Royal Dutch Shells Innovation Assignment Example | Topics and Well Written Essays - 1000 words

Royal Dutch Shells Innovation - Assignment Example There are a lot of financial bearings which must be met by the innovative firm. The process of innovating a firm involves proper analysis of the market (especially in a perfectly competitive industry) which covers from products/services to management strategies. Shell being one of the firms which operates in an open economy is not left behind in adopting new technologies and innovations in exploration, production, and marketing of oil and gas products globally. As noted by Hamel & Skarzynski (2012, p.14), the future of an organization in this stiffly competitive world is bestowed on the ability of the firm to effectively and flexible use technology which stands the potential of enhancing its innovativeness. Royal Dutch Shell has been a pace setter in production and management innovation. Through its technological innovations and flexibility, Royal Dutch Shell has revolutionized the Energy sector for decades. However, like other firms in the industry, the innovation structure adopted by the Royal Shell has certain drawbacks and strengths. The innovation management structure of the Royal Dutch Shell builds on its strengths as a key tool to satisfy its customers and the well being of the employees. The success of the innovation initiated at Shell is believed to be supported by the senior management team. Unlike other organizations (which are rigid to change), every at Shell (from top to bottom) are opposed to old school production and management technologies especially in this competitive economic era. Therefore, the management leads the path towards eliminating technological hurdles which stands on their way to success and market dominance. The level of openness to new ideas, concepts, and technologies is evidenced by the degree at which the management is ready to take the risks of investing in modern technologies both in service delivery and production units. For instance, the scenario planning strategy which has been used by the company over the last forty year s has been successful in solving energy crisis. With the uncertainty facing the future of petroleum and oil products, orchestration of probable uncertain scenario rests on how well the management is open to innovation and technological changes both in operations and service delivery. Besides, Shell uses more environmental friendly solutions such as blueprints. Blueprints advocates for electronic engines in the transportation process as a way of reducing pollution. The success of Shell is also explained by its innovational culture which promotes change and technological advancements. Little cultural residence to change technology at Shell has been essential in helping the company to remain competitive and reputable in the oil industry. The company welcomes ideas and concepts from all its staff and goes ahead to reward the employees for their innovative efforts. A perfect example of cultural innovation at Shell is game changer program and social audit (Hamel & Skarzynski, 2012, p.12). Shell has been undertaking a number of management restructuring and product quality to remain competitively relevant in the global energy market .However, its efforts are being marred by some potential gaps that needs further consideration for it to achieve its goals of greater global market share. The basic asset of any firm is the effort of human capital which equally depends on the mode of co-operating and interaction. This company has invested averagely high in technology to improve the quality of its products at a lower value creation cost. On the other side of the coin, this company has given the interest of its staff the least attention