Organizational Innovation Examples

In traditionally organized companies, ideation, idea generation and business innovation often fails due to structural problems. These challenges can be mastered through organizational innovation.

Here are two examples of how established organizations innovate:

Microsoft

After experiencing coordination issues and complications with Windows Vista, Microsoft radically reorganized in 1999. They realized that too much bureaucracy and too much departmental thinking had paralyzed the ability to innovate at that time. Microsoft therefore put lots of efforts into being more agile without rigid hierarchies.

Samsung

Samsung has developed from a cheap manufacturer to one of the most innovative companies in the world. Instead of continuing to manufacture cheap equipment, Samsung opened global design centers that served as innovation hubs to develop new cutting-edge technology. They also assigned a Chief Design Officer to better include employees' ideas and give the creative employees access to top management. In the Design Centers, Samsung also made sure to encourage people to participate by reducing hierarchies.