Transformation and Innovation Sample Paper.
The actualization of a process that is capable of bringing profound change within an
organization is closely associated with success and high levels of productivity. Companies that
constantly rebrand themselves while at the same time change their operational strategies tend to
become more effective as opposed to those that stagnate at one point. Transformation and Innovation Sample Paper.It is through different forms of business transformation that reputable giant firms such as Xiaomi, Apple and even Samsung have managed to remain profitable in such a competitive global market. There are
different theories that are used to explain the process of transformation and each of them has its
own unique merits. Professionals and experts advise that it is paramount for any business to
consider underdoing through transformation programs as they help in increasing the amount of
sales returns, revenue and even the shares of the market. Customer satisfaction is also
significantly improved because the corporation learns to take to heart the needs of their clientele.
This paper is an essay that discusses the importance of transformation and innovation with
regards to one chosen company. Transformation and Innovation Sample Paper.
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Firm chosen for the Essay
Xiaomi Company Inc.
Questions Based On Xiaomi Company
a) With Examples And Theory, What Is The Difference Between Incremental And
Discontinuous Innovation For The Specific Organization? There are two main ways in which any profitable company can embrace in order to
become innovative and transform its operations. Innovation that is incremental is termed as a
steady and slow process where small and minute changes are effected at a time (Bajarin, 2014).
What’s more, this approach does not aim at making large or sweeping alterations but instead
strives to do a little thing at a time and evaluate whether it is successful or not. Transformation and Innovation Sample Paper. Incremental
innovation is common in most firms and companies since it has a lower level of risk when
compared to other models (Fratričová and Rudy, 2015). Further, this strategy makes use of less
amounts of capital, monetary resources as well as human labor to determine whether a given
move will bring in more profits and customers.
A perfect example of how innovation can be achieved through an incremental approach is
when a company decides to release a new product or service and then test its reception (Guo et
al, 2011). For instance, Google is one of the global online giants that have capitalized earnings as
the best search engine. Despite being aware of its huge success, the firm chooses to use
incremental innovation to launch an emailing service and study its reception among the users.
Over time, Google mail or Gmail has grown to become one of the best online mail service that is
less prone to hacking and at the same time is not filled with unnecessary pop up advertisements.
Incremental innovation is different from the discontinuous approach that makes very profound
and huge changes within a short span of time (Luarn, 2014). Transformation and Innovation Sample Paper.
This is why discontinuous innovation is known to be radical since the alterations that are
made can end up making the firm to rebrand itself so that the changes are captured. A classic
example of discontinuous innovation is perfectly demonstrated by Virgin Atlantic that has
innovated itself through the use of very extreme measures. For instance, this firm chooses to
introduce a line of hotels and restaurants to cater for the housing needs of its clients who fly to various destinations across the world (Phillips et al, 2014). The decision to make such huge
innovations in a radical manner can be quite tricky ad costly especially if the firm does not take
time to study its market. Transformation and Innovation Sample Paper.
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In the case of Xiaomi Inc, the firm has embraced innovation through the incremental
approach. This is because the firm understands the presence of competition in the global market
(Sturges, 2015). Further, Xiaomi is a privately owned business firm that specializes in the
manufacture and design of electronic gadgets within the Chinese market. This venture has been
popularly described as the Chinese form of Apple due to its admirable success and significant
levels of growth (Tian, 2015). A significant part of this huge success has been achieved through
incremental innovation where the firm first begins by making small changes at a time. For
instance, the firm has grown to its current size by first rolling out a new phone and then studying
its reception within the Chinese market.
The level of success of the product is then used to determine whether it is feasible to
introduce that phone or tablet into the regional and international markets (Phillips et al, 2014).
Additionally, it is through incremental innovation that Xiaomi has been able to roll out more than
seventy units of phones into the market. This was done after first testing its prefence among
customers and then going ahead to improve the features and applications of this phone (Sturges,
2015). The same approach has been applied to other electronic gadgets such as computers,
smartphones iPhones and even iPads and the presence of incremental innovation has given this
firm the added advantage of staying in the lead. Transformation and Innovation Sample Paper.
b) The Need for Xiaomi Company Inc. To Transform and How It Should Go About It
TRANSFORMATION AND INNOVATION
Transformation is a vital process for Xiaomi as it can guarantee the company better
profitability and growth. The importance of transformation lies in the fact that it is the key to
ensuring that customers are satisfied at all times. Therefore, transformation for Xiaomi needs to
occur through the incremental approach that launches a product or service through a small-scale
manner (Bajarin, 2014). Transformation and Innovation Sample Paper.The benefit of this method is that it ensures the business remains
relevant while at the same time makes the products more competitive within the market. Further,
incremental innovation would be effective for Xiaomi since it would be focused a lot on cost-
reduction so that financial resources are only used to benefit the company (Fratričová and Rudy,
2015). Transformation and Innovation Sample Paper.
It should also be noted that it is very difficult for a firm to go wrong once they decide to
become innovative using the incremental strategy. This is because the overall aim is either to
minimize expenses or improve on the qualities of a product or service (Guo et al, 2011). In fact,
Xiaomi is known to have grown over the years to become the Chinese form of Apple through
constant inventions and rebranding of its products. This trend deserves to continue so that its
gadgets and devices be it the smartphones or laptops can have a stronger market presence.
c) Five Possible Transformations for Xiaomi Company Inc.
Incremental innovation in Xiaomi is capable of taking place on many different levels and
not only on the product alone. One of the possible transformations that obviously takes place is
through the rebranding of products where the gadgets are given superior features and abilities
(Luarn, 2014). For instance, these items are given the ability to store large amounts of data, track
a person’s location or even double up as a digital book that can have access to numerous sites.
Secondly, transformation can also take place through service delivery where Xiaomi can choose to use its own site as a distribution center. This means customers can make their orders online
and have them delivered through automated requests (Luarn, 2014).
Thirdly, giving their products more bandwidth usage is one of the ways of increasing
competitive advantage through affordable innovation. Further, the organization can also choose
to restructure itself such that marketing is done by people of a specific age group. The perfect
people would be college students that are tech savvy and appreciate any new application in an
android device. The fifth and final transformational approach would be to create a new
organizational culture that awards any form of significant innovation. The combination of all
these possible transformations would undoubtedly make Xiaomi one of the most profitable
companies, not only in China but also across the globe.
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Conclusion
Invention and innovation are the two key ingredients that ensure companies continue to
remain relevant in the wake of escalating levels of competition. This fact is perfectly understood
by the Chinese based Xiaomi firm that capitalizes in the manufacture and sale of electronic
gadgets such as smartphones and tablets. This company has embraced incremental innovation
that introduces changes a step at a time. Transformation and Innovation Sample Paper. This is in stark contrast to radical or discontinuous innovation where change is effected through a very drastic manner. This method can be quite costly and it is not common among most firms. On the other hand, incremental innovation is
quite popular and Xiaomi has used it extensively to develop and manufacture products that are
more superior and competitive.
This approach has less risks and is cost-effective with very minimal chances of failure.
Xiaomi makes one update at a time where either its gadgets or software systems are upgraded and then monitored for their benefits to the final consumer. The use of incremental innovation as
opposed to embracing a paradigm shift in operation is perhaps the most viable strategy for
Xiaomi that definitely places the firm on the path to becoming a future tech giant.
References
Bajarin, T 2014, 'The Real Difference between Xiaomi and Apple', PC Magazine, pp. 44-46,
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Fratričová, J, & Rudy, J 2015, 'Get Strategic Human Resource Management Really Strategic:
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155, Business Source Complete, EBSCOhost, viewed 21 September 2016.
Guo, X. Wang, B., Niu, H., and Li, H., 2011, Xiaomi revenue doubled to $12 billion in 2014:
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EBSCOhost, viewed 21 September 2016. Transformation and Innovation Sample Paper.
Luarn. X (2014). What is behind rapid rise of Chinese Apple Xiaomi? International Business
Times. International Studies Review, 15, 2, pp. 163-184, Academic Search Premier,
EBSCOhost, viewed 21 September 2016.
Phillips-Melancon, J, & Dalakas, V 2014, 'Brand Rivalry and Consumers’ Schadenfreude: The
Case of Xiaomi and Apple', Services Marketing Quarterly, 35, 2, pp. 173-186, Business
Source Complete, EBSCOhost, viewed 21 September 2016. Transformation and Innovation Sample Paper.
Sturges, D. (2015). The Transformation of technology @ Xiaomi Inc. Smartphone Design &
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Tian, M. (2015).The Xiaomi Business Model: Built to Last. China. Business Horizons, 57(3),
pp.349-358 Academic Search Premier, EBSCOhost, viewed 21 September 2016. Transformation and Innovation Sample Paper.