Nowadays, successful business innovations and creative activities are increasingly recognized as key drivers of economic development. Creativity takes difference forms at different times and in different places. From vision to create new products, business models or process to recognition system for teams to take experiment, or even as simple as free expression and acceptance of different points of view, can contribute to successful growth driven business innovations. Take Oticon’s case for example, the change of company direction and structure, the redefinition of company human value and result from the implementation of the strategy are the essential keys to its success. Furthermore, this essay is going to discuss the possibility of success when approach is introduced to organizations from different cultural background, followed by discussion on insights and learning derived from the case study as well as the challenges to meet in real life.
THREE ISSUES IN RELATION TO INNOVATION
After reading Oticon’s case, three issues in relation to innovation are identified as interesting or significant in relation to the concept of innovation.
CHANGE OF COMPANY DIRECTION AND STRUCTURE
It took more than determination and courageousness when Kolind drafted plans to transform Oticon to ‘the spaghetti organization’. In fact, it is his clear vision and understanding of the necessity of Oticon as an organization to ‘design a new way of running businesses’ that made him want to create a ‘disorganized organization’. This change completely shifted the company from its attachment to tradition to a more creative, faster and more cost-effective organization type.
To understand Oticon’s organizational creativity, it is essential to identify the creative process, the creative situation, the creative outcome and the way in which each of these components interacts with the others. The elimination of departments, managerial & supervisory positions, and the