Each major step forward for our species often comes through the adoption of innovation. From language, fire, and farming, to modern medicine, money, and electricity, each innovation has offered capabilities that are beyond our imagination, allowing us to increase our security, capability, and longevity.
Innovation in Business
Innovation is the exploitation of new ideas that can lead to the creation of new processes, services or products. Remember that the invention of an original idea isn’t the only important thing. But, bringing a new idea to the market, and putting it into practice or exploiting it to the fullest leads to new services, systems or products that improve quality or add value. Some innovations may involve management restructuring and technological transformation.
There are different types of innovations that have been identified by experts. Product innovation entails the introduction of a service or product that is new or has been considerably improved. Supply chain innovation involves the changes that convert the process of sourcing input products from a market and the output products delivered to customers. Process innovation comprises the implementation of a new or enhanced production/ delivery method. Marketing innovation is about the evolution of new marketing methods with improvements in packaging or product design, its pricing, or promotion.
Why innovation is critical
Many studies have revealed how most companies want to be innovative, with 90 percent of companies believing that changes are a priority for them. Hence, we can conclude that innovation is increasing at a significant rate. In the current economic scenario, innovation has become a key factor that influences strategic planning. It’s been acknowledged that innovativeness can lead to the creation of wealth. Although effectiveness is essential for success in business, it can’t sustain growth in the long run without innovation.
Often, planned and the measured combination of objects, people and ideas lead to innovation, creating new ideas, as well as technological revolutions. For new services and products to be called valuable innovations, they have to be strong enough and capable of progressing through harsh and demanding commercialization processes to the marketplace. Any organization that exists in this age that necessitates innovation and utilization of extra resources but can’t innovate faces decline and extinction. This is the reason most companies are adopting measures that can help them strengthen their innovation capabilities. Such companies also create dependable operating systems for innovations, a vital corporate sustainability indicator.
Research has also shown that innovation is driven by competition and high demand. How intense the competition is determines how innovative and productive a company can be. Other than products and services, innovation also covers new business systems, new processes, and new management methods that have an impact on growth and productivity.
We need more innovators today more than ever. Each business today feels the impact of migration, globalization, revolution in technology and knowledge, as well as climate change problems. Through innovation, businesses will add value to their products and services and manage to widen their employment base. Remember that for the quality of life to improve in these trying circumstances, innovation is required. Through innovation, the world will become a better place for us and the future generation.