Business Model Innovation: Maersk Grade Term Paper

" The foremost risk involved with implementation of the innovation is its rejection and for that matter, its failure.

What if it does not work?

What if it is not accepted?

What if a better alternative is available?

What if it is not cost efficient?

What would be the correct and most suitable time to make the innovation public?

There are many such questions associated with the implementation of innovation process. The risks involved are, namely, excessive perceived economic risks uncertain demand for innovative goods or services dominated market by established businesses high direct innovation costs

lack of information experiencing extraordinary situations higher than expected competitive pressure trademark or copyright problems

Conclusion

It would not be wrong to say that Maersk is a company that has its strategies based on innovation or that innovation is an integral part of its strategy. Although innovation is essential in today's world market, it has its pros and cons. It is not enough just to encourage employees to take risks. The organization's culture must communicate clearly how the innovators who take intelligent risks will be supported and rewarded. Too many organizations say that they want employees to take risks but reward only final success or worse, punish those who fall short because they moved beyond the boundaries of the known, safe choices. Maersk focuses on modifying aspects of the culture so that the employees receive consistent and positive messages about initiating change and innovation (Hanekamp, 2007). Skills are developed to stimulate, support, encourage, and coach employees to take thoughtful, intelligent risks.

List of References

Andrew, J., Sirkin, H. And Butman, J., 2007. Payback: Reaping the Rewards of Innovation. USA: Harvard Business Press.

Astebro, T. And Michela, J.L., 2005. Predictors of the survival of innovations. Journal of Product Innovation Management, 22 (4), pp. 322-335.

Branscomb, L. And Auerswald, P., 2003. Taking Technical Risks. USA: MIT Press.

Fuglsang, L. 2008. Innovation and the Creative Process. UK: Edward Elgar Publishing Limited.

Gawarzynska, M., 2010. Open Innovation and Business Success.

Hanekamp, G., 2007. Business Ethics of Innovation. USA: Springer

Maersk, 2012. Working With Innovation. [online] Available at: < http://www.maersk.com/Innovation/WorkingWithInnovation/Pages/WorkingWithInnovation.aspx > [Accessed 24 September 2012].

Ramus, C., 2003. Employee Environmental Innovation in Firms. England: Ashgate Publishing Limited.…