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MT5003 - Building an Innovative Organisational Culture

MT5003 - Building an Innovative Organisational Culture

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Published by lastsplash
This paper investigates on two cases of organizational culture of innovation, Google
and 3M, to understand how innovation and creativity are used as a strategic tool to achieve
success. While the emphasis is on building a creative organizational culture, this paper also
briefly discusses on the issues to be aware of when pursuing innovation in the company, such
common mistakes in innovation and Amara’s Law.
This paper investigates on two cases of organizational culture of innovation, Google
and 3M, to understand how innovation and creativity are used as a strategic tool to achieve
success. While the emphasis is on building a creative organizational culture, this paper also
briefly discusses on the issues to be aware of when pursuing innovation in the company, such
common mistakes in innovation and Amara’s Law.

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Published by: lastsplash on Mar 08, 2009
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MT5003 Creativity and Innovation
LIM CHING WU LESLIE
 g0603039@nus.edu.sg HT0063039Y
 
Building An InnovativeOrganizationalCulture
 
Centre of Management of Science & Technology
MT5003 Creativity and Innovation
2
Introduction 
 
Organizational Culture
is the attitudes, experiences, beliefs and values of an organization [1].It has been defined as "the specific collection of values and norms that are shared by peopleand groups in an organization and that control the way they interact with each other and withstakeholders outside the organization. Organizational values are beliefs and ideas about whatkinds of goals members of an organization should pursue and ideas about the appropriatekinds or standards of behavior organizational members should use to achieve these goals.Organizational values develop organizational norms, guidelines or expectations that prescribeappropriate kinds of behavior by employees in particular situations and control the behaviorof organizational members towards one another. In the changing paradigm of the neweconomy, organizational culture that supports and encourages
creativity and innovation
iscritical for success.Success is linked to constant innovation. In the new paradigm, most linear processes areeasily automated or outsourced [2]. Companies can achieve the real competitive advantagethrough their ability to master nonlinear skills such as the unique design of goods andservices, as well as the creative blending of linear processes.Recently, Business Week and Boston Consulting conducted a study of The World’s Top 50Most Innovative Companies [3]. Some of the most successful firms in the world, such asApple, Google, Toyota Motor, General Electric, top the list. 3M, the leading representation of innovative companies for its invention of the Post-it Note by Art Fry, also came in seventh inthe list. Besides technology firms, leading firms in other industry such as Procter & Gamble(household products), Walt Disney Co. (media), Starbucks (restaurants), and Wal-Mart (food
 
Centre of Management of Science & Technology
MT5003 Creativity and Innovation
3and staples retailing), also achieved top ranks in the list.
 Exhibit 1
in
 Appendix A
shows thecomplete chart of the Top 50 Companies.There is a strong correlation of innovation in the organizational culture and success in thesefirms. This paper investigates on two cases of organizational culture of innovation, Googleand 3M, to understand how innovation and creativity are used as a strategic tool to achievesuccess. While the emphasis is on building a creative organizational culture, this paper alsobriefly discusses on the issues to be aware of when pursuing innovation in the company, suchcommon mistakes in innovation and
 Amara’s Law
.
Google Inc.
From a small internet search startup by two Stanford University graduate students (SergeyBrin and Larry Page) to a company of 4,200 with revenue hitting almost $3.7 billion,Google’s rocket to success has been built on its ability to harness wild ideas for businessinnovations. Marissa Mayer’s, the Vice President of Search Product and User Experience,role in bridging the PhDs and the MBAs of Google, helped the firm to remain competitiveagainst competitors in the search domain, such as
 Microsoft 
,
Yahoo
and
Technocrati
.
Hatching New Ideas
Marissa Mayer described the five ways in which Google generates new ideas [4]:1.
 
Free Thinking Time
– Google gives all engineers one day a week to developtheir pet projects. Such free days can be accumulated if work gets in the way.Pet projects do not have to be aligned with Google’s central mission. GoogleNews was produced in this process.

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