AffiliationIntroduction In the present world, knowledge plays a pivotal role in economic processes. Those organizations with enough knowledge have a competitive advantage over those with less. In an economy that is knowledge based, innovation plays an essential and central role. An organization can maintain competitive advantage through quality and price (Francis, Bessant, & Hobday, 2003). Organization does innovation in order to defend and maintain their competitive stand and to seek their competitive advantage (Francis, Bessant, & Hobday, 2003). Innovation is the heart of economic change; it shapes the momentous changes in the world and fills in the process of change continuously.
It turns ideas and knowledge into products and services. The stumbling block of innovation is management innovation. The present management systems that are in place in every firm today develop over the last 160 years. The dynamic business innovation transforms by management innovation and as a result, business models and practices, can meet challenges of change. The ability to spot new opportunities and create new better strategies is the heart of every management innovation (Genus & Cloes, 2006).
Walmart is the largest stores in the United State of America, and one big chain store the world. It operates more than 4,000 retail store globally. On top of this, company is a dominant retail in Mexico, Canada, and United Kingdom. A survey by Fortune 500 index shows that Walmart is the richest and most powerful corporation in the world. It holds the number one when ranked by its total sales. It is the second most admired company in the world (Vance, Sandra, & Roy, 1994). The company provides diverse merchandise ranging from household needs, electronics, toys, fabrics, jewelery and shoes, crafts, family apparel, lawn and garden.
It also runs a pharmacy department and photo processing center (Vance, Sandra, & Roy, 19 Product innovation. Walmart examine the life cycle of their products and the supply chain try to make products that are sustainable from farm to the shelf. They work with the research consortium who delivers research findings, metrics and reporting system. This assists Walmart to engage suppliers so that they understand the products they sell. In 2011, the company used the metrics from the research firm to develop an index for six products.
By engaging research results and integrating them into the core merchandise processes, will help transform their products to better suit customers’ needs. In my own view, this is a product innovation process because the company will use research findings to improve on their products. Furthermore, their supply chain, which is transparent, is also one of the product innovations. Walmart implemented an information system that is transparent. For example, when scanning the band-aid at the register, the information sent Walmart D C and also to suppliers.
This will give information to suppliers, and are able to know the amount to ship out. These have reduced time, labor and paper work. The supplier forecast demand and plan production hence greater efficiencies. Process innovation. Locally Walmart is the largest US retailer. It has over 3,000 stores, and 77 distribution centers serving over 100million customers. In my own view, I see this as process innovation because Walmart started small but gradually developed with time to what it is today. There have been changes in the way in which products produced and supplied to customers.
Its expansion globally has been aggressive and dynamic in the sense that their products are unique in every step of the way. So the process, they undertook to diversify, expand, and innovative.