Project Leonardo da Vinci
Design of a model for joint university-enterprise
innovation
U-SME Innovation
MAP OF THE COMPANY INNOVATION
POTENTIAL
QUESTIONNAIRE FOR THE COMPANY
ASSESSMENT AND THE METHODOLOGY
OF ITS EVALUATION
University of West Bohemia
Faculty of Economics
Department of management, innovations and projects
June 2001
Available at:
http://www.kip.zcu.cz/USME/ass_SME.doc
Authors:
Ing. Jiří Vacek (editor), Ing. Emil Vacík, doc. Ing. Jiří Skalický Csc., Ing Yvona Šlechtová Department of management, innovations and projects, Faculty of Economics, University of
West Bohemia
Ing. Jana Klementová, Ing. Jan Naxera, Ing. Zbyněk Doležal - BIC Plzeň
The project has been completed with the support of the Leonardo da Vinci programme. The
contents do not necessarily reflect the Commission's own position.
TABLE OF CONTENTS
INTRODUCTION ................................................................................................................................................. 4
QUESTIONNAIRE: “ MAP OF THE COMPANY INNOVATION POTENTIAL” ..................................... 5
A
B
C
D
E
F
STRATEGY AND PLANNING ............................................................................................................... 7
MARKETING .......................................................................................................................................... 9
TECHNOLOGICAL PROCESS..............................................................................................................11
QUALITY, ENVIRONMENT .................................................................................................................13
LOGISTICS (PURCHASE, DISTRIBUTION, OUTSOURCING) .........................................................15
ORGANIZATION AND HUMAN RESOURCES ..................................................................................17
MANUAL FOR THE EVALUATION OF THE QUESTIONNAIRE ............................................................19
A
STRATEGY AND PLANNING ..............................................................................................................19
B
MARKETING .........................................................................................................................................23
KNOWLEDGE MANAGEMENT AND INNOVATIONS (COMMON INTRODUCTION FOR PARTS C, D) ...........................27
Management process of science and research .............................................................................................29
Mapping of knowledge relations ..................................................................................................................29
Human resources management in science and research ..............................................................................30
Management of the company’s intellectual potential ...................................................................................31
Management of information technologies ....................................................................................................31
C
TECHNOLOGICAL PROCESS..............................................................................................................33
D
QUALITY, ENVIRONEMENT ..............................................................................................................37
E
LOGISTICS (PURCHASE, DISTRIBUTION, OUTSOURCING) ........................................................................40
Company transformation management.........................................................................................................40
Factors of the innovation projects success ...................................................................................................41
Basic purpose of reengineering ....................................................................................................................42
Introduction of the reengineering principles ................................................................................................43
Reengineering and implementation of the long-term strategic goal.............................................................45
F
ORGANIZATION AND HUMAN RESOURCES ..................................................................................50
Company culture ..........................................................................................................................................50
Motivating elements influencing the innovation environment in the company .............................................54
Conflicts in leading of work groups..............................................................................................................58
COMPREHENSIVE EVALUATION OF THE QUESTIONNAIRE .............................................................63
EVALUATION OF INDIVIDUAL CATEGORIES OF THE QUESTIONNAIRE ..........................................64
COMPUTER SUPPORT OF THE QUESTIONNAIRE'S EVALUATION ...................................................70
Interactive work with the questionnaire .......................................................................................................70
Processing of results using Excel application ..............................................................................................70
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INTRODUCTION
This guide consists of two main parts - questionnaire mapping the company preparedness to
innovation and manual for its evaluation. It is intended for the joint work of the company with
the consultant and its purpose is the initial assessment of the innovation potential. The result
of this assessment serves to the customization of further training program which should help
to introduce or improve the work with innovations.
The first step is to answer the questionnaire. We recommend to several company managers to
answer the questions independently and then to confront their answers and to try to reach
consensus representing the point of view of the company management. These answers are
then evaluated by the consultant. If it is difficult to reach the consensus, then the consultant
can be invited as the facilitator. Computer support, described in more detail in the last part of
the guide, can be used for the work with the questionnaire.
The consultant interprets the answers and prepares the report for the company management.
Jointly with the management they then develop the action plan of the future training.
If the company is evaluated in more areas as not sufficiently well prepared for innovations, it
is necessary to implement significant changes before implementation of the system of work
with innovations. The proposal and implementation of these changes is out of the framework
of this project.
If the company is evaluated at least as average in relation to its preparedness to innovation, it
can get down to further step - introduction or improvement of its innovation system. This
process can use techniques described in other guide of this series - " "
The guides were prepared with support of the Leonardo da Vinci programme. The authors
would like to thank to all who provided valuable feedback.
We would like to wish to all users much success with the work with the guides. We would be
glad if you share with us your experience and your ideas how to improve it.
Plzeň, June 2001
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QUESTIONNAIRE: “ MAP OF THE COMPANY INNOVATION POTENTIAL”
Dear Sirs,
This questionnaire includes several groups of issues related to the company innovation
potential. By filling-out the questionnaire thoroughly, you will obtain an overview of the
strong and weak points in your company and what deserves your attention.
There are always four alternative answers offered for individual groups of issues. After
evaluating them, please tick off the answer characterizing the situation in your company most
precisely. If you find it necessary to provide supplementary information, use free lines.
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QUESTIONNAIRE FOR THE COMPANY INNOVATION POTENTIAL
IDENTIFICATION
HYPOTHESIS
A company with high innovation potential meets the individual indicators in the following
spheres: by scoring maximum levels:
A) Strategy and planning
B) Marketing
C) Technological process
D) Quality management
E) Logistics
F) Human resources
Scoring of the existing company standard:
Doesn’t meet the
requirements at all
Meets the
Meets the
requirements partially requirements on an
average level
Meets the
requirements very
well
Formulation of answers:
There are 4 alternative answers defined for every particular problem, corresponding with the
above-given criteria. The answers are formulated in such a manner so that they reflect the
existing situation in the company. It is important to quickly respond, not to take study time.
Example:
1. Monitoring and systemic analysis of changes and development trends that can
influence the quality system to a considerable degree
a) We do not follow the changes in a systemic manner
b) When introducing new products or processes we analyze whether they correspond
to the current standards and regulations
c) We follow and analyze the changes and trends in a systemic manner, we design
new products and processes in such a manner so that they would meet the current
trends and predicted modifications
d) Quality system is always in the center of attention, at the same time we try to
influence the changes and trends actively (by means of professional associations,
politicians, etc.)
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A
STRATEGY AND PLANNING
1. Idea about the company future
a) We do not pay much attention to the more remote future, present and current problems
are important to us
b) There’s a certain idea of the company’s future in the company, however it is not
specified in written form and worked out into a plan
c) Our company has a written vision for the time horizon of 1 – 2 years and short-time
plans are based on it
d) The company attempts to develop its visions into its business plan for at least a
middle-time outlook (3 –5 years or 2 –3 product generations)
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2.Vision and employees
a) It is not necessary to introduce the vision to the employees; their tasks are determined
by their superiors according to the company’s needs
b) In case of interest, the employees can learn about the company vision from their senior
colleagues
c) The vision is regularly communicated to the company employees
d) The company employees participate on forming of the company vision and their
comments are dealt with on the management level
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3. Company innovation programs
a) Only short-time plans are prepared according to the current market opportunities, the
company does not have a comprehensive innovation program
b) The plan is formed for one year with regard to the company’s current situation; the
company does not have enough resources for the creation of innovation programs
c) Orientation plan is prepared for 2 –3 years, innovation programs are adopted when the
company is forced to innovate because of the competitors’ activity on the market
d) The business plan relies on implementation of innovations as an indispensable
condition for the achievement of the company vision
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4. Plan modifications
a) Considering the operational action management practice, the company does not use
any long-term planning
b) The company aims at following the chosen strategy and plan indicators, eventual
changes would cause chaos in the course of the project
c) The changes are incorporated into the project when the previous project result analysis
shows incompatibility with the original prognosis
d) If an incompatibility with the given plan occurs during a routine check-up of the
project implementation, we carry out operational changes
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5 Financial indicators of the plan
a) The plan financial indicators are not specified beforehand
b) The company tries to achieve the turnover set in the revenue plan, other indicators are
not predefined
c) The company carries out costs monitoring with regard to operation profit, other data
(besides the revenues volume) are not important to the company
d) The business plan goal and strategies are converted into clear financial plan indicators
and every business case is evaluated according to them before being accepted
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6 Project management
a) The operational, day-to-day management prevails in the company, new approaches are
not being considered
b) The projects are selected on operative basis with regard to the market opportunities,
the full use of the company capacity is a priority
c) New projects are selected operatively, on the basis of the market opportunity;
company strategy plays only secondary role
d) Selection of new projects is always in accordance with the company long-term
strategy, which places stress on innovations as a mean of increasing of the company’s
future value
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B
MARKETING
1 Monitoring of current market trends
a) Marketing activities are not planned and are performed mostly spontaneously as an
instant reaction to the market changes
b) The company has only partial information about the market trends for its marketing
planning
c) The company tries to follow the market development and take the expected trends into
consideration when preparing its marketing activities
d) The market development is thoroughly observed, the identified trends play decisive
role in adopting of conclusions about long-term marketing activities and overall
company organisation
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2 Evaluation of the market competition position
a) The company does not evaluate its the market competition position
b) Market is monitored only when some problems occur and it is necessary to find out
what is the actual position of the company
c) The company has an overview of the competition on the market and the company’s
market position is monitored continuously, but not fully regularly
d) Thanks to systemic monitoring of the situation on the market, company’s competition
position is precisely known at any moment and at the same time it is possible to
estimate competitors’ further intentions
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3 Customer-orientation of the company
a)
The company is convinced that the product qualities meet the customer’s needs and it is
not necessary to waste time on further research
b)
Management solves the marketing issues with the traders who know from their practice
what the customers need
c)
The company analyses customer’s requirements and the acquired knowledge is used in
preparations of marketing activities
d)
The company regularly monitors customers’ needs, evaluates information gained from
them uses the results in marketing and strategy formation
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4 Monitoring of customers’ attitudes to the company product
a)
Customers’ attitudes are not regularly monitored as the negative response shows
quickly anyway
b)
The company carried out several random activities in this sphere
c)
Customer satisfaction is monitored irregularly, particularly when it is necessary to use
this information for the company’s further activities
d)
The company has and uses a sophisticated system of regular collection of customers’
opinions and this information reflects back upon the company’s activities
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5 Market information flow inside the company
a)
Existing knowledge gained from the practice is sufficient and known to all responsible
employees and for that reason it is not necessary to pay systematic attention to further
collection and processing of information
b)
Responsible employees usually follow the information about market, consumers and
competition; they are not systematically shared within the company
c)
Information about the market is registered in the company’s information system, the
employees do not fully use it
d)
The company has a sophisticated information system that is used by responsible
employees
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6 Marketing and financial control
a)
Marketing is not interconnected with financial planning
b)
Marketing is interconnected with financial planning, but the effectiveness of the
individual marketing activities is not evaluated
c)
The company has a short-term marketing plan, which is continuously evaluated both
from marketing and financial point of view
d)
The company has a long-term marketing plan, on its basis evaluates its activities and
operatively introduces modifications into marketing and financial plans
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C
TECHNOLOGICAL PROCESS
1 Future company’s competitiveness in the industry
a)
Currently the company does not continuously monitor new technologies in the industry
b)
Creative employees follow the know-how development in the industry in their own
interest
c)
As a part of their job description, the creative employees should follow the know-how
and new technologies development in the industry and incorporate new findings into
their work
d)
There’s an appointed employee (or department) that is in charge of monitoring of
knowledge and new technologies with the competitors and in the world (benchmarkog,
following of specialised articles, books, websites, trade fairs, patents, ...) and informs
the management and company employees on regular basis
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2 Changes of used technologies
a)
The company cannot afford to change its technologies at the time being
b)
Changes are introduced under the pressure from outside, mostly randomly
c)
Changes are introduced in accordance with the plan, after their introduction their
contribution is not any more specifically monitored or evaluated
d)
Technology changes are planned and their effectiveness is always evaluated
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3 Collection of impulses for implementation of technology changes
a)
Impulses for changes are not collected in a systematic manner
b)
Impulses for changes usually come from inside the company, there’s no system how to
work with them
c)
Impulses are collected both from inside and outside the company, the system of work
with them is introduced in the company
d)
Impulses for changes are collected both from inside and outside the company and are
collected by a responsible employee (department), they are registered, sorted out and
regularly evaluated by the team
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4 Evaluation of the investment returnability of the planned changes in the company
a)
Little attention is paid to investment returnability in the company
b)
Investment returnability is calculated only in gross estimates
c)
Detailed financial analyses are carried out before important and cost-consuming
investment activities
d)
Investment returnability of planned changes is usually included in the feasibility study
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5 Production costs calculation and their further monitoring inside the company
a)
Costs are set by means of estimates and their development is usually not followed
b)
There’s a general cost calculation methodology, however there’s no feedback of their
development
c)
There’s a precise cost calculation methodology, only final comparison is performed on
regular basis, it’s results serve as a correction for the next project
d)
There’s a precise cost calculation methodology, the costs are continuously evaluated
and the company immediately reacts to possible divergences
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6 Creation of resources for development
a)
The development does not immediately concern us and for that reason we do not assign
any resources for it so far
b)
Development would be useful for the company, currently the company does not
manage to create resources for it
c)
The company tries to ensure resources for development from various available sources
but they often do not cover the necessary amount
d)
Resources for development represent a stable part of the budget and besides that the
company tries to obtain additional resources for development from other available
resources
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D
QUALITY, ENVIRONMENT
1 Monitoring of changes conditioning the quality management in the company
a)
For capacity reasons the company cannot monitor changes and development trends in
the quality system
b)
When introducing new products and/or processes the company attempts to comply with
existing standards, regulations etc.
c)
Changes and trends are monitored and analysed in a systemic manner, new products
and/or processes are designed in such a manner so that they meet the existing
conditions
d)
Changes and trends are monitored and analysed in a systemic manner, new products
and/or processes are designed in such a manner so that they would not only meet the
existing conditions but also predictable modifications
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2 Evaluation of the employees’ personal contribution to the quality system in the
company
a)
Evaluation system of the employees’ personal contribution to the quality is not
introduced in the company
b)
Work quality of individual employees is not systematically monitored, it is not
followed for the work groups
c)
The company carries out quality monitoring of individuals and teams; long-term trends
are analysed and the employees are motivated for higher quality
d)
The company introduced the certified system of quality management, which directly
implies the evaluation of the employees and teams contribution to the quality and their
motivation
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3 External quality audit in the company
a)
External partners do not require to demonstrate the product quality, for that reason the
company has not yet dealt with quality audit
b)
The company methodically prepares for the external quality audit for its future business
partners
c)
External audits are carried out in the company only from the side of the customer, the
company itself does not perform any external audits at its suppliers
d)
Within its implemented quality system the company systematically performs external
quality audits at its suppliers and such audits are carried out in our company by its
customers
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4 Monitoring of the company’s activity impact on the environment
a)
The company does not deal with the environmental impacts of its activities
b)
The company knows environmental legislation and is in compliance with them in the
required extent
c)
The company has a certified system according to ISO-14000
d)
The company has a certified system according to ISO-14000 and purposefully create
the image of the environmentally friendly company
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5 Impact of the quality monitoring on the process of changes in the company
a)
Quality monitoring is not systematically performed and therefore does not considerably
influence the process of changes
b)
The quality is monitored, moreover information from service activities are collected
and analysed; the acquired information serves for adoption of measures in critical
points of processes (bottlenecks), but cost analyses related to those processes are not
done
c)
Data from the quality system, including the costs, are systematically evaluated and
serve as an impetus for process modifications, including the service activities
d)
Quality system is certified and forms an inseparable part of all the company processes,
processes are optimised in such a manner so that the overall production, guarantee and
service costs are be minimised and so that the company would meet the customers’
requirements
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6 Resource creations for costs resulting from modifications of standards, regulations and
legislation in the sphere of quality and environment
a)
The company is not capable to create resources for such activities
b)
Resources are looked for and created only when there’s a conflict with the existing
standards and legislation
c)
Modifications of standards and legislation are continuously monitored, resources are
formed for the performance of expected modifications
d)
Modifications are not only passively monitored, but the company plans formation of
resources necessary for the modification of products and/or processes beforehand,
using experience of other companies and countries
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E
LOGISTICS (PURCHASE, DISTRIBUTION, OUTSOURCING)
1 Organization of purchase and distribution channels in the company
a)
The company has permanent suppliers and distributors, other possibilities are not
considered because of high risks
b)
The management selects the suppliers for individual orders in a tender, distribution
channels inside the company are functioning
c)
The company has a database of its suppliers, supplies effectiveness is evaluated on a
running basis, the distribution works on a similar principle
d)
As c), plus it is evaluated on a running basis whether it is more cost-effective to
perform individual activities using own capacities or to outsource them
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2 Optimization of the company logistics
a)
There’s no connection of information between the purchase and distribution activities
and therefore it is not possible to follow their impact on the company’s service
activities, quality and price policy
b)
Individual logistic activities in the company are separately monitored and evaluated,
internal activities are modified operatively as a consequence of partial information
c)
Logistic activities are related to individual business cases, information is transferred by
the company information system, effectiveness of work with information is not
monitored on a systematic basis
d)
Effectiveness of the logistics system functioning in the company is monitored and
improved, stress is placed on using and optimization of the company information
system
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3 Transfer of information and communication with the company’s partners
a)
The company has no space for reaction to possible impulses from partners
b)
The company communicates with partners only in case of serious problems
c)
Responsible company employees keep in touch with the partners, register their
comments and ideas
d)
Communication with partners is incorporated into the company information system
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4 Flexibility of logistics processes
a)
The company does not have enough means and resources to change its logistics
operatively, protects itself against changes because it is afraid of the unpredictable risk
impact
b)
The company implements operational changes in its logistics only when it is forced to
do so by a customer or competitors, does not evaluate the risk of such changes
beforehand
c)
The company is capable to perform operative changes in its logistics, if the benefits of
the change are higher than the risk taken
d)
The company has enough means and resources to change its logistics operatively, it is
capable to estimate and eliminate major risks
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5 Introduction of innovations in logistics
a)
New ideas are not monitored, the company is doing well even without them
b)
The company does not suppress the employees’ initiative in this respect, if the
innovation is beneficial for the company, then it is used
c)
New ideas are systematically collected and evaluated, they serve as a source of
innovation of products and/or processes, at the same time cost and risk analyses are
carried out
d)
The management deals with the possibilities of using new ideas from both its own
employees and external sources on regular basis, employees’ creativity is motivated
and appraised; feasibility study is a base for decision-making about the implementation
of new ideas
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6 Logistics and financial control
a)
Financial impacts of changes in logistics are not separately evaluated
b)
Changes in logistics are evaluated afterwards, based on bookkeeping data
c)
The effectiveness of each change is evaluated separately
d)
Changes in logistics are evaluated on running basis, they are benchmarked to
competitors in the industry and the results are used as a feedback for the process
modification in the company
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F
ORGANIZATION AND HUMAN RESOURCES
1 Employees satisfaction
a)
It is not necessary to purposefully monitor the employees satisfaction with the
company, because dissatisfied employees can be easily replaced
b)
The company management deals with the employees’ satisfaction only when serious
problems occur (big fluctuation or absenteeism, complaints of individuals or groups,
trade unions, etc.)
c)
The employees’ satisfaction is informally monitored from time to time
d)
Employees satisfaction is regularly monitored as a part of the professional growth
system and the acquired knowledge is used for the modifications of the employees
professional growth plan
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2 Employees motivation
a)
The management thinks that the elementary duty of an employee is to perform the
given job task, otherwise sanctions are applied
b)
The employees are materially stimulated by the system of bonuses and sanctions for
their work performance and quality
c)
Besides the material stimulation of the employees, the company pays attention to the
creation of positive atmosphere and social background; the company offers higher
standards especially to its key employees
d)
The motivation system takes into consideration the individuality of every employee;
besides standard motivating methods the company offers possibilities of professional
and carrier growth, especially to its key employees
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3 Management and communication
a)
The communication between the company employees is insufficient, team work is
weak
b)
The communication between the company employees is only formal
c)
Both formal and informal communication between the company employees is good,
team work has reserves in project management
d)
The company uses effectively lead multidisciplinary teams; teams have clearly defined
competencies and responsibilities
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4 Conflict resolution
a)
Conflicts in the company are viewed as disturbing elements with negative influence on
the atmosphere at workplace and therefore the management tries to suppress them at
their very beginning
b)
Conflict resolution falls within the responsibility of the closest superior who is obliged
to inform the management
c)
The management monitors the occurrence and development of conflicts in the company
and based on the analysis of their origins attempts to adopt relevant measures to the
company’s benefit
d)
The management understands conflicts in the company as a positive element and as an
important source of information and impulses for the improvement of the compamy
performance
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5 Company information system
a)
It is difficult to get information necessary for the operative management
b)
Information system collect the information, but at present does not allow its effective
use for the improvement of the company performance
c)
The company information system is suitable for the operative management, but it does
not contain processed information for the strategic management
d)
The company information system contains easily accessible information for both
operative and strategic management
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6 Company culture
a)
Systematic attention is not paid to the company culture development, because it is
formed by self-development
b)
At present, the company does not have any resources available for the comprehensive
development of the company culture; within its limited resources the company attempts
to represent itself at least through its managers
c)
The company culture is a part of the long-term plans, which include resources
according to the company’s possibilities
d)
The company culture development is a part of the long-term plans, in which the
resources are purposefully considered; the company understand building of the
company culture as an important factor of its future competitiveness, company’s
connection to the region is an inseparable part of the company culture
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MANUAL FOR THE EVALUATION OF THE QUESTIONNAIRE
A
STRATEGY AND PLANNING
Business plan, company vision
The strategic management model is based on the vision of the long-term company
development. The evaluation of the long-term character of the company development horizon
is based on the company’s business focus. In general, period of 5 and more years is
considered a long-term prospective. For companies with products with a very short-time life
cycle, it is possible to consider a period of at least 3 product life cycles as a long-term period.
The company development vision must contain clearly defined and quantified targets. The
business plan deals with achieving of these targets. Hereby a business plan is understood as a
obligatory (written) document stating the priority of tasks, their performers, responsibility
bearers and time scope and which is aimed at achieving of goals defined in the vision.
A company considering innovations must build on the business plan foundations, market
knowledge, properly applied marketing, identified opportunities and threats and awareness of
its strong and weak points. Knowledge of competitors and their activities represents an
important deal of the information.
Question 1:
Subjects answering the question 1 with the a) answer show that their activity is either so
transparent that they do not need to deal with the strategic planning issue or rather that they
fully focus on the present and the company future does not represent an obvious priority to
them. Such an attitude indicates that the innovation efforts are either completely missing in
the company or that they are carried out randomly, without any predictable economic effect.
The b) answer suggests that a charismatic management is typical for the company. The goals
set by the company are not too specific and are not developed any further. The goals can be
hardly shared without their written record. Innovation activities are not viewed as an objective
necessity but as a random event, for which the resources are then looked for.
The c) answer proves a short time planning in the company. Future competitiveness of
products is not taken into account and the company focuses on the use of the existing
potential. That is so far sufficient and therefore the company does not feel direct danger from
lagging-behind in the innovation activities. There is only one small step away from realizing
the necessity of innovating and for mobilizing of one’s existing potential.
A company realizing the rule of the modern management and strategic planning will give the
answer d). It can be expected that it not only realizes the necessity of the innovation but it is
also capable of planning and performing it.
Question 2:
Sharing of the company vision by its employees is important for the implementation of the
company vision into the company’s everyday life. That is the founding stone of the company
culture. This question is interconnected with the Part F, question 1 and question 6. If the
respondent chooses the answer a) or b) as the most suitable one here, he thereby excludes the
use of the c) and d) options in the Part F, question 1 and question 6.
Companies selecting the a) answer as the most convenient thereby prove their hard,
charismatic management. The employees are only used for the performance of their job tasks,
no initiative is expected from their side and very often it is unacceptable. Motivation only
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takes a form of material stimuli and in case of the dissatisfaction of one or both the sides; the
employee’s departure will not endanger the company operation.
Companies preferring the b) answer indicate their determination to inform their employees
about the company’s intentions. However the top management delegates this task to a lower
management level and does not expect any reaction from the employees. An initiative is
reacted to only when it occurs. The company does not create space for it in the form of
various kinds of motivations.
The c) answer suggests that the employees are informed about the company’s intentions.
Thereby the company opens up space for an initiative of its employees and can effectively use
it afterwards. However flatness of such campaign can lead to its formalism and eventual
stimuli do not represent sufficiently effective motivation.
The culture of companies answering with the d) option have allows the proper use of the
employees’ potential. The “bottom-up” initiative is important here. The possibility of active
participation on the company future formation creates preconditions for the use of motivation
factors and continuous building of the company culture.
Question 3:
The aim of this question is to find out whether the company is capable of thinking in an
innovating and conceptual manner. There is an intended connection with the Question 1.
Only companies dealing with the planning of its future activities can include innovations into
its long-term development goals. Companies selecting the c) or d) answers in the Question 3,
also need to select c) or d) option in the Question 1. Otherwise there is an obvious
incoherence requiring a further supplementing questions from the instructor.
The a) answer characterizes the situation of companies who do not take innovations into
account at all. It is most probable that they cannot even define them and if they carry them
out, they cannot appreciate their importance. At the same time, this answer indicates
postponing of the company’s future, beyond solution of present pressing issues.
The b) answer indicates company’s defensive position. Such companies probably live in
daily hectic and fear of future survival. The innovations represent such a far-fetched concept
for them that the company can start dealing with only after stabilizing its current situation.
If the company selects the c) answer, it probably understands innovations as a part of its other
activities. It does not make them an exception and does not pay sufficient attention to them.
For the purpose of a more remarkable future effect it also looks for other resources.
A company selecting the d) option is obviously a strong subject building up its future.
Existing strong and stabilized market position of the company should correspond with this
answer.
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Question 4
Replies to this question supplement the Question 2 hypothesis concerning the management
style in the company. The ability to influence the planning means having an effective system
of information transfer and feedbacks.
If the company answers a), it indicates a charismatic management model. Possible lack of
strategy in the company, that might have been mentioned earlier, corresponds with that fact.
The employees’ contribution is understood as their work performance. The responsibility is
centralized, decision-making is quick, and the current benefit stands above the long-term
trends.
The b) answer characterizes companies realizing the insufficiently developed information
feedbacks. The risk of changes and lack of means to control them causes rigidity of
processes, which can lead to the company’s losses. Inefficient transfer of information can be
often related to the low degree of the responsibility delegation to the employees and the linear
organization model.
The c) option indicates that the company is capable of reflecting its experience from previous
activities upon its future procedures. It means that there is a controlled flow of information in
the company and systematic work with them. So far the control processes are not forwardoriented, which leads to losses form the “process inertia”.
Company responding with the d) option is interested in minimizing of losses resulting from
the modified conditions of the project realisation or from being influenced by outer effects.
The control processes are set up for the forward-checks, which anticipates flat organizational
structures and employees’ self-discipline. The situation corresponds to conditions for the
company certification in the ISO 9000 system.
Question 5
The purpose of this question is to explore the depth and interconnection of the planning and
management processes in the company. The realisation of the company position and
development trends originates from the knowledge of one’s financial strength, risk assessment
and forming of means for their minimization.
The a) answer indicates the company’s tendency to take the risk. Therefore it can often get
into critical situations and is not always capable of using the acquired experience in the future
projects predictions. The company’s competitiveness and its future prognosis are uncertain.
Company selecting the b) option realizes the necessity of the company’s necessary
performance from the point of view of its safe future existence. In doing so, it learns from the
past development, given production costs and overhead costs. It tries to eliminate the risks
mostly by means of defensive strategies. Space for innovations are not consciously built up.
The c) option means that the company has instruments for the conscious influencing of its
future situation. It implies there is a space for the improvement of company output
parameters and innovations can be implemented for that purpose. Their preparation and
implementation is not thoroughly and purposefully monitored.
The d) response is given by companies which monitors beforehand the possibilities of the
increased company output. Innovation opportunities are one of their sources and therefore
they are incorporated into the development plans and projects.
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Question 6
The aim of this question is to find out whether the company looks into the purposefulness of
its process planning. At the same time, this creates the company’s preconditions to handle the
turbulent environment and identify and react to innovation impetuses from the outside.
The a) answer highlights the company’s unwillingness to increase its performance. The
planning processes rigidity is preferred. Changes are viewed as a disturbing element, with
which the company needs to deal. The risks of innovation initiatives are overestimated and a
careful attitude prevails in case of diverging from the direction outlined by the tradition and
experience. However the low willingness to take risks can be harmful.
The b) answer suggests that, considering the operational approach, the company creates an
environment of permanent changes. However their effectiveness can be doubted. If any
information leads to the innovation initiative, it is not a controlled process, but only a
regulated one. The intuitiveness of impact of such innovations brings along a high risk that
can even lead to the endangering of the company existence.
The companies applying the c) option are capable to regulate their activities and to identify
correctly important innovation impulses. The problem is that these impulses are suppressed
to the detriment of the current needs. Thereby the company loses time and sometimes even
resources, which can destabilise its market position.
The d) answer expresses forward-based thinking style of the company. Innovation
possibilities are looked for even before the project performance and therefore they can
considerably influence its course. “Thinking about tomorrow” maintains the company’s
competitiveness and strengthens its market position.
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B
MARKETING
Customer-orientation of the company
Modern marketing approaches are based on the customer’s priorities, his wishes and
satisfaction of his needs. Acclaimed authors of management theories from the second half of
the 1990s modify their originally “market-oriented” strategies into customer-oriented ones.
For example Porter makes a clear statement about this: “…It’s not the market that buys, but
the customers…”
For permanent success with customers, the companies must be able to meet both their present
and future requirements. It means continual innovations of products and services and at the
same time to be aware that besides purely technical product innovations the company must
purposefully pay attention to market development with the focus on a customer. Even the
most perfect product cannot be a source of income from sales and will not bring the
anticipated profit to the company if it cannot find its buyer.
Sensible and conceptual marketing strategy brings along many aspects, with the customer
being on the top of the list, but at the same time other attributes of the Porter’s model of five
forces of mezzo-environment:




Competition
Suppliers
Substitution products
Companies newly entering the market as potential competitors
Question 1:
Companies selecting the answer a) live mostly in the presence. Postponing of the major issue
- whether the company will be competitive and therefore alive in the future - as temporarily
unimportant, disables the company’s stabilization and turns it into an instrument of singlepurpose capital turnover with predicted effect. Innovation is neither topical nor too effective
for companies thinking in this manner.
The b) answer indicates that the company correctly anticipates that it is necessary to devote
efforts to the development of marketing activities. Lack of erudition in this field forms an
information barrier, overcoming of which is beyond the company’s abilities. Considering the
fact that obtaining information from the outside is expensive and the company hesitates to
spend its resources for that purpose, it can face the danger of future loss of its performance.
Without marketing information resources invested into innovation do not necessarily bring
the expected effect and the competitors will take over its market segment in the future
anyway. To these companies, thinking about their future development, it should be
recommended to make purposeful investments into the increasing knowledge of the
marketing.
The c) answer is given by companies who are still oriented on the market and its attributes.
This outdated approach brings along the risk that innovation activities will correspond to all
the facts from the market environment with the exception of the customers’ requirements and
it will fail to generate the anticipated growth in demand for the product from their side.
Innovation thinking focused on the product prevails in the company and innovations in other
processes inside the company are not deemed necessary. However sufficient access to
information provides a chance of overcoming the above-mentioned insufficiencies in the
company’s marketing activity.
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Companies selecting the d) answer are already at the stage when the marketing has penetrated
all the company’s activities and information provided by it powers the innovation changes in
the company. These companies have the predisposition to turn effectively the current
development trends into products that their customers demand and that therefore can secure
the returnability of resources invested into innovations.
Question 2:
The a) answer means that the company is focused on the topical problems of its current
existence. The competitive position is viewed as a fight for winning of a business case when
the business conditions are often modified without any planning and also “non-business”
means of influencing the customer are relied on.
Companies deciding for the b) answer follow their competitors’ activities on the market
always when the company is about to adopt a crucial decision that can influence its future
development. Without setting its future market position ambitions, the company becomes a
universal subject at the market, competing with all the existing competitors. Comparison with
incomparable competitors can lead to wrong decisions of the company management.
A company selecting the c) answer knows the competitors active in its market segment. The
situation here is so transparent that the company does not need to pay attention to systematic
evaluation of its market position. Potential new competitors entering this branch can
endanger such companies, as they have the power to destabilise the established balance.
Otherwise this answer is characteristic for “niche-oriented” companies and companies with a
certain degree of monopolistic position on the market.
The d) answer indicates company’s high degree of orientation on its markets. Suitably set
company organisation structure leaving sufficient space to employees active on the market
and bringing information about it into the company, forms a predisposition for that. This
information is further processed and therefore they can influence the company’s strategy
reflecting not just the current situation but also the future.
Question 3:
This question is related to the Question 4. Companies claiming adherence to the customerorientation cannot select the a), b) options in both these questions.
The answer a) means that the company believes into the success of its products so much that
it does not need to take the customers’ opinions into consideration. Deriving of the customers’
future needs and opinions carries along the risk of neglecting of some of the side factors of
the market environment that can influence the existing customer preferences to a considerable
degree.
Companies with the b) answer rely on the judgement and experience of their sales people who
estimate the future thinking and needs of the customers. Considering the fact that they are
mostly experts, their subjective opinion can be dangerous in that it underestimates the
customer’s taste and opinion. Enforcing of experts’ opinions can lead all the way to the
aggressive marketing that would discourage the customers rather then provide space for the
listening to their opinions and attitudes.
Companies selecting the c) answer deal with the customers’ opinions only when the customer
initiate that. The discussion with the customers is reflected in the product and services, but
meeting their needs is more demanding for the company, as the customised innovations mean
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an increase in the company’s expenses which, due to market environment, cannot be
compensated for by higher product price. Those companies whose customers are not too
sensitive to the price and whose products cannot be easily substituted usually adopt this
approach.
The d) answer represents company’s systematic approach in a fully competitive environment.
The company deals with satisfaction of future needs of its customers, what anticipates
developed and conceptual innovation activity in the company, where the innovation impulses
come from the customers.
Question 4:
As it has been already mentioned, this question develops the preceding question. Customer
reaction to a product is a change initiator eliminating wasting of the company’s resources and
increasing company’s prestige on the market.
The answer a) relies on passive customer reactions. The company follows a defensive strategy
to eliminate the customers’ negative response and to anticipate positive product acceptation
where the negative reaction is missing. If a company focused in this direction considers
possible innovations, those are based on the product and there is a risk of its acceptance by the
customers.
Companies dealing with the customers’ response to their products in a non-systematic manner
will choose the answer b). Information acquired in this way is limited and usually does not
render all the important circumstances of the customers’ decision-making processes.
Therefore all the response parameters need to be set in a such manner that the variability
would show only with monitored phenomenon, which is very difficult for companies that are
not narrowly profiled.
The necessity to confront the company’s decisions about its future activities with the
customers’ reaction is expressed in the c) answer. Introduction of a new product or decisions
about its development are the most frequented opportunity for such actions. Although this
kind of innovations saves resources invested into the pre-production product phase, limited
information can lead to erroneous conclusions concerning the prediction of the future
customers’ reactions.
Companies including innovations into their strategies select the answer d). The customers’
opinions are transferred into the company environment and further developed. Acting of
marketing managers as the information transfer mediators is not excluded. Thereby the
companies have sufficient information for their decision-making processes.
Question 5:
Companies selecting the a) answer admit that they do not pay enough attention to the transfer
of marketing information. These companies usually base on routine and practical experience
and set their planning according to them.
Companies giving the b) answer built on the know-how of their employees. However a
problem occurs when the specific employee leaves the company. Non-transferring of
information increases the value of the employee and results in the formation of pseudo-key
positions in the company.
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The c) option is based on the existence of the company information system. It is built/used on
the basic station level and mutual interconnection of the information flow inside the company
is not built/used. Slowdown of the marketing information flow then results in the delay of
the strategic plans creation, by their frequent corrections and modifications.
The d) answer means that the company has a properly implemented information system with
properly defined access rights for authorised employees. Preconditions for effective creation
of strategic plans in the company and sharing of innovation impulses inside and among the
individual company departments are created.
Question 6:
Companies that do not purposefully control their future position on the market usually do not
deal with planning of marketing activities. These companies find the a) suitable. Failing to
plan and monitor marketing costs can distort the economic result of a business case; the
generated gross margin will not be high enough to cover all the costs, including the marketing
ones. Thereby the company’s innovation potential is limited.
Companies whose marketing plan are done in writing but do not include detailed itemization
of costs, including the marketing costs, can encounter similar problem. In planning,
corresponding to the b) answer, the company faces the danger of uncontrolled development of
the overhead costs covering all the imprecise calculations in a cumulative manner. Price
development in such companies decreases their competitiveness with the customers.
Companies operating according to the c) option rely on proper definition of the planned
values. The reason for that can also be that the changes influencing the project will modify it
so much that the company manages to monitor only the partial changes and the final result
can be found out only after project completion. This system puts high demands on project
managers who very often need to take over personal responsibility for maintaining of the
planned indicators.
The d) answer is indirectly connected with the d) answer in Question 5. Only a company
with a functioning system of transfer of marketing information is capable to check the
company’s activities and compare them with the goals. As the company has instruments for
the control of economic results, it can generate resources for the financing of innovation
activities with regard to its future development and future ability to compete.
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KNOWLEDGE MANAGEMENT AND INNOVATIONS (COMMON INTRODUCTION FOR PARTS C, D)
The ability to understand and use the relation between the knowledge management and
innovation process gains ever more importance in the today’s global competitive
environment. Monitoring and analyses of the innovation knowledge management provide a
company with instructions for the adoption of practical steps for the improvement of its image
by overcoming traditional restraints concerning the innovations, formed by the culture and the
society development history. The knowledge management procedures are defined as
significant activities leading to business activities by application of research and development
results, building the bridges between the traditions and the future. The knowledge
management analysis is based on the knowledge type classification. This analysis is
characterized by the discussion whether tacit knowledge owned by an individual can be
effectively transformed into an explicit knowledge that can be shared in time and space, for
example in computer databases and networks. Such discussion is then focused on the whole
knowledge management system role in the process of forming and achieving of the
company’s competitive advantage.
On the other hand, innovation activities served for the creation of specific procedure that
distinctively differentiated between manners, in which individual companies engaged
knowledge in development of innovations. That predestines the dependence on the evolution
path that is determined by the accumulated knowledge and experience within the given
company culture, management style and setting of execution processes. From this point of
view, the path dependence is created in an inner cycle establishing certain subjects as
knowledge carriers that are obliged to share the understanding for the company and provide
standard procedures developing this knowledge.
These traditions are mutually compatible in many aspects. And of course they differ
substantially in the degree in which the company is on its way promising the new dimension
limited by the dependence on the content and focus of its knowledge base. The knowledge
management approaches are observable routines included into the knowledge development
and application. By introduction and improvement of these approaches the company can
realistically modify and develop its boundaries of innovation and open new business
opportunities. That is achieved by increasing the company’s ability to produce modifications
while using the existing practices and abilities as a platform for the research of new
opportunities.
The tangible base of the knowledge management enables discussion how to address effective
improvement of the company’s innovation potential with the goal of capturing the key
practices affecting its output. Output measurement is difficult to define both in the
knowledge management and in the innovation traditions. For example the tacit knowledge
dimensions are crucial for the innovation potential although they are the most difficult to
identify. Discovering the relations between the knowledge and the innovations by the means
of the knowledge management instruments offers to companies an opportunity to sharpen
their traditional innovation skills and open up new ways to business success.
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The knowledge management practices are regular repeatable activities applying the acquired
knowledge in some manner. They can be both formal and informal, in a traditional or
electronic form, initiated by people or the system. They include wide range of activities such
as:







Structuring and archiving of news concerning new technological processes
Publishing of research results on websites
Drawing of documents related to the science and development
Discussing new technological development on seminars and Internet
Sending of information via e-mail
News dissemination outside the project team
Monitoring of specialised magazines, patent reports and news in general that are
relevant to the technical competitiveness of the company
The main focus is concentrated on the contribution of knowledge management approaches to
new business opportunities. That takes places on three main levels:
1 Level of technologies
Knowledge of technologies used and developed inside the company as well as the
knowledge available from the research results of other companies.
2 Market level
Market-oriented knowledge means:

Customers requirements, their behaviour and market opportunities that can be
realised in the future
 Current offers and plans of competitors
 Regulating mechanisms and development standards influencing all the
participants
3 Company development level
Knowledge of internal administration, technical and control procedures by means of
which the company identifies and delivers its products and services.
The primary task of the knowledge management is something else than knowledge base
formation and description. For example, writing of technical reports is often required before
meeting the needs of the specific research topic concerning the project. The knowledge
management approaches including the process of innovations include a wide range of
activities, e.g. writing and publishing of technological reports, conclusions of the researchers
and mainly the use of information technologies. The management itself can focus on the
improvement of the innovation process performance using the following instruments:

The approaches are explicit and thereby they provide a tangible framework for
assistance to companies, which facilitates their response to the knowledge
management trends within the innovation processes.

Common features of the knowledge management approaches in various companies can
be identified and transferred further on.

Regular audits of the implemented knowledge management approaches can help to
extent and continuously improve practices supporting the execution of innovations.
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
Understanding of the role played by the knowledge management helps to shft the
successful companies from the track defined by the existing culture and technical
traditions of the company.
Management process of science and research
The knowledge management processes focused on innovations are required for the
development, maintenance, sharing and management of knowledge and experience obtained
from science and research, for example in widely descriptive outputs of the project reports.
The science and research management activities can be also applied in the knowledge
management approaches to support the sharing of information for the purpose of the
multidisciplinary innovations. These practices take their roots in the practices of the science
and research and they are traditionally represented by the researchers and their both formal
and informal abilities to communicate.
Examples of such orientation:

“Brief technical reports” formulated so that they would raise non-technical attention
are compiled and disseminated by the science and research team members.

Some companies open up positions of stewards monitoring the technologies,
customers and competitor (“gatekeepers”) for the purpose of the database updating,
answering of problematic questions, dissemination of thematically focused analyses,
evaluating reports and other information relevant for their responsibilities.

A company participating in many extensive projects and whose teams are dissolved
after fulfilling its tasks, have a considerable number of science and research employees
whose primary responsibility is to analyze the experience acquired in the projects; the
output then can take form of an exhaustive report about the project published after its
completion. The feedback based on the results of such analyses can be used for the
updating of the current practice by means of manuals, modifying proposals and other
forms of publication.

Personnel from other departments, also working on the science and development
projects, is located on the same premises so that the project dynamics and its
implementation effectiveness would be secured.

Overview of the results of activities, focused on the science and research contribution
to the overall strategic line of the company, is published regularly.

Field research, carried-out in the company, provides a picture of broader horizons of
every project in the technical, business and decision-making dimensions. These
resources are then well used in preparations of feasibility studies, the output of which
is targeted on the updating of actions in the field.
Mapping of knowledge relations
This issue is related to the co-ordination of the internal and external possibilities of science
and research, intra-company relations and market requirements. That often requires the
disciplinary extension of the company organization margins using the “possibilities maps”
identifying their location within the company knowledge base, its skills supported by its
equipment and services. This type of activities is particularly important in relation to
innovations at the time when many organizational, market or technical changes take place. In
the course of such changes it is usual that many important data about the customers,
competitors and market segments can occur within the company without any relation to the
particular department or project.
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Examples of the knowledge mapping relations:

According to the internal departments requirements, that are potential clients, the
technological portfolio of science and research is mapped. In a similar way, a product
portfolio is mapped in accordance with trends at the final users markets.

User studies leading to the identification of the promising product characteristics and
market segments are drawn by science and research departments employees together
with the production division while using the application approach techniques
(ergonomics, engineering methods etc.)

Formal discussion groups are formed, in which the knowledge approach issues are
interpreted in order to generate new ideas, solutions and approaches.

A support team, being in a close contact with external standards and bodies with the
decision-making powers, provides a valuable source of information concerning the
existing and potential external development within the company.

There are control meeting focused on specific issues and skills and their connection to
the requirements resulting from the process.

New scientific, technical and commercial ideas are introduced into the company audit
systems in order to shorten the duration of the decision-making procedures.

Key conclusions reflected in the company strategies are regularly generated by expert
committees prepared and chaired by the company, in which top experts from all the
company scopes of activities take part.
Human resources management in science and research
The knowledge management focusing on the innovation development must treat the issue of
motivating and rewarding of employees dealing with science and research. The aim of the
motivation is to activate the process of knowledge sharing and the development of
interdisciplinary qualifications. That is closely connected to the human resources management
policy concerning the career growth, increasing of expert knowledge inside the company but
only with partial focus on skills deepening the company’s innovation potential by means of
knowledge sharing and development of multidisciplinary experience.
Examples of the human resources management innovation:

The employees of science and research departments are temporarily (for 6 months)
transferred to production departments. This is deemed to be a precondition for a career
growth as well as looking for and exchange of knowledge of various origin.

Science and research departments’ employees provide consultations to individual
divisions inside the company where the inquiries and complaints are solved as well.
The arising issues are recorded, what strengthens the feedback between the market and
external environment and helps to support the reputation of high expert level of the
division.

The department management prepares a skill matrix revealing the fields in which the
individual employees are experts. Their skills can be registered and used in training of
new employees and also the project managers can use them when forming a team.

Scientific employees in the company are publicly awarded for their contributions and
merits influencing the project course.
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
The results and conclusions of scientific and research activities inside the company are
presented on the intranet and email easily accessible for the company management and
employees from various fields of the company activities with the purpose to increase
the general expert qualification of the management and the employees and provide
them with quick source of information.
Management of the company’s intellectual potential
Company’s intellectual potential related to the change and innovation are those employees
who contribute to common knowledge base in order to improve the results of science and
research and thereby of the business itself. This statement expresses the fact that the
employees forming the company’s intellectual property are diverging from their traditional
role, in which they were expected to develop patents and instructions for their application. In
the knowledge management the task of this group is focusing on the influencing of science
and research activities during the project flow through the organization.
Examples of the focus of the company’s intellectual potential on innovations:

Narrow cooperation between science and research employees and experts from the
application field allows good level of awareness and interpretation relating to the
competitors’ patent strategy. Thereby the “suggestion freedom” field available for
emerging technological ideas is defined.

Company’s specialists help to formulate alternative solutions and procedures; further
on, they help to predict obstacles and gaps that can become barriers in the business use
of innovations. The management is informed about the results on running basis.

“Process Prior Art” means preparation of feasibility studies based on the company’s
intellectual potential evaluation and evaluation of other related information.

The company looks for data about the competitors’ intellectual potential, particularly
with regard to the current development

In case of intended acquisition or forming an alliance with another company, priority
attention is paid to the identification of opportunities resulting from the intellectual
property of the analyzed company.

The task of the members of the team is to search in the field of the patent and license
strategies of the company and its external competitors.
Management of information technologies
The current rapid development of information and communication technologies offers
opportunity to transform the information management activities, such as access to databases
and publishing of news influencing the work of the other company’s structures.
Communication technologies within the knowledge management approaches trigger the
creation or modification of the knowledge management approaches. The significant current
growth in the multidisciplinarity of science and research and the electronically supported
formation of virtual project teams for science and development have caused that the
information management specialists are turning their attention to applications, quick diffusion
and sophistication of communication technologies into activities related to the change
management.
Examples of the information technologies management activities:
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
Allowing controlled external access for the customers and external company science
and research co-workers in order to identify and accelerate the key development
activities in the monitored fields.

Forming of “virtual teams” producing innovative solutions.

Definition of address space for the provision of “navigation by means of information”
that is important for the management particularly in the early project stages.

Introduction of web-research, so called “white pages” on the intranet.

Extension of the applicability within the company with an interface allowing to share
of information both in the organizational structures and towards the customers.
The above -given five areas describe the knowledge management approaches. Some
approaches overlap over more than just one of the given fields, however understanding the
main innovation aspects means proper evaluation of their contribution and importance. This
classification is based on ideas arising from many discussions over the feasibility studies.
Therefore they cannot be deemed fixed and clearly defined categories unsusceptible to any
further development.
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C
TECHNOLOGICAL PROCESS
Question 1:
Question 1 relates to Question 6. The combination of the a), b) answers in the Question 1
and c) and d) answers in the Question 6, or the other way around, the combination of the c),
d) answers in the Question 1 and a), b) answers in the Question 6, should not occur.
Companies thinking that they do not have sufficient means and capacities for continuous
monitoring of new technologies in their scope of activities shall select the answer a). Thereby
they express that they do not pay much attention to their future competitiveness. They do not
view the company’s future fate as its weak point and the competitors’ progress as potential
danger. The future of such companies is very uncertain and innovation strategies should be
evaluated having this in mind.
Companies whose policy is characterized by the b) option rely on the creative skills and
imitating improvisation of their employees, who use them in case of the customer’s
dissatisfaction with the existing solution. Today the open markets successfully eliminate this
approach.
Answer c) is characteristic for companies wanting to maintain their competitiveness while
keeping the costs as low as possible exercise indirect pressure, usually in the form of financial
motivation, on the creative employees to monitor the development in their field on their own.
The lack of connection between the creative employees and other activities inside the
company (particularly in marketing and logistics) often results in narrow focus on the product
innovation, which later on cannot find its place at the market for reasons unclear to the
company.
The d) answer indicates there is an information flow feedback in the company. The company
can appreciate the findings about new technologies for its future competitiveness and, thanks
to the company management initiative, the information is further on available to other
company employees as a source of innovative ideas.
Question 2
Question 2 and 3 should be mutually corresponding: a), b) answers in Question 2 are
incompatible with the c), d) answers in Question 3 and vice versa.
The a) answer will be given either by companies in the “development” stage, i.e. newly
established companies with a new technology or by companies that are afraid of thinking
about the risks and benefits of changes. In either case, the company expressing in such a way
its self-satisfaction and unconcern about its future development is endangered in today's
turbulent environment.
The environment pressure translates into the answer b). Such companies passively adapt to
outer pressure and the company views modifications of familiar technologies as necessary
evil or as hectic situation that the company needs to handle operatively.
The answer c) admits planned procedure for the introduction of technology changes. Changes,
which are introduced according to the plan, are considered favorable and useful, however
their specific impact and effect on the company is not evaluated and thereby space for the
creation of new changes, coming from within the company, is not formed.
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The d) answer expresses the interconnection of change processes in the company. Functional
feedback is set so that change processes can be monitored and evaluated. The change
processes in companies selecting this answer tend to be continuous and therefore they can
considerably support company’s future competitiveness.
Question 3
The answer a) is selected by companies who do are not prone to the change processes in their
business internal environment. The failure to follow the tendencies and development trends
for whatever reason contradicts a claim about the company’s middle-term planning and
strategic conception (PART A, Question 1, Answer d); Question 3, Answer c), Answer d)).
By the b) answer, the company admits non-systematic processing of change impulses.
Valuable initiatives inside the company can be neglected. The impulse promotion often
depends of its bearer’s charisma and interpersonal relations in the company, which in general
can deform the change processes.
Although the c) answer expresses systematic work with the innovation ideas in the company,
their development still depends on the human factor too much. The company assigns the issue
of change processes to the field of science and research that is separated from the application
activities. So the science and research employees then initiate the change processes and they
also set the changes priorities based on their own professional experience. This specific point
of view can then affect the effectiveness of the carried-out change.
The d) answer anticipates comprehensive approach to the collection of change ideas and their
further processing. Team approach plays a key role, as it allows the impulse evaluation from
various points of views. Therefore, also “non-technical” and “non-economic” advantages can
be appreciated and it corresponds to the latest theories of the innovation approaches (Balanced
Score Card).
Question 4:
The a) answer will be chosen by those companies that either do not plan any changes in the
company or it is more important to them to introduce the change formally without dealing
with its profitability (as an example we can mention a process of certification, when
performing of a change is a priority).
The answer b) implies that the company does not use project management approach (see
PART A, Question 6). If the company does not actively control the implemented change
profitability, then the change does not need to have an effect on the improved competitive
position of the company, although formally this process is progressive.
The answer c) means that the company applies the financial management tools to the change
processes in the company. Management of such processes/project allows timely response to
occurring divergences from the predicted results.
Companies assessing the investment profitability of the planned changes according to the d)
option are besides that capable to draw scenarios of future opportunities and to control
economic effects in accordance with the current development of the company’s internal and
external environment. That cuts the company’s response time to the change of the
environment and further decreases risks accompanying the implemented change.
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Question 5:
Production cost monitoring in the company indicates the degree of the mastering of
technological skills inside the company.
The a) response expresses that the company prefers the physical effect of its activity, that is
usually embodied in the product, to its business purpose. The estimates of future production
costs based on the analogies with the past usually leads to disproportionate increase of
production costs and thereby to the decrease of achievable margins, which as a final
consequence leads to the lack of resources for the company’s innovation activity.
In its final result, the b) answer leads to the same effect as the a) answer. Better applied
methodology of the production cost calculation decreases the uncertainty of the estimate of
their real amount and it can be close to the actual cost in the case of an ideal project course.
Without feedback there is a danger that the calculation correctness will be questioned and
therefore there can be a pressure from below to soften the criteria serving as the calculation
base. As a final consequence, it decreases the company performance and leads to lagging
behind its competitors.
The c) answer indicates the existence of the methodology for the determination of production
costs. Costs are estimated according to it, but the final result may differ from the anticipated
one. The analysis then shows whether the cause is in the methodology or in unpredictable
circumstances. If an error is identified in the production costs calculation methodology, the
company can correct it so that the error does not accumulate in further projects. The
disadvantage is that the company cannot define its production costs with a higher degree of
reliability and therefore needs some back-up reserves increasing the price or decreasing the
profit respectively.
In accordance with the d) answer, dynamic intervention into the company’s internal
standards, serving as a base for the performed production costs calculations, is possible. The
project management approach then allows to transfer the observed divergences into the inputs
and to optimize the project course. If the companies managing their production costs
according to this approach focus on the monitoring of progressive indicators (profitability,
gross margin, strategic price, added value, productivity per employee etc.), they have the
predisposition to generate resources for their innovation activities at least comparable with
their competitors.
Question 6:
In relation to the answer to Question 1, it is probable that a company selecting the a) answer
must be willing to accept the fact that in future its activities will not be effective compared
with its competitors and that it will have to re-evaluate its business program, or accept a fully
defensive strategy.
Companies selecting the b) answer have already today started up defensive strategies of their
future development. It is not necessary to make it particularly clear that the process of
economic globalization will create competition even in traditional niches, where the focusing
strategy used to be relatively safe.
The c) option shows that the company properly understands the necessity of generating
resources for its development and so far it lacks the ranking of priorities that it needs to
support from its own resources and of priorities depending of other resources.
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The d) answer expresses the conceptual approach to innovation processes in the company.
The development forms a part of the company’s budget and the company does not rely only
on “convenient” external purpose resources. Such a company with a clear conception, set
priorities of its development activities and being able to manage the spent resources
effectively has a bigger chance of acquiring other convenient resources increasing its output
performance.
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D
QUALITY, ENVIRONEMENT
Areas concerning quality and environment represent an inseparable part of processes planned
and then performed inside the company. The demands placed by these areas on a company are
today relatively clearly defined by a system of international standards and regulations. The
compliance with them means establishment of demanding organizational processes and
related financial costs for the company; on the other hand, the implementation of these
processes helps to take the company on a higher-output-track and it also makes the company
to b more comprehensible to its partners.
Question 1:
The a) answer is given by companies considering their technological and organizational
processes stable and unchangeable. At the same time they do not deal with the issue whether
these processes are optimally set and whether their structure will be sufficient in the future as
well. If the have ever solved quality related issues, then they understood it only as a single-use
matter, to which it is not necessary to return once it has been settled.
Companies selecting the b) answer respect the importance of standards however they do not
understand them comprehensively and their application is limited to separately solved
problems. Such solutions take into account particularly the technical approach. The
organizational part is often suppressed whereby the final effect is limited.
In accordance with the c) answer the companies are forced to think about the future state of
their processes. Thereby they obtain ideas for the implementation of changes and innovations
in a more comprehensive framework. These changes and innovations are driven by
requirements that the company will have to be able to meet in order to maintain its market
position.
Companies having a more distinctive position at the market (monopoly, niche companies
supplying to strong companies, industry leaders, etc.) will give the answer d). Their market
position is so strong that they can partially influence the process of change. The innovations
are outlined with regard to the future situation and considering the company’s situation they
are necessary in order to defend its future position.
Question 2:
The a) answer is selected by companies that still have not abandoned the concept of collective
responsibility for their product and service quality. This responsibility results from the linear
management structure in the company and restriction of the employees’ mandate to corepresent its contribution to the company’s final product.
The b) answer characterizes companies where formalism prevails in the work processes
organization. A direct superior is responsible for the compliance with the required quality
parameters, however he bears the responsibility only in a case of severe violation of the
established procedures influencing the final quality of the product/ service. Overlooking of
minor defects gradually weakens other initiatives leading to continual improvement and
innovations.
Companies identifying themselves with the c) answer are prepared for the introduction of the
certified quality management system. The individual contribution of employees to the quality
assurance in the company is also appreciated from the point of view of long-term trends,
which is reflected in the build-up of the company culture.
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The d) answer means that the company has introduced the certified quality management
system and follows it. The risk for these companies is in becoming frozen in the state of the
mere meeting of the certification conditions without any further development or enriching of
this system. Formalism, that can then prevail in the company, will shift it closer to the b)
answer to this question. However if efficient external audits are implemented in the company
(particularly from the customers’ side), which is expressed in Question 3, answer d), the
company then does not have much space for this potential freezing in the quality monitoring
performance.
Question 3:
The answer a) expresses that within its business activities the company bases its customer
satisfaction on meeting of conditions governed by the concluded business contract.
The answer b) includes growing pressure on the company from the side of its partners and
customers who already use or in the future intend to use the TQM system. The company
realizes that it needs to plan its future survival according to that and to prepare corresponding
changes.
The c) answer characterizes companies that are monopolistic suppliers of large renowned
companies, which identify the quality and precision of the supplies by means of external
audits (e.g. automotive industry). The customer audits force the company to consider
improvements and changes. Beside that they are useful for the company by enriching the
company’s strategy with a customer approach.
Companies acting in accordance with the d) answer are parts of an industrial chain, where
they need to defend their position against competition. Resources invested by the company in
the relevant audits are compensated by prevention of losses which could occur as a result of a
failure to maintain the quality standards. Moreover, audit findings can give impulses to many
innovation ideas.
Question 4:
This question is further developed in the Question 6. Companies admitting behavior
according to the ISO 14000 system in answers c), d) cannot give answers a), b) in Question
6.
Only a company whose activity does not influence the environment can consider the answer
a). Majority of industrial activities is subject to control activities of the state administration
bodies and under the threat of sanctions the companies are forced to derive internal
responsibility for the environmental impact of its activities.
The b) answer expresses the case when the company needs to meet the regulations prescribed
and controlled by the state administration. The aim of the company’s activities is to avoid
sanctions resulting from failing to meet requirements defined by the regulations and
monitored by the relevant bodies. If the company needs to spend any resources, then they are
planned on the minimum necessary level and targeted on satisfying of the current needs of the
state legislation.
By the c) answer the company claims to have managed the environmental protection issue in
a comprehensive manner specified by an internationally applicable certificate. This standard
already includes the requirements of the company’s environmental impact monitoring. Again
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it depends on the company’s consideration, or pressures it is exposed to respectively, how it is
going to handle the findings received in this manner.
Beside the above-stated facts the d) answer includes the company’s active approach to the
development of activities related to the environmental protection. These activities presented in
a suitable manner in the media can improve the company’s image and establish trust between
the company and environmental activities, which supports prospective development for the
company.
Question 5
Companies showing their adherence to the certified quality management system by selecting
the d) answer in the Question 2, answer d) in Question 3 and answers c), d) in the Question
4, cannot pick the answer a). This answer could be found with companies choosing the a), b)
options in the Question 2. Either way the company uses the customer’s low quality tolerance,
which is probably related to the low price of the product/service.
The b) answer characterizes imperfect interconnection of the information transfer in the
company. Information acquired from the quality monitoring is transferred only on the
product level where it also can be a source of innovation ideas. Other level that can inspire
new ideas in the fields of organization and logistics in the company cannot be directly
influenced by this information.
The c) answer expresses comprehensive connection between the quality monitoring and
innovation processes in the company. Companies in this category meet the “learning
organization” rules and from the marketing strategy point of view they correspond to the
model “to be the best in the fields of costs and quality”.
Companies holding the quality system certificate will select the d) answer. Moreover, this
category means extended the customer approach whereby the triggered innovation initiatives
are topically focused on the customer’s future needs and help to increase the process
effectiveness in the company.
Question 6:
As it was mentioned earlier (Question 4), the selection of the a) answer means that the
company solves its current problems as a priority and future threats do not seem to be so
important compared to the present problems. Under these conditions, the innovation potential
development can be hardly considered.
The b) answer is selected by companies who follow the development of legislation and
standards but they accommodate to them passively with the intention of meeting them but
without any effort to turn their content into potential opportunities.
The c) answer implies the company’s active approach to the compliance with legislation
development in the field of quality and environmental protection. Thereby the company opens
space for the identification of the innovation ideas resulting from the given trends.
To a large degree the answer d) corresponds to the answer c). The difference is that
companies selecting this answer also follow international development trends and can find
inspiration in leading international companies. Thereby they consciously take up the role of
an imitator, or even a challenger, and therefore they naturally need to plan their future and
develop their innovation potential.
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E
LOGISTICS (PURCHASE, DISTRIBUTION, OUTSOURCING)
Company transformation management
Transformation change, change in the long-term strategic plan, company transformation are
concepts often used by the modern strategic management to describe the company’s way to
higher output.
All the concepts related to transformation or change are very close to the theory and practice
of the innovation processes. It is known that the innovation activities cannot be related just to
the technical projects. Every planned change in the business plan structure leading to the
output increase can represent an innovation. J.A. Schumpeter pointed that out already in the
1920s and he also defined two conditions for a successful innovation:
 Successful innovation is an accomplished change
 Businessman, who can identify an opportunity for higher profit from the innovation
activity, represents the decisive power for the innovation performance
Modern authors such as P.F. Drucker, T.J. Peters or Czech Z. Pitra have described more
precisely the importance of innovation change for winning a better competing position and
opportunity to improve the internal factors in the company’s strategy that can lead to the
company’s positive change. The transformation changes can be subdivided (e.g. J. Jirásek)
into three categories:
Project parameters
Incremental changes
time
Project parameters
Transitional changes
time
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Project parameters
Transformation changes
time
Fig. E.1. Categories of innovation changes

Incremental changes
Principle of permanent small improvements. In practice those can be, for example,
sophisticated procedures of the “Kaizen“ Japanese type or common improvement
proposals.

Transitional (jump) changes
Every company wants to propose such a major change of the business that will restructure
the product range or the process strategy. This procedure must take into account
considerable use of resources and higher risk of failing to achieve the anticipated aim.

Transformation changes
It is a combination of the two preceding principle: the continuous changes prepare the
transitional change.
It appears that the transformation change can be the most economical and the least risky one.
The current view of the innovation and transformation projects shows that it is not necessary
to divide the innovations into product, process and managerial innovations, as every project
contains all the mentioned components.
Factors of the innovation projects success
 Innovation opportunity
P.F. Drucker and other authors write that innovation opportunity is not only about the
planned results of technical development, but also about the consequences of the evaluated
marketing research, innovation benchmarking, impulses from the evaluated differences and
unexpected events in the development processes.
 Innovation processes
It is absolutely necessary to harmonize the long-term strategic development with the
necessary innovation intentions, including a well thought-over allocation of resources.
There is an order to the process of innovations – from the idea to the intention, project and
its business evaluation.
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 Marketing strategy supporting the innovation processes
It is important to decide, to which market segment the innovation strategies results will be
introduced (existing, stabilized or new market). Then, with regard to the marketing
research results, it is possible to choose cautious strategies of various types - technological
development or development of new products within the existing generation or a product
of a brand-new generation with high development costs.
Transformation changes that have been implemented by the majority of innovating companies
show that there exists a set of conditions for the project to be successful:
 United company management team lead by the highest representative of the organizational
structure
 Make investments only into products or processes with high level of parameters and utility
value required by the market
 The whole team of the company employees must participate in the project implementation
by means of consent with a prepared vision supported by a set of motivation factors or the
overall company culture
Basic purpose of reengineering
Process – set of activities in the company practice that from a system point of view transform
inputs into outputs.
Radical change of processes – fully unconventional destruction of the existing procedures
Measurement of effects of changes on the re-evaluated processes - it is always important
to evaluate the benefits that the customer will experience. A good reengineering project
substantially improves the process/product parameters (costs, product quality, performance,
service quality)
How processes are re-evaluated:







Integration of activities, responsibility of the project manager for a business case as a
whole
Concentration of responsibilities in the vertical direction of the organizational structure
(an employee’s responsibility)
Activities in the process must follow in a natural chronological sequence
Activity is carried out regardless of the existing organization structure and it is performed
where it is the most effective
Control processes are minimized with the aim of the costs cutting
Number of places in the company having contact with external environment is minimized
Use of centralized and decentralized management is optimised with the purpose of
reaching of maximum effectiveness
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-RESOURCES
-SUPPLIERS
INPUTS
PROCESS
OUTPUT
CUSTOMER
VALUE FOR
CUSTOMER
MEASURED BY
VALUE METRICS
-PROJECT COSTS
-PRODUCT QUALITY
-SERVICES
-TIME TO DELIVERY
Fig. E.2. Process management diagram
Introduction of the reengineering principles
Integration is the decisive issue in the reengineering management. Simple tasks for specialists
are rejected. The reengineering team can integrate many tasks into the performed process –
effectiveness and speed are the results. Customer and his requirements and the suppliers have
to be integrated into the company processes.
Recommended procedures for reengineering start-up:

It is obvious that it will not be possible to build up the new management style without
long-term vision and goals resulting from it

Detailed version of the organizational structure can be worked out only after drawing a
new map of processes re-evaluated by reengineering
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MARKET
Communication with customer
CUSTOMER
Idea
Development
Production
Strategy
Strategy
development
development
Product
Product
development
development
Design
Design
modification
modification
according
according++
customer‘s
customer‘s
requirements
requirements
Product
Product
delivery
delivery
Development of production capacities
Fig. E.3. Example of process map
Work on the process map must observe the following rules:




Elimination of redundant and duplicate activities
Precise specification and evaluation of effectiveness of activities
Elimination of all company activities that can be effectively outsourced
Processes must include and respect the closeness and the decisive influence of the
customer
Majority of the performed restructurisations of this type include:




Major restructuring of the marketing and sales activities
Major changes in the sales manager responsibilities for the whole development
sales process
New system of material purchase and sub-supplies based on the strategic sourcing
principles
Restructuring of manufacturing units to centres, which can be operated with minimum
costs
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Reengineering and implementation of the long-term strategic goal
Reengineering methods described in literature often raise outrage with their prognosis of
expected success. However, as it was already mentioned, it is a new, additional view of
organization activities as a part of the strategic management. Therefore it is necessary to
describe how these principles can be included among the traditional strategic management
procedures.

It is obvious that nothing changes about the necessity to prepare a long-term vision of the
company development and definition of long-term goals. Basic strategy for their
achievement is also defined.

The vision is confronted with the environment and an optimal strategy is looked for by
strategic analysis methods

The strategic development plan have to be based on a thoroughly worked-out
development innovation plan that is a core of the company’s transformation change.
Strategic analysis shows that this program is compatible with the environment.

The reengineering methods, which identify the process map for the most effective
program implementation and management in the company practice, can be used during
the implementation stage.

Then the organization structure must respect the basic strategy adopted for the program
implementation and also the process map created by means of the reengineering

On the basis of such a supplemented vision it is necessary to build the company culture
respecting the process management rules.

Newly created team of company managers, which has prepared and put through the whole
program including the new management style, also have to comply with the newly
established implementation rules.

Tasks for the company transformation must contain both the short-time, quick measures
and mainly the decisive project of long-term, i.e. strategic measures.
Process management implementation is both time- and money-consuming process. The
implementation process is sometimes described as the “3R“ method:

Rethinking (new meaning and new purpose of work on the product – new company
culture)
Initiation of a new company culture. Its aim is to teach the company team to think in the
process manner, re-evaluate the existing focus of the company’s work. Beside others, it
also means educating the employees about the new approaches and improving of the
company’s human resources.

Redefinition (re-evaluation of the whole company management model)
- Define new critical factors of success
- Perform major and radical company restructuring
- Create a new process map of the company
- Define new company strategy
- Base new organizational architecture
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
Redesign (redesigning of all processes)
Creation of maximum value for the customer is the basic point of view:
-
Elimination of redundant an duplicate activities
-
Addition of missing activities
-
Innovation of activities performed in an ineffective manner
-
Effective arrangement of the process architecture
-
Outsourcing
-
Integration of suppliers into the production process
-
Customer integration
Based on these ideas it is possible to conclude that the new thinking leading to the process
management cannot be viewed as either an omnipotent or fashionable direction. It appears
that it is a way of thinking started up by the project management authors and it had to come as
a logical result. Therefore it is necessary to apply and use these methods in all prepared
development intentions and definitely in projects considering the restructuring of Czech
companies and their transition to a change path leading to higher output.
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Question 1:
Question 1 is related to the following Question 4. If the company considers it too risky to
optimise its supply and distribution channels, then it also have to admit that its logistic
processes are not flexible. If the a) or b) option has been selected in the Question 1, then
there cannot be any other answer then a) or b) in the Question 4.
The a) answer will be given by a company that has no systemically maintained database of
suppliers and uses proven distribution channels. Such a company usually does not have an
overview of its logistics costs compared to its competitors. The dependence on suppliers and
distributors puts the company into an unfavourable bargaining position for the negotiation of
conditions modifications.
The b) answer implies a very time- and resources-consuming process. The company needs to
prepare the tender, invite the companies and then evaluate their offers. In case of insufficient
amount of time for the decision the choice does not need to be the optimum one. The
company does not evaluate its distribution channels and therefore cannot compare their
effectiveness. It considers then unchangeable.
Company selecting the c) answer has a functional database of suppliers and distributors and
can evaluate their effectiveness. However it is not forced to compare its processes form the
costs point of view and therefore it does not carry out the outsourcing.
The d) answer can be given by a company that has an established flat organizational structure
and functioning database-oriented information system. Therefore the management has enough
information to evaluate its competitive position and decrease the costs attained in the
technological processes. It can proceed in a similar way when monitoring the flow of goods
trough the distribution channel.
Question 2:
Question 2 is related to the below-given Question 6 as the logistics processes optimisation in
the company is closely connected to the value analysis of the innovations share in the
logistics. Also here should be the harmony of answers, i.e. if the a), b) answers are chosen in
the Question 2 then the c), d) answers cannot be chosen in the Question 6.
The a) answer implies disharmony in coordination of individual activities in the company’s
logistics. If the company does not achieve the synergy of the logistics activities, then it
cannot reach the optimum effect.
A company selecting the b) answer as the most suitable one expects coordination and final
evaluation of the acquired information by the management. This approach is characteristic for
companies with prevailing linear organizational structure and without properly functioning
information system.
The c) answer anticipates functioning company information system; the persisting linear
organizational structure does not allow the delegation of power to monitor the effectiveness of
selected solutions outside the management level in the company.
The d) answer is typical for process-oriented companies with flat organizational structures.
Functioning information system is the backbone of the communication and the employees
have sufficient powers to perform solution optimisation and bear responsibility for that.
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Question 3:
According to the a) answer the company acts as a closed unit. Such companies usually
consider all the information concerning their internal environment to be their know-how and
therefore they are usually not willing to communicate with their partners too much.
In the b) answer the company leads a dialogue with partners only in case of solving of
difficult situations. These companies base their communication on properly prepared business
contracts, in which the conditions of mutual communication are settled.
In the c) answer the company allows informal communication with its partners trough the
marketing employees. They are responsible for the transfer of information into the company
and their undistorted form.
Process maps formation ranks among the basic phenomena of the process management. In
these maps the company partners are directly included into the company’s information system
and thereby they participate on the product’s final effectiveness. This approach is described
by the d) answer.
Question 4:
The a) answer will be selected by the company that find the a) or b) answers the most suitable
in the Question 1. Lack of information on logistics in the company naturally increases the risk
of decision-making above the acceptable level, which appears by unwillingness to change the
familiar ways.
The b) answer to a large degree corresponds to the answer b) in Question 1. The increased
riskiness of the adopted decisions is mainly caused by the lack of time to perform expert
analyses.
Company according to the c) answer is capable to manage the risk analyses of its decisions in
timely manner and as a result of that to carry out operational changes in its logistics. The
precondition for it is the existence of a properly adjusted system of the information transfer.
However, the company´s ability to perform changes is limited by the financial resources spent
by the company on the change performance.
Company selecting the d) answer is fully established in the present turbulent environment. It
views the changes of its environment as a challenge for operational changes, among other
things in the logistics as well, that are based on learning about the risks of these changes and
professional approach to their management.
Question 5:
This question finds out if the company considers change of its current logistics practices in
the future.
According to the a) answer the company intends to adhere to its existing logistic contacts.
This attitude is affordable only if the company is a part of an industrial chain for a product
having exclusive position on the market. In other case the company faces the risk of losing its
future ability to compete.
In the b) answer the company takes a non-systematic and passive attitude towards innovation
in logistics. It relies on the initiative of its employees who, however, do not have the mandate
for systematic activity in this field. The evaluation of the usefulness of the innovation ideas is
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in the company management’s hands; if there is no response to the employees‘ initiatives in
the company, it is logical that within time it will vanish.
Active approach to work with the innovation ideas is contained in the c) answer. Company
employees who work with the innovation ideas further on in the company are considered
“entrance gate“ of the innovation information.
Compared to the c) answer, the d) answer is extended by including of the innovation impulses
from the external environment, by means of the company partners that are part of the process
structure in the company.
Question 6:
Company not devoting too much space to the logistics issues in its activities will select
answer a). The company relies on the fact that if any innovation is implemented in this area, it
will reflect upon the overall company indicators.
The company with the b) answer has the opportunity to monitor the contribution of the
innovations adopted in logistics in its bookkeeping system. However, that is possible only
after some closing date, i.e. without the opportunity to exercise active influence on the
innovation implementation.
The c) answer means that the company is capable of flexible monitoring of the innovation
implementation in the logistics. Moreover there is a possibility of benchmarking with the
competition and thereby creating of effective feedback for the effective process management
in the company.
The d) answer contains everything from the preceding c) answer, moreover it indicates the
penetration of the logistic processes innovations into the company strategy; at the same time it
anticipates that the company needs to perform active outsourcing. All these activities are
customer-oriented.
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F
ORGANIZATION AND HUMAN RESOURCES
Company culture
Current management very often strongly emphasizes social responsibility, ethics and culture.
The business subject exists in the environment having its social characteristics. The hard-line
economic relation to the outer environment is not evermore tolerable in the developed
economies. That should translate into the conception of the company mission or its strategic
intention. Therefore many companies apply so-called social audit. It evaluates social
consequences of the company’s economic activity or its strategic intention. The company uses
the results of such evaluation for the creation of the company image.
Internal company culture is another important aspect. How can we define the concept of
culture?
Social anthropologists define culture as: „Culture comprises inherited artifacts, goods,
technical processes, ideas, habits and values.“ (Bronislaw Malinowski) or: „The humankind
is in reality bound together by culture – shared ideas and standards.“ (Ruth Benedict). In
defining the company culture, the majority of authors agree on a set of shared ideas and goals
forming the standards that can influence the behaviour of individuals and groups in a
substantial and decisive manner. From a systemic point of view on the culture features, its
efficiency can be illustrated by Fig.6.1.
Culture
Company stategy
Motivation
Obr.6.1. Úcinnost kultury firmy
Standards can include opinions on what approaches and modes of behaviour are appropriate
or inappropriate and also more socially formed standards helping to interpret and evaluate the
behaviour.
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Long
Longterm
termgoals/mission
goals/mission
(Why?)
(Why?)
Strategy/Objectives
Strategy/Objectives
(What?)
(What?)
Operation
Operationstrategy
strategy
(How?)
(How?)
Fig. F.2. Process of formation of standards
The standards can differ in two important aspects - intensity and consensus. Strong culture is
characterized by a high degree of the standards impact and high degree of consensus. If there
is a high degree of consensus but low degree of the standards impact, the mission is often not
achieved. If the degree of the standards impact is high but the degree of consensus is low,
conflicts often occur more easily. Low degree of both the factors reflects the detached
company management.
INTENSITY
low
STRONG
CULTURE
NO
MISSION
CONFLICTS
DETACHED
CONTROL
low
CONSENSUS
high
high
Fig. F.3. Factors influencing the impact of standards on the company culture
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Important organization standards are such approaches and behaviour that can either help or
prevent the performance of critical tasks, particularly of those that are the subject to reward or
punishment from the management. They usually include standards concerning:







Performing of tasks
Dealing with people
Group or organization identity
Risk taking
Speed and flexibility
Innovation potential
Team work
Culture is important for the managers for two different reasons:
1. It can help or hinder the strategy implementation
2. It can deepen the motivation and feeling of joint responsibility inside the group or
among the organization members.
Strategy
Strategy
Headquarters
Headquarters
Critical
tasks
People
Culture
Formal
Organization
Fig. F.4. Position of culture in the company architecture
Successful strategic changes can be performed only if the internal company system of values
– its shared culture – reflects the new reality. Well-built company culture can multiply the
motivation elements in promoting the company’s strategy. According to the promotion of
strategy and motivation elements the companies can be divided into the following classes
from the point of view of their culture:
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Strategy
Motivation
Apathetic
low
low
Anarchistic
low
high
Alienated
high
low
Ascendant
high
high
Identification of critical strategic appeals
Culture (Norms) to be implemented
Current culture
Superfluous norms
Norms to be modified
Proposal of actions/Programs of changes
Fig. F.5. Diagnosing of culture development in organization
Even such a culture that is in accordance with the company strategy cannot guarantee
excellent results in the long-term horizon, if it does not include standards and values
supporting innovation and changes.
Culture is compared to the company ideology and develops for quite a long time (5 – 10
years). There are companies that extremely promote the influence of culture and ideology on
motivation of their employees for the companies‘ goals and strategies (IBM, GE, GM, Procter
& Gamble, McDonald, etc.)
Currently there exists certain criticism of the concept of culture warning against excessive
promotion of myths, heroes of the past, symbols etc. It is necessary to put more stress on the
innovation thinking about the future.
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Comparison of the company culture conceptions:
Old conception of culture
New conception of culture










habits of the past
sharing of traditions
sharing of myths
sharing of rituals
sharing of heroes
genetic code of future actions
sharing of vision
development and conflicts of ideas
innovation behaviour
teams of champions
Company culture as an economics factor:
A contemporary company can be divided into technical and human subsystems. Only the
human potential is capable to influence and effectively use the material power of the company
resources. Company culture and its stimulating impulses, voluntary human creativity and
belief in the company’s ideology are the stimulating factors of the internal powers.
A human being as a carrier of culture and subject trying to meet the company goals longs for
high quality of life. A person should use his or her energy to the benefit of the company’s
vision without any major losses. It is the company culture that can influence the internal
company situation in such a manner that minimum of the human effort is wasted
(minimization of the company entropy). However current findings in this field show that in
the majority of companies the company culture does not work properly. It is even found that
more than 50% of the human effort is wasted or is not used effectively in normal companies.
Reserves in using of this element, which is an important aspect in the human resources
management, should be a challenge for the managers of the future.
Motivating elements influencing the innovation environment in the company
Individual’s psychological bound to a company usually consists of the feeling of loyalty,
perception of work position and trust into the company value. It also reflects previous
attitudes. According to the strength of the individual’s bound to the company, three stages are
distinguished: harmony, identification, and internalization.
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Level of identification
Cults
(Church)
Internalization
Strong culture
Identification
Harmony
Typical organization
Fig. F.6. Stages of an individual’s integration into the company
Traditional motivation model:
 Reflects the individuals intuitions
 Evokes the feeling of balance and relaxation
 It is not too effective
As individuals, we have
Values
Values
Interests
Interests
Needs
Needs
Personality
Personality
What forms our
Expectations
Expectations
Goals/objectives
Goals/objectives
Approaches
Approaches
Feelings
Feelings
and it leads to
Consensual
Consensual
behaviour
behaviour
Fig. F.7. Traditional motivation model
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Alternative motivation model:
 is less intuitive
 is more useful from the point of view of managers
 is more impressive
We create at full stretch
What concentrate us on
and forms us
Strategy
Strategy
Structure
Structure
Motivation
Motivationof
of
leaders
leaders
Specific
Specifictasks
tasks
Partial
Partialgoals
goals
Important
Importantinformation
information
Co-workers
Co-workers
Expectations
Expectations
Perception
Perception
Understanding
Understanding
Behaviour
Behaviour
Fig. F.8. Alternative motivation model
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Schematic description of possible procedures in motivating to reach higher performance:
Bonus is paid
Positive
strengthening
of motivation
Superior stops
bothering the employee
Negative
strengthening
of motivation
Bonus is not paid
Motivation vanishes
Warning issued
Punishment
Higher productivity
was achieved
Superior
requires
higher
productivity
Higher productivity
was not achieved
Fig. F.9. Motivating for higher performance
Individual’s work effort is based on three factors:
1.
Freedom of choice that can lead to:
 Feeling of personal responsibility
 Positive approach to choices
 Removal of alibism in behaviour
2.
Visualization of the individual‘s decisions before the others:
 Make the excuses of impossibility to perform more difficult
 Increases the motivation for involvement
 Provides model experience for others
3.
Irrevocability of decisions:
 Prevents hesitation about alternatives
 Directs the energy into the selected direction
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Developing of the individual’s involvement by means of his/her freedom of choice means:





To design systems and procedures that force the people to perform changes
continuously
Not to be afraid to use the system of rewards for the fulfillment of tasks
Acquire incremental changes
Not to force people to defend ideas, with which they do not agree
Make sure that people have realistic ideas before they decide for something and
thereby prevent future surprises
Developing of the individual’s involvement by means of visualization means:





Publish the individual’s activities before his/her colleagues, other employees,
customers and close people
Use festive opportunities for the deepening of the sense of belonging and identification
Strengthen public display of loyalty
Strengthen the development of social relations among team members
Use the collective voting in building up of feedback processes
Developing of the individuals involvement by means of irrevocability means:






Mark some decisions as important
Dare to make decisions according to priorities
Raise conviction that personal involvement is necessary for a temporary period
Propose such system of rewards not allowing the relieving of the involvement
Highlight the possibility of career growth
Pinpoint personal sacrifices required by the high degree of involvement
Conflicts in leading of work groups
The cooperation within the team without conflicts is generally preferred. However life shows
that this is practically not possible. Interpersonal and group conflicts always occur and they
even don’t need to be a negative phenomenon. On the other hand, calm and conflict-free
environment can lead to apathy. It appears that there is a certain conflict rate that guarantees
optimum performance of the group or the team.
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Performance
high
OPTIMUM
low
low
high
Conflicts
Fig. F.10 Influence of conflicts on the team performance
According to the situation, in which the managed organizational unit is, the manager needs to
solve the following three situations:
1.
Support of conflicts
In a too calm or little active environment it is necessary to provoke the conflicts, e.g.
by means of competition increase among the employees. Hiring of new labour force or
change of the existing management processes must be considered.
2.
Reduction of conflicts
It is possible to reduce conflicts if the volume of resources for task solving is
increased, more attention is paid to cooperation among individuals and departments
and the attention of the whole team is targeted on reaching of goals.
3.
Conflict resolution
It is necessary to look for compromises in the improvement of the relations among the
employees and look for measures preventing further frictions. Sometimes it is
necessary to remove the key conflict individuals.
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Question 1:
The a) answer is usually selected by companies employing people with average lower level of
qualification, whose period of training and mastering of the work issues is relatively short.
The company management style is usually of a caring type; there is not much space for the
employees to show something more outside the scope of their job description.
The b) answer characterizes typical linear structure in the company; the immediate
supervisors are responsible for the employees. The employees are mostly viewed as an
instrument for performance of tasks and their attitudes and opinions are not relevant to the
company management. If any problems occur then they are solved with the priority of
securing the labour process continuity.
Companies selecting the c) answer have a system for collecting information about the
company employees and can work with these information further more. The answer does not
specify, in which manner the gathered information is processed further on. Freedom in the
type of response to the information provides space for formalism.
The d) answer includes controlled feedback. The acquired information is used for the
modification of the employees‘ professional growth plans whereby the company creates
active human resources policy.
Question 2:
Predispositions for the selection of answers to Question 2 are defined in Question 1.
Companies that do not deal with monitoring of their employees‘ satisfaction are not interested
in their systematic motivating. An employee receives precise tasks and he is evaluated
according to their fulfillment. That corresponds to the a) answer. The company is not
interested in supporting its employees‘ initiative, rather it tries to make maximum use of
them.
The b) answer means that the company has a system of financial stimulation, which positively
influences their employees work effort. If the parameters of this system are realistic then such
a system can be functional. However it usually does not offer much more possibilities after
meeting the basic ambitions of the employees.
A company motivating its employees according to the c) answer distinguishes the
contribution of its individual employees and tries to create conditions for its inner stability.
The motivation stems from securing of the employees’ basic needs, whereby space for their
creative effort is formed. However a problem may occur in the fact that for the provided
benefits the company will require only mature and trained employees, so the formation of
higher-than-standard conditions takes place to the detriment of the further professional growth
of the employees. The routine approach will suppress the creativity and it can also diminish
the innovation mood in the company.
The center of the d) answer expresses stress placed on expert and professional growth of the
employees. The company gives its employees opportunity to grow in their fields of
specialization and thereby benefit the company. This is the most favourable climate for
creativity and development of innovations.
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Question 3:
Answer to this question address the management style in the company.
The a) answer expresses linear structure inside the company. The employees‘ responsibility is
limited to the necessary minimum and all the activities are controlled and checked by the
company management. The management is so overloaded with the accumulation of its
controlling and executive powers that it usually does not have any space for gathering and
generating of innovation ideas and their further development.
The b) answer again describes traditional linear organizational structure in the company. The
executive powers are shifted to the middle management. The information flow is thereby
slowed down and moreover, distortion of the original information content, that the
management uses for the strategic management, can penetrate information channels set in this
manner. Innovation ideas are “filtered“ through many subjects, so there is the risk that they
will not reach their destination.
The c) answer hints the possibility to create the matrix organizational structure at the work
place. That already anticipates a certain degree of the power delegation, although the basic
linear organizational structure remains the determining line. Among other things the control
mechanisms resolve conflicts resulting from overlapping of tasks assigned to individual
employees from various supervisors. Its functioning is to a considerable degree influenced by
the organizational skills of the managers.
The d) answer expresses flat organizational structure in the company. The employees take
over many responsibilities and when performing their tasks they need to think and act in a
creative manner. Innovation ideas arising from this can be put through only if there is a
functional information flow in both directions inside the company.
Question 4:
The a) answer will be most often given by companies with charismatic management and
linear organizational structure. Any conflict that can deviate the company’s path is deemed
dangerous and harmful to the company. Suppressing of conflicts brings benefits in the high
degree of discipline in the company, however it decreases its employees‘ creativity.
According to the b) answer, the solution of conflicts at the work place is fully within the
powers of the immediate supervisor. And it depends on his or her character if the conflict are
uncompromisingly suppressed or analyzed and resolved. Considering the work relation
hierarchy, most often the top management is not informed about the conflict occurrence
whereby the space to perform a change in the company based on the conflict core is limited.
In companies selecting the c) answer the management can analyze the causes of their
occurrence, which anticipates a sensitive information channel. The contribution of conflicts
for the company is in that they open opportunity for planning and performing a change in the
company. Depending on the conflict character the management can interfere with it. The
conflict occurrence is viewed passively, i.e. stemming from certain causes without their
programmatic planning.
Management of companies answering with the d) option supports and purposefully initiate
conflicts of a certain character. However that can be done only providing that it has a clear
overview of the situation in the company and it is able to handle the provoked conflict at any
moment. The conflicts can be a source of innovation ideas strengthening the company’s
position.
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Question 5:
The a) answer expresses situation in the companies without implemented information system.
The “traditional“ transfer of information loses its effectiveness with the increasing number of
levels through which the information needs to go. The urge to deliver information and receive
a response to it excludes the use of the channels pre-set by direct connections, which then
decrease the level of awareness of other participating parts of the company.
The b) answer will be given by companies where the information system is to a certain degree
implemented and used. Usually there is a computer network for the transfer of specific
information to a limited number of terminals. Other transfer of information takes place by
means of the procedures described in point a). Moreover, in both cases the decision-making
processes depend on the results of meetings inside the company, which decreases the effective
work time of managers.
A company selecting the c) answer actively tries to involve its employees into using of the
information transfer opportunities of the implemented information system. Its setting does not
show whether it is possible to evaluate the information transfer effectiveness and how much
time an employee spends working with the information.
The d) answer expresses a situation in a company with ideally implemented and functioning
information system. Just for the reference, there is about 10% of companies with an
information system working in such a manner.
Question 6:
The a) answer shows that the company is not occupied with its future too much. The current
problems take up the managers‘ time and operational approach prevails in the management. In
such an environment the innovation activities are not purposefully developed.
According to the b) answer the company at least builds up its image in the public. The
company’s approach is not ideal, as it separates the management growth from the company
employees‘ growth. This difference is then strongly felt and decreases the degree of the
employees‘ identification with the company.
A company selecting the c) answer tries to build its company culture as a part of its
development plan. The company’s limited resources are taken into consideration in doing so.
It means that building of the company structure does not belong to priority strategic programs.
The company’s central focus is in the presence.
The d) answer epitomizes a well though-over strategy of companies who want to be able to
succeed in future, too. They perceive the company culture not only as a mean of the company
promotion but also as an instrument for increasing of its output. At the same time the longterm notion of this process is accepted.
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COMPREHENSIVE EVALUATION OF THE QUESTIONNAIRE
This questionnaire includes several groups of issues related to the company innovation
potential. By filling-out the questionnaire it is possible obtain an overview of the strong and
weak points of a company and how the company managed to create environment for effective
implementation of innovations and how it is capable of implementing innovations into its
activities.
There are always four alternative answers offered for individual groups of issues. After
evaluating them, the answer characterizing the situation in the company most precisely is
ticked off. There are free lines available under every group for possible adding of
supplementary information exceeding the prepared answers.
Set of the EN ISO 9000:2000 European standards describing the rules of the quality
management systems and specifying the terminology of the quality management systems
provides a standardized instructions for the identification of innovation processes in the
company. The aim of the innovation activities is hereby understood as increasing of the
satisfaction of customers and other stakeholders.
Pursuant to the EN ISO 9000:2000 standards the companies were classified into for classes
according to their selected answers:

“C” class: Companies that usually selected the a answer in the monitored area are
ranked into this class. Their environment in the monitored area in not adjusted for the
implementation of innovation activities and if the companies want to deal with the
innovation activities they need to perform radical changes in their activities and
organizations of the relevant area. Only after carrying out of the recommended
changes, instructions for their performance do not fall within the framework of this
program, the company can further on deal with the innovations on systemic basis.

“AB” class: This class includes companies that usually selected the b answer in the
monitored area. Their environment is not yet set for possible work with innovation
activities and dealing with innovation strategies but they are correctly oriented on
finishing of necessary changes in their structures and organizational structures. Use of
methodological coaching in handling these basic reorganization act ivies can be again
recommended to them and after that they can join the processes of systemic
development of their innovation potentials without any difficulties.

“B” class: Companies in this class meet the preconditions for effective work with
their innovation potential. The c options will prevail in their answers. It means that in
accordance with the basic standard they are capable of using changes and innovations
for securing of their future prosperity and in fact they are ready to go trough the
process of certification. It is useful for these companies to develop their innovation
potential within this training program.

“A” class: Companies with majority of the d answers belong here. These companies
meet the strict requirements of the EN ISO 9000:2000 standard. It is most probable
they have an overview of their innovation potential and they are looking for ways of
its further development. Training within this program must be narrowly specialized on
a specific issue in the innovation activities of these companies and confronted with the
competitors’ behavior and future development in the field.
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EVALUATION OF INDIVIDUAL CATEGORIES OF THE QUESTIONNAIRE
STRATEGY AND PLANNING
Companies in the “C” class: Those are companies without introduced strategic
planning. They are usually focused on intensive present activities, trough which they live
very hectically. Their situation is often close to existential endangerment. These
companies do not view planning and forming of its future position in the business
environment as purposeful. Processes inside the company are not defined and so far the
company has not dealt with them.
Companies in the “AB” class: These companies are capable of managing their presence
and immediate future in a strategic manner. In these organizational structures a linear type
of management prevails, standard paths of information transfer are not too efficient
therefore rigidity prevails in planning with regard to the changing environment. Under
these circumstances it is difficult to establish and develop the project management.
Companies in the “B” class: Those are companies with functioning strategic planning
and constructed bases of the project management (rather of matrix type). It is also possible
to track down emerging company culture and interest in making a better use of their
employees’ abilities. The information flow in the company is not set so flexibly to register
deviations from the plan continuously and to perform effective corrections.
Companies in the “A” class: There is sophisticated strategic management in these
companies. These companies know the development trends of customers’ needs and their
competitors’ activities. The company already has established company culture and it
capable of its further development. By means of the organizational structure the project
management allows effective management of company processes and direct them
operatively with the purpose of achieving of the optimum effect for the company.
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MARKETING
Companies in “C” class: Marketing is not developed in these companies. The company
relies on the customers’ loyalty, for which it is entitled from the historical experience of
its management. The company bets more on a product, however does not confront it with
the competitors’ approaches. This behavior can be also found with companies controlling
a certain market “niche” and betting on strong and traditional relations with their partners.
Companies in “AB” class: Companies in this class are forced by circumstances to pay
attention to marketing, however they do not master its rules so well. They need more
information and also better use of the already acquired knowledge to improve their work
with the marketing instruments. Business parts of the company are not focused on
performing of active marketing.
Companies in “B” class: Marketing in the company has become a part of its
organizational structure. The market development is monitored and evaluated; market
position monitoring is not regular anymore. Information is processed by the implemented
information system, however there are still reserves in using the provided information,
where the company can be directed for making use of them in the development of the
company’s innovation activities. Also the customer is not in a position anticipated by the
modern trends of the strategic company management. His approach is considered as
passive and the company does not incorporate him into its internal processes.
Companies in the “A” class: These companies are characterized by developed
marketing organization structure. A customer is always in the center of their activities and
the companies base their activities on the customer. At the same time competitors’
attitudes and behavior are taken into consideration. Functional information system, that is
also used in the company, is a predisposition for that. As a result of the strategic
management of its future such a consolidated company must deal with the development
of its innovation potential.
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TECHNOLOGY
Companies in the “C” class: Companies in this class prove that they solve their current
problems in the first place. Science and research are pushed behind the everyday routine
horizon. The costs of the existing technology are also not monitored, the technology is
considered a constant element in the company. Modifications of the applied technologies
are not considered either for the reason of the company’s financial insufficiency or
because of recent acquisition with young companies. If there are any investments made in
the company, the consideration of their profitability is pushed aside by expected benefits
in the production area.
Companies in the “AB” class: In these companies their internal environment provides
impulses for technological changes. Company’s key employees, also back up the
company’s know how, are mostly the carriers of these ideas. Their charisma does not
give the company space to conduct independent risk analysis or sensitivity analysis.
Concentrated development in the company is not financially secured. If the company
needs to consider changes then it is forced by situation in the external company
environment, which the company does not systemically monitor from this point of view.
Companies in the “B” class: The companies appreciate the importance of change
processes and innovations in the field of technological processes. It also has a system of
monitoring of impulses for changes, which is in the powers of appointed employees. Their
position in the company is strengthened by the lack of performance of independent
controlling, by means of which the set priorities are not challenged. Resources, the
volume of which depends both on occasional and program supports, are secured for the
company development. Compared to the competitors at the market the innovation activity
effectiveness is limited by the fact that the company does not aim at the leading position,
devotes maximum attention to efficient imitation of acclaimed market leaders.
Companies in the “A” class: Companies from this class are active in ambitious market
segments where they are subject to permanent pressure on being arrested in the
technological background of their activities. For its future competitiveness, it is not
sufficient for the company just to imitate the market leaders; it needs to look for sources
and impulses for the performance of changes. When looking for them, it focuses on the
company’s internal and external environment and the prospective impulses are worked out
into feasibility studies, from which the most important ideas for the implementation for
the company are evaluated by means of tender. The process of change implementation is
a planned activity subject to independent controlling and it is supported by the teamwork
of the company’s development department that is financed from the company’s
management or eventually from other available resources.
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QUALITY AND ENVIRONMENT
Companies in the “C” class: In companies belonging to this class the quality system is
not part of the managerial processes. Beside other things the reason may be that the
customers do not require proof of the process management quality. The legislation does
not force the company to adopt a more active attitude in influencing the living
environment. Therefore financial resources are not consciously generated for such
activities in the company.
Companies in the “AB” class: Quality resulting from the standards and regulations in
monitored in the company. Considering the “pointed” organizational company structure
the responsibility transfer in the company and following control to all the employees is
slowed down. Considering its clients the company needs to “open up” and provide space
for the performance of external audits from their side. Therefore the company must pay
attention to the quality monitoring of its products outside the company. The
environmental protection standards are observed within the required extent and the
changes are initiated by the threat resulting from failure to observe them.
Companies in the “B” class: These companies meet the certification criteria of the CSN
EN ISO 1400 system. The quality management and monitoring processes in the company
are adjusted in accordance with the implemented quality management system, which is a
precondition for maintaining of its position with their partners. The company’s strategy
anticipates the environment development conditioning the extent and character of
changes. Adjustment of the quality monitoring system enables the company to undergo
external audits from the customers’ side. However performance of similar audits with the
company’s suppliers is not treated in a program manner. When gathering the innovation
ideas the company respects and continuously monitors the development in the field of
legislation, regulations and standards.
Companies in the “A” class: Company in this class also meets the conditions for
certification in the CSN EN ISO 14000 system. Moreover it gives a more welcoming
response to external impulses and when evaluating the innovation ideas the company can
monitor and compare the practices in foreign companies and use the development trends
and ideas. From the quality observance point of view it establishes open relations for
audits from the side of its customers and thoroughly carries out audit of its suppliers. The
quality monitoring system is worked out according to the certification requirements and
provides measurable outputs. The company’s strategy allows active influencing of the
environment for change performance.
SME - innovation potential
67/70
LOGISTICS (PURCHASE, DISTRIBUTION, OUTSOURCING)
Companies in the “C” class: Companies from this class do not find sufficient space for
the development of the area of logistics. It even does not monitor and evaluate all the
activities related to it as a whole. It reasons its attitudes by lack of information and
resources and related unbearable risk in putting through of changes. As a result of that
even ideas from the company’s partners are not welcomed and as a final result even
activities occurring in this field are not supported inside the company. Traditional logistic
channels are so firm and well proven that it is not important for the company to perform
methodologically prepared value analysis focused on the share of innovations in the
logistics.
Companies in the “AB” class: In this class the companies look into the logistic channels
optimization within their operative activities. These relations are established purposefully
for a specific case and usually they are not evaluated further more. If there are any
interesting ideas for the company, either from the inside or outside environment, or if
there is pressure exercised on the company by the customers or competitors, the company
is willing to admit purposeful innovation changes. However those are not systemically
registered from a value point of view.
Companies in the “B” class: In the companies from this class logistics has won its place
in the company processes. Information from these activities are transferred and processed
by means of the information system in the company. Although the effectiveness is not
always taken into consideration in the course of their evaluation, the cost and risks
analyses are targeted. The innovation ideas resources are looked for both in the internal
and external company’s environment. By building up of the feedback the company can
flexibly influence the adjustment of logistic processes.
Company in the “A” class: Companies in this class have an established developed
strategy in the field of their logistic activities. The activities flexibility is supported by
sufficiently mobilizable resources; at the same time the company handles the risk
management to such degree that it can meet the impulses from its customers, with whom
the company communicates by means of its information system. Outsourcing is viewed as
an important part of the process of the company’s cost optimization. The company has a
motivation system for stimulation of creativity inside the company.
SME - innovation potential
68/70
ORGANIZATION AND HUMAN RESOURCES
Companies in the “C” class: Companies in this class do not build up their culture
because they see their task in defending of their current position and securing of the
company’s survival for the immediate future. The company management mostly
corresponds to the charismatic management position – owners who have linear links set
for the performance of their tasks. At the same time, however, it claims all the
responsibility for the company running and there is no space for the joint decision-making
of the employees.
Companies in the “AB” class: Linear links dominate in these companies. The
management uses the lower management for managing; some powers are delegated to
them. The consensus inside the company is secured by a system of performance bonuses
and sanctions. The communication corresponds to the needs and possibilities of the linear
management structure. The company culture concept is familiar in the company however
it is not systematically established but it is often substituted by effect conditioning the
company image.
Companies in the “B” class: There are companies that have sophisticated building of
company culture anticipated in their strategies. The company devotes appropriate
attention to the company’s social development, supplemented by a selective growth of the
employees. Non-standard environment for key employees is compensated by non-standard
requirements of managing of the information system in the company and willingness to
take over responsibility. Control mechanisms are set for that purpose in the company.
Companies in the “A” class: These companies have establishes a solid fundament for
the further development of the company culture. Organization structure in the company is
flat; delegation of responsibilities is related to the delegation of powers. There is a career
growth system prepared for all the employees and based on it a motivation system is
drawn. Conflicts at the workplace are analyzed from the point of view of their benefit for
the company and they are also viewed as a source of ideas for possible future output
increase. Implemented and from the side of employees mastered and used information
system is necessary for the functioning of the flat organizational structure. In order to
strengthen its future position the company addresses other stakeholders.
SME - innovation potential
69/70
COMPUTER SUPPORT OF THE QUESTIONNAIRE'S EVALUATION
Two means of computer support were developed to facilitate the work with questionnaire.
They can be used both by the consultant and by the company itself. We strongly recommend
to companies to work together with the experienced consultant, because otherwise, especially
in companies not having experience with similar evaluation tools, the results may be
misinterpreted.
Interactive work with the questionnaire
The user can find the interactive version of the questionnaire at the web site
http://iris.fst.zcu.cz/leon. After entering answers to all questions, the report based on the
interpretations given in this guide is generated.
Processing of results using Excel application
The questionnaire can be processed using attached file questionnaire_evaluation.xls, which
summarizes interpretation of answers to individual questions.
If the user enters "1" in the first column "option" of the sheet "report" at the selected answer
a), b), c) or d) and uses commands Data - Filter- Extended filter, the report is generated
similarly as in interactive application and graphical summary is generated in the sheet
"graphs". It can help the company and the consultant to get a quick insight into areas in which
the company is strong and in which it has weaknesses.
SME - innovation potential
70/70