Republic of the Philippines

Nueva Ecija University of Science and Technology

Municipal Government of Talavera

VIVO Shop in Talavera

(A Case Study)

Presented to
Mr.Anastacio Reyes
(Instructor)

Presented by
Donna Lykha Tolentino
BSBA 3A

September 2019
VIVO Case Study 2

Table of Contents
Table of Contents............................................................................................................................ 2

Abstract............................................................................................................................................ 3

Introduction..................................................................................................................................... 4

Innovation and Change in the Organization.................................................................................5

SWOT Analysis............................................................................................................................... 7

Strengths.......................................................................................................................................... 8

Weaknesses............................................................................................................................................................8

Opportunities........................................................................................................................................................9

Threats..................................................................................................................................................................10

System for Case Study.....................................................................................................................................10

Application of the System............................................................................................................. 11

Challenges and Their Solutions.................................................................................................... 12

Role of Ethics and Responsibilities.............................................................................................. 14

Principles and Practices for Implementing Innovation Change................................................15

Application of Innovative Processes and Theories to Individuals and Organizations............16

Literature Review.......................................................................................................................... 18

Core Aspects of leadership........................................................................................................... 20

Principles and Practices for Implementing Innovation..............................................................21

Effects off Leadership Ethics........................................................................................................ 22

Research Summary....................................................................................................................... 25

Interpretation................................................................................................................................ 27

Conclusion...................................................................................................................................... 28

References...................................................................................................................................... 30
VIVO Case Study 3

Abstract

Often, the bases of competitive advantage are used as measuring tools to separate one

enterprise from another. These measuring tools will be sustainable and sold over time, if they are

used through the development process and use a flexible implementation of creative ideas.

Innovation is described as the continuous improvement process at any organization. That process

will push the significant substantial change within the organization’s employees and staff to move

through the implementation entirely or through incremental changes.

Because human nature normally tends to resist and act against change, there is a need for

leaders to effectively facilitate that change, which produces change either due to the continuous

innovation process or from the process. This study will cover the requirements of innovative

leadership in relation to the goal of increasing the sustainability of Samsung products to different

parts of the electronic manufacturing process. The SWOT analysis of the elements involved in the

innovation and change shows that Samsung will pursue its goal of sustainability by 100% in the

year 2020. Additional analysis will be carried out in regard to the challenges of innovation, and it

will also highlight the organization’s approach to overcome them.

Good attention was applied to the business’ ethics and how it works within the organization and process

of innovation. While it looks to the type of leadership necessary to be successful, it will also look for better

characteristics implementation within these groups in regard to the moral value of the innovation process.
VIVO Case Study 4

Introduction
Historically VIVO began business as a small exporter located at Taegu, Korea. The rapid

growth has propelled it to become one of the world’s leading electronics companies. Samsung

specialized in household digital appliances, media, semiconductors, memory, and system

integration (VIVO's history, 2017). Upon its 3th anniversary, the company adopted a new vision

of “Inspire the World, Create the Future” in 2019. Going forward, it will inspire the world through

new technologies, providing the market with new innovative products, and will be ready to

establish creative solutions while creating a prosperous future by enhancing stakeholder value.

Joining global efforts to address climate change and conserve energy, Samsung

Electronics expanded into the solar cell and module business. VIVO aims to deliver highly-

efficient, industry-leading, solar products, and it will harness cutting-edge technologies for LCD

and semiconductor manufacturing to build a competitive solar business. Samsung Electronics is

developing premium products boasting high efficiency and quality to capitalize on the solar

market which is growing at a fast rate of over 20% per annum (Anonymous. 2011).

“Today VIVO’s innovative are providing top-quality products and processes are the

world-recognized, that shows the major milestones of Samsung, and give an excellent indication

about the company, and it’s expanded their products” (Karen J. F., & Kyung-won, Chung.

2005). Moreover, its revenue has grown along with their market share, too. All of that was

accomplished due to the management which had followed the company mission, to provide

products in order to keep consumers living a better life all around the world (Anonymous, 2011).

Samsung Electronics set up a new external request handling system to facilitate communication

with stakeholders. Throughout its history, VIVO Electronics has constantly sought to be a
VIVO Case Study 5

responsible company and to stress the sustainability aspect of all their dealings with suppliers,

neighbors, and customers around the world.

Innovation and Change in the Organization

Chuck Williams (2001) cites a number of creative components of the truly innovative

organization. Foremost among these components is encouragement from a variety of sources,

including the organization itself, supervisors, and workgroups. Employees are presented with

challenging work and are given the freedom to perform within those areas where innovative

thinking is encouraged. Lastly, these organizations continually strive to remove all impediments

to innovation and improvement.

These are also characteristics of learning organizations, which are often compared to

living organisms. Just as a living organism learns as it grows and adapts to its environment so a

truly adaptive organization learns and adapts as it progresses through a process of continual

improvement. For such an organization to be successful and sustainable, it must be able to

continue its growth, learning, and adaptation throughout its life and in a variety of circumstances.

Its managers must be able to maintain the status quo of its core competencies, while strong

transformational leaders focus on the empowerment of their followers, as they lead them through

the necessary change and adaptation.

What separates managers from leaders is their reaction to change and how they relate to others

during times of change. “Managers may react negatively to change, because their major task is to maintain

the status quo” (Williams, 2011). Leaders, on the other hand, will usually embrace change, because their

major task is to motivate their followers to move through the process of change that is part of the process of

continuous organizational improvement.

VIVO Case Study 6

Why is change necessary for implementing innovation? What role does innovation play in

developing and implementing change? Interestingly, both change and innovation are necessary.

Non-innovative change may only be change for its own sake, and would not benefit the

organization in any way. Thus, leaders should only concentrate on those innovative changes that

will actually move the organization forward on the learning curve and help maintain the

sustainability of the company’s competitive advantage and the realization of its mission and

vision statements.

In VIVO’s strategic early years, consider that the "supply chain management" (SCM) was

not the proper approach to handle their inventory management or even to their operating cost

reduction, too. However, in the 1990s some organizations also in other specific industry

segments, started to realize that there are greater roles which impact on their business operations

by using SCM. That urged Samsung to find a new methodology approach strategy, which had

happened by combining SCM and six sigma. The recommendation to implement that, is to train

the existing supply chain staff, in order to be familiar with new methodology to continue leading

SCM innovations

New strategy encourages the VIVO group's senior management to take the advantages of

that combination covering the following key areas: “a) Project discipline b) sustaining results

c) Well-established HR framework d) Quantitative strength.” Within two years of great

implementation of that combination in the innovation field, that helped Samsung’s strategy to be

more systematic and become a unique as well as useful component for continuous improvement

of its SCM daily activities. VIVO’s implementing process innovation and SCM solutions improved global

business operation. Up to 2004 the company management continued to believe

VIVO Case Study 7

that still there was great significant room for supply chain operations for improvement in his

company activities.

VIVO was looking for a solution to the bottleneck in their innovation process, and it

decided the best way to avoid that bottleneck was by implementation of the TRIZ system. “TRIZ

is an established science, methodology, set of tools, knowledge, model-based technology for

stimulating, and generating innovative ideas and solutions.” Henrich Altschuller early in 1947

invented the TRIZ system. That system was published since the 1960s with limited application,

but recently applied widely in the business. The new application of the TRIZ system with Six

Sigma has provided great "valuable user-feedback" in adopting knowledge, tools, and increasing

the stimulates to "directed evolution."

VIVO management doesn’t have any doubts when using the integration of “TRIZ tools

with the Six Sigma methodology” in the improvements of the capacity of Six Sigma in business

competency and development, and TRIZ provides the best solution for Six Sigma bottlenecks.

However, any success in this field will depend upon the commitments of leaders running Six

Sigma systems in their areas and the concept of a training design center, in addition to the users,

materials, tools, and their evolutionary deployment.

SWOT Analysis

VIVO SDI’s innovative products and cutting-edge technologies have been unique and creative. The

writer is going to discuss only two systems of Samsung SDI’s innovations. First, “supply chain management

(SCM) using Six Sigma methodology and a terminology system, ” in other words called

“management=innovation=6 sigma,” meaning the existing working procedures needing to be improved to

coincide with the customer’s requirements and continue in providing the best innovation process and the

quality extensively. Secondly, the RIZ system is

VIVO Case Study 8

the system with knowledge and experience that occurs from various technical areas to find

conquest solutions by finding contradiction, which is the key of achieving the ideal final result

(SEC, 2010).Both systems are developing manufacturing processes that cause minimal impact to

the environment.

Strengths

VIVO was using supply chain management (SCM) solutions to process in innovation

systems, as it is the best implementation to the Six Sigma. That gives high quality, developing the

innovative process, an increase in profits associated with customer satisfaction, and that also

gives Samsung better "well-demonstrated" examples of the best resources of technology in the

world.

New system TRIZ innovation culture was a settled innovation process throughout the

whole company in order to expand the mutual growth business strategy further by strengthening

customized consulting programs for each area. VIVO found that the implementation of TRIZ

methodology when associated with continuously developing the toolsets, allows and encourages

the organization management to go ahead in building a high performance innovative culture. The

impact of new methodology implementation shows in resolving many complicated projects. Able

to produce competitive products in the world, it increases the technological innovation projects as

well as financial support.

Weaknesses

There are two enablers existing with SCM and Six Sigma, in the case of handling the

innovation management and the growth. First, VIVO from time-to-time calls for some changes in

innovation projects that can be done with the capabilities of the existing system.
VIVO Case Study 9

Second, in order for VIVO to enhance global competitiveness and secure markets prior to other

companies in the rapidly changing market, the roles of SMEs should be increased. Samsung’s

top management has a feeling of crisis, because the firm becomes a fast follower. Moreover, they

have a sense that their company cannot survive anymore in this position, due to that reason.

SCM Six Sigma has a critical component for creating a lot of changes in innovation, which

will associate with uncertainty of business activities. That will reflect on the processes and the

system itself by increasing the cost and risk. Since TRIZ is a methodology which needs a lot of

time to learn and apply, it is necessary to train inside employees through well-organized training

courses with hands-on practice. Also, since TRIZ was a new system implemented at VIVO, it was

required to hire external TRIZ specialists to carry on the educational courses at their training

center. TRIZ needs to be developed as a science and adapt the technology predicting methods for

business-to-business applications.

Opportunities

Digital technology has invaded every portion of household life along with green energy,

and it has become the core of an eco-friendly digital world. That gives an excellent opportunity to

the VIVO domestic research center to establish the cooperation network with other research institute centers

in different countries. Due to that, DFSS (Design for Six Sigma) activities will increase to provide more quality

renovations in green energy. Today, the main Samsung strategy is clean energy, for such industry is needed to

continue supplying high product quality in this field. Every day, the demand on competitive industry is

increasing in the market, due to that phenomenon; this will require more economically powerful methodology

and has potential

VIVO Case Study 10

solutions for new innovation. TRIZ methodology provides both short and long-term products for

economical savings.

Threats

VIVO’s goal is to rise to the top of the best electronics consumer companies in the world;

VIVO primarily focuses on this goal and can carry out this goal through some aspects such as the

following: “product innovation, promotion, pricing, distribution and positioning.” There are two

factors involved in threats--external and internal. The most external threat comes from the

market of competitive firms, and in this regard both innovation systems are under threat. The

internal threat for six sigma is the bottleneck of it, while the TRIZ system cannot show the

internal threat unless seeking to find the implementation to solve the problems.

System for Case Study

The writer chooses the TRIZ innovation system for this case study. Subir Chowdhury,

(2003) who worked as a GM quality consultant, wrote “Innovation can be made more

manageable through TRIZ. Systematic innovation may seem an oxymoron, like jumbo shrimp,

but with TRIZ, individuals can generate amazingly creative solutions without threatening the

stability of the company.”

Today, VIVO’s strategy is clean energy. Such industry is needed to continue supplying high product

quality in this field. Every day the demand on competitive industry is increasing in the market. Due to that

phenomenon, industry requires more powerful economic methodology, and there are potential solutions for

new innovation. TRIZ methodology provides both short and long-term economic products.
VIVO Case Study 11

The TRIZ Journal has indicated that there are no limitations to the TRIZ works; it can be

used in small and large companies and can be used on different levels to solve real problems, in

the field of day-to-day problems, and it will be excellent to develop future strategies of

technology. TRIZ is in use at Samsung, LG, Ford, and more (TRIZ Journal, n. d). The TRIZ has

its core purpose focused on the analysis and is to be used systematically to apply the required

strategies and tools.

In order to find superior solutions, TRIZ will provide the solution that is needed for "a

compromise or trade-off between the two elements.” Samsung thinks that it’s driving future asset

will be the energy industry. Moreover, it wants to be a total energy management solution

company. To achieve this goal it will start with new, small rechargeable batteries that are of high

quality and stable. The company is continuing to develop the new products in different fields of

energy like lithium ion rechargeable batteries for automobiles and e-bikes, fuel cells for distributed

energy generation, and so forth.

The TRIZ system as previously indicated has wide variety for implementation and also for

use in different fields. For example, it helps people in regard to transferring their problem-solving

skills from one domain to another. Moreover, it can move them into areas that require expertise

which may need years to study. It depends upon a reliable quality of knowledge, which contains a

growing patent base, almost possibly inserted into other processes, to reduce the main resources

which are required to generate a solution set (Clayton M., Christensen. 2003).

Application of the System

VIVO strategy continues to provide the great product quality of clean energy. Keeping such

competitive industry in the market requires methodology to prove its effectiveness repeatedly in terms of

money. TRIZ methodology provides both short and long-term products

VIVO Case Study 12

that have economical benefits. TRIZ methodology is offering new and innovative designs

through understanding the customers and knowing which types of designs are suitable to

customers. (Domb, Ellen., & Kowalick, James. 1997).

VIVO is thinking that its driving future power will be the energy industry. Moreover, it

wants to be a total energy management solution company. To achieve this goal Samsung will start

with implementing TRIZ innovation methodology to produce small rechargeable batteries that are

of high quality and stable. The company continues developing the new products toward different

fields of energy like lithium ion rechargeable batteries for automobiles and e-bikes, fuel cells for

distributed energy generation, and so forth (SEC, 2010).

Kanter’s latest work (2008) offers the most recent iteration of her prescription for

successful efforts at corporate innovation. “Employees once acted mainly according to rules and

decisions handed down to them, but they now draw heavily on their shared understanding of

mission and on a set of tools available everywhere at once” (Kanter, 2008). The corporate

infrastructure of process and procedures is increasingly standardized. This gives employees

operating across multiple locations, time zones, and cultures a “platform” from which to operate.

These standard ways of doing business must be coupled with a sense of shared values and concern

for the community. As long as the standards are “open-ended and inspirational, not constraining

or restrictive” (Kanter, 2008), employees can apply them in their local environment in positive

and innovative ways.

Challenges and Their Solutions

Realistically organizations will either adapt to change or cave and crash, since the global economy is

now intertwined, and managers are called to adapt with technological and innovative changes that their

respective businesses require. These changes could also be cultural due to the
VIVO Case Study 13

global nature of the world economy. Culture here could be seen as socio-economic and

technological in nature. Diversity, inclusion, and empowerment have been the major themes of

the corporate workplace for the last several decades. With corporate settings changing,

innovation is necessary to foster an open mind and to improve productivity.

Kanter’s work has significantly added to the body of knowledge in the fields of

leadership, change, and innovation. The issues continue to have substantial relevance today,

because the environment that business faces continues to change at accelerated rates. Companies

that do not adapt will cease to exist. The continuing development of theory on how to successfully

innovate is as crucial today as it was 25 years ago, if not even more so (Kanter, R. 2009).

The innovators need to protect themselves against the new innovation challenges, and normally they

have certain difficulties when they are dealing with leveraging and identifying the experts correctly. The basic

framework collaboration will allow making a useful connection with innovators, and that connection sometimes

will be either actively or passively expert, depending upon how much they know regarding the innovation

challenges. This will help innovators to have the right tools, which will be implemented in carrying on

innovation activities. Companies seeking the innovation to be successful need some investment in order to

supply their innovation employees the right tools, skills and innovation. They will need to arm and support their

scientists and engineers with the required tools in order to let them focus on their problem solving, expediting

problem resolutions, that should be associated with leveraging external and internal knowledge and sharing. It

is more profitable when discussing and exchanging this knowledge with their peers within the organization.
VIVO Case Study 14

Role of Ethics and Responsibilities

The ethical issues need to be considered while also taking into account business

implementing innovative products. Creation of innovative environmental value needs some

excellent ethical strategies, including a code of ethics which contains standards of ethical

behavior as well as professional relationships for all employees, other organizations, the

community, and society as a whole. Environmental factors should be associated with ethical

decision-making systems so they can pursue shareholder profits and social responsibility at the

same time (So Young, S., & Chan Sik, J. 2010).

Building a strong ethical culture of collaboration is vital to fostering productive

innovation. Companies must foster collaboration amongst employees by providing them with a

practical collaboration framework which allows them to connect, without the need to leave the

context of their innovation work. VIVO has cyber audit teams working around the clock to

receive a corruption report inside the company and outside. Any employee connected with

corruption is punished by proper measures regardless of his or her position.

Recently, VIVO realized they needed to better manage their human resources, which led to

restructuring the audit committee, to provide better practices based on ethical discipline and

integrity. This will return great benefits to its business. VIVO has taken some steps toward

achieving a level of ethics by increasing the numbers of global directors. To reach the proper level

of ethics requires adhering to a high standard of regulations and law. Management provides an

anticorruption class periodically to employees to increase their knowledge of the code of ethics

and to prevent any illegalities (SEC, 2010).

In 2007, the Korean Association of Business Ethics (KABE) announced that Samsung had been

awarded the Business Ethics Grand Prize, awarded to the company that has achieved a
VIVO Case Study 15

high level of corporate ethics and social responsibility VIVO SDI 2017). Moreover, the

company has included the code of ethics in its management courses, educating their personnel,

and harmonizing both profit-seeking and business ethics.

Principles and Practices for Implementing Innovation Change

Kantar’s opinion on many executives’ innovation is that they have fumbled, due to their

way of building structures, handling the controls, and their sensitivity toward the work against out-

of-the-box thinking. Kantar believes, while the new ideas need to be searched , hat research must

go broad and deep. His conclusion about classic traditional structures and controls is that they do

not work well to serve the innovation teams within the organization. “Innovators must be

connected to the mainstream business. Isolating those leads to tension and aborted

implementation” (Kanter, R. M. 2008).

From this experience, we see that any weak steps or resource in the innovation process will have

a direct effect to limit the output of the overall system. Here are the Samsung steps that need a

focus to improve their process: a) It recommended identifying the innovation bottleneck and its

constraints b) Thus, apply the right tools to explore all of the innovation bottleneck’s capacity c)

Let the innovation bottleneck set the pace d) Elevate the capacity of the innovation bottleneck e)

Allow continuous improvement.

To find a bottleneck, it is required to follow some steps to help map the innovation process. These steps

are applied on new products, which are still in the form of ideas before coming to commercial reality. Steps will

include the following: “opportunity identification, solution development, prototyping, scale-up, testing, and

even market launch.” When the organization is fostered to follow these steps, then it is easier for them to

address their constraints

VIVO Case Study 16

and identify them. That will lead to great benefit gains in new product profits and in speed to

market as well.

Birkinshaw, Hamel, and Mol (2008) discussed four perspectives in innovation. These

perspectives are perspectives that focus on issues relating to socioeconomic circumstances, a

fashion perspective, a cultural perspective, and a rational perspective. Friedrich, Mumford,

Vessey, Beeler, and Eubanks (2010) suggested some ways leaders can influence innovations in

an individual level, group and organizational level.

Igartua, Garrigós, and Hervas-Oliver (2010) discussed the surrounding problems

confronting general managers, particularly managers of small and medium-size organizations.

Grönlund, Sjödin, and Frishammar (2010) mentioned some approaches to product development.

These authors recommended “the open innovation and the stage-gate” model for innovation. In

spite of all the research that has touched on important issues regarding innovation, none have

fully discussed how employees may be encouraged to learn or implement new changes put in

place by an organization. Because innovation is significant for an organization’s growth (Fusin,

2000), all parties involved in the innovation must be certain that they are acting ethically.

Application of Innovative Processes and Theories to Individuals and Organizations

After recognizing the critical role of knowledge and technological progress in economic growth by

economists in the1980’s and by industries in the 1990’s, all organizations in all sectors are being faced with a

key problem, and that is how to make individuals or organizations creative and innovative to maintain

sustainable power and leverage to a key factor–innovation in economic growth. Therefore innovation education

is becoming a more and more imperative need and has a strategic priority for all educational organizations and

companies in all countries.

VIVO Case Study 17

The main purpose in using an open Innovation is to accelerate activates of internal

innovation that use inflows and outflows of knowledge. Also, it is involved in expanding the

markets for external use of innovation. In this regard someone can ask, “What policy guidelines

can be derived from “Open Innovation” theory?” The suitable answer may need a lot of space, but

there is a close and effective answer to “Open Innovation” theory, and the answer will be

considered under the assumption that enterprises may foster the use of external ideas in addition to

internal ideas, including internal and external paths to market, to explore and realize the right

innovative opportunities. The required policies to run the firm should be aligned and work together

with the behavior of innovating enterprises and in addition o the external conditions which

motivate firms to practice Open Innovation (De Jong, J.P.J., Vanhaverbeke, W., Kalvet, T. &

Chesbrough. H. 2008).

VIVO is using both innovation systems (Six Sigma and TRIZ) in order to manufacture

environmentally-friendly products from earlier stages up to development. TRIZ-based systematic

innovation has powerful characteristics that had penetrated almost the majority of industries.

Many companies world-wide use TRIZ to solve both their short-term and long-term problems and

to create new concepts in services after sales and products. References to the scientific studies 50

years ago show that the TRIZ system, when it is implemented to push to accelerate the innovation

process, by providing the right tools and techniques to carry on the systematic situation analysis,

supplies the effective solution problem, and is associated with new ideas for development using

the combined creativity and system thinking (Cavallucci D. 2003).

Additionally, VIVO was involved in supply chain management (SCM) projects, which may involve

either design or improvement or both. Mainly the system of Six Sigma which applied in these projects focused

on the redesigning of the processes or systems sometimes head

VIVO Case Study 18

up a move to the improvement of the performance levels of the existing systems himself. In Six

Sigma logic, the old versions methods are shown through DMADOV methodology (define,

measure, analyze, design, optimize, verify). The said methodology is useful, but it is not capable

to supply the recommended support to run the whole range of SCM projects at the Samsung

Group. “The key difference is that after performing analyses, the task for the project team would

be not to optimize or design as in DMADOV, but to specify how a suggested improvement would

be realized in practice. Therefore, a step, ‘Enable,’in place of Design and Optimize, was

introduced to address this activity” (SEC, 2010).

Literature Review

Every business approaches an innovative idea differently. It is not enough to craft a

strategy or to build innovation processes; such innovations require building and embedding

innovation into the overall organization. Some businesses approach innovative ideas based upon

how they believe the public will respond to the change. Successful innovation requires strategy,

leadership, culture, and implementation by preparing the right people for executing and scaling

the innovation (Markidesand Geroski, 2005). Most of the existing literature deals with innovation.

It is really wildly diverse, needing to be more integrated, and it would be best for them to be in a

theoretical framework.

Kanter, R. M. (2008) wrote “Every managerial generation rediscovers the need for innovation to drive

growth but then grand declarations about innovation are followed by mediocre execution that produces anemic

results, and innovation groups are quietly disbanded in cost-cutting.” Leading an innovation is not the same as

teaching a college course or supervising a few people. The best-qualified organizations need to have leaders and

managers that care about the employees who work in the organizations as well. “Leaders must be considerate

of those they
VIVO Case Study 19

lead and help their followers lift where they stand” (Uchtdorf, 2008, p. 53). Covering strategic

levels and the operational, leaders have to show their responsibility to push the innovation

process toward the organizational goal. If individual projects are to be successful, leaders must

encourage team followers and support innovation.

Lazonick and West (1998) were contributing in developing innovative enterprise theory;

mainly it focuses on the way that determines the competitive advantage through the strategy and

structure business enterprise. Teece (1998) also deals with the links of the firm structure, strategy,

and the innovation nature through specifying all the innovation technology properties and also

through the set of organizational suggested requirements to the innovation process. Suggested

structures will include two types of formal framework which have governance modes and the

informal which cover cultures and values.

Besides a company’s external networks, the major elements have an effect on their

innovative activities’ rate and direction. On the other hand, there is literature which deals with

innovation as a process of learning, which is through finding the new problems, contrary to

needing to develop and create solution knowledge to solve those problems. However, some

authors consider learning to be an exercise of individual essential activity.

Simon (1991) and Grant (1996) indicate that most organizational learning theories

discuss how collective knowledge is important as an organization’s capability source. That

sometimes refers to “collective knowledge resembles” as the core memory or the “most

collective mind” of the organization (Walsh and Ungson 1991).

Advanced TRIZ methods and tools which were implemented recently at Samsung are used to help the

improvement of Six Sigma methodology “(DMAIC and DMADV or DFSS),” partially in the area of Six Sigma

methods not working properly, and its tools have limitations in those
VIVO Case Study 20

working areas. There are many advantages VIVO can gain through the implementation of these

new tools which can save innovation process time, making it easy to find efficient low-cost

effective solutions which can be used at the defining or any identification phase of the problem,

and these tools are very efficient when theyare used as screen measurements, by which they can

avoid the errors, which is best in reducing reworking, and the excellence of these tools is working

consequently to lower the cost of poor quality that comes from implementation of Six Sigma.

Valeri, Souchkov (2007) indicates that the benefits of using TRIZ and TRIZ software are

providing the following: a) increasing new ideas and concepts of new products b) solving the

problems of immediate access to the huge numbers of innovative principles stored in TRIZ

knowledge bases c) reducing the risk from missing the proper solution to the existing problem d)

using scientific trends of technology evolution to select the right direction of the evolution e)

increasing the personnel knowledge to solve innovative problems in a systematic way.

Core Aspects of leadership

The leader’s impression about the innovation fluctuated, but the majority consider it

complex. Recently, Samsung management seriously considered the improvement of core

competence management of the innovation improvement. Covering strategic levels and the

operational, leaders have to show their responsibility to push the innovation process toward the

organizational goal. If individual projects are to be successful, leaders must encourage team

followers and support innovation.

In order to become a successful leader, you must have followers. Kotter (2002) identifies the following

eight steps for leading any successful change initiative: “a) Create urgency b) Get people involved in supporting

change c) Need vision for change d) Communicate the vision e)

VIVO Case Study 21

Remove obstacles f) Create short term wins g) Build on the change i) Anchor the change in

corporate culture.”

Effective change agents, leaders or innovators understand that the most effective way to

get people involved in supporting change is to let them take ownership for the process.

Leadership responsibility is to encourage innovation teams to share their vision of what is

possible and communicate their shared vision all the time. Thus, that will lead to removing the

obstacles which may exist in the policies and procedures and improve the change. Leaders

implementing a series of short-term wins within the innovation firm’s strategy help to create a

culture of success and create an institutional culture that expects change.

Leadership and effective management can be revealed by the same person. For example, one

person can finish innovation on time and on budget and can also motivate his or her team to

achieve their common objective. Therefore, he or she can be both a leader and an effective

manager.

Principles and Practices for Implementing Innovation

Kanter sees her two early works as “two ends of a spectrum, illustrating how structures,

cultures, and systems shape behavior to stifle or promote innovation and productivity” (Puffer,

2004a, p. 102.). Along with championing innovation, The Change Masters advocated for the

democratization of the workplace as a way to allow everyone to make contributions to that

innovative change (Puffer, 2004a). Successful innovation is by definition addressing current

changes in the business environment.

Peter F. Drucker (1993), in his book, Innovation and Entrepreneurship, lists several principles which

should be respected by innovators. He has grouped these principles into “Do” and “Don’t” in the process of

innovation. In the innovation process, seeking the need is the

VIVO Case Study 22

starting point, looking for creating the suitable feeling of urgency, working to generate the ideas,

selecting and evaluating ideas that can work on preparing to develop the prototypes, scaling up

before providing the innovation in the market or at the shop. There are some useful tools for each

step support to carry out the innovation process in effective time and in a suitable manner (Prather.

Charles W. & Gundry. Lisa K. 1995).

Peter F. Drucker (1993) wrote “how innovative enterprises should be managed” and

argues about the importance of management. There are three types of individual businesses

Drucker deals with: “public service institutions, new ventures, and existing business.” These

businesses have individually their own characteristics or ways to survive and to sustain

innovation. The competitive advantage goal is to let businesses continue in innovation, which is

required to keep these businesses in the market and ahead of competitors. This requires early

consideration and treating the innovation like any other work. This work needs some tools to be

possible, and these tools are the policies and practices needed to make the innovation possible.

The specific rules that can cover the organization’s operation areas are: a) Accepting the

innovation b) Regular company’s performance is measurable c) Top management and team

leader for innovation includes structure, staffing, rewards, and incentives d) Be aware to fall in

pit, for that it needs to avoid and distinguish between the entrepreneurial and no entrepreneurial

units, business diversity, “buying in entrepreneurial spirit through acquisition” (Kelley, T., &

Littman, J. 2005).

Effects off Leadership Ethics

The former GM plant manager, Dave Emmett, in his interview almost three months before his death,

draws the attention of the leaders and the successful enterprises to the subject of business ethics and the

necessity of the innovation thinking process (Strubler, Borchers, &

VIVO Case Study 23

Redekop, 2017). Additionally, his basis theory in leadership clearly indicated that the leader needs

to give space to his followers to earn their trust, treat them mannerly, pay kind attention to

coaching, and inspire them.

Moreover, a significant characteristic has been brought to the surface related to the

comfortable environment in the innovative organizations, which is building a trust in which the

employees can encourage being creative. On the other hand, Emmett draws attention to unethical

leaders, which will be a strong cause of a mistrustful environment and fear, which will appear in

the employees’ squelched decisions (Strubler, Borchers, & Redekop, 2017). That will raise the

question: does that environment encourage his followers to carry on innovative thinking?

Additionally, Emmett believes an active leader should have clear vision, but it is the

excellent leader who can implement and communicate that vision to his followers (Strubler,

Borchers, & Redekop, 2017). Sometimes the leader keeps his vision private, but that will not

inspire his followers. Emmett urged leaders to continue keeping their efforts behind the welfare of

their employees, thus encouraging them to contribute and improve the productivity of the

organization and be innovative. Even more, the innovative thinking process will advance by

creating team diversity, and that for sure increases the variety of knowledge. Emmett thinks that

multi-knowledge will help in finding innovative solutions, when the new opportunities come to

the organization.

James O’Toole, in his article in 2009, tries to highlight another kind of aspect and spot of concern

among the corporate social responsibility that includes the following elements: the innovation, leadership, and

relationship of business ethics. O’Toole's perspective is that corporate social responsibility becomes more

popular in business, and the organizations should

VIVO Case Study 24

be so aware and take care of stakeholders’ needs too. Management in such companies tends to

implement the process of changing in order to lead their employees forward, and that will be

through the right and practical application to corporate resources in areas that recently were not

considered important. Once the resources relocate, innovation teams and other followers prepare

themselves for the new task, to develop new innovation techniques, and to keep and maintain the

organization sustainability.

O’Toole (2009) indicates that there are other types of leaders, who have certain valuable

rules that relate to the triple bottom line idea i.e. are social, environmental and economic

performance, called “three P’s,” people, planet, and profit. The author’s idea about these leaders

is the following: if the leader wants his followers to be sustainable, then that leader needs to share

and communicate with them their vision, and while they are doing so, that will help to create a

new approach of thinking. That approach will help growth in skills and knowledge for the

employees and maintain a state of stakeholders. Moreover, it displays support for the employees

and stakeholders to consult them before making their decisions.

The study was done by Surie & Ashley in 2008, drawing attention to the leader’s entrepreneurial spirit

and the sustainability of innovation within organizations. Allowing an environment in which innovative thinking

prospers needs to come from the leaders of entrepreneurial businesses to create the suitable environment.

Such an environment will involve problem-solving characteristics by these leaders. The author’s perspective on

business owners is that often they have creative activities in their own areas that will encourage the employees

to carry on the innovation in those areas. The employees will naturally observe how their leader acts within the

constraints of the organization and with the set of ethical values subsumed in the
VIVO Case Study 25

leader’s vision, which will have great value to push the innovative thinking process ahead more

than ever.

Here are some companies that the authors provide as examples to comply with the

“problem-solving spirit of the entrepreneurial leader to sustain a process of innovation." Heinz is

the first example, in which, at the beginning, concentrated on using the high-quality ingredients to

produce healthy, safe, and tasteful food. The second was Ashoka, which “is a global organization

that identifies and invests in leading social entrepreneurs--individuals with innovative and

practical ideas for solving social problems.” In brief it is a non-profit constantly looking to

support social improvement worldwide. The third was Tata Industries that worked hard to

improve the community through the development and building of factories using sustainable

resource materials and local labor. Also, the authors indicate Lincoln Electric, which has always

improved their innovative fashion to reduce the cost and improve product quality, will help

customers save. The above examples are related to “entrepreneurial spirit of innovation” that we

can see growing in a wide range of employees, which will impact the organization and

stakeholders, too.

Research Summary

Just as companies have a business strategy to provide products cheaply and quickly, they also have

influence on customers and their competitors. Markets are saturated with competitors, and to gain the

competitive advantage, it is required to separate the losers from the winners in the market force. In order to

continue in the face of the challenges of a competitive market, companies are required to keep their process of

creative thinking and innovation up to date within the organization.

VIVO Case Study 26

Research has shown that these innovation challenges present themselves in two key areas.

First, due to innovation, many people within the organization resist change. Human nature is that

people usually tend to do things with reasonable freedom, and they have to feel comfortable.

Some people are afraid of the results of change in their lives. Moreover, “often people are led

through the process of change in three-steps” (Williams, 2011).

The first step is to break the stalemate in the current procedures and practices, and by that

instill what the changes need to be within the employees of the organization. This may be

achieved through significant communication to inform individuals of the need for change,

changing the value of the organization and improving business procedures, and promoting

practices that will result from the change. The second step is taken care of the implementation of

change among the creation of new roles, procedures, and practices. Finally, the step of refreezing

is the adoption of new procedures and practices and promotion, making a permanent change

(Williams, 2011).

The second challenge is the difficulty of innovation in the implementation. All other

researchers indicate that this step is a more complex step in the innovation process. It depends on

creative thinking, which without the implementation will do nothing to maintain a competitive

advantage for the organization. Implementation is often more difficult, also, since it is the most

important step in the creative process. As a result, this shows it is in need of sufficient and

effective leaders to guide the staff through the change process and the completion of the

implementation of innovative thinking.

There are many styles of leadership available in the market force for the organizations. Most

reviewed literature has shown that effective, suitable leadership characteristics to lead the innovation and

change are transformation and charismatic leadership. Leaders are often

VIVO Case Study 27

interested in improving the transformation and empowerment of followers. For instance, the

values held dearly by charismatic leaders, along with a clear vision for the future, will enable

them to inspire staff to follow the process of change and innovation.

This kind of leadership can be seen in Kun-hee Lee, Executive Director of Samsung.

“Kun-hee Lee’s ambition was straightforward: He wanted to transform his company into the

world’s top consumer electronics brand--the place that makes the coolest stuff” (Marmot, 2005).

With a leader who possesses a strong set of values and a vision of the game, who seeks to lead by

inspiring, Samsung now is a leader in the world of flash memory and flat panel screens. Samsung

has five forces to develop a competitive innovation strategy relation with suppliers, with buyers,

new entrants, substitutes of product at emergency and generic technology strategies (Samsung,

(n.d., p3). Also it is one of two technologies for the digital ear. Moreover, it is the most successful

high-tech company in the world.

Interpretation

Companies have benefits in the implementation of innovation and change, but they are also

facing difficulties at the outset. Staffs are often feeling comfortable in their daily normal routine

circumstances, which encourages them to resist any thought of change. Such resistance in the areas

of innovation and change can be the elements that prevent the continuity of the companies to

maintain their competition in the market.

Many organizations thought that innovation was involved with creativity at the same time. In order to

foster innovation in their organizations, they are investing in initiatives to help their employees, such as in

creative-thinking workshops, thinking out of the box, and conducting training modules. Those activities require

a leader to have the abilities to lead the teamwork of his team and pay attention to the other elements which

have a direct effect on a model for

VIVO Case Study 28

organizational innovation, like diversity and ethical environmental practices. “Samsung believes

that ethical management is not only a tool for responding to the rapid changes in the global

business environment, but also a vehicle for building trust with its various stakeholders including

customers, shareholders, employees, business partners, and local communities” (Samsung, n.d.).

Usually, companies are required to promote creative innovation thinking and change in

order to continue in a competitive market. That gives the impression that these companies need to

develop effective leaders. Companies will be calling on these leaders to guide staff through the

change process and the final implementation of innovation. This will require certain characteristics

and speciation of those leaders, and some of those characteristics are the following: always be

aware of the feelings of employees in the organization, as well as the implementation or

adjustment of the control on their resistance to change. They will have to ensure that the team and

staff are supporting the activities and the necessary things required to keep the company moving

forward. Additionally, they are looking to be convinced of the requirements to change elements,

needing to figure out the best way to fit that change with new organizational culture to gain high

productivity, and analyze the impact of the change on their teamwork Successful leaders must be

able to discuss the new plan with their teams to decide how the new practices and procedures

coincide to improve the company.

Conclusion

This research has clearly explained how innovation, creativity, and change are important to keep the

companies in a competitive market all over the world from standing still. It has also proven that effective

leadership and innovation is necessary for this change to the productivity to start. However, as is the case with

most research, this is not comprehensive. There is a need for more research into the different leadership styles

and how they relate to innovation and change.

VIVO Case Study 29

The five theories of innovation and leadership were included in this research project. While other

theories exist, some may have found such other theories more effective than those that appear

here. Others should apply McGregor's theory of X and Y managers to more aspects of the process

of innovation and change.

I think that due to shortages of good practices in handling change and innovation, it is desirable to

apply surveys and conduct interviews with a number of leaders who led the successful stories of their

organizations, experienced practicing team behaviors with their teams, and led them through the process of

innovation and change. That interview or survey should cover the variety of the leadership styles, including but

not limited to their techniques in several areas of change practicing, as well as innovation related to robust and

sustainable product. I think that will contribute to increasing the knowledge base toward the better

implementation of innovation and change and keep our planet clean with minimal pollution.
VIVO Case Study 30

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