Impact of innovation in Dewa
Write a 2000 words essay on the following topic
Topic: Impact of innovation in Dewa.
Solution
Introduction
Modernly Innovation can be defined as a new idea or innovative ideas created in the form
of a machine or process thoughts." Innovation is often viewed as the process of initiating better
solutions that meet new standards, unarticulated needs or current market needs. Innovation
currently is a continuous process where each day people come up with new ideas to solve today's
problems. Typically, innovation is seen as a key factor in influencing a firm’s efficiency. Most
businesses make every effort to achieve higher profits in different ways through innovation.
Nonetheless, previous literature indicates that many creative companies have had different
impacts of innovation on their firm’s performance. Companies who regularly adjust to new
innovation processes in the market create a better chance to succeed than conservative
companies who wish to use techniques and methods that are outdated.
Technology has largely impacted the way of operation in businesses and organizations
around the globe; no industry is impervious to innovation making it a very important aspect in
enhancing the success of a company. Various researches on the issue of innovation have revealed
that the adoption of technology helps industries build efficiencies in their everyday work
processes; this helps companies build a great impact on the bottom-line of their objectives which
is to please their customers. This study will use the Dubai Electricity and Water Authority
Company (DEWA) to assess the impact of innovation on a firm’s performance, DEWA is the
main distributor of electricity and water around the city of Dubai, over the years the company
has come up with many innovative ways to enhance their services to their customers. The water
and electricity industry has seen a lot of recent innovations in terms of electricity and water
connection, innovation has led to the success and failure of many companies.
Problem Statement
Innovation and technology are very complex aspects of a business, many people to do not
understand the need to use technology or new innovation process in their business since they do
not even know how the process works. This has led to a lot of business failures in the country
which reduces the rate of employment, continuous loss of companies in the country due to lack
of implementation of new ways of operation pushes the UAE further away from the international
standards of a developed country. It is very important to adopt the regular use of innovation
IMPACT OF INNOVATION IN DEWA 3
processes and new technologies in our companies to ensure that we grow together with the rest
of the world.
Aim of the study
The purpose of this study to determine the impact of innovation on an organization's
performance, the rate of technological innovation is increasing every day creating a lot of
opportunities for businesses and reducing the need for some roles in production. The study will
use the DEWA Company in UAE to determine how innovation processes have affected the
company.
Research Questions
1. What are the impacts of product innovation on the performance of an organization?
2. How does process innovation enhance performance in organizations?
3. How does organizational innovation initiate success in organizations?
Objectives of the Study
1. To determine the impact of product innovation on the performance of an organization
2. To establish what process innovation is and understand how it affects an organization's
performance.
3. To understand how organizational innovation boosts success to the overall performance
of an organization
Literature Review
Organizational performance has been described as a company's ability to achieve its goals
with assistance from brilliant management, excellent governance, and a steady recommitment to
achieving production goals. Organizational achievement is a measure of how well an
organization fulfills its objectives. Organizational productivity is one of the most significant
creations of management exploration (Ho, 2008, p. 1234). Innovation in organizations is defined
as the process where organizations develop creative ways to manage production processes within
the firm. Different companies use the process of innovation in different manners, some use
innovation as an environmental conservation means, others use it to maximize productivity and
IMPACT OF INNOVATION IN DEWA 4
enhance performance, and others use it to create quality goods and provide quality services to
their customers.
Innovation practice in organizations mainly involves three kinds of innovations the
process innovation, product innovation, and organizational innovation, while every form of
innovation has its own determinants, they all contribute to successful organizational productivity.
However, Cheng, Yang, and Sheu (2014, p. 81) indicate that it is very important to implement
innovations with a holistic view since poor implementation can cost an organization a lot of
finances reducing the chances of success within the company.
Impact of Product Innovation on an Organizations Performance
Alegre, Lapiedra, & Chiva, (2006, p. 333) define product innovation as the improvement
of original goods, the improvement can be inform of design or the quality of goods produced by
an organization. Brown, and Frame, P. (2004, p. 209) define product innovation as the creation
of a new product that is completely different from the old and the term product innovation self-
explains its purpose within an organization. Many companies have used this technique to draw in
more customers to purchase their products, often companies' change the design in which their
products are presented into the market. This attracts more customers to try the product and this
might help the company gain a wide market share improving the overall company's performance.
Product innovation based on the quality of the product is often more costly for the
organization, however, this type of innovation is highly appreciated by consumers. Becker and
Egger (2013, p. 329) indicate that product innovation is a practice involving a realistic plan,
research and growth, management and profitable measures apprehensive of promoting the
organization's overall performance. Product innovation is an important factor in business
development and the productivity of a company’s product innovation technique is calculated as a
module of new product advancement, with the help of product innovation mostly companies earn
profit in the future (Wheelwright, 1992, p. 125). Product innovation based on quality has led to
an increase in the number of consumers for products from different companies in the past. Brown
and Frame (2004, p. 214) notes that a company’s ability to produce constant product innovation
flux is the most essential to operate or improve the business’s performance or to grow the
IMPACT OF INNOVATION IN DEWA 5
business, and thriving innovation is vital for the organization to survive in the market and gain
market share because of enormous competition and the regular increase in competition.
Impact of Process Innovation to an Organizations Performance
Process innovation can be explained as the use of new or enhanced tools, equipments,
materials, and technologies to improve their performance in production and manufacturing.
Process innovation involves processes or procedures an organization undertakes to enhance the
quality of their products or their services, Bogers, (2009, p. 13) define process innovation as the
implementation of new and partially enhanced manufacturing and production systems within a
firm to increase the general performance of the organization. This type of innovation has
received very little attention from researchers and scholars, but it is currently one of the most
used innovations in organizations since involves the adoption of better production and
manufacturing methods. Production and manufacturing activities in an organization play a key
role in the success of an organization since it is the main determinant of how other activities
within the firm will run.
Process innovation varies from incremental changes to more radical changes within an
organization; the changes involve amendments in equipments, techniques, and software. Process
innovation has highly been embraced due to its unique ability to reduce the cost of
manufacturing and delivering and also its ability to increase the value and worth of the
company’s products and services. Process innovation plays a strategic role in improving a
company's performance in the market when a company invests in improving their production and
manufacturing processes there is a positive impact in almost all processes and activities within
the organization. Process innovation makes production faster and convenient for consumers since
they can rely on the availability of goods in the market, process innovation also helps in creating
quality goods that often attract consumers; this increases the company’s consumer base in the
market which is an indicator of good performance within the firm.
Impact of Organizational Innovation to an Organizations Performance
IMPACT OF INNOVATION IN DEWA 6
Organizational innovation is the implementation of new organizational procedures,
practices or activities within the working area or involving strategic work activities.
Organizational innovation is comparable to outsourcing, partnership, or subcontracting, as it
involves applying external measures to the organizations to create a more productive workplace
practice like quality management, reengineering, or lean management. Organizational innovation
is embraced by organizations due to its ability to create a serious and positive outcome for the
business and build a good and strong foundation for the organization's practice. According to
Mothe & Nguyen – van, (2015, p. 26), organizational innovation is a wide theory that comprises
many different concepts that involve the strategic, structural and behavioral concepts of an
organization. Firms with a lot of objectives and goals such as enhancing the value of their
products and services, increasing their yearly revenues and profits, improve performance in their
organization and minimize operational cost within the firm often engage in organizational
innovation and creativity.
Organizational innovation is a practice that strives to enhance work satisfaction among
employees which in turn improves labor productivity within an organization. Using
organizational innovation to enhance organizational activities enables the firm to improve factors
related to goods, marketplace, quality, and capability to learn the implementation of changes
within the organization. This helps the organization create a great competitive advantage for the
company against its competitors and also gain new opportunities to tap into available gaps within
the market. Organizational innovation can be differentiated in two aspects which are intra-
organizational and inter-organizational innovation, intra- organizational innovation involves
activities inside an organization such as implementation of teamwork, improvement in quality of
products and services, certification of departments, and constant regulation of organizations
procedures and processes.
Research Methodology
Data Gathering
The study used both primary and secondary sources of data, on the primary sourcing of
data, interviews and questionnaires will be formed based on the three main objectives of the
study. The study will focus on one UAE based company DEWA that has existed for many years,
IMPACT OF INNOVATION IN DEWA 7
observation will also be used to try and determine how employees have embraced new
technologies and innovations within the organization. The study will use quantitative research
techniques for the assessment of data collected in the study, secondary materials on studies
conducted regarding the impact of innovation in organizations will be used to compare research
findings and understand different concepts regarding the issue. The questionnaires will have
open-ended questions where participants will be allowed to add their thoughts on certain issues.
Research Ethics
Research ethics are an important aspect of conducting a study and throughout the study,
all research ethics will fully be followed. Research ethics include; obtaining informed consent
from the management of the organization to conduct the research in their institution, inform
participants on what the study entails, remain truthful to participants on different issues discussed
during the interviews, minimize any risk of harm that might face participants in the course of the
study, such as psychological stress and discomfort, protecting a participants confidentiality is a
very important ethical duty since it creates a level of trust between the study and the answers
provided by the participants regarding the study, the last and the most important ethical duty is
giving the participants an opportunity to withdraw from the study if they no longer feel
comfortable with the study.
Context of the Study
The study is being undertaken for a bachelor's degree at the University of Dubai. The
study will use DEWA Company for the case study; the company is located in Dubai city and has
been operational since 1922 making it the best candidate to work with due to its innovational
growth over the years. We have already been granted permission to undertake the study in the
company by the management board of the company.
The rationale of the Study
The study will be conducted to assess the impacts of innovation on the performance of an
organization, the study will look at the new types of innovation processes implemented at
DEWA for the last 20 years and how the company has benefited from these ideas. The research
will dig deep into the different types of innovation within the company and how each of it has
IMPACT OF INNOVATION IN DEWA 8
impacted the company; we will also asses the different limitations that come with the
implementations of this innovation process. The study hopes to educate entrepreneurs and
business persons on the importance of implementing and using innovation as a key ingredient to
the success of the organization.
Conclusion
Innovation is a very critical and important aspect in today’s organizations due to the
increases in technological use to simplify work processes and procedures. The three types of
innovation have distinctive advantages and benefits to an organization; product innovation
improves the quality of products within a firm or helps a firm gain a competitive advantage over
its competitors due to the quality of its products. Process innovation helps in improving the
processes and procedures used in the production of goods and services within an organization.
Organizational innovation involves creating new organizational activities to enhance production
and increase satisfaction among employees and customers. This paper will look at how DEWA
Company has implemented these innovations in their practice to improve their services among
its customers in Dubai.
IMPACT OF INNOVATION IN DEWA 9
References
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