013). The 5S philosophy also cleans and organizes workplaces so that production, functionality, and efficiency are enhanced. This is achieved through the five Ss which are sorting, setting in order, shinning, standardizing and sustaining (Thompson 2013). Another strategy for continuous quality improvement is the PDCA which entails Plan, Do, Check, and Act components in that order. (d) Monitoring and Evaluating the Plan According to Thompson (2013), the monitoring, evaluation and modification of the action plan is a very intricate and useful procedure. Firstly, the purpose of the mechanisms of the evaluation and monitoring should be determined, and an assessment of the information requirements of each player conducted (Thompson 2013). Interventions for prevention and response should have clear indicators, outputs and objectives. Reporting tools should be common and coordinated, as the techniques of obtaining data concerning the indicators are also determined. Resources should be allocated, frequency and timeframe of data collection determined, and data gathering responsibilities assigned (Thompson 2013). Thereafter, mechanisms for information sharing should be established, and the results swiftly incorporated into the response and prevention plans (Thompson 2013). References Sony USA - Electronics, PlayStation, Movies, Music, Product Support, 2017. Retrieved February 08, 2017, from http://www.sony.com/ Thompson, A., 2013. Crafting & executing strategy: The quest for competitive advantage. S.l.: Irwin Mcgraw-Hill. Read More