Modern Management Practice

Modern Management Practice

Modern Management

As competition intensifies and the pace of technological change accelerates, firms need to renew themselves. The challenge is not only offering new products and services, but also changing the nature of management within organizations. This can take place by, for instance, adapting organizational structures, processes, and practices to generate an invaluable source of competitive advantage. Early studies clearly show how modern management may not only change an organization and bring potential benefits to it, but also redefine an industry by influencing the spread of new ideas. Hence, scholars have directed their attention towards management as a fertile ground for innovation. Researcher define modern management as 'the generation and implementation of a management practice, process, structure, or technique that is new to the state of the art and intended to further organizational goals'. Accordingly, in this definition 'newness' related to modern management at large, in other words, new to the world. Well known examples of modern management are lean production (introduced by Toyota) and brand management.

Emerging Markets and Modern Management

The main leaders of these companies want to be innovation at the core of their business models. Two unambiguous structural changes that are driving this growing ambition. The first is the increase in raw materials and labour. As emerging markets have grown, natural materials and human resources have grown much more expensive. Compliance with the "low-cost provider" promise has become much more difficult. West Pincered between slower growth and the imperatives own expansion, emerging market companies are seeking new ways to create a new value. Simple diversification is not enough, they need to innovate.

The other structural change comes from the demand side: consumers and customers who once told the market to new companies to "build to spec" or "eligible" to the lowest possible price - also known as price China - are now looking for extra values and additional features, too. If Wal-Mart once facilitated the transformation of China into a low-cost producer, capable of delivering huge amounts of good enough products for supply chain, the Hewlett-Packard, IBM, Vodaphone, and apples are looking to partner with suppliers who can offer provocative new low-cost and quality.

Scholars have proposed that leadership can effectively stimulate innovative thinking, and have shown that it significantly impacts organizational choice. Because management innovation represents a rather encompassing change in the way management work performed, we see leadership as a preeminent issue in understanding how organizations introduce such a (potentially) complex innovation.

Emerging markets companies are responding. Taiwan's HTC, for example, is an innovator in emerging markets, whose products do not see or feel like "me too" or "I, three" knock-offs of American or Japanese design. In fact, a look at Samsung or portfolio of SK Telecom indicates that, although South Korea may be an emerging market, their innovation efforts of world class.

Of the two changes, the change in demand is the most important because innovation is not what innovators do is what customers and customer adoption. The conceptual revolution that is sweeping through companies in emerging ...