Management of Innovation

Management of Innovation 301

Tew Sin Yao 14926475 Page 1


Digital Multimedia Report

Semester 2, 2012

Name: Tew Sin Yao

Id: 7D9A6627/14926475

Tutor: Mr Adriel Sim

Total file word count 3004

Less direct quotes 0

Less table of content 80

Less references lists 346

Less headings 44

Total net word count 2534

http://www.curtin.edu.my/sch_dept/business/SOB_SProfile.asp?rid=70



Table of Content

1.0 Executive Summary----------------------------------------------------------------3

2.0 Company Profile and Background--------------------------------------------3-4

2.1 Company Timeline Diagram ---------------------------------------------4

3.0 Establishing an environment for innovation----------------------------------5

3.1 IP Strategies------------------------------------------------------------------5

3.2 Managing organisational knowledge and innovation strategies-6-7

3.3 Collaboration Strategies-------------------------------------------------7-8

3.4 Question from the CEO----------------------------------------------------8

4.0 Implementing Innovation----------------------------------------------------------9

4.1 Managing Innovation and Operations Management------------9-10

4.2 New Product Development-------------------------------------------11-12

4.3 Question from CEO-------------------------------------------------------12

5.0 Conclusion and Recommendations--------------------------------------------12

6.0 Reference List------------------------------------------------------------------13-15

7.0 Appendix------------------------------------------------------------------------15-16



1.0 Executive Summary

This report was appointed to carry out a report that emphasizes on Meridian Safety Pty Ltd.

A company profile and background of Leigh will be thoroughly discussed. A timeline of the

process of developing the product of T- Line Safety system will be provided. When the

company profile and background have been discussed, innovation environment establishment

will be discussed. This section includes the Intellectual property strategies where it focuses

on the license and patent that Leigh has registered for his invention of T-line safety system.

The section also includes managing organization knowledge and innovation strategy and

collaboration strategies. In the next section of implementing innovation, Pearson’s

uncertainty map is used as a reference of managing innovation and operations management.

New product development is also discussed in the report and all questions from CEO are

answered and stated in the report.

2.0 Company profile & background

Meridian Safety Pty Ltd is founded and located based in Gwelup DC, Australia with supreme

experience in encouraging safety. The founder of Medirian Safety Pty LTd is a former

student of Curtin’s civil engineering Student, Leigh Dowie (Safety Through Innovation 2012).

He was a graduate of Curtin University with a bachelor degree of Engineering in Civil and

Construction (Dowie 2012). After graduates, he starts working as a site engineer with CBI.

Before Leigh started his own company, he has been in several positions with several

organizations including Mirvac Fini, Brookfiled Multiplex and Calibre Mining.

The present company that he is working on is the Meridian Safety Pty Ltd. After his last

engagement in Calibre Mining, he discovered and learnt several issues and problems with the

current situation of construction safety policy. Issues such as difficulty in maintain safety

standards and lack of technology in available systems. Hence, he formed a company on his

own which emphasizes and encourages safety equipment and drills in the market (Striving to

promote safety, productivity and technology through innovation 2012). The Meridian Safety

Pty Ltd has put in countless effort into introducing and underlining the importance of safety

equipment into the current labor market. He is eager to change and improve the current living

standards of people working life.

http://www.meridiansafety.com/

http://au.linkedin.com/pub/leigh-dowie/3a/605/98b

http://www.curtin.edu.my/



Throughout years and years of invention and redevelopments of safety tools, he has

successfully come out with a new product- T-line. T- Line can provide horizontal and vertical

movement unlike other safety tools such as static line and retractable lanyard which only

provide one way movement. It also has a non- pendulum effect built in into the system as this

will prevent falls and accidents that frequently occurred in construction sites.

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Leigh Dowie

has the idea

of T-Line

He doing a lot

of research

about it

Start to design

and write

provisional

patent

He tries to

promote first

prototype to

Licensees.

He makes

another more

detail

prototype

He makes

final design

and

engineering

Trial

production

run,

validating

testing

Trial

production

run,

validating

testing

Early

commercial

trials

He find distributor

and cancel the

exclusive right

He is raising

capital and

establishing

distributor network

for direct sales.

http://www.meridiansafety.com/products/t-line-safety-system



3.0 Establising an environment for innovation

3.1 Intellectual property strategies

As companies nowadays are all striving to survive in their own ways, it is very important to

grab any competitions advantages that will assists in developing the company future growth.

One of the competitive advantages that company should learn to grab on is the intellectual

property. Intellectual property is whereby the invention, trademark, design that is come out of

one’s idea or proprietary knowledge (What is Intellectual Property? 2011). It can also be

seen as a protection of one’s idea and innovation and a valuable business asset that cannot be

treated lightly. Leigh started his patent and trademark on T- line in the year of 2004 where he

started to acknowledge the importance of intellectual property (Choosing the right IP 2012).

It is very important for entrepreneurs and innovators to understand its importance and

protects them. Without IP, innovation and ideas can be easily leaked out and causes a

corporation disadvantages to the company (Somaya 2012, 1090). It is also one of the method

that government is trying to help in protecting the business and corporation’s right and to

prevent from severe economics downfall. The IP rights are granted after several application

and examination with the government agencies.

This is to protect the trademark and design of the T- line where it won’t be imitated by other

competitive companies (Trademark 2012). As there is an ongoing of fall protection market in

Australia, it is best that the invention of T- line is protected in order to have a strong stand on

this battleground. Other than protecting the innovation idea of the T-line product, it can also

work as a licensing market. Leigh can license his patent to interested company and grab profit

in the overall process.



3.2 Managing organisational knowledge and innovation strategies

Negligible profit

Long-term profits

No profit

Short-term profits

Non-Core Core

Extend of Coreness

The core competencies are also known as the distinctive competencies. It is very essential for

a business as it is a unique ability or knowledge that a company inherited or acquired by its

developer. These unique knowledge and ability is not easily imitated and it provides a

competitive advantage to the corporation (Riley 2012). Hence, having better understanding of

the core competencies of the company itself will bring out few others competitive advantages

to the corporation and gain market share (Trott 2012, 202).

The most important core competencies that Meridian Safety possessed are the originality of

their products (Meso and Smith 2000, 231). They developed their own new product which is

the T- line which is one of its kinds in the market. It is also due to the long development

duration that have taken into the T- line as they have used nearly a decade duration to

develop on this product. Products that are easily imitable are not suitable to have a strong

stand in current market as all companies are striving their way towards profit earning. Hence,

to bring out originality of a product is very important. With this advantages and distinctive

features have guaranteed the profitability future of Meridian Safety.

Organizational knowledge is widely known but little understood (Trott 2008, 342). It can be

differentiate into two categories which are the tacit knowledge and the explicit knowledge

(Suppiah 2007, 467). Tacit knowledge is the knowledge that is not transferrable whereas

explicit knowledge can easily transfer through guidelines, user manuals or documents

(Dienes and Perner 1999, 802). The organization knowledge that Meridian Safety equipped

with is the tacit knowledge where Leigh has obtained during his studies in civil and

construction in his year of bachelor degree. Leigh is inspired by his experience throughout

the past working years in the market and recognizes the problems of safety tools and drills

can brought to the construction site.

Low

High

Imitability



It is also important for Leigh to acknowledge the importance of its organization employees.

As most of the organization knowledge of a company are the combination of all employees’

knowledge and specialities (Flatten et al. 2011, 114). Hence, to conserve these knowledge, it

is important to acknowledges them and provide rewards or bonus if appropriate. This will

help in boosting the self-esteem of the employee and preventing them from leaving.

3.3 Collaboration Strategies

To deal with current rapid economic growth and increase of competitors, it is wise for

companies to join in alliances and collaborate with others. Collaboration in corporation is the

combination of knowledge and sharing resources between two companies and involves both

parties working together to search for solution to deal with the upcoming issues (Clark and

Fuller 2010, 100). When a company wanted to enter into a new market or expertise, there are

usually two choices. Firstly, it is to buy a smaller company that equipped with all assets.

Secondly, it is to form strategic alliance with another company that will also benefit in both

sides. Alliances of few companies together will give an advantage in leading and wining over

other competitors (Boone and Ivanov 2012, 557). A typical strategic alliance process consists

of five steps which are the strategy development partner assessment, contract negotiation,

alliance operation and alliance termination. Strategic alliances will allows each partner to

have their own concentration activities that their capabilities are best matched of. Knowledge

can be learnt from partners and exploiting new areas in developing competencies along the

way.

There are few other forms of collaboration with other companies such as Joint Ventures,

Outsourcing, affiliate marketing, technology licensing, product licensing, franchising, R&D,

distributors and distributors relationship (Types of Strategic Alliances. 2012).

Meridian Safety had been adopting product licensing previously as their collaboration

strategies with other companies. This is where other companies purchase license or patent

from Meridian Safety and they can only sell the product within an exclusive geographic area

to which they can sell to. This is a lower risk method of expanding the reach of the product.

However, there have been problems arose from this collaboration strategies as the product are

taken into different directions without the understanding of Meridian.

Hence, Meridian Safety partners with the main distributor in each district of Australia to

obtain local knowledge understanding of the targeted area where it will help in modifications



of his future working plan. This strategic is strongly recommended as it will save time and

cost in understanding the value and culture of the certain distinct of the targeted market place

(Jain and Natarajan 2011, 297). Meridian Safety also planned to establish its presence in key

targeted markets for better distributor management and also controls over local stock levels.

It is also recommended that Meridian Safety can go into joint ventures with other parties.

This will help to gain more knowledge and information regarding new markets or new

products. Furthermore, if Meridian Safety tends to enter into new market, it is easier when

Meridian joint venture with the local parties and has an easier entrance.

3.4 Questions from CEO

After the thorough researches on the licensing and patenting process of Meridian Safety, it is

recommended that Meridian should proceed with the licensing process. As patenting can

assists in protecting the originality of the idea of T-line, it helps in minimizing the risk of

ideas being copied by other competitors. With patent, other competitor cannot simply copy

the products and this can fully protect the originality of the idea. Any imitation of the product

will be filed according to the regulation that is set by the government. Other than that,

Meridian has gained several profits earning by selling the license to other distributor to

expand its business . Hence, it is strongly recommended that Meridian should proceed with

patenting improvements to the T-line and the other related technology ahead of the business

activities.



4.0 Implementing innovation

4.1 Managing innovation and operations management

3

Application engineering

1

Exploratory

Research

4

Combining market

opportunities with

technical capabilities

2

Development

engineering

The above image represents the Pearson’s Uncertainty Map of innovation. The 1st quadrant is

the highest level of uncertainty as the method and target are not clear at the stage (Trott 2012,

87). The 2nd

quadrant is whereby the target is known but there are still in the path of

developing technologies or methods to reach the target (Trott 2012, 87). The 3rd

quadrant is

the stage of finding appropriate technologies and combing market opportunities with any

technical capabilities. The third quadrant has the lowest uncertainty process (Trott 2012, 88).

Whereas, the 4th

quadrant has the highest uncertainty output which is the application

engineering. This quadrant is all about innovative activities undergoing in the company

(Watson, T. 2001).

Meridian Safety places itself on the third quadrant which is combining market opportunities

with technical capabilities. The uncertainty output is rather low as Leigh himself equipped

with the technological knowledge and technology that can be applied into the company.

Leigh developed the T-Line himself which verifies that he has sufficient knowledge of

applying it into the business. Although the map certifies that the stage of combining market

opportunities with technical capabilities will have a low uncertainty output. However, in

meridian safety case, it doesn’t look so. This is because the outsourcing ability of

technological problems and there is currently no issues with any technological problems that

Meridian Safety is encountering now. Meridian Safety also combines marketing opportunities

with its technology capabilities by having close communication with distributors in each

territory. This will provide guidelines on where Meridian Safety strands on the market and

which path it should headed to in the future.

Uncertainty about process

High

Uncertainty

about output

Low High



Leigh’s innovation of the T- line has been progressed smoothly since the day he had the idea

and started to process on it. There are few characteristics of Meridian that allows Leigh to

have such smooth progress along the way. One of the most important characteristics that

Meridian equipped with is the long vision sighted growth. Meridian prefers long term growth

rather than short term as provided that he expands its business to other foreign company and

Meridian chooses to partnership with other distributor throughout the nation. Secondly,

Meridian only intended to grow his business in the technological category. This is proven

when he stated that he will still seek for new technologies development and tools in the future.

When a business has its own specialized category, it can put more focus in it and thus, doing

a better job than others (Organization innovation 2012). However, it is also recommended

that Meridian Safety can developed and provide other products. As Meridian is equipped with

technological knowledge, it is strongly recommended to develop several other class of

product.



4.2 New product development

The above diagram represents the Ansoff Growth Matrix diagram (Riley 2012). This diagram

assists in determining the suitable product for the market growth strategy. In the 1st quadrant

which mentioned market penetration. It is the growth strategy that business only concern on

selling existing products into existing markets. It is basically doing business as usual as it

only aims on the product and market that the company has known well. However, the

business will need new research information when they are planning to enter in new market.

The 2nd

quadrant of the diagram indicates market development which means that existing

product are seeking its way into a new market. This is a more risky way than market

penetrating as the new market is unfamiliar to the company. Hence, information and

researches must be done beforehand. The 3rd

quadrant of the diagram represents product

development which means introducing new product into an existing market. This requires the

business to develop appealing products that can be accepted by the market. The product must

be unique and distinctive in order to have a competitive advantage. The last but not least, the

diversification is a business markets new products into a new market. This is the most risky

strategy as the business has no experience in the market (Riley 2012).

New product development is about renewing the products in the existing market. While there

are many regions of technology innovation may reduce employment due to the introduction

of ICT. However, product based innovation will only help in increase of employment and

regaining wealth in the same time (New Product Development 2004-2005). The product

development is suitable with the Meridian safety future development as the aims of meridian

safety is to introducing new product in the existing market of Australia.

1

Market Penetration

3

Product Development

2

Market Development

4

Diversification

Existing Products New Products

Existing Market

New Market

http://www.tutor2u.net/business/strategy/ansoff_matrix.htm



4.3 Questions from CEO

The future development pipeline that should be prioritized is developing few other choices of

product. This will open up market range and gain more profit. Leigh has sufficient

technological knowledge that can develop other products. This will open up its market range

as it will better satisfied different categories of market area. The main profit resources will

not be limited with one product only. The new product that is later developed should be able

to differentiate itself from other product.

5.0 Conclusions and recommendation

Meridian Safety Pty Ltd is an internationally emerging company that has set foot on few

foreign lands and has a guaranteed future up ahead the road. Leigh, the founder of Meridian

Safety Pty Ltd has developed a safety tool, T-line safety system that varies itself from the

traditional safety tools that are frequent used in construction sites. However, with these

emerging growth of the company, there is few others recommendation that can be made.

Firstly, it is to joint ventures with other parties in order to gain more knowledge and easier

access to new market. This is also help in minimizing any risk and costs. Secondly, it is to

recognize employees’ attributes to the company. Employees are important and valuable

intangible assets. Hence, it is very important to conserve them from leaving the company.

The methods of doing so are through reward program or provide other welfares that

employees concerned about. Last but not least, it is also strongly recommended that Meridian

Safety can develop other products but not only focus on one product. This will increase the

profit margin and targeted customers segment.



6.0 References List

Boone, Al and Vi Ivanov. 2012. “Bankruptcy spillover effects on strategic alliance partners.”

Journal of Financial Economies 103 (3): 551-569. doi:10.1016/j.jfineco.2011.10.003

Clark, A and M Fuller. 2010. “Collaborative Strategic Management: Strategy Formulation

and Implementation by Multi-Organizational Cross-Sector Social Partnership.”

Journal of Business Ethics 94: 85-101. doi:10.1007/s10551-011-0781-5

Choosing the right IP. 2012. Commonwealth of Australia. http://www.ipaustralia.gov.au/get-the-right-

ip/choosing-the-right-ip/?text-only=true

Dienes, Z and J Perner. 1999. “A Theory of Implicit and Explicit Knowledge.” Journal of

Behavioral and Brian Sciences 22 (5): 755-808. doi:11301570

Dowie, Leigh. 2012. “Innovation and Entrepreneurship: Meridian Safety T-Line Safety

System.” PowerPoint lecture notes.

https://lms.curtin.edu.au/webapps/blackboard/content/listContent.jsp?course_id=_601

2_1&content_id=_2291924_1

Flatten, Tessa C, Andreas Engelen, Shaker A. Zahra, Malte Brettel. 2011. “A Measure of

Absorptive Capacity: Scale Development and Validation.” European Management

Journal 29 (2): 98-116. doi:10.1016/j.emj.2010.11.002

Safety Through Innovation. 2012.

“Meridian Safety Pty Ltd: Home.” Safety Through Innovation. Accessed September

25, http://www.meridiansafety.com/

Jain, Ravi Kumar and Ramachandran Natarajan. 2011. "Factors influencing the outsourcing

decisions: a study of the banking sector in India." Strategic Outsourcing: An

International Journal 4 (3): 294 – 322 Doi: 10.1108/17538291111185485



Meso, Peter and Robert Smith. 2000. "A resource-based view of organizational knowledge

management systems." Journal of Knowledge Management 4 (3): 224-234. Doi:

10.1108/13673270010350020

Organization innovation. 2012. Innovation-creativity. http://www.innovation-

creativity.com/organizational-innovation.html

Riley, Jim. 2012. Core Competencies.

http://www.tutor2u.net/business/strategy/core_competencies.htm

Riley, Jim. 2012. Ansoff Matrix. http://www.tutor2u.net/business/strategy/ansoff_matrix.htm

Striving to promote safety, productivity and technology through innovation. 2012. “Meridian

Safety Pty Ltd: About.” Striving to promote safety, productivity and technology

through innovation. Accessed September 25, http://www.meridiansafety.com/about

Somaya, Deepak. 2012. “Patent Strategy and Management: An Integrative Review and

Research Agenda.” Journal of Management 38 (4): 1084-1114.

doi:10.1177/0149206312444447.

Suppiah, Visvalingam. 2007. “Organisational Culture's Influence on Tacit

Knowledge Sharing Behavior.” Journal of Knowledge Management 15 (3): 462-477.

Trademark. 2012. The Free Dictionary. http://legal-

dictionary.thefreedictionary.com/Registered+trademark+sign

Trott, Paul. 2008. Innovation Management and New Product Development. Harlow: FT

Prentice Hall

Trott, Paul. 2012. Innovation Management and New Product Development? Essex, England:

Pearson Education Limited



Trott, Paul. 2012. Competencies and Profits. New York: Oxford University Press.

What is Intellectual Property? 2011. Commonwealth of Australia.

http://www.ipaustralia.gov.au/understanding-intellectual-property/what-is-ip/

Watson, T. 2001. Uncertainty and The Innovation Process. Accessed September 29,

http://spisolutions.com/wp-content/uploads/2010/06/UncertaintyInnovProcess.pdf

New product development. 2004-2005. URENIO. http://npd-

net.urenio.org/index.php?lang=el&pgid=1

7.0 Appendix

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Leigh Dowie

has the idea

of T-Line

He doing a lot

of research

about it

Start to design

and write

provisional

patent

He tries to

promote first

prototype to

Licensees.

He makes

another more

detail

prototype

He makes

final design

and

engineering

Trial

production

run,

validating

testing

Trial

production

run,

validating

testing

Early

commercial

trials

He find distributor

and cancel the

exclusive right

He is raising

capital and

establishing

distributor network

for direct sales.



Negligible profit

Long-term profits

No profit

Short-term profits

Non-Core Core

Extend of Coreness

3

Application engineering

1

Exploratory

Research

4

Combining market

opportunities with

technical capabilities

2

Development

engineering

1

Market Penetration

3

Product Development

2

Market Development

4

Diversification

Low

High

Imitability

Uncertainty

about output

Low High

Uncertainty about process

High

Existing Products New Products

Existing Market

New Market

Date post:	11-Mar-2016
Category:	Documents
Upload:	sin-yao-tew
View:	216 times
Download:	0 times

Management of Innovation

Documents