Business Consulting Report

Executive Summary
 The report is based on the importance of innovation and continuous improvement
culture in an organization and how innovation is key to result in sustainable development in
the long run. The report is formed from an independent consultant point of view regarding the
lifting company ‘Precisionco’.The report consists of introduction, main body and conclusion
of the mentioned organization. How to excel innovation is discussed along with few real life
examples on how companies failed due to not embracing innovation culture while some
others succeed through exploiting and fostering innovation. At last, as an independent
consultant, some recommendation has been provided for Precisionco on how to cope with
innovation culture.

Introduction

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 Business innovation is an organization's process for introducing new ideas,
workflows, methodologies, services or products. Business innovation should improve on
existing products, services or processes; or it should solve a problem; or it should reach new
customers. The aim of the business innovation process is to make value for the organization.
That value can come from creating new revenue opportunities or driving more revenue
through existing channels; from creating efficiencies that save time, money or both; or from
improvements to productivity or performance (Emprechtinger F., 2018).
Precisionco may be a small to medium sized company in Wales, employing
approximately 60 people. Founded in 2001, they manufacture, deliver and repair lifting
equipment, primarily across the United Kingdom, but with some limited exports to Europe.
After a period of relative stability before the pandemic, there's now tons of change.
Profitability has also been suffering from the prices of implementing COVID-19 preventative
measures, and from managing lockdown periods. The new management team considers that
the corporate has become locked into survival mode, supported ‘business as usual’, and
wishes to vary and embrace a more innovative culture. The report is discussed on why
Precisionco as corporate requires innovation to survive and foster within the end of the day.
Why Precisionco struggling?
In the world of business to urge a foothold over competitors, Precisionco is required
to constantly evolve their sales, marketing, hiring, and employee retention tactics to remain
ahead. External pressures and threats from other companies push entrepreneurs to return up
with new strategies and solutions to grow their businesses. There are no thanks to succeed
aside from to innovate.
It’s essential to consistently measure results to know its customers and check out new
ideas and solutions to satisfy their demands. Marketing strategies that were once effective to
realize customers can get stale if the corporate aren’t constantly watching the results and
making changes, while its competitors are arising with new ideas, products, and solutions to
grow their own businesses. What wont to work before won't work now (Goldschmid, M,
2016).
Constantly arising with new ideas to draw in customers and grow the business is often
challenging, and therefore the reality is that the lack to introduce new tactics is often
detrimental to a business. Consistent with a Gartner Financial Services Innovation Survey,
internal politics and an organizational culture that doesn't welcome ideas from third parties,
or cannot embrace new ideas, are detrimental to innovation (Goldschmid, M, 2016).

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Why innovation is mandatory (after covid-19)

After the effect of Covid-19, many businesses simply cannot operate as they need
within the past. What made a corporation successful historically may not be possible during
or after the crisis. Customers may struggle to pay. Channels may have radically shifted to
accommodate new needs or work around new constraints. A stable regulatory context may
have changed, potentially creating opportunities that never existed before. The assumptions
that supported years of stable, predictable growth may not be valid (Ishak, W., 2017).

Businesses can gain long-term advantages by understanding such shifts and therefore
the opportunities they present. In past crises, companies that invested in innovation delivered
superior growth and performance post crisis. Organizations that maintained their innovation
focus through the 2009 financial crisis, for instance, emerged stronger, outperforming the
market average by quite 30 percent and continuing to deliver accelerated growth over the
next three to 5 years (Ishak, W., 2017).

An example (How innovation escalates organization)

Pixar, as everyone knows, is perhaps the foremost famous and successful company
during a very creative industry, namely animated films. They were a transparent pioneer in
their industry with a really strong collaborative and mission-driven culture, which Founder
Ed Catmull describes intimately in his excellent book Creativity, Inc. Pixar managed to stay
their culture intact despite rapid climb and truly managed to scale creativity without
sacrificing quality, thanks in large part to variety of key principles and practices that they had
in practice (Miller, B., 2019).

Amazon has been declared together of the simplest workplaces for innovators because
they empower every employee to try to so. Simply put, the organization employs a singular
idea submission framework that they call the PRFAQ format. The format is described as ‘a
handout that outlines the vision for a product at launch, an FAQ that explains the customer
benefits, and answers theoretical customer questions’. The ideas are continually evaluated
and also are shared with other innovators at the corporate. Once a thought is fully formed and
approved, it can then receive funding for launch. a number of Amazon’s most lucrative
products are created via this process, including Prime Now, Amazon Go, and Alexa (Miller,
B., 2019).

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An example (How companies fail without innovation)

Home movie and computer game rental services giant, Blockbuster Video, was
founded in 1985 and arguably one among the foremost iconic brands within the video rental
space. At its peak in 2004, Blockbuster employed 84,300 people worldwide and had 9,094
stores. Unable to transition towards a digital model, Blockbuster filed for bankruptcy in 2010.
In 2000, Netflix approached Blockbuster with a suggestion to sell their company to
Blockbuster for US$50 million. The Blockbuster CEO wasn't curious about the offer because
he thought it had been a "very small niche business" and it had been losing money at the
time. As of July 2017, Netflix had 103.95 million subscribers worldwide and revenue of
US$8.8bn (Thangavelu, P, 2020).

Another company is Kodak. At just one occasion the world’s biggest film company,
Kodak couldn't continue with the digital revolution, for fear of cannibalizing its strongest
product lines. The leader of design, production and marketing of equipment had variety of
opportunities to steer the corporate within the right direction but its hesitation to completely
embrace the transition to digital led to its demise. For instance, Kodak invested billions of
dollars into developing technology for taking pictures using mobile phones and other digital
devices. However, it held back from developing digital cameras for the mass marketplace for
fear of eradicating its all-important film business. Competitors, like the Japanese firm Canon,
grasped this chance and have consequently outlived the enormous (Thangavelu, P, 2020).

Innovation and Key success factor

 Effective Communication

There are numerous initiatives in many businesses that everything eventually seems like
an abbreviation for 3 letters. The knowledge on projects and activities that do not affect them
constantly bombards employees, and most people don't comprehend the company's actions
context. Study shows two elements that affect this impression - the management team's focus
and remuneration adjustments. This aspect which will influence the company's culture is
constant communication in the least levels. So, Precisionco management should focus should
be to enhance communication level, contact those that need its service, and explain why their
service is best for others (Kamalaldin et al., 2021).

 Build capacity

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 Today, it's hard to seek out employees at any level who aren't stressed or feel that they're
working almost capacity. This culture of 'busyness' is present in most industries, but is
particularly pervasive within the lifting industry. Innovation thinking, however, requires
mental space. Leadership must release capacity for workers to be creative. This will take
many forms, from free 'innovation time' built into the workweek to special cross-functional
teams that close to figure on innovation projects (Morris, L.).

 Embrace failure

Successful innovation requires failure along the way – yet many employees are scared of
failure and its consequences. To create an innovation culture, it's imperative to require this
fear away. A method to undertake to that's to be clear that the push to try new and different
ideas is coming directly from the CEO of Precisionco. Another method is to make KPIs
around pushing for innovation, rewarding process and innovative thinking over specific
results or achievements (Morris, L.).

 Training

Training may be a key component within the shift towards a culture of innovation,
alongside communication. The training during this scenario should specialize in new ideas
generating techniques and procedures, new roles and functions in capturing and assessing
ideas, and new attitudes and innovative approaches.(Testad, Corbett and Aarsland, 2013)

Training may be a crucial component of cultural transformation. Teams cannot expect to

assume new duties and innovate regularly without offering new tools and techniques to
people in these teams Training does quite teaching people new paradigms of thinking or new
methods. The management team of Precisionco should send a really clear signal that
innovation is important by pulling employees far away from their daytime occupations and
inspiring them to review new concepts. Training also develops new ties and networks
(Testad, Corbett and Aarsland, 2013).

 Metrics and measurements

Measurements are another consideration. Measurements, objectives, and metrics are

readily linked to strategic goals and pay plans, reinforcing culture via senior management
commitment, remuneration, and measurement. Management of Precisionco must assess the

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amount of ideas created, the extent of the participation within the corporate, and therefore the
length of your time required to advance a thought through the innovation process when the
corporate begins an innovation program. As ideas grow materialized into products or
services, the team may provide result-based measurements and assess investments in an
innovation program against financial returns over time (Ergashev et al., 2019).

Precisionco top management should develop innovation objectives and actions that are
closely connected with the business unit or corporation's strategic objectives. When the
develop of innovation is on process, identify ideas and measure ideas throughout the
innovation process. Interim measures and measurements are vital if the leadership team
knows what's happening and the way the stress is developing on innovation (Ergashev et al.,
2019).

 Clear focus

In a large organization like Precisionco, it can’t possible change everything overnight. it's
to settle on a couple of the foremost important areas which will really make a difference and
begin from those. If the workers can score some “quick wins” with the primary initiatives,
this may help get everyone onboard and excited about the upcoming journey. Then once
things are done, the change management team systematically keeps making its way down the
list just created (Kylliäinen, J., 2019).

 Time

There is another aspect which may work for the corporate or against the corporate. When
the efforts are inconsistent or imprecise, time works against the cultural transitions. A culture
can't be changed overnight - it'll take time for any new way of thinking or procedure to occur,
especially given the substantial transition from operational excellence to innovation in some
companies. Finally, consistency is extremely crucial throughout time. The "flavor of the
month," significant and discarded in one era, may quickly become the "innovation. The
weather that is listed above may influence the culture, but the team must be according to its
purpose and goals throughout time. Otherwise, culture reverts to its current emphasis
(Kylliäinen, J., 2019).

Internal politics and cultural barrier

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 The final wake-up call relates to internal politics and cultural issues. This is often
perhaps one among the most-written about barriers to innovation and occurs whenever there
are conflicting agendas, rival teams, limited leadership and unfocused direction from the
highest or poor communication and collaboration, among many other factors. The challenge
with cultural issues is that they’re typically not a fast fix (actually, almost never) and even in
companies who believe they’re great innovators, and albeit the general culture is great,
specific cultural misalignments like not-invented-here syndrome can hamper results (Evans,
D., 2018).

The strategy to counter this is often complex, a bit like the opposite serious challenges
outlined, but may include strong leadership and communication of strategy from the highest ,
fostering an innovative culture, making innovation everyone’s job, encouraging and
rewarding collaboration, and ensuring cross business unit objectives also as management
objectives are well-aligned (Evans, D., 2018).

Recommendation for Precisionco

 Start with a thought challenge asking every employee what’s preventing them from
innovating or from otherwise making progress, and plan to fixing many of those .
 Run a thought challenge asking every employee to pinpoint the most important
frustrations existing customers have, and reserve allow addressing a number of them.
 Introduce continuous improvement processes for doing incremental innovation across
the organization.
 Reward and celebrate employees who contribute towards new innovations
additionally to their own role.
 Consider innovativeness and desire to form real change happen in every hiring
decision across the organization.
 Establish team work, which may change the affective experiences, cognitions and
attitudes of people, which successively enhance their creativity and their ability to
unravel problems creatively.

Conclusion

Corporate culture — a robust yet invisible entity – may easily undermine any half-
hearted effort to develop an initiative for innovation. While many experts recognize corporate
culture as a key component in every innovation endeavor, few proposed programs show how

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a culture are often changed to ensure innovation is welcomed and encouraged.

Having a culture of innovation is significant for any organization that's looking to

innovate and achieve or maintain a number one position in the own field. It’s the inspiration
that basically enables organizations to innovate repeatable, and at scale. Many leaders also
sorely underestimate the importance this has on not just financial results, but also on the
impact a corporation can make at large. There are, however, tons of misconceptions about
innovative organizational cultures. It isn’t just the nice and cozy and fuzzy startup vibe we’re
often led to believe it’s. These cultures certainly aren’t all fun and games. Sure, an innovation
culture always has room for creativity, empathy, and freedom, but those attributes also got to
be balanced with a number of the tougher and admittedly not so fun, ones like discipline and
individual accountability (Kylliäinen, J., 2019).

References

 Ergashev, R. et al. (2019) ‘Problems of water lifting machine systems control in the
republic of Uzbekistan with new innovation technology’, E3S Web of Conferences,
97, pp. 1–7. doi: 10.1051/e3sconf/20199705037.

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 Kamalaldin, A. et al. (2021) ‘Configuring ecosystem strategies for digitally enabled
process innovation: A framework for equipment suppliers in the process industries’,
Technovation, 105(December 2019). doi: 10.1016/j.technovation.2021.102250.
 Semenza, J. C. et al. (2020) ‘COVID-19 research priorities for non-pharmaceutical
public health and social measures’, Epidemiology and Infection. doi:
10.1017/S0950268821000716.
 Shlopak, M., Myhre, R. and Hofinger Jünge, G. (2017) ‘Business model innovation :
a case of the offshore lifting equipment supplier’, Proceedings of the Hamburg
International Conference of Logistics (HICL), pp. 175–193. Available at:
https://tore.tuhh.de/handle/11420/1472.
 Testad, I., Corbett, A. and Aarsland, D. et al (2013) ‘ORE Open Research Exeter’,
Journal of Cleaner Production.
 Emprechtinger, F. (2018), 'What is innovation?" available at https://www.lead-
innovation.com/english-blog/what-is-innovation-culture
 Miller, B. (2019), Innovate Or Die: How A Lack Of Innovation Can Cause Business
Failure, from Forbes, available at
https://www.forbes.com/sites/biancamillercole/2019/01/10/innovate-or-die-how-a-
lack-of-innovation-can-cause-business-failure/?sh=4c99d4f02fcb
 Ishak, W., (2017), Creating an innovation culture from Mckinsey & Company,
available at https://www.mckinsey.com/business-functions/strategy-and-corporate-
finance/our-insights/creating-an-innovation-culture
 Goldschmid, M., (2016), No Organization Can Thrive Without Innovation from
Management at coaching, available at https://management-training-coaching.ch/?
p=105
 Thangavelu, P., (2020), Companies That Failed to Innovate and Went Bankrupt from
Investopedia,available at
https://www.investopedia.com/articles/investing/072115/companies-went-bankrupt-
innovation-lag.asp
 Kylliäinen, J., (2019), The Importance of Innovation – What Does it Mean for
Businesses and our Society? available at https://www.viima.com/blog/importance-of-
innovation
 Evans, D., 2018, The biggest cultural barriers to corporate innovation, available at
https://www.cio.com/article/3281102/the-4-biggest-cultural-barriers-to-corporate-
innovation.html

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 Morris, L, The Driving Forces of Change from Innovation management, available at
https://innovationmanagement.se/2013/07/18/the-driving-forces-of-change/

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