A case study of KIMAR

1. Prepared By: Group 5

2. Summary Layout
INTRODUCTION
Item 1
LITERATURE REVIEW
Item 2
ANALYSIS – INNOVATION PROBLEMS
Item 3
- KEY SUCCESS FACTORS IN
INNOVATION
Item 4 CONCLUSION & RECOMMENDATIONS

3. INTRODUCTION
Innovation means changing the original to a new to new and
better object for better purpose.
New ideas implemented so that organizations can continue their
existence, be competitive, grow and be able to change with the
future changes and therefore it is essential for all the
organisations to be flexible with environmental changes and at
the same time make use of innovation for sustainable
growth, future profitability and long term competitive position.
The Objectives of the Study:
To identify critical success factors in innovation among
Malaysian manufacturing companies followed by the
problems that they face in implementing innovation.

4. WHAT IS KIMAR?
- A complex Food Industry which located
at Mukim Batu, federal territory, Kuala
Lumpur.
-Total area of KIMAR =116.750 square
feet.
-Modification was done to meet the
requirement of halal certification, GMP
and HACCP. (cost RM 15.4 million).
12/20/2012

5. A review of literature on innovation resulted to several
dimensions and is defined as below:
 Innovation as something new;
Innovation is “a process through new ideas, objects, and practices are
created and which are new to the unit of adoption.” (Walker,2006).
 Innovation as a process;
Innovation is involving a set of activities that start with recognition of
need, generation of innovation, implementation and utilisation of a
solution that caters to the identified need (Bessant & Tidd 2007, Kinght
1967).
 Innovation as a value drive
Innovation is regarded as a tool to produce economic value. It has been
termed as a source of competitive advantage (Damanpour & Schneider
2006)
 It has been revealed that innovation contribute to lead the
organisations growth as well as seek to improve future profitability
(Wood, 1988).
 The implementation period for innovation starts when relevance
execution are undertaken for an innovation (Angle and Van de Ven,
1989).

6. Various key success factors (KSFs) in Implementing innovation have
been found based on the previous study.
Critical Success Factors Researchers
Clear project Mission, strategies, goals and (Bessant &1983) Dickson, 1982; Slevin &
directions Pinto, 1986)
Top management support & Commitment (Bessant & Dickson, 1982; Slevin & Pinto,
1986; Khan &Martin, 1989)
Appropriate personnel/skills/expertise (Bessant & Dickson, 1982; Slevin & Pinto,
1986; Power & Dickson, 1973)
Appropriate technology (Bessant & Dickson, 1982; Slevin & Pinto,
1986; Power & Dickson, 1973; Khan &Martin,
1989 )
Monitoring and feedback (control system) (Bessant & Dickson, 1982; Power & Dickson,
1973; Kerzner,1987)

7. Problems of implementation of innovations are not
just technical in nature.
 User resistance to change, have been recognized as
Behaviour-related problems of implementation
(Biggart, 1977; Markus).
Even if a certain technology were to be successfully
installed in a firm, it might not mean that its people
would actually use it. Even if they used it initially, they
might not necessarily continue to use it in the future.
“In such situation the innovation is successful
technically, but failed organizationally”.
(Grayson, 1973)

8. Problems Encountered by the Entrepreneurs in KIMAR from
Their Experience in Implementing Innovations
The five most difficult problems faced by the interviewees from
the five manufacturing in KIMAR while implementing innovations:
Fatihah AJ Food Dasree Ezzy Malinja
Major Frozen Sdn. Sdn. Bhd. Reality Sdn Classics Doner
Problems Bhd. Bhd. Products Kebab Sdn.
Sdn Bd. Bhd.
Solving     
Human
Problems
Maintaining     
commitment
towards
innovation
Difficulty in    - -
solving
technical
Problems
Administrative - -   -
problems

9. SUPPORT AND COMMITMENT
OF TOP MANAGEMENT
Innovation culture needs innovative leader
Management’s commitment to innovation in their
organization are their active involvement in new
product/service planning and frequent attendance and/or
interaction with the innovation team.
 They are concerned about levels of staffing, appropriate
budget/spending authority, and formal recognition and rewards
of innovation success.
 Senior managers are willing to allocate the necessary
resources to innovate work as part of their follow-through to
their commitment to innovation.

10. Organizational Adaptability
-*Organization’s adaptability is driven by demands or
needs from outside the organization.
-*Government organizations adapt their services to the
new expectations from their communities.
-*Demand and competition is increasing
Management is considering to make organisational
changes: Better and innovative production and lower
priced products

11. Project Leadership Style
Successful project managers manage teams most
effectively by motivating and inspiring their teams, building
high performance teams, consistently delivering successful
projects and continuously developing new leadership skills
to complement those that made them successful as
managers.
Responsibilities: Friendly Working Environment; Hire
professional; Encourage Good Performance; Commission
Given

12. Appropriate Technology
Appropriate technology is the choice of technology and
application of either intermediate (labor-intensive)
technology or advanced (capital- intensive) technology ,
developing on the carefully analyzed needs of each sector.

13. Key Success Factor in Innovation
A Comparison Between the
Techniques and Technologies.
Two Key Success Factors for
Innovation Implementations.

14. A Case Study of
KIMAR
Qualitative Research Seventeen food manufacturers operating
in KIMAR but only five selected
Non- Probability manufacturing are involved in this study.
-Fatihah Frozen Sdn. Bhd.
Judgment Sampling -AJ food industries Sdn. Bhd.
- -Dasree reality Sdn. Bhd.
-Ezy classics products Sdn. Bhd.
-MalinjaDoner kebab Sdn.Bhd.

15. CONCLUSION &
RECOMMENDATIOS
Our conclusion is based on the results from the
critical success factors for innovation
implementations indicates that many of the
processes followed by factories in KIMAR in
implementing innovations, and many of the factors
perceived by them are favorable to the success of
innovation implementations.
In fact, the more innovation-active factories in
KIMAR were more successful in their
implementation efforts than the less innovation
active ones.

16. Thank You For your Attention
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