The impact of innovation in product development on organisational performance: a case of Samsung Galaxy”.

1.Introduction

1.1.Introduction and Significance

Innovation is a topic which needs to be researched out in detail. The companies who have understood the importance of innovation are enjoying great return. For this reason the topic is selected which is “the impact of innovation in product development on organisational performance: a case of Samsung Galaxy”.

1.2.Rationale

The rationale of the research is twofold. One is that through this research the technological companies can understand the importance of innovation in product development and how the financial performance of the organisation can be increased. Samsung galaxy case will be selected because this company is continuously innovating and enjoying market leadership. The innovation strategy of this company will be studied out. The research will be helpful for the industry as well as it will add in to literature.

1.3.Research Aim

The aim of the research is to unveil the impact of innovation in product development on organisational performance in Samsung.

1.4.Research objectives

The objectives of the research will be

• To investigate the innovation strategies used in the product development.
• To identify the positive and negative effects of innovation in product development on the organisational performance.
• To analyse the impact of impact of innovation in product development on organisational performance in Samsung.

 

1.5.Research Questions

The questions which will be answered in the forthcoming research are mentioned in following points

1. What is the impact of innovation in product development on organisational performance in literature?
2. How innovation can be integrated in product development to gain financial performance?
3. What are the types of innovation in product development?
4. What is the impact of innovation in product development on organisational performance in the selected organisation?
5. What are the actionable ways through which the organisation can further improve its innovation process and gain profits?

 

 

 

2.Literature Review

 

With the evolving time, business environment has changed. Now it is not a set of mere activities to manufacture and sell the product. Business scenarios have changed a lot since last two decades. There are no more concepts of regional markets rather business world has shifted to a global market (Iwe, 2010). Global market presents a different scene and has different requirements for the businesses to be fulfilled in order to compete competitively and successfully. Moreover, companies have to attain and retain competitive advantage over competitors in market. To achieve business success companies have to pursue the processes related to the development of innovative products. Innovation in products and services has become a crucial considerable factor for present business (Drucker, 1997). Employees of companies in particular companies in manufacturing sector are at their toes to adapt and compete effectively in this changing environment (Page, 1993).

According to Robertson & Tu (2001) definition of innovation is any new idea that can be transformed into a product or service; in short, it should be feasible. Innovation is the newly perceived idea and if accordingly to the individuals perception idea is new it is called an innovation. Robertson & Tu (2001) stated that innovation is composed of technical knowledge that can be integrated by transforming the way things are currently performed to a new and better way of performing such things. More explicitly, innovation is defined, as a capability of creating, generating a new idea, set of processes, a new product or adding something unique in services convincing other peers to accept the new idea and implementing it.

Innovation is of a great significance and brings higher margins of profitability to an organisation. it gear up an organisation to transform its prevailing opportunities into its strengths, pursue growth and expansion of business activities in existing as well as new areas, grab competitive advantage and accumulate a large chunk of capital in term of profits (Iwe, 2010). Process of innovation cannot run over night but it requires strong link with happenings around the globe, other business sectors, it demands acquiring, getting hold of new knowledge of major fields that have an impact on all business activities irrespective of the fact these tasks are minor or major, distribution of this knowledge among all members of the . In addi