Introduction
Technology and innovation are two hybrid components, which while embraced by manufacturing firms, can help to drive their productivity. Fundamentally, innovation means the introduction of something new, especially in a business setting. Innovation takes place when “new products or services are introduced and successfully commercialised” (Tidd & Bessant 2009, p.7).
In the manufacturing context, innovation involves the introduction of new manufacturing processes and/or practices, new technologies, and new materials among other things, which help to lower the cost of production or increase the pace of production and quality of the manufactured products.
According to Tidd and Bessant (2009), innovation is an essential aspect of a manufacturing firm since it results in increased productivity for firms by enhancing good customer responses to the business of the manufacturing firm (p.7).
According to an innovation and technology guru, Don Tapscott, the focus of innovative approaches in the manufacturing industry is to ensure waste reductions, reduction of downtimes of machinery, increase in product quality, designing of products with better utilities, and streamlining of customer needs to the products produced by an organisation (Tapscott & Williams 2010, p.88).
This paper conducts a synopsis of the work of Don Tapscott about the industrial force of productivity in the manufacturing sector. The article also investigates the effect of technological advancements in the areas of management practices (innovation) concerning manufacturing productivity
Contributions of Don Tapscott to Manufacturing Productivity
Don Tapscott is an influential and a leading management thinker in the field of technology and its implication on the productivity of firms. He advises governments and organisations on issues such as technology and innovation in enhancing the efficiency of organisations, social impact of technology, and economic repercussion for embracing innovation and technology in production.
According to Don Tapscott (2010), innovation in the manufacturing sector influences the productivity of an organisation in four main ways. These are sourcing, innovative manufacturing approaches, management, and technology.
In the attempt to understand the effect of innovation, which is driven by creativity, in the manufacturing sector, it is essential for a manufacturing organisation from the context of Don Tapscott to understand the process of innovation and creativity. Technology is a component of innovation (Tidd & Bessant 2009, p.11).
In recognition of the roles of technology and innovation in the success of organisations irrespective of the industry of their operation, many theorists endeavour to understand various sources of creativity and innovation among individuals. However, there lacks contention among researchers on the origins of innovation and creativity with many hypotheses remaining unsubstantiated.
A significant challenge in theorising innovation and creativity is defining the terms. Multi-faceted, comprehensive, and complex forms of creativity occur in a myriad of contexts (Tidd & Bessant 2009, p.14).
Therefore, no direct rule can provide an insight into the sources of creativity and innovation both at an individual level and organisational level. Despite the lack of contention, several theories may be used to explain the origins of creativity and innovation in an organisation.
At an individual level, theories of innovation and creativity may emanate from the existence of a conducive social environment that may make people innovative and creative (Meisinger 2007, p.213). At an organisational level, innovation and creativity can emanate from the interaction of various components. According to Tidd and Bessant, these factors include knowledge, creative thinking, and motivation (2009, p.13).
Knowledge refers to the understanding that people bring into creativity and innovation table for an organisation. Creative thinking refers to the manner in which people approach various problems. It depends on the working style, personality, the way people think (Meisinger 2007, p.219).
The main concern of Don Tapscott is the role of creativity in enhancing performance in the manufacturing organisations. He is concerned with creativity at the organisational level. For inventiveness and novelty to thrive at an organisational level, it is crucial for an innovative and creative culture to be created.
Meisinger (2007) states that motivation is a crucial component for encouraging people within an organisation to embrace creative thinking, which enhances innovation in the creation of new manufacturing technologies (p.225). Some theorists also attribute creativity to experimentation. For instance, Tidd and Bessant (2009) argue that testing gives rise to creativity (p.14).
This means that an organisation needs to dedicate its funds, facilities, time, and materials, among other resources to the experimentation of new ideas for it to foster creativity and innovation. Organisational culture is yet another critical facilitator for innovation and creativity.
It refers to the beliefs, norms, and values that are shared within an organisation (Meisinger 2007, p.225). An organisation that builds its culture around the importance of innovation and creativity gets more of it. Organisations that minimise risks such as financial risks related to unproductive research and experimentations often fail to embrace the values of innovation and creativity in the manufacturing sector.
In his book The Digital Economy: Promise and Peril In The Age of Networked Intelligence, Don Tapscott argues that technological developments in communication technologies have high impacts on the success of manufacturing organisations through the provision of quick and easy means of accessing innovative components and improved deals with clients together with suppliers (Tapscott 1997, p.56).
Such approaches help manufacturing firms to increase their profitability tremendously (Tapscott & Williams 2010, p.89). Through technology, Don Tapscott argues that manufacturing organisations have developed the capability to integrate manufacturing functions and processes to the needs of the clients together with supplier information management processes.
The approach is crucial in enhancing online visibility concerning inventory management and control of quality standards. Don Tapscott adds his contribution to this debate of innovation and technology to the manufacturing organisations.
He cites e-auctions and reverses auctions as additional tools for managing the cost of materials and as effective mechanisms of enhancing procurement efficiency and effectiveness in the manufacturing organisations (Tapscott & Williams 2010, p.92).
The assertion highlights the importance of creativity and innovation in the manufacturing organisations developed by management scholars in the discipline of manufacturing management.
Both creativity and innovation are relevant in modern organisations since the success of an organisation in placing its products in the marketplace largely depend on the increasing value of products and services to customers.
This situation has the overall impact of reduced cost, achievement of great total quality, and high cycle time without negating substantive satisfaction of customers (Meisinger 2007, p.229). In particular, cost is an important aspect that determines the level of consumption of a company’s products and services.
Literature Review of Published Work by Don Tapscott
Don Tapscott is a business executive from Canada whose scholarly works specialise in business strategies, contribution of technology in societies and the business environment, and organisational processes of transformation.
Don Tapscott has authored and co-authored fourteen books. Tapscott and Caston (1992), Tapscott (1997), Tapscott and Williams (2006), and Tapscott and Williams (2010) are some of the important scholarly works by Don Tapscott reflecting the theme of technology, innovation, and creativity in enhancing the productivity of organisations.
Wikinomics emerged one of the bestselling books throughout 2007. In the book, the authors provide comprehensive details of the management approach in which mass collaboration of people of varying talents and innovative ideas has resulted in the overall change of the world of business.
In the manufacturing sector, the principles of collaboration developed in the Wikinomics are applicable in the automobiles manufacturing companies to enhance productivity.
According to Tapscott and Williams (2006), collaboration enhances interdependence of organisations together with sharing of knowledge and integrity (p.41). The authors reveal many designers of vehicles in the automobile manufacturing sector who engage in collaboration in the web design of vehicles in the effort to come up with the most effective design (Tapscott & Williams 2006, p.54).
Even though it is essential for organisations to safeguard their intellectual property, this approach fosters openness, which is essential in the development of innovative business models (Tapscott & Caston1992, p.65). The principle of interdependence is showcased in the manner in which local motor manufacturers establish various assembly locations within communities.
In this process, they hire local people in small-localised plants (Tapscott & Williams 2006, p.83.). This perhaps reveals why organisations operating in the manufacturing sector have recognised that they cannot continue performing optimally in a localised and disintegrating manufacturing environment.
The digital economy has influenced the manner in which organisations place their products and/or source materials in the market.
Through cost reduction created by the ease of garnering information in the manufacturing sector relative to suppliers and customers, according to Tapscott (1997), the digital revolution has facilitated the growth of entrepreneurial ventures, small companies, and productivity of big manufacturing organisations (p.109). Through digital technology, customers can place their orders online.
The orders arrive at the manufacturing firms in real-time. Upon scrutiny of the customer requirement details, the manufacturing company can place the order for materials in real-time. This implies that organisations do not have to hold stocks of raw material in the effort to minimise the costs of rapid replenishment and delays in the process of sourcing materials.
The overall effect of real-time delivery of ordered information is the minimisation of handling costs. Consequently, all costs, which do not add value to the raw materials or the finished products, are minimised.
Thus, manufacturing organisations can produce high-quality products at low costs (Tapscott 1997, p.171). This means that the prices of products are also low. This makes manufacturing organisations sell a high number of products by capitalising on the effectiveness of production costs.
In the effort to enhance productivity, manufacturing organisations utilise the principles of economies of scale as the concepts of productivity improvement developed by the Tapscott and Williams’ book Macrowikinomics: Rebooting Business and the World. In this book, the authors provide various examples of organisations that deploy the concepts of Wikinomics to enhance their productivity.
One of such organisations is the Local Motors Company initiated by Jay Rogers (Tapscott & Williams 2010, p.84). This company provides potential clients with an opportunity to engage in the process of designing an automobile in the organisation’s website (Tapscott & Williams 2010, p.89). Once a design is completed, the client is requested to travel to Phoenix to participate in the process of assemblage of his or her vehicle.
According to the authors, this approach is an innovative methodology for enhancing organisational success. Customers are satisfied with products by virtue of ample participation in its production process.
Organisations deploying this strategy constantly invest in the development of innovative techniques of web-based designs to enhance optimisation of the production process. The process of production of products starts with the design of the product.
The arguments developed by Tapscott and Williams imply that manufacturing organisations seeking to increase their productivity need to invest in the manufacturing processes, innovation, and manufacturing management.
Upon considering the example of Phoenix Local Motor Company provided by Tapscott and Williams (2010), manufacturing innovation refers to the improvement in the manner in which organisations manufacture and/or develop their products within and across supply chains. Such innovation is imperative in enhancing improvement of assembly lines.
Ford Car Manufacturing Company is one of the good examples of manufacturing organisations that have deployed innovative techniques and technology in enhancing manufacturing productivity through exploitation of innovative assembly line models (Tapscott & Williams 2010, p.103).
The case of the Toyota Company exemplifies the role of innovation in the manufacturing management through the ‘lean manufacturing’ philosophy. According to Tapscott and Williams, this philosophy has altered the approach of operation of manufacturing organisations across the globe (2010, p. 106).
This situation provides sufficient grounds to infer that innovation, creativity, and technology are the chief drivers of manufacturing productivity.
Conclusion
Coming up with products and services that have low creation costs is essential in helping an organisation to gain a competitive advantage in the future. This suggests that organisations can only succeed in the global fronts if they are able to reduce their costs of production and/or by improved operational methodologies. Innovation, technology, and creativity are subtle tools for achieving these concerns.
References
Meisinger, S 2007, ‘Creativity and innovation: Key drivers for successes’, Human Resource Management, vol. 52 no. 5, pp. 212-235.
Tapscott, D & Caston, A 1992, Paradigm Shift: The New Promise of Information Technology, McGraw-Hill, New York.
Tapscott, D & Williams, A 2006, Wikinomics: How Mass Collaboration Changes Everything, Portfolio Trade, London.
Tapscott, D, Williams, A 2010, Macrowikinomics: Rebooting Business and the World, Portfolio Hardcover, London.
Tapscott, D1997, The Digital Economy: Promise and Peril In The Age of Networked Intelligence, McGraw-Hill, New York.
Tidd, J & Bessant, J 2009, ‘Managing Innovation: Integrating Technological, Market and Organisational Change’, The International Journal of Educational Management, vol. 21 no.1, pp. 6-25.