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The Vitality of Innovation in Business

July 21st, 2020
Company Rebuilding

The Vitality of Innovation in Business

July 21st, 2020
Company Rebuilding

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.

Innovating radically

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?

First step

List all the possible innovations you could make.

Second step

Arrange them by impact area: product, service, process, market.

Third Step

 Score each idea in terms of impact and ease of implementation.

Fourth step

Plot on a chart with impact and implementation on the two axes.

Fifth step

Pick out easy to implement and high-impact ideas to work on first.

Finally

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

Understanding

Creativity

Leadership

Learning skill

Teamwork

Planning

Entrepreneurial

Organized process

Harnessing Creativity

                            Fast track                                            Off track
Supporting creativity across the organizationFailing to implement good ideas
Investing in research and developmentCreating new technologies without first ensuring they will be beneficial
Listening to customers to find out what innovations they wantMissing out on breakthrough innovations not yet conceived
Building a strong internal innovation infrastructureNeglecting ideas from outside  the organization
Using technology to solve product, process, and service problemsFocusing 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.

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