The paper "McDonald's as Example of a Successful Innovation" is a perfect example of a business assignment. Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. ” If one were to give an example of a successful innovation strategy from the contemporary world, there would be none better than McDonald's would The chain is now among the biggest fast-food chains spread all over the world, it is a cult by itself. All McDonalds has done however is that it has taken the idea from burger joints that were present in the US since the 19th century and ensured branding and innovations.
McDonald's is one of the front-runners of the management and the innovations boom that the US witnessed in the 1950s, only the chain and its organizational management take the concept of innovation to a different level. There is nothing extraordinary about the food served at McDonald's, nothing exceptional about the service. The company uses the simplest of menus, but that would appeal to the universal palette.
They have changed menus according to local tastes wherever required. Therefore, in India, there is no bacon despite the very bacon friendly nature of the burger. They instead serve potato and chicken burgers, these are again hugely successful. The happy meals, the toys, the goody bags, the innovative management of the staff; the entire McDonalds success story is about the usage of innovation that can turn something so ordinary into something extraordinary. Opportunities for success through innovations can be understood in the context of Drucker’ s seven sources to innovation opportunities. These sources can be both internal and external.
One of the internal sources is The Unexpected, this denotes unexpected success, an unexpected failure or an unexpected outside event can be a symptom of a unique opportunity. An example of the unexpected source of innovation that came from within the organization to translate into success is the story of ASX-listed manufacturer Smorgon Steel Group Ltd. (SSX), one of Australia’ s leading steel producers. Since the company built Australia’ s first electric arc furnace “ mini-mill” in 1980, it has followed a program of carefully chosen strategic acquisitions to become Australia’ s most vertically integrated company.
With recycling, manufacturing and distribution divisions, Smorgon Steel employs over 5,000 people in 160 locations across Australia. The lesson that is to be learnt from the success that Smorgon Steel enjoys is that success is not be wasted away but should be the stepping stone to better success through better innovations. Existing reporting systems tend to focus on shortfalls – not meeting targets – and ignore exceeding targets. Therefore, more often. The unexpected success is simply not seen at all. The unexpected success is not just an opportunity for innovation; it demands innovation.
There is a reason why Drucker has placed unexpected success at the top of his list of the sources successful innovations.