Innovation in the 21st Century Organization

Abstract

“When memories exceed dreams, the end is near. The hallmark of a truly successful organization is the willingness to abandon what made it successful and start fresh” (Friedman, 2005). These words seem relevant in the context of the discussion on creativity, creative industries, and innovation. The debate has been by no means scarce, but are economies, businesses, research groups, and technology developers heading in the right direction? Innovation has a crucial role in achieving competitive advantage in this globalized world. By definition, innovation means the first introduction of new idea, product, process, or system through a complex process by which knowledge in organizations is oriented towards achieving the stakeholders’ expectations. The traditional business processes are evolving, and today, richer functional areas, such as reengineering, green world, collaborative approaches, and sustainability, are the focal point. As a process, it demands that leaders understand multiple complex systems, differing frames of reference, intricate structures, diversity, and boundaries. Equally crucial is the need to understand what innovation really means and what really drives the wheels of innovative process. The objective of this chapter is to understand the innovation imperative and innovation approaches adopted by organizations in the 21st century. Understanding will also safeguard against the pitfalls of managerial decision making. Based on in depth literature review and grounded theory approach with contextual analysis of both primary and secondary data, the study is restricted to innovation in business organizations.