Future Benchmarking: An Innovation Tool for Creating Growth from Uncertainty - Camrosh
Benchmarking is the general name given to a range of techniques which involve comparisons between two examples of the same process so as to provide. In order to study the innovative power of benchmarking, this paper presents a . the connection between benchmarking, knowledge processes and innovation. "Technological innovation activities are all of the scientific, business practices, workplace organisation or external relations." (OECD & Eurostat (): Oslo.
There is an old saying: At this unique period in our history, necessity has become a powerful driver for innovation. On the positive side, the results indicated that Innovation remains a high priority for most corporate leaders around the world-they recognize it as a key growth driver.
- Future Benchmarking: An Innovation Tool for Creating Growth from Uncertainty
When delving deeper into the research, the causes for this are: Lack of leadership support Innovations driven by the wrong constraints No strategy The absence of a culture which supports innovation As well, they found no statistically significant connection between the amount of money an organization spent on innovation and its financial performance.
There are lots of examples out there and lots of advice.
But in reality innovation challenges differ from one organization to another. The process of innovation that works in one will not necessarily work in another.
Never try to change one. Here are some corporate stories that provide powerful lessons about innovation: He figured that this meant the car would have to sell for one Lakh.
What is notable is the impact the Nano has had on innovation in the global automotive marketplace. The US auto industry has no close equivalent.
Benchmarking Innovation in a Time of Transition | | Business Improvement Architects
However, as soon as the Nano was announced, Skoda Auto India, a Volkswagen group company, announced that it was advancing its launch date for its small cars to Suzuki has already launched it Maruti which is priced at double the cost of a Nano but still stands as the 2nd most inexpensive car in any marketplace. Tata is now working on a European version of the Nano to be launched by And interestingly, Tata has not done any marketing. There have been so many news stories out there that all of the publicity has been for free.
Nano has now entered our general vocabulary and is a term used for small and short i.
Benchmarking Innovation in a Time of Transition
The culture of innovation within Tata Motors is driven in a number of different ways: Innovation is one of their strategies They focus on cost without sacrificing technology or quality. For example, there was a member team working on the Nano. Whenever Mr Tata walked into one of the team meetings, even the most junior engineer could talk to him. This is true throughout the organization. They set-up cross-functional teams for advanced research projects.
What will their future bring? Honda, on the other hand, is spending money on innovation so they can come out of the current economics with new products, ready to launch.
At the beginning of Honda announced a venture to develop lithium-ion batteries. Takeo Fukui, President and CEO, said that since hybrid cars are heading for the mass market he believes accelerating the development of advanced environmental technology is especially necessary in the severe business conditions we are seeing.
He believes Lithium-ion batteries are significant for hybrid cars to become common in the future. Despite that fact, Honda has slashed its profit forecast by more than half for this year, its third cut as the global economic crisis takes a heavier toll on the auto industry.
The culture of innovation at Honda is supported through: Kaizen management techniques Research and development innovation centres Continuous improvement of production and waste management They maintain a single citizen concept.3 4 How Benchmarking Can Be an Innovation Strategy 14 03
There are no private offices and everyone is an associate of the company. They have innovation circles that any employee can join. They focus on cost-cutting and efficiency improvement opportunities through teamwork.
For Honda, innovation is used in different ways throughout the organization to develop new products and generate cost savings and efficiencies. One of their keys is a constant focus on the culture of innovation — making professional innovative processes a key strategic and cultural constituent of every area of the company. This focus on culture is a guiding principle within BMW. They believe that if a company knows what it stands for and what are its strengths, it can more easily develop and implement a clear strategy.
They believe that to be innovative, it is necessary to give up the idea that a company can do everything equally well.
On the contrary, it seems more likely that a company that tries to do everything equally well will be unable to make full use of its strengths. The BMW Group knows what its strengths are. They see themselves as best in the Premium level of autos and therefore have not ventured into lower classes of autos.
They are the only auto manufacturer to operate exclusively in the premium segment of the market. It acted as a powerful catalyst for learning in that industry and the model of benchmarking has been extended to other domains such as aerospace manufacturing and construction.
How does it work?
Benchmarks can be constructed along several dimensions of performance — quality, productivity, flexibility, customer service, etc. The underlying principle is one of auditing the strengths and weaknesses of the firm and identifying the directions for future development of competitive advantage.
Benchmarking works in two ways to facilitate learning: It can take several forms: The car industry example is an illustration of this. For example, SouthWest Airlines became one of the most effective operators in the USA by reducing its turnaround times at airport terminals.
It obtained many of the insights for this from studying the process of pit stops in motor racing. The last group is often the most challenging, because it brings completely new perspectives. By looking at, for example, how a supermarket manages its supply chain a manufacturer can gain new insights into logistics.