Survival and Growth the Two Main Objectives of Organisation Essay Example

transformed into a frontrunner in healthcare, energy, and technology through consistent innovation.

In India, Air Deccan emerged as the pioneer in offering low-cost flights without any additional amenities. By reducing expenses like catering, luggage allowance, and maintaining a smaller aircraft fleet, Air Deccan achieved greater efficiency and offered economical air travel. This conferred them with a competitive edge over traditional full-service airlines operating within the market.

Toyota Motor Corporation revolutionized production methods with the introduction of Just in Time and Six Sigma, effectively minimizing waste and inventory, resulting in cost reductions.

Apple Computers Inc. has established itself as a prominent figure in the computer industry over the years, experiencing both successes and setbacks. However, their release of groundbreaking products such as Mac OS, iPod, and iPhone propelled them to become a dominant force across various markets.

In terms of innovation, 3M stands out as an exemplary example. With a vast product range exceeding 55,000 items and an extensive portfolio of worldwide patents and trademarks.

The company demonstrates a strong commitment to innovation, with 30% of their total revenue generated from product inventions over the past three years. These examples underscore the importance of innovation for businesses across all industries. It enables them to navigate challenging market conditions, stay competitive in a changing market landscape, and maintain positive customer relationships.

Invention and Public Services

Public services encompass services provided by government administrations or authorized by them for the betterment of society. They are accessible to everyone, irrespective of wealth or social standing. While commercial companies strive to maximize profits and succeed in a competitive environment, public sector organizations primarily serve the public's interests rather than solely focusing on profit generation.

Public services that private

organizations are unable to handle, like the National Health Service (NHS) or defense, are usually either large in scale or specialized. Public service administration is often intricate, bureaucratic, and heavily regulated, posing challenges for innovation. In the public sector, innovation mainly arises from introducing new services or enhancing existing technology. The primary catalyst for innovation in the public sector is comparing performance with that of the private sector. Though survival is not a worry for public services, cost reduction remains a significant priority.

The public service administrations should implement measures to meet the changing demands of adult males, reduce costs in severe financial situations, and improve service delivery to achieve their goals. The NHS and the London Congestion charge are prime examples of public services that have benefited both the government and the public in the United Kingdom. These innovations have set a precedent for public administrations worldwide in terms of welfare and government revenues. The London Congestion Charge demonstrates how a public sector administration addressed traffic issues and generated income by charging a fixed fee for entering a specific area in London Zone 1 during daytime, either before or after visiting the designated zone. While similar concepts like road tax or tolls already exist in many areas, this was the first time such a concept was applied within a city and it proved highly successful.

The traffic in central London decreased by 15%, congestion decreased by 30%, and emissions decreased by 12%. The National Health Service, established in 1948, is the largest government-funded healthcare institution worldwide. It offers a range of health treatments free or at a low cost, including prenatal screenings, routine cough and cold

treatments, and critical procedures like open heart surgery, accident and emergency care, and end-of-life support. These services are accessible to everyone regardless of their financial or social status.

Case Study - Ihavemoved.com

Ihavemoved.com, originally created by MBA students from London Business School, began as a real estate marketing website but later evolved into an address changing service for individuals relocating their homes. This distinctive and inventive concept filled a gap in the market since there were no comparable services accessible at that time. The favorable conditions of the dotcom boom also contributed to its triumph as an online business. Despite the difficulties encountered during its development, which involved extensive research and hard work over several months, the founder's determination paid off and transformed this idea into a flourishing and lucrative enterprise.

The consequence of this was the creation of a highly successful international presentation website. Now, we will discuss the key drivers for innovation within the organization, as well as strategic enablers and obstructions. Additionally, recommendations for improvements in the innovation process will be provided.
Key drivers of innovation:
These are external factors that motivate an organization to consider the need for innovation. They serve as inspiration for organizations to innovate and create products or services that help them achieve their goals.
First Mover's Advantage:
This advantage is gained by a company when it is the first player in a new and emerging market segment. Being the only company offering such a service at its establishment, Ihavemoved.com was able to fully capitalize on its potential. This allowed them to establish a strong presence in the market and build brand recognition among consumers.

Dot Com roar
In addition to being the first company, it would

be much easier for them to establish a successful relationship with their spouses. However, in order to gain an advantage, the company must consistently promote their services and introduce new ones to retain their clients and partners.
During the time when ihavemoved.com was established, there was a surge in innovative ideas related to the internet. These ideas had immense potential due to the increasing popularity of the internet. As a result, many entrepreneurs ventured into previously unimaginable goods and services. Ihavemoved.com was one such groundbreaking idea that had a high probability of success.

Service Differentiation

Ihavemoved.com offered a unique service that was unlike any other existing property selling website. Instead of the traditional approach, they provided a service that allowed customers to change their address for utility bills and other companies without the hassle of contacting each one individually and potentially missing important mail. This benefited both customers and companies by helping to retain their business.

Consumer Convenience

Customers using ihavemoved.com only needed to fill out one online form and select the partners they wanted to notify of their address change. This innovative concept was driven by the desire to make the process of moving and changing addresses less complicated for consumers.

Gross Model The revenue for this venture can come from three main sources. These include new client commissions, partner fees, and advertising on the website. The company earns revenue from every new client based on the service they choose. Partners also pay a fixed amount for each presentation, provided that the information is delivered in their existing database format. Additionally, the company targets a specific market with designated demographics,

resulting in higher-than-average revenue.

Partner demands Currently, every service provider aims to acquire new clients and retain existing ones.

When individuals change residences, they frequently overlook the importance of updating their details with non-essential service providers such as department stores, memberships, charities, and more. It is crucial for these organizations to maintain updated records of their customers and remove them from their lists upon relocation. To facilitate this process, Ihavemoved.com provided partners with the required information in a format that could seamlessly integrate into their current database systems. Consequently, this led to decreased administrative expenses for the partners including call centers, data entry operations, and management tasks.

Wide market

The founders recognized the potential to be pioneers and benefit from the situation in the UK, where 10% of the population (60 million) relocate annually. Among this group, 80% fall within the age range of 15 to 44. With no immediate rivals in such a vast market, they had greater opportunities to reach out to this demographic that is more inclined towards experimenting with new products and services. Additionally, they subsequently introduced a manual service for individuals without internet access.

This not only expanded their target market to individuals who did not have internet access, but also served as strategic enablers of innovation within the organization. Strategic enablers are elements that promote and support innovation, acting as catalysts in the innovation process and helping the organization achieve its objectives. The following factors facilitate the drive for innovation within a company:

Business Scheme

The business scheme of ihavemoved.com was well designed with the founders knowing exactly how to proceed with the idea. They spent a lot of time in

fine-tuning the concept, seeking appropriate legal advice, and developing a website that would be user-friendly and cater to the needs of partners and the company.

Entrepreneur's Skills

The founders of ihavemoved.com came from diverse backgrounds and had experience in various organizational fields. Onic Palanjdian had previous sales experience, enabling him to secure partners and alliances for the company. David Antsee had exposure to financial aspects, allowing him to handle the company's financial performance and investor relations. Francesco Benincasa had knowledge of the internet business due to his previous consultancy business, making him responsible for marketing and white label integration with key partners. Nicholas Komninos had previous marketing experience, putting him in charge of key marketing activities and human resource management.

The management team at this company demonstrates strong synergy. Andrew Day's appointment as Chief Technical Officer and website redesign saved the company a significant amount of money. The entrepreneurs possess diverse skill sets that complement each other, contributing to the smooth operation of the entire company. Additionally, these entrepreneurs have developed a close bond with one another, enabling them to navigate potential complications successfully and provide robust support for the aggressive business strategy. This camaraderie fuels their passion to excel and deliver exceptional customer service.

Furthermore, ihavemoved.com offers partners a valuable proposition by providing information in a format easily integrable into their databases. This service allows movers to effortlessly update their records with all registered service providers and partners at no cost or hassle.

The company benefited from this service by generating high profits through sales and commissions, as well as obtaining a valuable long-term database. As a result, this proposition was advantageous for

all parties involved, ultimately leading to a successful service.

Initial support

Financial resources are crucial for any organization, particularly when launching a new service from scratch. Before the actual service is launched, extensive testing and presentation activities are conducted. For ihavemoved.com, the founders initially invested their own money into the company, and later received ?30,000 in unsecured financing from HSBC bank through the UK government Guarantee Scheme.

This allowed the company to hire Bluewave, a web planning company, in order to develop and expand their project and launch it on a larger scale.

Understanding customer needs

The founders of Ihavemoved.com initially proposed launching a website for listing and selling properties. However, they later came up with a better idea of creating a service that would make it easy for home movers to update their address with multiple partners and provide partners with data in the correct format for their databases. This demonstrates the founders' focus on meeting their customers' needs, resulting in the successful and profitable service, as well as the accumulation of valuable databases for the long term.

Collaborations with PowerGen

Ihavemoved.com partnered with PowerGen, integrating ihavemoved.com services into PowerGen's own website.

This allowed clients to modify their reference with PowerGen using the service of ihavemoved.com. This action brought a new mindset to the company where collaborations with various partners could generate steady income based on their services and a higher commission rate for referrals and other services.

Obstacles to Innovation

The innovation process within an organization can face numerous impediments or barriers that hinder innovation. A deeper understanding of these barriers

can help facilitate the innovation process and maximize its potential.

Limited resources

The founders of ihavemoved.com initially started the company with their own funds and resources. They had exhausted their credit cards and even sold their homes to finance this venture.

Despite receiving a loan from the UK authorities Guarantee Scheme, it was not enough to meet their rapid expansion goals. They needed additional staff, new premises, a significant upgrade to their website, and a marketing campaign to sustain subscriptions. However, obtaining the necessary support was extremely difficult in the current market conditions. As a result, their innovation process and growth plans were hindered.

In addition to focusing more on managing current operations, there was a secondary emphasis on innovation.

Collaborations

Collaborations between ihavemoved.com and specific companies, such as PowerGen, were a significant development. However, this increased the company's costs as each partner involved would require dedicated designs and maintenance. Additionally, this would affect other partners in the same industry as they may not want to be associated with a company that has a special collaboration with another partner. This would also impact revenues and the number of partners within the industry.

Approach to Innovation

The founders of ihavemoved.com did not take a formal approach to innovation. The idea was accidentally developed after the original idea was rejected.

Even if the founders had limited knowledge of the innovation approach and followed the process, the outcome could have been improved in every aspect.

Insufficient technical expertise

After obtaining funding for their company, the next goal was to revamp the website with the assistance of Bluewave. However, despite

allocating extra resources and funds, Bluewave encountered difficulties with technical defects and design issues that proved challenging to resolve prior to the new website's launch deadline. None of the managers possessed the necessary technical expertise to identify or fix these problems.

For this task, the company had to enlist the help of Andrew, a Chief proficient officer, 24 hours a day. Andrew helped the company meet their time constraints and without him, the launch would have been delayed and ultimately damaged the company's reputation.

Recommendations

Formalised Approach to Innovation

Entrepreneurs with a new service idea are generally motivated by their expertise in that particular sector. However, they often overlook the importance of taking a formal approach to innovation in their project.

The reason for not prioritizing invention may be due to a confidence in their skill sets and initial idea. This is not necessarily negative for the idea overall, but a formal approach can help entrepreneurs analyze the idea better and reduce the chances of mistakes or failure in the project. The stages of idea presentation, selection, execution, and results in the innovation process can be very useful in placing the project in the right position to obtain optimal feedback for the idea and achieve the best results from the project. At ihavemoved.com, the founders did not follow the formal innovation process but conducted a detailed analysis of the idea before launching the project for their clients.

Human resource Management


An effective team is always essential for any organization to function at its best and grow at an optimal rate. In addition to having a competent human resource team, it is crucial

that the employees and management of a company are motivated and embrace the organization's values. Motivation should also involve fostering innovation in current activities and processes to enhance efficiency. This can only be achieved by recruiting individuals who have an intrinsic drive to excel in their roles.

Along with the best employees, the directors also need to excel in harnessing talent and promoting innovation among their employees in order to maximize their potential. Integrating a Culture of Innovation Innovation within an organization can only thrive when the organizational values and culture are aligned. The culture of an organization is established by senior management, taking into account the type of organization and its objectives. The culture should always encourage employees to innovate in all aspects of the organization, including marketing, sales, customers, partners, etc. It is the responsibility of senior managers to ensure that the organizational culture allows all employees to have a voice in the processes they are involved in and empowers them to make positive changes. Effective Public Relations and Marketing Public relations and marketing are crucial for any new service.

For optimal results, the marketing campaign should be strategically designed to reach the target audience using the most efficient and cost-effective resources. In addition to traditional methods such as billboards and radio, the campaign should also utilize other forms of advertising like online, mobile advertisements on cars, event sponsorships, flyers, mascots, etc. These mediums can be both cost-effective and more impactful than traditional advertising methods.


Customer-driven Innovation


Innovations in the service industry should always prioritize the needs and satisfaction of the customer. Since there is no physical product being delivered, the quality of service plays a crucial

role in determining whether or not it meets customer expectations.

Customer feedback is crucial in determining whether a service is acceptable or not and in bridging the gap between expected and delivered service. Service innovation and client satisfaction are key in closing this gap.


White label Integrations


White label integration occurs when one company rebrands another company's service to make it appear as their own. This innovative approach helps companies gain more market exposure and customers by leveraging the goodwill of both brands.

PowerGen has partnered with ihavemoved.com to provide services for its own clients. In this scenario, ihavemoved.com's branding would be lost and only mentioned as "powered by ihavemoved.com." The company should exercise caution in future white label integrations to enhance its own reputation and ensure that its name is not overshadowed by the partner's reputation. Additionally, collaborations with other partners should be conducted in a way that benefits both parties.