DECLARATION OF ORIGINALITY

UNIVERSITY OF PRETORIA

FACULTY OF EBIT

Graduate School of Technology and Management

Surname &
initials

Lekalakala TW

Course code

INV 780

Name of lecturer

Dr KY Chan

Due date

23 March 2014

Date of submission

23 March 2014

Title of assignment

Assignment 1

Student nr

26506620

A.
Organization [1]
An Organization is a group of people that work together to achieve a common goal or purpose, such
as business or government departments. There are many types of organizations that are involved
with many types of things for many different purposes. Types of organizations range from large to
small, profit, non-profit, public, private, manufacturing and services, some examples of these are
hospitals, universities, businesses and government. [1]
Innovation [2]
Innovation is when better methods are applied to doing things, doing the same thing in a way that is
different to current or previous practise to meet new requirements. It can also mean doing new
things altogether, this can refer to products, processes services, technologies or ideas. Many
organizations acknowledge that there is a need for constant innovation therefore many constantly
produce new ideas but many have a very big problem with developing these to meet the needs of
the market, hence we look at the relationship between organisations and innovation.
The relationship between Organisations and Innovation can basically be said to be one of positive
change in terms of efficiency, productivity, quality, competitiveness and market share but recently it
has been seen that if the right culture exists within an organisation, improved performance can be
seen in the organisation.
In the past organizations have experienced that growth cannot be achieved through cost reduction
and reengineering alone, the key element to this is innovation hence for a company to realise a top
profit margin or revenue growth it has to find ways to improve how things are done which will also
increase bottom-line results therefore fulfilling the purpose of that particular organisation, be it
social benefit, profit or general governance. Organisations rely on innovation to remain relevant
hence they have to seek and support innovation in order to meet demands for technological change,
market requirements or simply because existing products or processes no longer meet their current
needs and hence through their R&D department organisations will seek to find new solutions.
Goals and Failures [2]
Whether innovation goals are successfully achieved or not depends a lot on the environment
prevailing in the firm/organization, these goals apply to any organisation be it a manufacturing
facility, marketing firm, hospital or local government. Internal causes of failure can be causes
associated with the cultural infrastructure and causes associated with the innovation process itself.
Some causes are found to be: poor goal alignment, poor alignment of actions to goals, poor
participation in teams, poor monitoring of results, poor communication.

Conclusion
In the organisational context, innovation can be linked to positive changes in efficiency,
productivity, quality, competitiveness and market share. For this change to take effect the right
attitude has to be established and hence a cultural infrastructure that embraces change and
innovation has to be instilled in the values of the organisation.

B.
One of the most important lessons I have learnt from the Organisational and innovation course is
that because times are changing, technology is advancing, peoples needs are changing,
organizations need to continuously be seeking to improve on their ways of doing things, be it
manufacturing, processes, services and many other things that take place within an organization. In
order for a company to stay relevant innovation has to be something that an organizational
continually takes in its strides. Organizational innovation is important for the following reasons:
continuous improvement, competitive advantage, because cutting costs is not enough anymore,
improving performance, utilising existing resources to do things differently and in an improved
way.
A good Cultural Infrastructure is important in an organisation in that it deals with creating and
sustaining a positive attitude in the organization where people are allowed and are given the
freedom to apply their minds willingly and suggest ideas of everyday processes, methods or even
technology that can be improved on. The most innovative people are the people that have the most
knowledge with dealing with a particular process, method or machinery hence if the organizations
culture is one that encourages people on the ground to participate in improving things around the
organisation and practice innovative thinking, this can be seen as a competitive advantage. One of
the most important aspects is organisational culture that can create and support an environ ment in
which innovation can flourish. Organisational culture is the way things are done in an firm, it
affects employee behaviour, learning and development. So it is easy to see that if management
promote and exercise good practices within the company it can result in the right culture being
present in that organisation hence they can easily embrace and successfully implement innovational
changes in what they do, in this we can safely conclude that the right values, norms and beliefs are
invaluable enablers of innovation.

C.
Company Overview [5]
Eskom is considered one of the top electricity generation companies in the world, the company
produces a net generations of round about 95% of the countrys power and almost 45% of that used
in Africa. The company generates, transmits and distributes to many industries such as the mining,
agricultural, commercial and residential customers. The utility company also buys and sell to
countries in the Southern African Development Community.
Eskom being the largest supplier of electricity in South Africa has had to face many challenges with
regards to the successful supply of energy to the ever growing need of the country and other
countries in Africa. In order for this organisation to achieve this, it has had to look towards other
sources of electricity generation other then coal- fired power stations. These have in the past come
under severe scrutiny due to their pollutive nature and hence Eskom has had to find new ways to
generate electricity and other innovative ways to reduce the pressure of the demand thereof.
Innovative Technologies
The Company over the past decade has put a lot of work into R&D and has come up with new ways
of how to address this problem namely:

Renewable Energy (wind farms, hydroelectric power stations, nuclear power stations)

Solar Water Heating

Heat Pumps
These technologies not only reduce the demand pressure on the company but also help address
other issues such as pollution and sustainable development.
These innovations have not only worked towards fighting the problem of supplying electricity to a
growing economy but also has enhanced and improved South Africas competitiveness in the sense
that we are able to supply other African countries with electricity.
Though the battle has not been won yet, the company continues to strive towards achieving the
goal of being able to supply the whole country efficiently and hence promoting growth of industries
in the economy and this growth will further improve the competitiveness of the country as a whole.
References
1.

2.

3.
4.
5.

Based on Frankelius, P. (2009), Questioning two myths in innovation literature, Journal of

High Technology Management Research, Vol. 20, No. 1, pp. 4051.
O'Sullivan, David (2002). "Framework for Managing Development in the Networked
Organisations". Journal of Computers in Industry 47 (1): 7788
Rob J.G. Jansen, Maryse M.H. Chappin Themes in Organization Studies
L D HOWE AEA Technology, F5, Culham, Abingdon, Oxon., OX14 3DB, UK
http://www.eskom.co.za/OurCompany/CompanyInformation/Pages/Company_Information.
aspx