Zoom's High Importance on Innovation

ZOOM
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Zoom
Part A
Question 1: Zoom and Innovation
Zoom's high Importance on Innovation
Zoom focuses on innovation to achieve specific objectives and adequately integrates business functions to promote facilitation. Due to the highly competitive industry, Zoom needs to be highly innovative. According to Jakšić et al. (2018), innovation is a significant way of gaining a higher competitive advantage by establishing unique products in a highly competitive market. Innovation is based on implementing unique business ideas resulting in new services or products (Siemon et al., 2018). The concept of innovation is effective for Zoom for different reasons. For instance, it would define customer satisfaction and happiness, and zoom aims to innovate new products that can make the customers satisfied and happy. Change is a common aspect that the customer requires to feel unique from others in the communication industry. Therefore, by embracing innovation, Zoom would gain a better chance of meeting different customer needs and desires.
Zoom was launched in 2012 with video communication as a major platform. Besides, it was heavily considered a 'single-click solution,' which attracted many customers since it was easy to use (Zoom, 2021). The customers were happy since they did not need to use a long process of creating new accounts. Its competitors, such as Skype, made the process complex for the customers since they had to sign into new accounts before using it. Zoom focused on the business function to attract more customers and facilitate innovation. Besides, Zoom used other tactics, such as creating a unique video experience for the customers, which shows that the focus of the innovation was to promote customer satisfaction. Therefore, the main reason for Zoom placing high importance on innovation is customer contentment. Since 2012, Zoom has also used different strategies to constantly improve its quality by initiating changes in its departments. The company mobilized different investors, including capitalists, to ensure adequate finance for innovation. Innovation is expensive and requires adequate funding through work capital management and retained earnings to adopt new technology changes (Keynes, 2018a). Besides, implementing new ideas to practicality requires extra operation and implementation costs. Therefore, the finance approach allows the company to meet the threshold for expansion.
Additionally, Erick Yuan, the founder of Zoom, aligned innovation's importance to employee happiness. According to Gupta et al. (2018), innovative ideas can come from any part of the organization, from the employees and management to customers. Therefore, Zoom used specific strategies to ensure that employees were happy and satisfied. It focused on incentives, including book clubs and fun events. The strategy was meant to motivate the employees to have an innovative mindset to promote organizational success. For instance, 150 out of 2500 volunteered to ensure Zoom meets different innovative thresholds and thus classified as a 'happy crew.' (Zoom, 2021). Zoom created a culture of happiness and a conducive environment that would allow employees to conduct different research for incr...