The Vitality of Innovation in Business
Innovation is vital to the success of any business. But before you can apply it to your own organization, you need to understand what it is, why it is important, and how it applies to different business areas.in this article we want to discuss this important element of managing.
What is innovation?
The word “innovation” today appears everywhere on company websites, in advertisements for everything from hairspray to healthcare, on the lips of politicians, and in news features. However, while the word itself is popular, the concept of innovation remains poorly deﬁned.
The word innovation comes from the Latin words in and novare, meaning “to make something new, to change.” In principle, that’s something anyone can do imagination and creativity come as standard equipment for human beings. And it’s something we’ve been doing since the earliest days when our ancestors lived in caves the reason that we don’t still live there is because of innovation. Working out better ways of hunting, mastering ﬁre and tool-making, learning about agriculture, construction, transportation quite simply, the history of civilization is about innovation.
Why should we learn about innovation?
Thinking about managing innovation raises three key issues.
First, why should we innovate? Innovation always involves risks, and the rewards are not always obvious.
Second, what can we change? You need to understand the options for innovation before you can make decisions on where to focus your efforts.
And ﬁnally, how can we make it happen?
Changing and innovation is a necessary key feature for marketing and management
In Charles Darwin’s famous theory of evolution, survival depends on an ability to change. Those species that do not adapt and change to cope with an altering environment simply die out. The same can be said to be true of business organizations as well. If one cannot adjust it with the changes of environment that’s it.
Innovating is necessary for surviving
If you do not change what you create and offer the world (your products and services), you run the risk of being pushed aside by organizations that do. And if you want your businesses to grow, you are unlikely to achieve this if you do not offer new products and services in new ways. This survival idea may be obvious in a competitive business world but it is just as important in nonproﬁt organizations and public services.
With innovation you can make a big profit
Innovation is essential to survival, and also to development and proﬁt. There are many ways in which innovation can improve an organization’s revenue and customer base, and defend against competitors. These range from making existing processes more efﬁcient, to producing something before competitors can imitate it, to completely rewriting the rules of competition in your market.
Doing what we do better will get us a long way but from time to time something comes along that changes the whole nature of a business or market, offering a great leap forward. This is known as radical innovation. Radical changes in products, services, and processes don’t happen every day, and it takes a long time for them to be perfected, but they do have a big impact. Signiﬁcant examples include electric power, cars and railroads, the Internet, and self-service shopping.
How to build an innovation portfolio?
List all the possible innovations you could make.
Arrange them by impact area: product, service, process, market.
Score each idea in terms of impact and ease of implementation.
Plot on a chart with impact and implementation on the two axes.
Pick out easy to implement and high-impact ideas to work on ﬁrst.
Look at other high-impact ideas that may be harder to implement.
Being innovative in Products and processes
The most obvious areas of innovation are in what you produce and how you produce it. Product or service innovation can mean improving existing models such as producing the latest CD player or introducing something new such as the ﬁrst MP3 player. Process innovation can involve improving current processes reducing waste, increasing efﬁciency, or changing the way you operate such as switching from paper to digital correspondence.
Innovation has always been a multiplayer game, involving weaving together technological, market, ﬁnancial, legal, and other strands into creating new products, services, and processes. But in a world where markets are fragmented and globally spread, and global investments in R&D produce nearly $1 trillion of new knowledge every year, even the largest ﬁrms with big innovation budgets are increasingly aware of the importance of sharing knowledge. The idea of “open innovation”—originally the title of a book by US professor Henry Chesbrough—is that ﬁrms need to open up their innovation search and share their own knowledge.
Factors in innovation success
|Fast track||Off track|
|Supporting creativity across the organization||Failing to implement good ideas|
|Investing in research and development||Creating new technologies without ﬁrst ensuring they will be beneﬁcial|
|Listening to customers to ﬁnd out what innovations they want||Missing out on breakthrough innovations not yet conceived|
|Building a strong internal innovation infrastructure||Neglecting ideas from outside the organization|
|Using technology to solve product, process, and service problems||Focusing on technology and missing out on innovations|
Challenge and change in marketing and Innovation
Innovation is about adapting to an environment that is always turbulent and often hostile. It is not enough for a manager simply to cope with today’s challenges you need to be thinking about the challenges that will face your organization in the near future. Like human beings, organizations tend to view the world in terms of what they expect. Contemporary business is extremely complicated, and seemingly distant changes can suddenly turn out to have a huge impact close to home, as the 2008–09 global ﬁnancial crisis amply demonstrated. While, for the most part, your organization can rely upon established models, radical changes in the business environment do sometimes occur, and innovation is essential to coping with them. It is vital for the innovative manager to consider not only how to innovate when things are going well, but also when they are going badly. give HBR a visit.
Try to deal with challenges
Dealing with the unexpected is part of the innovation challenge.in some ways the most important part, as unexpected challenges can prove life-threatening to an organization. From Henry Ford working on “a car for Everyman,” to the IT specialists who moved banking, insurance, and stock trading online from paper, or the revolution in the music and entertainment industry caused by Internet ﬁle sharing, new business models are constantly emerging. And in each case, established players were severely damaged because they responded too slowly, leaving the door open for new competitors, some of whom have become today’s major players.
If you want to play in the business world you should know the rules of the play being innovative and dealing with changes are one of the most important elements.
In maadico our consultants will help you boost your organization and be innovative.
The images and text displayed above are under the copyright law and authority of the holder of the event and image and will not be used for any marketing, financial and profiteering of any kind. The Goal of these articles is merely further publicity.
What Maadico Offers
We at Maadico Offer a wide array of services related to the different Industries. we help your company with its agility, marketing and sale, Sustainability, Digitalization, and more. Contact us below for more elaborate information.