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Irizar is a luxury coach developer and a division of big limited company with share investments in other nations. Irizar experienced problem in the early 1990s due to alterations in the intrinsic and extrinsic settings. To survive in the problem and reclaim competitiveness in the industry, Saratxaga was hired as the new manager of the organization.
Saratxaga made innovative alterations (i.e. alteration in key values and enterprise framework via participatory administration) and was capable of achieving increasing growth level in turnover and extension into other markets (Forcadell & Guadamillas, 2002).
This paper describes how the knowledge management model utilized by the company resulted in innovation and, finally, in competitive edge. In addition, the paper stresses the significance of knowledge management and the leveraging of organizational abilities in developing a culture of novelty.
Knowledge management model
The interaction of the aspects in the enterprise strategy results in collective learning procedure, competence creating and thus development of knowledge managing as a novelty model at Irizar. The function of novelty is summarized in the elements of the enterprise strategy that brings actual value to the clients and the entire team of stakeholders in the model.
Innovation creates a better culture via collective decision procedures and that it changes personal or group implied knowledge into open knowledge that can be retained and utilized in the entire company as an incessant coaching procedure within the company. Innovation provides competencies and capabilities (i.e. key abilities) on which value suggestion is delivered. It also transfers organized information resulting in capable procedures and products based on client expectation.
Innovation also ensures that the awareness generated within the company landed at the right individuals, at the right time, with a view of improving the running of the company. Innovation also establishes capabilities through joint headship, collective knowledge and group participation with a view of applying the knowledge as effectively as possible. This jointly form what is known as the knowledge management (KM) phase by Forcadell and Guadamillas (2002), in their work on the execution of knowledge management model at Irizar.
Culture of innovation
Regarding knowledge management and the balancing of organizational abilities, the company confines value through bringing in resources produced within the organization. Such resources comprise workers, management, novelty and joint venture. The financial resource or outcome is the value generated from the way the management strategy is implemented (Mills & Smith, 2011).
The elements of the knowledge management strategy are interlinked to one another in an association style, capable of converting them into result. The result or outcome as well gives suggestion of modification to management strategy and then generates fresh requirement of resources (Kumar & Ganesh, 2009).
From the model utilized in Irizar, it can be seen that the elements relate to one another with a view of making this knowledge management framework to work. The joint vision of the company promotes dedication to the shared organization culture, goals and group participation. This enables a setting of implied information exchange between the workers enabling ability generating and innovation development.
The client relationship with the company team enables Irizar to venture into exclusive marketplace information. The knowledge management strategy allows important link between workers, groups and associates (i.e. suppliers and clients). This will enhance fairness and esteem, hence increasing the inspiration among the workers.
The workers operate across the company with a view of creating authentic, high quality products (Forcadell & Guadamillas, 2002). In conclusion, making the shared results transparent in the company and building the motivation on knowledge management will push workers towards a culture of innovation.
Forcadell, F. & Guadamillas, F. (2002). A case study on the implementation of a knowledge management strategy oriented to innovation. Knowledge and Process Management, 9(3), 162-171.
Kumar, J. & Ganesh, L. (2009). Research on knowledge transfer in organisations: A morphology. Journal of Knowledge Management, 13 (4), 161-174.
Mills, A. & Smith, T. (2011). Knowledge management and organisational performance: A decomposed view. Journal of Knowledge Management, 15(1), 156-171.