Organizational Impact Paper
Hope Breaux
01/361
June 08, 2015
Bruce Hunter

Organizational Impact Paper
Organizations must strive to generate ways to maintain a competitive advantage in today’s ever changing society. The key to the success of any business involves innovation. Methods of innovation are critical for manufacturing goods and services to consumers. In an effort to become more profitable and keep a competitive edge, organizations must provide high quality products and services while keeping its operating expenses low. Therefore, the business must integrate innovation, design, and creativity into their business models to meet their objectives of offering quality products and services. This paper is intended to evaluate the impact of innovation, design, and creativity will have on the strategy of two businesses-the Shared Appreciation Mortgage Company and the Lotus Elise Company while considering their processes, products and services of both organizations.
The Lotus Elise
The development of the Lotus Seven was launched by Colin Chapman. Chapman had an idea of offering to the public a sports care with the qualities of a race car at an affordable price. The performance of the Lotus Seven would provide a unique driving experience that had light weight construction like a race car but not the use of a powerful and heavy engine. To achieve this goal, Chapman strategy was to “combine elements of knowledge, information, and creativity” to the Lotus Seven. (Stamm, 2008, Chapter Chapter 11, Collaborating-Innovation in Manufacturing). The processes of the Lotus Seven were simple, Chapman wanted the sports car to have two seats and an open top, and of course it had to be a fun car to drive. In 1993, Chapman’s design team consisted of Roger Becker; Head of Vehicle Engineering and Kenneth Sears; Head of Technology Strategy anticipated that this project would take three years from start to finish. Great effort was taken to explore consumer characteristics that would provide more customer satisfaction. The process included theme boards that were provided by the designers; from there the original sketches were drafted. (Stamm, 2008, Chapter Chapter 11, Collaborating-Innovation in Manufacturing).
After six weeks of trial and error, the first fiberglass model was complete. Although the team experienced several challenges along the way, such as the car’s proportions was not correct, the car’s height needed to be adjusted because new legislation required a maximum height of 750 mm from the ground, and finally locating a company that could design one wiper blade that would cover the entire windshield. Finally, in 1995, the Lotus first showing was ready for the International Motor Show in Frankfort. (Stamm, 2008, Chapter 11, Collaborating-Innovation in Manufacturing). Chapman’s team exceeded their expectation and the demand was greater than the product. In some cases, customers were placed on a waiting list to purchase their new Lotus Seven. In the end, Lotus engineers successfully designed a car that the “enthusiast loves”. (Stamm, 2008, Chapter Chapter 11, Collaborating-Innovation in Manufacturing).
Shared Appreciation Mortgage-Bank of Scotland
The housing market is one of today’s most substantial investments consumers will make. But, the private rental players make up a small portion of this market while Owner Corporation dominates the rest of the asset pool. Craig Corn, who worked as the director of structured finance at Merrill Lynch, had an idea that would give homeowners a way to use borrowed capital as an investment. This means homeowners could make profits on their investments that would prove to be greater than their interest payables. This idea lead to the birth of a company called Shared Appreciation Mortgage. However, Merrill Lynch did not believe Craig’s idea would fit with their current operations. Therefore, Craig took his vision to a Swiss Banking Corporation who shared a common vision for this type of product.
Craig’s first step was to gather his team with people who had knowledge in capital markets and UK’s mortgage markets. He elected David Garner to fill that position. Garner began to seek legal advice on their product and after a few months of putting the plan together, the team began to seek a mortgage lender to manage and market the mortgages. The team began to build a society as they search for lenders with a solid reputation and lenders who were well respected. The Bank of Scotland became their prime target because of their reputation as a specialist in lending. The next step was to develop and implement the product. Craig and Willie would act as visionaries as Neil and Gail worked on taking the vision into reality. The team faced many challenging issues that no one had accounted for such as the unexpected demand of callers who were interested in the 0% option that was given on a first come first served basis among other issues. The demand from borrowers outstripped the supply of money from the bond market. (Stamm, 2008, Chapter 24).Before the bonds could see the light of day many other issues needed to be addressed. In the end, the Shared Appreciation Mortgage was taken off the market.
In conclusion, the evaluation between these two organizations “provides some interesting insights into innovative organizations perspectives on what constitutes ‘success or failure’. (Stamm, 2008, Chapter 24). This evaluations show how innovation, design and creativity, when carefully plan and implemented can be successfully achieved. Both the Lotus team and the Shared Appreciation Mortgage companies both had a vision. The Lotus team carefully planned and executive their product while the Shared Appreciation Mortgage hastily markets their product without the proper research and execution of the plan.

Reference
Stamm, B. Von. (2008). Managing Innovation, Design, and Creativity (2nd ed.). Retrieved from The University of Phoenix eBook Collection database.