Nowadays with the technology, especially IT technology, development, the business environment is becoming more quickly changing, and the competition is becoming severer, business organization therefore must introduce appropriate innovation strategy. BMW, as a leading automobile producer, continuously concentrates on the innovation to meet customers' need. This essay discusses the innovation implementation in BMW through the analysis of its organization structure, creative climate and the management process of knowledge creation.
Creativity and ideas generation
Introduction of innovation
Tidd et al (2000) states, the innovation is a business process of turning opportunity into new ideas and of putting these into widely used practice. In term of the nature, there are five major types of innovations: novelty, competence shifting, complexity, robust design and continuous improvement. While in term of the extent of change, innovations can be divided into incremental, radical and transformational models. Innovation deals with the change related to product, service and process, and the innovation management involves people, product, process and technology.
The innovation process argued by Tidd et al (2000) is first, scanning the environment to find the opportunities or threats; second, deciding what should be done responding to the environment; third, planning and obtaining resource to handle the change; last, implementing the innovation.
Introduction of creativity
Creativity is the basics for innovation. Gurteen (1998) defines the creativity as "generation of ideas whereas innovation is about putting these into action". Two key elements of creativity are knowledge creation (KC), and ideas generation.
There is no widely accepted definition for KC, some definitions are described as following: "the ability to originate novel and useful idea"(Marakas, 1999), and " when a firm acquires and adopts knowledge from others, it modifies knowledge to make it suitable"(Bhatt, 2000). The approach to KC is knowledge cognition, which is divided into distributed...