Case study 5.2 is an illustration of the challenges that organizations face when going through a process of change. Grundfos’ win confirms that it is possible to turn the challenges innovatively and creatively into opportunities. The process of developing the Alpha pro pump was characterized by a need first to convince internal stakeholders of its efficiency and necessity. Prior to making this investment, the company had to set up a team of externally sought individuals to assess its viability. In addition, the pump’s production required a change throughout the company, which was not easy due to resistance from various departments (Dawson & Andriopoulos, 2017).
The need to lobby for a change of legislation became a companywide activity. The engineers and employees were committed to convincing politicians within the European region of the inefficiencies associated with the other pumps that were in the market at the time. Categorization of pumps based on their efficiency provided the final gateway to the product’s successful launch. The Alpha Pro pump was categorized in the ‘A’ category and was only produced by Grundfos (Dawson & Andriopoulos, 2017). This created a competitive edge for the company before the other competitors adapted to the change.
Innovation is often referred to as translating new ideas into processes, products, or services (Thompson, 1965). This is an example of a new product, but can we explain the innovation process without considering the wide range of involved stakeholders, the time and context under which activities and events occurred, and the external/internal dynamics in shaping the speed and direction of innovative change? Provide a summary of the key shapers of these changes and evaluate their contribution to our understanding of innovation.
The innovation process cannot be explained without considering the stakeholders, dynamics, events, time, and other factors that existed during the occurrence. The process of innovating is dependent on all these factors that take place and push an organization to translate innovative ideas into actual products and services. In this case study, the key shapers include human resources, policies, current market products, the ineffectiveness of these products, and the prices of the pumps. The human resources that realized the potential of the smart power chip in the research and development department initiated the process of innovation. The inefficiency of current pumps available in the market motivated the company to seek to produce a better pump that incorporated the smart power chip and performed better than the competitors’ products.
In addition, the lack of policies that set regulations regarding the sale of energy-efficient pumps led the organization to push for legislation that set forth clear categories and encouraged recognition of pumps as a stand-alone product. The prices that were expected to increase by two or three times required the organization to find ways to ensure the product has leverage in the market as a superior offering. These factors interacted to ensure that Grundfos achieved the most effective and long-term conditions that would support the innovation (Dawson & Andriopoulos, 2017).
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