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Pepsico Essay

2180 words - 9 pages

Sustainable Innovation as a Corporate Strategy
M. Rashid Khan and Mohammed Al-Ansari Intellectual Assets Management, Saudi Aramco, Dhahran 31311, Saudi Arabia. 1. Introduction Something amazing happened in the corporate world. The idea to innovate has captured our imagination. As an example, in 1996, Lucent Technologies’ award winning “Creativity Center” was industries state-of-the art that provided leadership, passion, outstanding marketing, training and communication. Similarly, Enron was the industry “darling” for its innovation program; Enron’s major intranet program “eThink” was recognized with awards for excellence in communication. Yet four years later Enron went bankrupt, the ...view middle of the document...

Innovation is not “business as usual” as it may challenge the existing system, “rocking the boat.” There must be good reason for doing so. A degree of security and stability is essential to “incubate” creativity. The model to foster sustainable creativity is drastically different from the innovation programs developed by many that failed. While many did not survive, there are examples of organizations that successfully added value. Some organizations have been able to come up with fresh ideas again

and again leading to continuous revenue generation. Is there a secret or pattern to these company’s successes? Innovation is the lifeblood of the modern competing organizational environment. In the fiercely competitive 21st century marketplace, innovative ability is essential for survival. The following are major ingredients for sustaining innovation: Creating value: Innovation is a process of creating value and to stimulate the survival and growth of the organization. Ideas can come from anywhere. Too many companies become embroiled in the ideas generation process or where they came from. Ideas by themselves do not add value. It is the ownership of results (i.e., implementation an idea into action) that can create value. Successful innovative companies, therefore, cultivates creative ideas that add value. Dynamic process: Innovation for the company is as “oxygen for a living body.” Oxygen must be delivered to all cells for survival of the whole body. The innovative organization includes everyone in the loop to generate ideas. Like the individual cells serving the body, in a truly innovative organization, the individuals are empowered by releasing their untapped potential and creativity. Successful innovation is a dynamic process that sustains itself. Innovation is anything but business as usual: Innovation is getting people to overcome their ego and to recognize that business as usual is not the best approach to solve a problem. Helping people to broaden their perspective, think “out-of-thebox,” allows one to be creative. Getting people to see a different point of view is an ego issue. People tend to think that the way they have always done business must be the best way. Innovation versus invention: Invention is discovering things that have never been discovered before. Innovation, on the other hand, is the discovery of new ways of creating value. Not everyone can be an inventor, but everyone can be innovative. While not all innovations are inventions, all inventions are innovative. There are two basic types of employees, implementers and innovators. Implementers prefer to work within the existing rules, “doing the right thing.” They represent the status quo and serve important roles in the company. On the other hand, innovators seek out new ways and often break the rules or past “best practices” to solve problems “doing it differently” and some cases doing the “impossible.” Innovations are something to be fostered in a carefully controlled...

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