This seminar paper tries to find an appropriate attempt to explain the differences regarding innovation in big and medium sized firms and their approaches. The main thesis is that long-term growth in profits depends significantly on firms' investment in innovation activities. In theory, large companies with big research budgets and the resources to hire top scientists and the best skilled employees should have a remarkably huge advantage when it comes to innovation. In practice, however, smaller firms with comparatively tiny budgets often manage to out-innovate the bigger, established competitors.
To understand the meaning of innovation, it is important to determine different innovative dimensions. Innovation is often stated as a "driver for success" or the "fuel" that powers our economy and leads it to prosperity, especially in Germany with its traditional organizations and their role in society. It is not only important for the economy, but they can also be a source of political and social ingredients. Innovations will play the key role for the challenges that face our global society in the 21th century. Global problems as the rise of population and mass urbanization, the global garbage problem, or climate change can only be solved by brave innovators. Those challenges can not only be seen as problems, but companies around the world can develop innovative products to accelerate their business success. The central question, regarding big firms is: How can so huge networks and highly branched systems manage the different kind of innovations? Is it really necessary for surviving?
One of the problems that many large organizations face is how to innovate successfully within the confines of a massive, bureaucratic operational structure. Nowhere is this more apparent than in the area of research and development, where small, entrepreneurial firms routinely do end runs on large companies will multi-million dollar research budgets. It is really interesting to know how flexible and adaptive big firms can be in this situation of change and how medium firms challenge different kinds of disruptions and innovations.
Inhaltsverzeichnis (Table of Contents)
- The importance of innovation in business life
- The role of innovation as a driver for success
- Digital disruption and the reaction and innovation of the old economies
- Innovation Management approaches in big and medium sized firms
- Strategic approaches for big sized companies
- Strategic Approaches for medium and small sized companies
- Best practice business examples
- Employee Idea Management at Siemens as a big firm representor
- Idea Management at SIGA as a medium firm representor
- Conclusion and forecast in Innovation Management
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explore the differences and approaches to innovation within big and medium-sized firms. The paper investigates how big and medium-sized companies manage innovation and the challenges and opportunities that each faces.
- The importance of innovation as a driver for success in the business world
- The impact of digital disruption and the need for innovation by established companies
- Different strategic approaches to innovation management for big and medium-sized firms
- Case studies of best practice examples of innovation in big and medium-sized companies
- The role of research and development (R&D) in driving long-term growth and profitability
Zusammenfassung der Kapitel (Chapter Summaries)
- Chapter 1: This chapter outlines the crucial role of innovation as a driver for success in the modern business world. It highlights the importance of innovation in addressing global challenges such as population growth, climate change, and the rise of urbanization. The chapter also delves into the challenges large, established firms face in maintaining a competitive edge in innovation, especially in the face of smaller, more agile competitors. The chapter highlights the importance of R&D investment for long-term profitability and presents a chart depicting the top corporate R&D spenders.
- Chapter 2: This chapter examines the impact of digital disruption on established companies, arguing that digital and data-driven players pose a significant threat to traditional businesses. The chapter emphasizes the importance of data as a strategic resource and discusses how companies can utilize data to gain a competitive advantage in areas such as marketing, product development, and internal process optimization. The chapter provides a case study of PayPal, highlighting the successful disruption of the banking industry through innovative online payment solutions.
Schlüsselwörter (Keywords)
This paper focuses on innovation, digital disruption, strategic approaches to innovation management, big and medium-sized firms, research and development, case studies, best practice examples, employee idea management, and the role of data in driving business success.
- Quote paper
- Maximilian Boddenberg (Author), 2018, Innovation in big firms and medium sized firms. Approaches, differences and examples, Munich, GRIN Verlag, https://www.grin.com/document/489875
