Jet Titan Sep2013

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/259356172
Innovation Management in Titan Industries Limited
Article in Journal of Enterprise Transformation · April 2013

DOI: 10.1080/19488289.2012.658141
CITATIONS READS
0 726
1 author:
J.S.A. Bhat
22 PUBLICATIONS 161 CITATIONS
SEE PROFILE
Some of the authors of this publication are also working on these related projects:
Innovation management View project
All content following this page was uploaded by J.S.A. Bhat on 06 June 2019.
The user has requested enhancement of the downloaded file.

This article was downloaded by: [Technology Bhawan NULL], [Dr J. S. A. Bhat]
On: 10 September 2013, At: 02:38
Publisher: Taylor & Francis
Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered
office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK
Journal of Enterprise Transformation

Publication details, including instructions for authors and
subscription information:
http://www.tandfonline.com/loi/ujet20
Innovation Management in Titan

Industries Limited
a
J. S. A. Bhat
a
Ministry of Science & Technology , Government of India , New
Delhi , India
Published online: 28 Jun 2013.
To cite this article: J. S. A. Bhat (2013) Innovation Management in Titan Industries Limited, Journal of
Enterprise Transformation, 3:2, 76-106, DOI: 10.1080/19488289.2012.658141
To link to this article: http://dx.doi.org/10.1080/19488289.2012.658141
PLEASE SCROLL DOWN FOR ARTICLE
Taylor & Francis makes every effort to ensure the accuracy of all the information (the
“Content”) contained in the publications on our platform. However, Taylor & Francis,
our agents, and our licensors make no representations or warranties whatsoever as to
the accuracy, completeness, or suitability for any purpose of the Content. Any opinions
and views expressed in this publication are the opinions and views of the authors,
and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content
should not be relied upon and should be independently verified with primary sources
of information. Taylor and Francis shall not be liable for any losses, actions, claims,
proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or
howsoever caused arising directly or indirectly in connection with, in relation to or arising
out of the use of the Content.
This article may be used for research, teaching, and private study purposes. Any
substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing,
systematic supply, or distribution in any form to anyone is expressly forbidden. Terms &
Conditions of access and use can be found at http://www.tandfonline.com/page/terms-
and-conditions
Journal of Enterprise Transformation, 3:76–106, 2013
Copyright C IIE, INCOSE
ISSN: 1948-8289 print / 1948-8297 online

DOI: 10.1080/19488289.2012.658141
INNOVATION MANAGEMENT IN TITAN INDUSTRIES LIMITED

Downloaded by [Technology Bhawan NULL], [Dr J. S. A. Bhat] at 02:38 10 September 2013
J. S. A. Bhat
Ministry of Science & Technology, Government of India, New Delhi, India
2 Recent studies have shown that successfully managing innovation demands managing both
continuity and change. This article examines how innovation performance leading to improved
firm performance is achieved through management of processes within a firm dealing with continu-
ity and change. The author analyzed a case of a leading Indian manufacturing firm by applying
the flowing-stream strategy framework. Examining the strategic approach of the firm, relationships
between the firm’s continuity and change-related processes, and its innovation performance, as well
as overall firm performance, have been derived. The findings highlight the dominance of continu-
ity processes in the firm’s innovation strategy, particularly those concerned with technology- and
organization-related aspects. The author demonstrates a strategic framework for the firm to enhance
its innovation performance and its overall performance.
Keywords managing innovation; continuity and change; flowing stream; management

of processes; innovation performance; firm performance; strategic approach; strategic
framework
1. INTRODUCTION
Numerous studies on innovation management have examined the kinds
of capabilities that organizations should foster. Researchers have been focus-
ing on the importance of taking adequate steps to ensure continuity in the
context of knowledge retention in the event of external or internal environ-
ment changes (DeLong, 2004), handling of crises (Houlder and Sull, 2006),
and organizational change resilience (Kates and Galbraith, 2007). Concur-
rently, a number of strategy concepts and frameworks have been evolving to
deal with the process of change while managing innovation, some of which
are normative while others are descriptive (Bhat, 2005). Recent focus on or-
ganizational flexibility has emerged, calling for constructive tension between
change and preservation (Volberda, 1996), and the need for ambidexterity
The views expressed in this article are those of the author and do not reflect those of the organization
she belongs to. The author expresses her gratitude to the management, employees and stakeholders of
Titan Industries Limited. The analysis in the paper reflects the position of the company as in the year
2009.
Address correspondence to Dr. J. S. A. Bhat, Advisor, Ministry of Science & Technology, Department
of Scientific & Industrial Research, Technology Bhawan, New Mehrauli Road, New Delhi 110 016, India.
E-mail: jsabhat@gmail.com
76
Innovation Management in Titan Industries Limited 77
in successful organizations has been expounded (Birkinshaw and Gibson,

2004; Bradach, 1997). The ultimate focus of this approach is developing the
capability of operating simultaneously for short-term efficiency as well as
long-term innovation (O’Reilly and Tushman, 2004; Sushil, 2008). There is
evidently need for a firm to evolve a suitable innovation strategy to contin-
ually balance large-scale discontinuities brought about by change as well as
continuous changes that are inevitably required to retain continuity. The ob-
jective of this article is to present a case analysis illustrating the development
of an innovation-management strategy in a manufacturing firm through the

application of the flowing-stream strategy framework (Sushil, 2005).
Different continuity- and change-related processes of the firm’s technol-
ogy (Tushman and Anderson, 1986), organization (Barney, 1995), learn-
ing (Leonard-Barton, 1995), managerial (Hamel, 2007), and networking
(Teece, 2007) innovation-management strategies are specifically examined.
The relationship between the impact of these processes on the firm’s inno-
vation performance and the overall impact on firm performance is analyzed.
2. INNOVATION MANAGEMENT PROCESSES IN A FIRM

With competition in the global market intensifying and the life cycle
of products and technologies becoming shorter, a firm’s ability to pro-
duce new commercially successful products underpins its success (Pet-
tigrew, Thomas, and Whittington, 2006; Rosenbloom and Burgelman,
1989). Hence, the firm’s technology processes play a central role in acquir-
ing innovation-development and innovation-management capabilities. An
organization’s resources and capabilities include all the financial, physical,
and human means covering the organizational processes used to develop, man-
ufacture, and deliver products and services to the customer (Barney, 1995).
The firm’s organizational capabilities lead to the generation and implemen-
tation of innovations through its interaction with the marketplace and the
science base (Rothwell and Zegveld, 1985). Innovation-management capa-
bilities based on continuous improvement are often incremental and are the
outcome of continuous cumulative learning (Nonaka and Takeuchi, 1995).
Suitable learning processes lead to dynamic management capabilities and an
inimitable combination of resources that cut across all functions resulting in
enhanced innovation capabilities (Leonard-Barton, 1995). Managerial pro-
cesses are vital for innovation development and improvement of the core
competencies, skills, knowledge, and resources needed to implement inno-
vation (Lawson and Samson, 2001; Teece, 2007). It has been stressed how
interactions of the functions with the external environment, or networking
processes, are as important as the interactions of the internal functions, such as
research and manufacturing, for successful innovation management within
the organization (Teece, 2007). In sum, innovation management in a firm is
comprised largely of these technology, organization, learning, managerial,
and networking processes acting together in unison.
78 J. S. A. Bhat
The need for focus on both the continuity- and change-management

aspects of these processes has become evident. Research in continuity man-
agement in the context of innovation has focused on three major threads of
thought while justifying why firms must strengthen their existing innovation
capabilities through a combination of the above processes. One thread has
delved into the knowledge-management aspects associated with continuity
(Becerra-Fernandez, Gonzalez, and Sabherwal, 2004). The second thread
has viewed continuity aspects from the point of view of stability-restoring
and effective recovery management (Morgan and Hunt, 1994). The third
thread has looked into the effects of continuity on organizational inertia
(Hannan, Pólos, and Carrol, 2004; Sushil, 2008). All these aspects are vital
to innovation management.
Research in change management has been quite exhaustive and has
dealt with several dimensions exhorting firms to focus on specific change
processes (Armenakis, Harris, and Massholder, 1993; Gersick, 1994). When
dramatic changes occur, an organization’s equilibrium gets altered, and or-
ganizational inertia is overcome successfully if adequate processes are in
place (Beer and Nohria, 2000). Different practices for successfully manag-
ing change have been suggested (Pettigrew et al., 2006). These practices
should allow experimentation and exploration because it is not possible to
predict which options are appropriate (Camillus, 2008). With change being
inevitable, focus on change-management processes is essential for effective
innovation management.
An innovation roadmap enables a firm to assess potential opportunities
for growth without neglecting performance in the present to sustain growth
(O’Reilly and Tushman, 2004). A firm needs to continually adapt to meet
both continuity and change requirements because neglect of either can be
quite hazardous (Birkinshaw and Gibson, 2004). This article illustrates how
firms can deal with this concern.
3. METHODOLOGY
A case study methodology has been adopted to expand understanding of
the complex issue of resolving the conflict between continuity and change to
enhance innovation and firm performance and to contribute to knowledge
laid out in previous research (Yin, 1984). Apart from selecting a suitable
case, determining and defining the research questions, selecting the data
gathering and analysis techniques, collecting data after adequate preparatory
steps, and evaluating and analyzing the data are among the other important
steps that have been followed in this case research.
The firm selected for the case research is Titan Industries Limited (Ti-
tan). It is part of the Tata group, which is an old, large, and respected
business conglomerate in India. The firm has established its innovation
performance by successfully developing and globally marketing a range of
Innovation

Performance
Continuity
Change
Forces
Forces
Firm
Performance
FIGURE 1 Crystal diagram depicting inter-relationships between factors.
innovative products and has been noted for its steady growth and stable
financial performance. The firm also conveyed its willingness to participate
in this research. The selection of the firm was based on these criteria.
A recent study undertaken in the Indian manufacturing industry sector
has reported that five sets of firm-wide processes encompassing technology,
organization, learning, managerial, and networking capabilities account for
the overall innovation-management capabilities of a firm (Bhat, 2010). The
study also reported on the interrelations among these processes. The flowing-
stream strategy framework (Sushil, 2005) has been applied in this study to
analyze the relationships between these continuity and change processes
and the firm’s innovation performance and overall firm performance. The
relations being studied are depicted in Figure 1.
The flowing-stream strategy is useful in situations where both continuity
and change are significant, as in the current case. The approach enables
melding of opposing continuity and change forces through the use of four
key strategic channels: divert, shift, partition, and integrate. The divert chan-
nel identifies the most desirable and vital continuity forces and uses them to
leverage the change forces best positioned to improve performance (either
innovation performance or firm performance, depending upon the context
as pertinent in this case), while the shift channel changes the emphasis of
continuity forces that are not beneficial by providing for selective change
forces to simultaneously thrive. The partition channel motivates selective
continuity and change forces to bring about desired performance by chang-
ing prior focus; on the other hand, the integrate channel combines all these
maneuvers to achieve enhanced performance.
Two sources of primary data have been used for the purpose of this re-
search. First, top management responded to a survey questionnaire (choices
80 J. S. A. Bhat
ranged on a scale from 1 for lowest to 7 for highest), and second, interviews
have been conducted with select personnel to add more contextual data. In
addition, multiple sources of secondary data/evidence have been used, including
data from published records, internal documents, and public databases to
supplement and authenticate the primary data collected.
The research questions used in the questionnaire have been carefully
drafted to elicit the requisite information. Ten innovation-management re-
lated processes of the firm, henceforward referred to as forces, correspond-
ing to the technology, organization, learning, managerial, and networking

perspectives in both continuity and change modes, are the input factors. Four
important aspects of each of these 10 forces have been specifically addressed,
making a total of 40 force factors. These force factors were validated in an
earlier study (Bhat, 2010); the empirical findings emerged as an outcome
of a survey undertaken among 150 top-performing firms (based on market
capitalization and return on assets during 2006–2007 and 2007–2008) in the
Indian manufacturing sector. The forces impact innovation performance
and firm performance (Bhat, Sushil, and Jain, 2011a, 2011b). While some
of the aspects between the continuity and change forces selected for study
appear to be deceptively similar (e.g., “ideation” and “idea sourcing and
selection”), the emphasis is on “a proactive approach” in the case of change
force as opposed to that on “a pre-planned and existing practice” in the case
of continuity force. Sufficient care has been taken during data collection and
analysis (through suitably structured queries/constructs/discussion) from
this angle. Similar concerns have been addressed while classifying the force
factors into continuity or change (e.g., “top management commitment” as
a continuity force and “dynamic customer interface” as a change force),
depending upon the dominance of the aspects under concern.
A recent analysis in the manufacturing industry has identified the fac-
tors that are important for performance in the context of innovation (Bhat,
Sushil, and Jain, 2010). Based on this analysis, innovation performance
has been measured using four factors, viz., the firm’s innovativeness, new
product development (NPD) capabilities, operational process improvement
(lower costs/improved features/better delivery), and managerial process
improvement. Firm performance has been linked to four factors covering
stakeholder (shareholder, government, employee, management, local com-
munity, government supplier, collaborator) satisfaction, resource (financial
and human resource) generation capabilities, reliability (quality and timeli-
ness) of internal processes, and the manner in which the innovation goals
and the business goals of the firm are dovetailed (specificity, relevance, and
measurability).
Thus, a holistic approach has been attempted in this case analysis. The
factors taken up for analysis have been chosen to suitably represent the firm’s
innovation management processes in continuity and change modes as well
as its innovation performance and firm performance.
Several steps have been involved in the flowing-stream strategy frame-

work. First, in Section 5, the continuity and change forces of innovation
management at Titan are identified and classified based on analysis of data
collected from the previously mentioned secondary sources of information.
Sections 6 and 7 give the outcome of analysis of these identified conti-
nuity and change forces using the primary data inputs, viz., questionnaire
and interview inputs. In Section 8, the key strategic factors are identified
and prioritized.. The relationships between continuity–change forces and
innovation–firm performance factors are next derived in Section 9. Finally,

implementation suggestions that emerge after landscaping the strategic fac-
tors and selection of channels and strategies carried out in Section 10 are
presented in Section 11. Section 12 describes the strategic framework.
4. BACKGROUND OF COMPANY
Titan was founded in 1985 as a joint venture between Questar Invest-
ments Limited, a Tata group company, and a state government enterprise,
Tamil Nadu Industrial Development Corporation Limited (TIDCO). The
Tata group’s businesses are spread over 7 business sectors, comprising nearly
100 companies operating in 6 continents, yielding a turnover of the order of
US$28 billion, reckoned to be well over 3% of India’s GDP. The company’s
interests are currently in four areas: watches, jewelry, prescription eyewear,
and precision engineering. The watch business, first launched in 1987, enjoys
a major share in the domestic organized watches market with four leading
brands—Titan, Sonata, Fastrack, and Xylus. The jewelry business launched
in 1996 has two brands, Tanishq and Gold Plus, which are making an impact
in the large, fragmented jewelry market in India. The prescription eyewear
business begun in 2007 is attempting to transform the traditional eyewear
business, largely dominated by small opticians and a few retail chains. The
company started its precision engineering business in 2004 as an offshoot
of the expertise developed in the watches manufacturing operations and
provides precision engineered parts for aerospace, automotive, and other
industries and serves a large global market. The company has been noted
for its pioneering innovation efforts, enabling it to carve an enviable growth
path. It is now a US$600 million organization with a 3,500-plus member
workforce.
5. CONTINUITY AND CHANGE FORCES

The continuity and change forces comprised of the technology, organi-
zation, learning, managerial, and networking processes (Bhat, 2010, Bhat
et al., 2011a, 2011b) are summarized in this section. The forces described in
this section are based on analysis of data gleaned from the secondary infor-
mation sources mentioned in Section 3. The forces include those pertaining
82 J. S. A. Bhat
to “continuous change” or “incremental change” in the context of continu-

ity (Tushman and Anderson, 1986). The continuity forces are in constant
opposition with the change forces in each category.
5.1. Technology Forces

The technology continuity forces represent those that come into play in
normal planned operations and are described next.
(i) Customer-oriented NPD: Titan believes in being largely driven by the

customer rather than by the competitor. It has launched several new
products. The watch manufacturing business was learned completely
from scratch, enabling the launch in 2002 of Titan Edge, the slimmest
watch in the world at that time. They have worked to understand the
specific needs of their customers and have developed a wide array of
products to suit different life-style choices and meet diverse needs.
(ii) Company-wide innovation: Titan has followed a consensual and a team-
centric approach that has resulted in percolation of the company’s
vision and values right through the organization. It has implemented
suitable project management systems and has a company-wide inte-
grated approach to innovation. New product innovation at Titan is an
outcome of its capabilities in implementing process changes.
(iii) Idea sourcing and selection: The company uses various means for solic-
iting suggestions for improvement through formal mechanisms (con-
sultants and management-oriented top-down approaches) as well as in-
formal ones. Regarding the approach to innovation project selection,
short- and long-term priorities are balanced. The company implements
conventional methods to seek out new product ideas in a systematic
manner.
(iv) Flexible operations: Titan has an open attitude toward its operating pro-
cesses. Flexibility in operations has been attempted to adjust to chang-
ing customer demands. Deviations from set processes are permitted to
provide for implementation of select projects.
The technology change forces are relevant in the context of change and are
as follows.
(i) Providing for options: The company provides for alternative means to
achieve innovation targets. It relies on a wide network for sourcing
ideas and makes active use of experimentation to understand new tech-
nology/market implications.
(ii) Well-aligned technology acquisition and transfer mechanisms: The company
has been able to successfully launch four major different businesses
aligned to its strategic resources. It probes technology out-licensing
possibilities to some extent. In times of need, Titan has been able to

collaborate effectively with appropriate technology sources.
(iii) Strategic partnerships: Titan has many alliances of different kinds and
has been proactively collaborating on potential innovations.
(iv) Technology alert mechanisms: Titan has attempted to monitor ongoing
technology developments in specific areas concerning its businesses.
5.2. Organization Forces

The organization continuity forces refer to the regular organizational prac-

tices that are manifest in the company, as shown in what follows.
(i) Employee involvement: It has been a practice within the company to

involve several employees in decision making at different levels. Over
the years, several practices have been put into place to cultivate and
strengthen team-working culture, and every major program undertaken
involves several departments.
(ii) Supportive organizational culture: The company has been developing a
supportive culture, making the employees feel that they belong; this
has resulted in a sense of camaraderie, wellbeing, and trust among
associates.
(iii) Adequate procedures and routines: The company adheres to well-
established practices. It has an acceptable organization structure, work
procedures/routines, and systems. It also has adequate employee as-
sessment and work appraisal processes.
(iv) Effective leadership: The crucial importance of effective innovation lead-
ership has not been lost; it has been able to identify and develop lead-
ership capabilities at appropriate levels. Fairly speedy decision-making
practices are in place. Efforts have been taken to inspire and motivate
innovation.
The organization change forces, on the other hand, are those that matter
in the context of change and are as follows.
(i) Tolerant attitude: Titan makes every effort to avoid expensive errors
through tough implementation and close monitoring mechanisms. It
tolerates failures and lapses on the part of innovation-implementing
teams to a certain degree.
(ii) Creativity inculcation: Titan makes efforts to enhance creativity. It has a
fairly flexible system for recruitment of new talent and endeavors to in-
volve the employees as intensely as possible in its innovation programs.
(iii) Entrepreneurship and peer pressure: Titan has built a licensee portfolio
of several prestigious international brands by entering into effective
agreements with leading watch manufacturers.
84 J. S. A. Bhat
(iv) Innovation rewards: Several motivational methods are effectively imple-

mented by the management to grow and sustain an effective innovation
culture.
5.3. Learning Forces

The learning continuity forces discussed below relate to normal knowledge-
enhancing practices that are in place in the firm.
(i) Training: The company has regular employee training programs to

address talent management.
(ii) Intra-firm knowledge sharing: Titan regularly uses several mechanisms
for sharing knowledge within the organization. It has systems for in-
ternal knowledge transmittal, and well-entrenched practices are also
implemented for promotion of intra-firm sharing and learning.
(iii) Learning from external sources: The company uses as many ways as possi-
ble to leverage its external associations and improve its knowledge base.
There are mechanisms for learning from external sources, including
suppliers, customers, competitors, and other organizations.
(iv) Systematic benchmarking: Titan has been open to studying the best prac-
tices of companies outside the Tata group and even outside the indus-
try. It regularly participates in intra-firm exchanges; the company sends
its executives at different levels for interaction and exchange with their
counterparts in other organizations.
The learning change forces are the company’s recourse in the event of
unforeseen change.
(i) Quick recovery: Titan keeps reviewing its progress to introduce suitable
remedial measures. There are systems in place to continue/resume
normal operations in any eventuality.
(ii) Enhance capabilities: Titan has looked beyond local competitors for
benchmarking to assess its innovation capabilities. There are mech-
anisms for driving innovation and percolating ideas internally when
there is an immediate need.
(iii) Use of learning tools: Proactive measures have been taken to foster skill
development, build expertise, and encourage overall learning. It makes
use of information technology tools as well as simulation and other
exercises.
(iv) Sustained efforts: To map future needs, Titan has a team called In-
novedge that targets breakthrough technologies. It uses appropriate
tools and techniques to initiate innovation thinking. The company has,
for instance, implemented a supply chain management project “Con-
nect” across the enterprise.
5.4. Managerial Forces

The managerial continuity forces refer to the managerial actions taken by
the firm in its regular functioning.
(i) Business–technology strategy link: Efforts are made to keep the technol-
ogy linkages aligned to the business objectives to the greatest extent
possible.
(ii) External environment trend tracking: In an era when technological ad-

vancements are leading to far shorter turnaround times, Titan appreci-
ates the need to be more flexible and is willing to cater to the needs of
customers and get aligned with changes. It deploys processes to track
the external environment and reviews their impact on its innovation
strategy. The processes deployed within the company may be termed
more reactive, but with respect to the impact of market developments,
a more proactive approach is adopted. Through several measures coor-
dinated by the top management, customer feedback is actively solicited
to ensure that the pulse of the market is well monitored.
(iii) Top management commitment: Top management has been driving the
company’s innovation goals.
(iv) Effective procedures: The managerial and strategic tools and techniques
that have been deployed include IBM-implemented systems, applica-
tions and products in data processing (SAP) for supply network plan-
ning optimization, a production planning and detailed scheduling
system for optimized machine use, and a deployment optimizer for
dispatching finished products. The innovation roadmap is effectively
communicated across the firm. Many communication initiatives, some
of them two way, are undertaken frequently. In its efforts to share
knowledge of its core competence across the firm, the vision, priorities,
and objectives of ongoing programs, along with intended initiatives,
are shared across and cascaded to all employees, key vendors, business
associates, and extended partners.
The managerial change forces listed below, on the other hand, matter in
times of change.
(i) Flexible strategy: Titan’s management is well aware that success in the
marketplace can be achieved only after a trial process through which
market preferences are revealed, and that in the case of consumer
products (such as watches) at the lower end of the price spectrum,
value perception and cultural aspects play a vital role. The company
has taken actions resulting in products offering both price flexibility
and design flexibility.
86 J. S. A. Bhat
(ii) Use of effective management tools: The company has proactively imple-
mented several management tools, such as the Tata Business Excel-
lence Model, supply chain system, quality management system, and
concurrent engineering, to better control its internal processes. It has
implemented structured techniques for technology/business change
trend tracking. The company also has provisions for change in strategy
and closure of ineffective projects.
(iii) Resources and planning: Titan has implemented an innovative supply
chain strategy to achieve business benefits while simultaneously serv-

ing the community by integrating suitable stakeholders in its ongoing
business operations and giving sufficient freedom for innovation goals.
It has made efforts to provide options to reach innovation goals and
also enforce speedy implementation of options and make sufficient
resources available for different innovation project needs.
(iv) Communication: Titan believes that its strategy demands good planning
that is based on rigorous thinking and tough self-assessment. It takes
pains to convey strategic goals across the organization.
5.5. Networking Forces

The networking continuity forces mentioned below refer to the kinds of
interactions maintained by the firm as part of its normal operations.
(i) External interactions: Being a major consumer goods company, Titan

has nurtured its relations with customers by catering to their specific
needs. “Customer First” is the most recent exercise in this direction.
The company has a concern for the welfare of all its associates, includ-
ing suppliers and franchisees, and offers a franchisee management
program. The company’s linkage with academic and research institutions
has been moderate.
(ii) Use of lead users: The company involves customers in its operations.
For example, Tanishq has a Kaizen Corner in every retail shop, where
customer-related concerns are discussed. Titan makes effective use of
lead users. For instance, the Titan Braille watch has been developed in
consultation with the National Association for the Blind.
(iii) Collaboration with firms: The company has been collaborating effectively
to enhance its innovation portfolio, for example, a technical collabo-
ration with France Ebauches (FE) of France, a manufacturer of watch
movements and components; partnership with Casio Computer Com-
pany of Japan for manufacture of digital and ana-digi watches; a joint
venture company along with Economic Development Council of Goa,
Daman & Diu Ltd., in the name of Titan Time Products, Ltd. at Goa
for the manufacture of electronic circuit blocks.
(iv) External expertise use: Titan makes use of external consultants/experts

on an as-needed basis.
The networking change forces refer to the interactions that are leveraged
during change and are as follows.
(i) Ideation: The company works to capture ideas from multiple sources.
The company has not yet developed an active linkage with the academic
and research community and has not yet actively experimented with
the open innovation model.
(ii) Dynamic customer interface: The company works dynamically with cus-
tomers. Its “Customer First” program of 2007 underscores this. It is
evident that there is constant interaction and that the consumer re-
gards the company well; it was voted the “most admired brand” across
categories in India by consumers in a study by Brand Equity in 2011,
voted the “most admired consumer goods marketer” by industry pro-
fessionals in A&M’s annual surveys between 1992 and 1999, and voted
“the most respected consumer durables company” in a Business World
survey in 2003.
(iii) New supplier use: Suppliers can be crucial to impart stability to both
production quality as well as production and delivery schedules. The
company does not actively experiment with new suppliers.
(iv) Extensive formal and informal linkages: Titan has formal as well as infor-
mal linkages and a fairly wide external network that it has leveraged to
expand its business.
6. ANALYSIS OF TITAN’S RESPONSES TO CONTINUITY FORCES

Titan’s approach to innovation is analyzed on the basis of the company’s
inputs gathered from questionnaires and discussions with its personnel. The
company’s reaction to the impact of continuity forces is first analyzed by as-
certaining the strategic actions being taken for each of the prior-mentioned
continuity forces (see Section 5). The company’s strong response-related
strategic actions are classified as vital (response >5) and the weak ones as
burden (response <4); the remaining are termed as desirable. The strategic
actions of Titan, accordingly classified, are presented in Table 1.
7. ANALYSIS OF TITAN’S RESPONSES TO CHANGE FORCES

Next, the company’s response to change forces is similarly analyzed, as
in the case of the continuity forces. The high-impact strategic actions are
identified on the basis of strong responses (>5) and the low-impact on the
basis of comparatively weak responses (<4); the remaining relatively less
88
TABLE 1 Strategic Response of Titan to Continuity Forces (Continued)
Continuity variables for management of

Classification innovation Strategic actions of Titan
Vital Flexible operations:

Operational flexibility There is significant flexibility in operations
Select project implementation Deviations from set processes are permitted to allow for
select project implementation to a sufficient extent
Employee involvement:
Team working Effective team working spirit is greatly encouraged
Involvement in innovation The practice of involving several departments in
innovation exercises is nurtured meticulously
Organizational culture:
Culture Organization culture is supportive of innovation
Attitude toward employees Significant efforts to nurture organization culture,
propagate sharing, and encourage well-being and trust
among employees are taken
Adequate procedures:
Organizational routines/structure Work procedures, routines, and systems for day-to-day
functioning are comfortable, and the organization
structure is acceptable
Work appraisal systems he Systems in place for employee assessment and work
appraisal are very acceptable
Management commitment:
Top management approach Top management is committed to innovation
Desirable
Customer-oriented NPD:
NPD capabilities From idea to commercialization, NPD cycle is managed
effectively to a fair extent
Customer needs identification NPD is somewhat closely aligned with customer needs
Innovation approach:
Project management There are relatively less time overruns or cost overruns;
fairly good project management capabilities prevail
Company-wide innovation A somewhat integrated approach for innovation
implementation involving all departments from
conception stage exists
Process improvement/change implementation Capabilities for implementing process
improvements/changes are honed continuously to an
extent
Innovation leadership:
Innovation leadership type Innovation leadership is generally well defined and well
respected
Leadership decision making Leaders’ decision-making process is fairly speedy
Innovation leadership qualities Leaders chosen to spearhead innovation projects generally
are able to inspire and motivate others
Training:
Skill development Employees regularly undergo training for development of
skills to an average extent
Benchmarking:
Benchmarking exercises Systematic benchmarking is opted for to some degree
Intra-firm knowledge exchanges Employees regularly participate in intra-organizational
exchanges to a fair extent
Strategy link:
Innovation and business linkage Business and innovation strategies are somewhat closely
dovetailed
(Continued on next page)
89
90
TABLE 1 Strategic Response of Titan to Continuity Forces (Continued)
Continuity variables for management of

Classification innovation Strategic actions of Titan
Environment tracking:
Technology tracking Processes to track external technological developments and
review impact are used to a moderate extent
Market/customer developments tracking Processes to track external market/customer
developments continually and to review the impact on
innovation trajectory are deployed to a moderate degree
Effective procedures:
Tools and techniques Managerial, strategic tools, and techniques to manage
innovation are deployed to some extent
Innovation roadmap Innovation roadmap is somewhat effectively
communicated across the organization
Core competence Core competence is defined and somewhat effectively
communicated across the organization
External interactions:
Tracking of customer needs Mechanisms for tracking customer needs on a continuous
basis are used to a fair extent
Relations with suppliers Good relations with suppliers are sustained to a fair degree
Academic and research linkages Linkages with universities and research centers are
nurtured to some extent
Use of lead users:
Improvements in offerings Improvements in products/services are carried out in
collaboration with customers to a fair extent
Customer involvement Customers are involved in development of new products
and services to some degree
Lead user involvement Lead users are somewhat closely involved in
implementation of identified innovation projects
Burden Idea sourcing:

Innovation project selection An established systems approach is hardly used for selection
of innovation projects
Idea search The process of searching for new ideas is hardly systematic;
regular exercises are not regularly undertaken
Knowledge sharing:
Knowledge management There are not many systems in place for knowledge
capturing and transmittal across the organization
External learning:
External learning sources Mechanisms for learning from external sources are hardly
encouraged
Learning from customers Few mechanisms are tapped for learning from customers
Supplier knowledge transmittal Somewhat less continual efforts are expended to learn
from suppliers
Learning from competitors Few efforts are expended to learn from competitors
Learning from other sources Mechanisms for learning from experts and external
sources are not used to a sufficient degree
Collaboration with other firms:
Collaboration with other firms Mechanisms and opportunities for collaborating with other
external organizations hardly exist
Use of external expertise:
External expertise use External consultants/agencies and expert advice are hardly
sought regularly on innovation aspects
91
92 J. S. A. Bhat
strong actions are termed as medium-impact strategic actions. The results of

this exercise are presented in Table 2.
8. KEY STRATEGIC FACTORS AT TITAN

After studying Titan’s responses and superimposing the concerned con-
tinuity and change forces discussed earlier, the key impacting factors that
have guided its strategic responses are delineated in what follows.
8.1. Key Innovation Performance Factors

Titan regards its focus on different innovation aspects as important, as
evidenced by its focus on the various innovation performance factors. The
company has been successful in developing new products and in improving
its production/operational processes in keeping with its growth. It has been
able to improve its managerial processes to a moderate extent. It has been
innovative and able to successfully improve its product features as well as
their reach across the globe. This is exemplified by the successful brands
in its different businesses, for example Titan, Sonata, Fastrack, and Xylus
in the watch segment and Tanishq and Gold Plus in a variety of ranges in
the jewelry segment. The company aspires, however, to lower the cost of its
products and to improve the delivery and reach of the products it offers.
8.2. Key Firm Performance Factors

Titan had net sales of US$224 million for quarter ending in June 2009.
Its net profit was US$11.69 million for the quarter ending June 2009 against
US$8.18 million for the same quarter ending June 2008. It has managed to
align its innovation goals with its business goals and wishes to be more specific
about its innovation goals as well as quantify the specific aspects to enable
better measurement of innovation. The company raises innovation funds
with considerable effort, but it has nonetheless attracted the innovation
talent it needs. While the quality of its internal processes is satisfactory, its
response to external forces needs to be faster as it wants to satisfy its suppliers
further. The company is otherwise convinced that its other stakeholders, i.e.,
employees, customers, government, and management, are satisfied. Titan
pays special attention to its shareholders and the local community to keep
them content.
8.3. Key Continuity Forces

It is evident that there is variation in Titan’s attention to the various
continuity–technology forces. While it has flexible operations, its idea sourc-
ing and selection mechanisms are not particularly strong. It has established
mechanisms for understanding customer needs but may need to strengthen
TABLE 2 Strategic Response of Titan to Change Forces
Classification Change variables for management of innovation Strategic actions of Titan
High impact Tolerant attitude:

Attitude to failure The firm exhibits a highly tolerant and positive attitude toward employee
failures, delinquencies, and innovation experimentation
Attitude toward insubordination A positive attitude toward insubordination aimed at suitable direction of
energies is nurtured
Entrepreneurship and peer pressure:
Attitude toward entrepreneurship Employee entrepreneurship is widely encouraged
Peer pressure Peer pressure is used effectively to enhance organizational innovation
Innovation rewards:
Innovation reward systems Effective motivational efforts and reward systems for innovation are in place
Quick recovery:
Benefiting from innovation mistakes The organization has sufficient systems in place to benefit from
mistakes/failures in innovation
Business continuity mechanisms Systems are in place to continue/resume normal operations in any
eventuality
Dynamic customer interface:
Working with lead users/customers The organization believes in working dynamically in association with lead
users/customers
Medium impact Innovation options:
Alternate innovation processes Alternative processes and mechanisms for dealing with different kinds of
innovation are explored to a moderate extent
Idea identification sources Multiple sources, including customers, suppliers, employees at all levels,
published sources, and competitors, are relied upon for innovation idea
generation to a fair degree
New technology/market implications The organization actively invests in resources/experiments to understand
implications of new technology or market changes to some extent
Creativity inculcation:
Creativity efforts Fair amount of efforts is taken to enhance individual and group creativity
Recruitment of new talent Systems for recruitment of new talent are not rigid.
Employee involvement Involvement of employees at all levels in organizational innovation efforts
exists to some extent
93
94
TABLE 2 Strategic Response of Titan to Change Forces (Continued)
Classification Change variables for management of innovation Strategic actions of Titan
Flexible strategy:
Flexibility Overall, the innovation strategy is somewhat flexible
Work allocation There is a fair degree of flexibility in work allocation
Resources and planning:
Innovation goals There is some freedom to meet innovation goals to a fair extent
Innovation routes Moderate options are provided and alternate paths conceived to reach
innovation targets
New idea tapping Resources are deployed to a fair extent for tapping of new ideas from
multiple sources
Implementation speed Implementation of choices and opting for alternate paths to seek
innovation targets are fairly speedy
Augmentation:
New supplier use The organization experiments with new suppliers to a moderate extent
Linkages:
Linkages with external sources There are formal as well as informal linkages with external sources to a fair
extent
External networks External networks are cultivated to a reasonable extent
Low impact Technology transactions:
Spin-off approach The organization’s efforts to scan opportunities to spin off
ideas/technologies that do not fit business are not strong
Out-licensing scope Efforts are hardly taken to transfer or out-license in-house developed
technologies that do not fit organizational business model
Technology acquisition and transfer Technology acquisition and transfer mechanisms are not so well aligned to
the business objectives of the organization
New technology Capabilities for acquiring new technologies in line with business goals are
not assiduously developed
Strategic partnerships:
Innovation collaboration The organization is hardly proactive in seeking to collaborate/work jointly
on potential innovations
Technology alert:
New technology alert systems There are few effective new technology alert mechanisms
Enhance capabilities:
Assessing innovation capabilities Measures for assessing and enhancing innovation capabilities hardly exist
Driving innovation There are few mechanisms for driving innovation internally (reports,
meetings, etc.)
Use of learning tools
Use of tools for innovation Information technology tools are hardly used to speed up learning efforts
all across company
Measurement exercises Simulation and other measurement exercises are not used widely to
identify gaps or generate options for ongoing innovation projects
Sustained efforts:
Futuristic practices Sufficient efforts are not made to identify futuristic practices and processes
Out-of-the-box thinking Appropriate tools and techniques are hardly deployed to divert employees
from a regular pattern of innovation thinking and looking outside normal
spheres of functioning
Use of management tools:
Management tools use Appropriate management tools are not sufficiently used more proactively
to meet innovation targets
Techniques for change mapping Structured techniques for technology/business change trend tracking are
only just in place
Termination of select innovation projects There are not many mechanisms in place for terminating ongoing
innovation projects midstream if necessary
Communication:
Decision making Strategic decision making capabilities only just exist
Innovation target changes Changes in innovation goals are not effectively communicated across the
company
Ideation:
Idea capture Ideation exercises do not sufficiently include idea capture from many more
sources
Linkages with research/academic organizations The organization hardly nurtures active and vibrant linkages with research
and academic organizations
Open innovation Efforts to use open innovation to augment idea capture are hardly made
95
96 J. S. A. Bhat
its overall customer-oriented NPD by improving and strengthening product

commercialization capabilities. Its company-wide innovation practices are
focused to a moderate extent.
The company’s responses to the continuity–organization forces are
strong. Its employee involvement in innovation is high, and it is confident
about the adequacy of its organizational procedures and routines, both of
which are vital forces. The company enjoys a strong organizational culture
supportive of innovation and fairly effective innovation leadership.
The continuity–learning responses are comparatively weak. While the

company has made some effort at skill advancement and training, it has to
expend considerable effort to learn from external sources and from com-
petitors, as well as shore up its intra-firm knowledge-sharing exercises.
The continuity–managerial interactions are reasonably strong, and
the commitment of its top management is strong. The company’s
business–technology strategy link is fairly strong, and it has moderately
strong practices for external environment trend tracking. Its organizational
routines and procedures are also fairly effective.
Ultimately, examining the continuity–networking perspective, the com-
pany could improve its responses to these forces. Its external interactions
are satisfactory, and the company makes fairly beneficial use of its lead users.
But it needs to improve its collaborations with other firms as well as its use
of external expertise.
8.4. Key Change Forces

Beginning with Titan’s responses to change–technology forces, re-
sponses to three out of four forces are quite weak. The company does provide
for options to a moderate extent. The company should focus more on its
responses to strategic partnerships, technology alert mechanisms, and tech-
nology acquisition and transfer mechanisms.
In terms of the change–organization force responses, the company’s
responses are quite strong. With the exception of potentially improving upon
its creativity inculcation, intolerant attitude, innovation rewards, as well as
entrepreneurship and peer pressure, the company’s response is strong.
The change–learning force responses are more or less low-impact ones,
except for quick recovery mechanisms. All the other interactions—use of
learning tools, enhanced capabilities, and sustained efforts—are not being
paid enough attention.
All the change–managerial responses need to be strengthened, in partic-
ular, use of effective management tools and communication responses. The
other two forces, flexible strategy and resources and planning, currently
evoke a moderate response.
In terms of change–networking force reactions, the company enjoys
a dynamic customer interface. However, its ideation mechanisms need
to be improved upon and the other two forces—new supplier use and
linkages—evoke average response.
9. RELATIONSHIPS BETWEEN CONTINUITY AND CHANGE

FORCE FACTORS AND INNOVATION AND FIRM
PERFORMANCE FACTORS
Based on the key impact factors listed above, it is possible to derive
the relationships between the continuity and change force factors and the
innovation and firm performance factors after applying the flowing-stream
strategy crystal, as indicated in Table 3.
10. LANDSCAPING STRATEGIC FACTORS AT TITAN

The company has consciously pursued a strategy of moving from func-
tional excellence, founded on its basic design skills, toward business ex-
cellence by weaving cost consciousness into every aspect of its operations
abetted by a vibrant innovation-focused culture. The company attributes its
success to being driven entirely by the customer rather than by the competi-
tion and in crafting suitable transformational strategies to meet its growing
business needs.
The innovation performance factors based on the actual situation com-
pared to the company aspirations are illustrated in Figure 2. Titan must
strive to surprise the customer with new product launches in addition to
continuing its efforts to launch enhanced versions of its products at lower
costs using novel marketing techniques. The company must also work on its
managerial and operational processes, as depicted in Figure 3.
Concurrently, it must maintain its performance. The firm performance
situation, as depicted in Figure 4, illustrates this. The company needs to
sustain its financial performance by sharpening its innovation goals in align-
ment with its overall business goals. While it has been able to successfully
source talent, it has not been able to raise adequate funds for its innovation
needs. It must continue to satisfy its stakeholders by bettering its internal pro-
cess capabilities and improving the speed of its response to external levers.
This is illustrated in Figure 5.
11. SELECTING KEY STRATEGY CHANNELS

By applying the flowing-stream strategy, Titan’s use of the four key strate-
gic channels has been analyzed. The strategic channel selection matrix in
Figure 6 is based on the continuity and change factors mapped by the com-
pany. Titan has predominantly adopted divert and shift channels, such as
when it entered the areas of precision engineering and jewelry. Lately, it
98
TABLE 3 Key Strategy Interactions in the Case of Titan
SNo. Relationship Type of interaction
1. Continuity forces–innovation performance The extent to which new products or services can be offered is an important measure of a firm’s
innovation management capabilities; Titan’s focus on customer-oriented NPD is based on its incessant
efforts aimed toward understanding customer needs and continually honing its new product/service
development capabilities to meet these needs
The extent to which improvement of production/operational processes have been carried out is a
reflection of the firm’s innovation management capability; such improvements have been continually
possible in Titan because of its strength in having flexible operations
It has been possible for Titan to improve its managerial processes in tune with changing requirements
because of its strategic approach, providing for enough leeway; the company has lowered the cost of
products/services offered because of its strong external interactions; in particular, its relations with its
suppliers is excellent
It has proactively worked in association with customers on product/service improvements; the company
has worked in association with lead users to some extent to improve features of products/services
offered
It has an excellent delivery mechanism and has, in addition, nurtured its franchisees through several
mechanisms leading to continual improvement in the delivery/reach of products/services offered
2. Continuity forces–firm performance Titan has maintained a good growth record. It is expected to deliver healthy earnings growth in the next
couple of years; this has been possible due to several factors pinned on its stakeholder relations and its
capability to continually bring out new products satisfying customer needs
The company’s innovation goals are tuned to meet its business goals, as there are adequate procedures
and routines to ensure that adherence of innovation projects undertaken are targeted to meet business
goals
Titan has been able to raise financial resources as well as attract talent for innovation when required
because of its top management commitment
Intense employee involvement, as well as use of suitable routines and procedures, has ensured that the
quality of internal processes in the company has been impeccable and that speed/timeliness is
maintained at all times
Stakeholder satisfaction has been given primary importance by the company since its inception; the
supportive organization culture leading to intense employee involvement at all levels as well systems
tuned to understand customer needs, maintain cordial external interactions, and work in association
with customers have all largely contributed to this
3. Continuity forces–change forces With its focus on customer satisfaction, the company has ventured into different businesses over the years
to sustain its growth by following the partition and divert routes
Innovation efforts are always oriented to meet customer needs, and a dynamic customer interface ensures
that projects are effectively completed; the company’s tolerant attitude coupled with the motivating
influence of its innovation rewards have ensured intense employee involvement at all levels in
innovation programs; these efforts have been catalyzed and aided by a supportive organizational culture
Top management commitment has further ensured availability of resources for innovation when needed;
adequate procedures and routines have been in place through appropriate planning; the prevailing
systems provide for entrepreneurship, and peer pressure is used to sharpen and nudge innovation
capabilities; a flexible strategy provides for experimentation and options; the scope for alternative
operations allow for quick recovery from unforeseen situations; external interactions, together with a
vibrant customer interface, have led to effective NPD, as well as improvements in existing products
4. Change factors–innovation A dynamic customer interface has led to satisfactory development and launching of new products besides
leading to improvements in products offered
A flexible strategy and innovation rewards have motivated employees in contributing toward improving
the features of existing products and services in terms of lowering costs and introducing new features
A positive approach toward entrepreneurship has further catalyzed these innovation efforts, and peer
pressure has added momentum to these initiatives; all of these have also contributed toward improved
delivery and reach of products/services offered
Improvement in managerial processes has been an outcome of a tolerant attitude toward employees;
quick recovery and resumption of normal operations has been possible in the event of any unforeseen
event
Availability of adequate resources and appropriate planning has been vital for maintenance and
improvement of production and operational processes
5. Change forces–firm performance The company’s financial performance has been driven by its managerial capabilities, ensuring sufficient
freedom to meet innovation goals; there are also provisions for options and alternate paths to reach
innovation goals; at the same time, systems and procedures enforce speedy implementation of options;
aided by these, it has been possible for the company to plan and deploy resources for new ideas more
effectively
99
100
TABLE 3 Key Strategy Interactions in the Case of Titan (Continued)
SNo. Relationship Type of interaction
A vibrant customer interface has been the hallmark of Titan’s approach since its inception, thus ensuring
that new projects undertaken are in line with customer requirements; thus, innovation targets are always
tuned to meet business goals, as both are primed to meet the market’s current, latent, or future
requirements
Titan has been able to muster necessary resources for its innovation programs, both in terms of funds as
well as in terms of talent, in times of need, because of its well-managed resources and planning
capabilities that have become part of its organizational routine over the years
The company’s flexible strategy and mechanisms for benefiting from mistakes/failures and systems in
place to continue/resume normal operations in any eventuality have ensured speed/timeliness as well
as quality of internal processes; further, its positive approach toward entrepreneurship, use of peer
pressure, and motivational efforts (such as innovation rewards) have all had beneficial effects in aligning
its employees willingly with organizational needs, making them all rise to occasion in times of need
Bringing about stakeholder satisfaction is vital for any enterprise; Titan has been able to successfully
satisfy its various stakeholders, including its employees, shareholders, franchisees and dealers, and
suppliers, as well as the government and the public at large; its tolerant attitude has helped in making
stakeholders feel more confident in and evoke trust about the company
6. Innovation performance–firm performance The financial performance of Titan has been contributed to largely by its new product generation
capabilities in line with changing customer needs
Stakeholder satisfaction has been achieved through innovation management capabilities, resulting in
the company successfully launching new products with novel delivery mechanisms at acceptable costs,
apart from bringing about improvements in existing products including lowering costs, introducing
improved features, and enhancing existing delivery mechanisms and market scope expansion
Undertaken innovation projects, whether for development of new products or improvements in existing
products, have successfully contributed toward the growth of the company, as its innovation goals are
always so chosen so as to match business priorities
Titan has well-honed managerial processes providing for resources and suitable talent whenever needed;
efforts are actively expended to bring about continual improvement of production and operational
processes as well as managerial processes
New products
models
Improved
operations Lower
product
costs
Improved
Improved managerial
delivery processes
Legend:
Improved
Aspired to be: ___
product
As of now: ----
models
FIGURE 2 Strategy landscape for innovation performance.
Improve
Production/Operations,
Delivery mechanisms,
Managerial processes
Maintain
New products,
Improved products/
models
Reduce
Costs
FIGURE 3 Strategy diagram for innovation performance.

102 J. S. A. Bhat
Stakeholder
satisfaction
Source
funds for
Process
innovation
Quality
Source
talent for
innovation
Speed/
Timeliness
Gap in
Innovation Legend:
Financial Aspired to be: ___
- business
Performance goals
As of now: ---
FIGURE 4 Strategy landscape for firm performance.
has adopted the partition channel by making a foray into eye-wear business,
which it alternates with the use of the divert channel as depicted.
With the intent of giving the company more strategic leverage, Figure 7
depicts a modified matrix based on enhancing the litheness of the company.
Innovation at Titan had, in initial years, relied largely on the momentum of
continuity factors. For instance, its engineering design capabilities were the
outcome of technology factors (such as customer oriented NPD, company-
wide innovation, idea sourcing, and flexible operations). The following other
factors honed the overall innovation capability of the company:
Improve:
Quality of internal processes,
Speed/Timeliness,
Funds/Resource planning,
Stakeholder satisfaction Maintain:
Financial performance,
Talent
sourcing/management
Reduce:
Gap between innovation and
business goals
FIGURE 5 Strategy diagram for firm performance.

7
Integrate
Shift
Change
forces
3.5
Divert
Partition
0 3.5 7
Continuity Forces
FIGURE 6 Channel selection matrix.
• organization (including employee involvement and supportive organiza-

tion culture),
• learning (such as training, learning from external sources, and intra firm
knowledge sharing),
• managerial (such as business-technology strategy link, external environ-
ment tracking, top management commitment, and effective procedures),
and
• networking (such as external interactions, use of lead users, collaboration
with firms, and external expertise use).
With the impact of change factors, the company’s initial resistance to

change brought about by the continued impact of continuity factors only
diverted the strategic channel in a new direction, resulting in minimal in-
terference. After its initial success, the company began major innovation
activity only after 1995 when it underwent a major transformational process
over several years. This resulted in its diversification into three new major
businesses in addition to its original watch business. Thus, it merely followed
the divert channel initially before it sharpened its innovation capabilities
7
Shift X Integrate
B
Y
Change 3.5
forces
Divert
A Partition
0 3.5 7
Continuity Forces
FIGURE 7 Modified channel selection matrix.
104 J. S. A. Bhat
and adopted the shift and partition channels. After gaining confidence, the
company enhanced its specific focus on strengthening its internal processes,
managerial capabilities, and NPD capabilities by adopting both the shift
and partition channels at appropriate times. As depicted in Figure 7, the
company must now adopt the integrate channels X and Y , as it is slowly
assimilating the change factors and enhancing its overall innovation capabil-
ities through inter-alia active use of learning tools, proving alternative paths
for innovation, employee motivation mechanisms, and strong networking
skills.
12. STRATEGIC FRAMEWORK

By integrating the results of the analysis presented in Sections 5 through
11, the following strategic framework is derived.
• The innovation strategy matches business needs in a general manner, but

better streamlining will go a long way in sharpening the final outcome
of innovation efforts and enhancing the firm’s innovativeness. One step
could be to introduce more measurable innovation targets aimed at spe-
cific NPD and/or improve existing products.
• Despite top management being committed to innovation, and the core
competence of the company—its strong organizational culture—generally
known across the company, the specific targeted objectives of different
innovation projects need to be communicated more effectively across the
company.
• More effective strategic tools need be used to bring in better managerial
practices and enhance internal process capabilities. World-wide and ex-
ternal technology developments must be tracked more effectively in step
with its innovation strategy and specific progress.
• Innovation project selection mechanisms need to be improved. In addi-
tion, better project monitoring techniques, ensuring strict control over
cost and time overruns with respect to ongoing projects, need to be im-
plemented.
• In respect to networking, linkages with universities and research centers
need to be developed. Collaboration with other firms should be explored
more vigorously. Use of external expertise and consultants for handling
specific problems will benefit the firm.
13. CONCLUDING REMARKS

In this case analysis, innovation management related processes impacting
innovation have been analyzed in an integrated manner by studying continu-
ity and change dimensions of the technology, organization, learning, man-
agerial, and networking processes. Their impact on innovation performance
and overall firm performance has been derived. A holistic approach for mea-
suring innovation performance and firm performance has been adopted.
Finally, a strategic framework for further enhancing the firm’s capabilities
in this sphere has emerged..
Use of the flowing-stream strategy has led to the strategic framework
after comprehensive analysis of the different continuity and change forces
that impinge upon innovation and firm performance. It has been possible to
identify the vital strategic factors, keeping in mind the company’s aspirations.
It has also been possible to suggest the strategic framework and recommend
suitable strategy channels that best suit the needs of the company. The
framework can be used in a dynamic mode to modify the strategic framework
in line with the changing aspirations of the company. In effect, the approach
illustrated may effectively be applied in any manufacturing organization and
can even be adapted to suit any kind of organization across all sectors.
The case research has emphasized the preeminence of organizational
continuity-related aspects in terms of effective innovation leadership, sup-
portive organization culture, employee involvement, and adequate organiza-
tional routines in enhancing the innovation performance of a manufacturing
firm and leading to overall positive performance and stakeholder satisfac-
tion. Technology-continuity aspects covering a wide base of user-directed
NPD efforts and flexible operations have also merited attention. These con-
clusions could be strengthened further after testing this approach in several
organizations.
REFERENCES
Armenakis, A., Harris, S., and Massholder, K. W. (1993). Creating readiness for organizational change.
Human Relations, 46(60), 681–703.
Barney, J. B. (1995). Looking inside for competitive advantage. Academy of Management Executive, 9(4),
49–61.
Becerra-Fernandez, I., Gonzalez, A., and Sabherwal, R. (2004). Knowledge management: Challenges, solutions,
and technologies. Upper Saddle River, NJ: Pearson (Prentice Hall) Education Inc.
Beer, M., and Nohria, N. (2000). Cracking the code of change. Harvard Business Review, 78(30), 133–141.
Bhat, J. S. A. (2005). Concerns of new technology based industries—The case of nanotechnology. Tech-
novation, 25(5), 457–462.
Bhat, J. S. A. (2010). Managing innovation: Understanding how continuity and change are interlinked.
Global Journal of Flexible Systems Management, 11(1 & 2), 69–80.
Bhat, J. S. A., Sushil, and Jain, P. K. (2010). Inter-relations among innovation performance variables:
Results from empirical evidence of Indian manufacturing firms, Tenth Global Conference on Flexible
Systems Management: Designing for Flexibility and Security for the Future. Tokyo, Japan, July 26–27.
Bhat, J. S. A., Sushil, and Jain, P. K. (2011a). Innovation by harmonizing continuity and change—A case.
Journal of Business Strategy, 32(2), 38–49.
Bhat, J. S. A., Sushil, and Jain, P. K. (2011b). Strategic confluence of continuity and change for improved
innovation performance. International Journal of Engineering Management and Economics, 2(2 & 3),
175–194.
Birkinshaw, J., and Gibson, C. (2004). Building ambidexterity into an organization. Sloan Management
Review, 45(4), 47–55.
Bradach, J. L. (1997). Using the plural form in the management of restaurant chains. Administrative
Science Quarterly, 42(2), 276–303.
106 J. S. A. Bhat
Camillus, J. C. (2008). Strategy as a wicked problem. Harvard Business Review, 86(5), 98–106.
DeLong, D. W. (2004). Lost knowledge: Confronting the threat of an aging workforce. New York: Oxford Uni-
versity Press.
Gersick, C. (1994). Pacing strategic change: The case of a new venture. Academy of Management Review,
37(3), 1–9.
Hamel, G. (2007). The future of management. Boston: Harvard Business School Press.
Hannan, M. T., Pólos, L., and Carroll, G. R. (2004). The evolution of organizational inertia. Industrial
and Corporate Change, 13, 213–242.
Houlder, D., and Sull, D. N. (2006). How companies can avoid a midlife crisis. Sloan Management Review,
48(1), 26–34.
Kates, A., and Galbraith, J. R. (2007). Designing your organization. Weinheim, Germany: Wiley-VCH.
Lawson, B., and Samson, D. (2001). Developing innovation capability in organizations: A dynamic capa-
bilities approach. International Journal of Innovation Management, 5(3), 377–400.
Leonard-Barton, D. (1995). Well-springs of knowledge building and sustaining the sources of innovation. Boston:
Harvard Business School Press.
Morgan, R. M., and Hunt, S. D. (1994). The commitment-trust theory of relationship marketing. Journal
of Marketing, 58(7), 20–38.
Nonaka, I., and Takeuchi, H. (1995). The knowledge-creating company. New York: Oxford Press.
O’Reilly, C. A., and Tushman, M. (2004). The ambidextrous organization. Harvard Business Review, 82(4),
74–82.
Pettigrew, A. M., Thomas, H., and Whittington, R. (Eds.). (2006). Handbook of strategy and management.
London: SAGE.
Rosenbloom, R. S., and Burgelman, R. A. (Eds.). (1989). Research on technological innovation, management
and policy: Technology, competition, and organization theory. Greenwich, CT: JAI Press.
Rothwell, R., and Zegveld, W. (1985) Reindustrialization and technology. Harlow, England: Longman.
Sushil. (2005). A flexible strategy framework for managing continuity and change. International Journal
of Global Business and Competitiveness, 1(1), 22–32.
Sushil. (2008). The concept of a flexible enterprise. Proceedings of Eighth Global Conference on Flexible Systems
Management (GLOGIFT’08) (pp. 18–35). Hoboken, NJ, June 14–16.
Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable)
enterprise performance. Strategic Management Journal, 28(13), 1319–1350.
Tushman, M. L., and Anderson, P. (1986) Technological discontinuities and organizational environ-
ments. Administrative Science Quarterly, 3, 439–465.
Volberda, H. W. (1996). Toward the flexible form: How to remain vital in hypercompetitive environments.
Organization Science, 7(4), 359–374.
Yin, R. K. (1984). Case study research: Design and methods. Newbury Park, CA: Sage.
View publication stats

Jet Titan Sep2013

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Jet Titan Sep2013

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

Innovation Management in Titan Industries Limited

Article in Journal of Enterprise Transformation · April 2013

Innovation management View project

The user has requested enhancement of the downloaded file.

Journal of Enterprise Transformation

Innovation Management in Titan

To link to this article: http://dx.doi.org/10.1080/19488289.2012.658141

PLEASE SCROLL DOWN FOR ARTICLE

ISSN: 1948-8289 print / 1948-8297 online

INNOVATION MANAGEMENT IN TITAN INDUSTRIES LIMITED

Keywords managing innovation; continuity and change; flowing stream; management

in successful organizations has been expounded (Birkinshaw and Gibson,

of an innovation-management strategy in a manufacturing firm through the

2. INNOVATION MANAGEMENT PROCESSES IN A FIRM

The need for focus on both the continuity- and change-management

FIGURE 1 Crystal diagram depicting inter-relationships between factors.

ing to the technology, organization, learning, managerial, and networking

Several steps have been involved in the flowing-stream strategy frame-

innovation–firm performance factors are next derived in Section 9. Finally,

5. CONTINUITY AND CHANGE FORCES

to “continuous change” or “incremental change” in the context of continu-

5.1. Technology Forces

(i) Customer-oriented NPD: Titan believes in being largely driven by the

possibilities to some extent. In times of need, Titan has been able to

5.2. Organization Forces

The organization continuity forces refer to the regular organizational prac-

(i) Employee involvement: It has been a practice within the company to

(iv) Innovation rewards: Several motivational methods are effectively imple-

5.3. Learning Forces

(i) Training: The company has regular employee training programs to

5.4. Managerial Forces

(ii) External environment trend tracking: In an era when technological ad-

chain strategy to achieve business benefits while simultaneously serv-

5.5. Networking Forces

(i) External interactions: Being a major consumer goods company, Titan

(iv) External expertise use: Titan makes use of external consultants/experts

6. ANALYSIS OF TITAN’S RESPONSES TO CONTINUITY FORCES

7. ANALYSIS OF TITAN’S RESPONSES TO CHANGE FORCES

TABLE 1 Strategic Response of Titan to Continuity Forces (Continued)

Continuity variables for management of

Vital Flexible operations:

Continuity variables for management of

Burden Idea sourcing:

strong actions are termed as medium-impact strategic actions. The results of

8. KEY STRATEGIC FACTORS AT TITAN

8.1. Key Innovation Performance Factors

8.2. Key Firm Performance Factors

8.3. Key Continuity Forces

TABLE 2 Strategic Response of Titan to Change Forces

Classification Change variables for management of innovation Strategic actions of Titan

High impact Tolerant attitude:

Classification Change variables for management of innovation Strategic actions of Titan

its overall customer-oriented NPD by improving and strengthening product

The continuity–learning responses are comparatively weak. While the

8.4. Key Change Forces

9. RELATIONSHIPS BETWEEN CONTINUITY AND CHANGE

10. LANDSCAPING STRATEGIC FACTORS AT TITAN

11. SELECTING KEY STRATEGY CHANNELS

SNo. Relationship Type of interaction

SNo. Relationship Type of interaction

FIGURE 2 Strategy landscape for innovation performance.

FIGURE 3 Strategy diagram for innovation performance.

FIGURE 4 Strategy landscape for firm performance.