Thursday, July 4, 2013

The Philanthropic CSR is old model of Community engagement


Conventionally, many researches on community engagement and transformation are expressed on corporate social responsibility grounds. These researches consider corporate social responsibility as ethical transformation that organizations need to do as a way of returning back part of the profit to the community. Thus many organizations engage with philanthropic initiatives such as health, education and housing just to mention a few. Examples of such researches are (Hamann, 2004; Esteves & Barclay, 2011, Hartmann, 2011).

The motive behind this engagement is mostly to secure a licence to operate in the community where the organizations operate and to be relevant in the social context by doing the right things to the community rather than meeting the shareholders and growth of the company interests alone. Moreover this type of engagement is easy to quantify, enhances organization legitimacy, brings trust with the community in which organization operates and gives organizations competitive advantage than those organizations that don’t do so (Bowen, et al, 2010)
Whereas these researches have been advocating the significance of CSR theories, there has been so much discontentment and dissatisfaction on the part of communities where organizations (MNCs) operate. The discontentment is always expressed in the form of riots and strikes. The commotion results into deaths of some members of the community at times. Example of civil commotion and deaths are such as Marikana uprising in South Africa and Barrick Gold North Mara Mine uprisings and killings in Tanzania.
However, the practical results from these researches imply that the current CSR expressed in philanthropic initiatives is inadequate and not ideal community engagement method; further to that it proves that current CSR that goes in the name of philanthropic initiatives is neither sustainable nor transformational in community welfare; no wonder one can find rampant poverty, environment degradation and discontentment among the mining communities. Fundamental problem for dissatisfaction of the philanthropic community engagement is its failure in producing results on community welfare, and therefore communities feel cheated due to persistence of fundamental problems. Thus, there is a need of linkage between organizational transformation and societal transformation to solve these challenges.

I support Bowen et al (2010) and his new theory on community engagement as it emphasizes on collaborative leadership which insists on making partnership between organizations  and communities  that share common aim and vision. Similarly I challenge the philanthropic engagement of community engagement as it is traditional structure of community engagement and does not advocate win win approach which is partnership based. Bowen et al (2010) called the current Corporate Social Responsibility as transactional and transitional mode of community engagement; because it is not substantive, tit for tat, easy to practice, symbolic and short term strategy of community engagement. Moreover, it is based on occasional interaction with the community. It does not change society welfare but talk about changing the society welfare because it does not involve collaboration between organizations and community in terms of mutual understanding and agreement in addressing the real problems facing the concerned communities.

The solution should be to engage the community differently through transformation community engagement where there is mutual understanding and agreement with the community in addressing the real problems facing them. This could involve sharing ownership of the problems and vision of the solutions of the problem from the start, rather than giving back to the community through providing information, donating dollars, time or employee skills; as this is good strategy in gaining and maintaining firm legitimacy to operate into the community but not to transform the society to have a better welfare (Bowen et al, 2010).

Therefore in order to bring community welfare sustainability and societal transformation, there should be a win win situation between community and organizations(MNCs).In this new paradigm, there should be equal and enduring partnership that allows equal risk sharing and formulating solutions to real life problems with the communities where organizations operate from the beginning of community engagement and transformation.

Wednesday, June 26, 2013

Mind sets determines life sets

All one's experiences, all actions and all events and circumstances of life are the reflections and reactions of one's thoughts.Put it differently one is a photocopy of his original self




All one's experiences, all actions and all events and circumstances of life are the reflections and reactions of one's thoughts.Put it differently one is a photocopy of his original self



Thursday, June 13, 2013

A great market at the bottom of world pyramid

There is a great market waiting at the bottom of world business pyramid. If one will meet the demand of that market he/she  will get  riches beyond measure. Prahalad 1941-2010



Wednesday, May 22, 2013

WHAT IS INNOVATION?

INTRODUCTION
This is the integrative essay on developing personal broad definition of innovation. It is a short essay document covering an overview of what is innovation, different types of innovation, different definitions on innovation, personal definition on innovation and references.

Overview of what is innovation

Von Hippel (2002) stated that innovation is an economically motivated activity; Szczygielski (2011) said innovation is the sources of competitive edge in any economy and firms. Many people confuse innovation with Invention. However Innovation is not invention. Invention is creation of a product or an introduction of a process or product for the first time that didn’t exist before, while Innovation is making significant contribution by adding value to an existing product, process or service which results into new product (Grasty, 2013). Olomi (2006) stated that innovation results into change in the products, market, and technology and organization performance. He further added Creativity and invention are the subsets of innovation. Furthermore, Drucker (1985) said that Innovation does not necessarily need to be original, technical or a thing but it can be a change in processes; innovation encompasses economic, social and technical phenomenon. Schumpeter ( as cited in Drejer, 2004) argued that innovation does not need to be radical, technological and unpredictable so that it can be considered as true innovation but it can be anything that update economic structure. Innovation involves doing things differently rather than doing things better through improvement (Branson). Accenture (2013) states that innovation brings about tangible outcomes that changes the way the world lives and works. Examples of recent innovations are solar airplane and Mobile phone banking called MPESA in East Africa which has turned the mobile phones into bank accounts.

Different Types of Innovation
Innovation in manufacturing is the most popular type of innovation because historically manufacturing was the major economic activity. However Innovation includes service innovation as well. Service innovation happen in  Distribution, hotels, transport, storage, communication, government, health care and motor vehicle repairs just to mention a few. There is a difference between service Innovation and Manufacturing Innovation. 

Whereas service innovation is supplier driven, manufacturing innovation is demand driven, further to that manufacturing innovation depends on R&D and Doing, new products and production technology whereas service innovation depends on new ways of organizing economic activities and depend less on R&D compared to manufacturing innovation (Szczygielski, 2011).

Jensen, Johnson, Lorenz and  Lundvall (2007) state that there are two types of innovations which are Science technology innovation (STI) and Doing type of Innovation (DUI). Science technology innovation is based on the production and use of codified scientific and technical knowledge while Doing (DUI) type of technology uses interacting mode, informal processes of learning and experienced based knowhow which has tacit elements. Firms that use both modes are likely to innovate new products or services than the one using one mode alone.
Innovation emanates from activities which include basic research, adoption and diffusion of innovations and decisions to participate in cooperative R&D Ventures (Hippel, 2002) formal knowledge which creates new knowledge (Drejer, 2004) and learning by doing (Jensen etal, 2007)

Definitions of Innovation

Edquist (1997) defined Innovation broadly as new creations of economic significance.
Drucker (1985) defined Innovation as coming up with new ideas and developing the organization required to effectively commercialising them.
Coulter (2005) stated that innovation is a process of taking a creative idea and turning it into a product or a process that can be sold.
Innovation is successful exploitation of new ideas that leads to any form of increased organizational or social benefit (Bridge S, O’Neill K. and Cromie S., 1998).

Schumpeter (as cited in Drejer, 2004) states that Innovation is related to economic development and is driven by the discontinuous emergence of new combination, that is more viable than the old way of doing things. Drejer, (2004) further argued that innovation is a process of industrial transformation that revolutionises economic structures from within. It is dynamism towards superior methods in production in the economy. Innovation involves small changes which are frequently a condition for development. Schumpeter (as cited in Drejer, 2004) argued that Innovation definition covers five areas which are:
Introduction of new good or a new quality of good (Product Innovation); introduction of new methods of production which includes a new way of handling a commodity commercially (Process Innovation); opening a new market (Market Innovation);conquering a new source of supply of raw materials or intermediate input and  carrying out new organization of industry (Organization Innovation).

My own definition of Innovation

My own definition of Innovation is adopted from Schumpeter (as cited in Drejer, 2004) as it provides a framework that covers manufacturing as well as service industry simultaneously. Moreover the definition has taken some elements from Coulter (2005) and Drucker (1985).
It states that Innovation is economic, social and technical significance term which involves introduction of new combination different from the old products, and this new combination developed must be valuable enough to be able to be commercialized. It can be new market, new methods of production, new product, new conquering source of supply of raw materials or new organization of industry.
Innovation can occur in any industry as long as it acts differently beyond the boundaries of routine systems and routine products. Further to that new idea and new product developed in innovation must have economic or social significance enough to be able to be sold at the market.

Reference

Accenture Innovation Index Awards (2013).”Connecting Innovators’’
Branson R., (2009).Business stripped bare, London, Virgin books.

Bridge S, O’Neill K. and Cromie S., (1998). Understanding Enterprise, Entrepreneurship and Small Business, London: Macmillan Press Ltd.
Coulter, M. (2005), Entrepreneurship in action, India, Prentice Hall.
Drejer I., (2004).Identifying Innovation in surveys of services. A Schumpeter perspective. Research Policy, (33), 551-562.
Drucker P.F.,(1985).Innovation and Entrepreneurship,Oxford,UK,Elservier Ltd.

Edquist (1997).Introduction. In Edquist C. (Ed), Systems of Innovation: Technologies, Institutions and Organizations. London, Printer.

Grasty T.,(2012 April 03).The difference between Invention and innovation.Huff post tech web log.Retrieved http://www.huffingtonpost.com/tom-grasty/technological-inventions-and-innovation_b_1397085.html

Jensen, M. B, Johnson, B, Lorenz, E and Lundvall, B.A (2007).Forms of knowledge and Modes of Innovation, Research policy, 36 (5), 680-693.

Olomi D.R., (2006).Influence on entrepreneurial behaviour and Business success. In D.R. Olomi (Ed).African entrepreneurship and Small business development, Dar es Salaam: Otme Company LTD

Szczygielski, K., (2011).What are service sector Innovations and how do we measure them? Case network studies and Analyses No 422 Warsaw, Centre for social & Economic Research.


Von Hippel, E. (2007).Horizontal innovation networks-by and for users. Industrial and corporate change, 16 (2), 293-315.


Friday, May 10, 2013

What did the late Steve Job said about creativity.




Steve Jobs said, ‘’creativity is just connecting things’’
The late Steve Jobs on creativity appeared in wired; February 1995 was quoted saying the following words:
Creativity is just connecting things. When you ask creative people how they did something, they feel little guilty because they didn’t really do it, they just saw something. It seemed obvious to them after a while. That is because they were able to connect experiences they have had and synthesize new things .And the reason they were able to do that was that they have had more experiences or they have thought more about experiences than other people. Unfortunately that is a rare commodity.
A lot of people in many industries they haven’t had diverse experiences. So they don’t have many dots to connect, and they end up with very linear solutions without a broad perspective on the problems.
The truth is, the broader one understands of the human experience, the better designs one will have.

Thursday, May 9, 2013

What is a Strategy?



-To position oneself,company,business strategically
-serving few needs of many customers
-Serving broad needs of fewer customers
-Serving broad needs of many customers in narrow market
-Performing similar activities but in different ways
-Performing different activities from those of competitors.
Strategy is a theory on how to compete successful in the presence of your competitors


-Creation and exploitation of one's distinctive competencies