The Role Of Innovation In Business Setting

Entrepreneurs use many tools to propel their endeavors. One of the tools that many entrepreneurs use is the innovation concept. The innovation concept is the development of new disciplines and practices within the frame work of the concept. Entrepreneurs bring about innovation through opportunities that are caused by change. Technology innovation, processes innovation, service innovation and product innovation are some of the ways that the opportunities within the innovation concept can be found. Each of these ways of finding opportunities happen in different ways.

Alongside the entrepreneur spirit, Innovation is the process of taking new ideas and implementing them into the market. Key word being “new”, an innovation can be sometimes viewed as the application to better solutions that meet new demand-requirements, inarticulated needs or existing market needs. Innovative ideas range from: goods, services, products, processes, services, technologies or ideas that create value for which customers will pay for. For an idea to be an innovation, it must be replicable at an economical cost and must satisfy a specific need. This means is that one must be ready and willing put their new idea to the test. On the other hand, there is recognition that “innovation is also critical to cultural, environmental, social, and artistic progress as well” (Bullinger, 2006). With this stated, high-tech innovation is ultimately the reason why we can be thankful for the many new conveniences of the 21st century. Although we might see the forefront of innovation being very prominent in today’s world, innovation is truly nothing new. From the start of modern man times, innovative ideas have paved the way for civilization to advance and develop into what we are today and at the same time, we have barely begin to chip away at the tip of the iceberg of our true human potential. Some scholars believe that innovation is a

Innovation brings changes, and for bringing desirable and appropriate changes, a clear understanding of innovation is vital. A plethora of discourses indicates what innovation is, but it remains fuzzy because of contextual biases and disparity (Crossan, M. M., and Apaydin, M., 2010). The literature of innovation, on the other hand, refers to innovation as a category covering a wide spectrum of issues that include a source of change (cause), a changing process, and a changed state (effect), which appears ambiguous because the cause, effect and the process in-between cannot be the same.

As we have learned in this program, innovation gives organizations a competitive advantage. Organizations that don’t move along with innovation and stay stagnant will perish, in the long run. According to Robert M. Grant’s Contemporary Strategy Analysis book, “competitive advantage is not only innovation in technology but also strategic innovation such as developing new approaches to doing business, creating value for customers from novel products, experiences, or modes of product delivery.” An example of this kind of innovation is Ikea and its new system of supplying customers that has reconfigured its entire value chain.

Innovations can create a huge opportunity for success, as they enable a company to create a competitive advantage by having differentiated products, services or business models. Hence an innovative strategy is highly recommended in order to achieve high business growth, in case you are willing to expose you to a higher degree of risk. Being successful with an innovative strategy requires a multidimensional approach and an integrative strategic management.

According to Hang, Chen and Yu, 2011 the disruptive innovation theory was used extensively to practicing managers. “It pointed out clearly that the threat to successful incumbents which may focus on the needed sustaining innovation and hence could fail to capture the new prospects presented by disruptive innovation”. The disruptive innovation may be

Innovation and change that is brought about by it can completely redefine the playing field, new products and services can be created/built/designed. It can add efficiency to current work processes and services and also has the potential to build a whole new market place. All of this should increase a company’s earnings, profitability and competitive advantages over others

Innovation is essential for any organization which seeks continued relevance in the market. This innovation might come in two forms, disruptive or sustaining. Accordingly, disruptive innovation seeks to enter an unexplored market with a product which is unlike any that the organization has at the time, and seeks to acquire a new pool of clients. This initiative needs to be considered as being capable of generating value for potential users. In the other

From many of these examples and articles, we can gather much information over the relationship between innovation and strategic management. Although, some areas may not be proven in its fullest capacity, there are undoubtedly ways that innovation improved business operations and practices, which can be seen in examples such as Apple, Microsoft, Dominos, and Samsung. On the other hand, not every business incorporating innovation is a success story. In the dynamic days we find ourselves in today, business and organizations are digging deeper into the wells of innovation. We have all come to enjoy the benefits and I am not sure of anyone that would want to

Tidd and Bessant (2009) argued that “Unless an organization is able to move into further innovation, it risks being left behind as others take the lead in changing their offerings, their operational processes or the underlying models that drive their business”.

Innovation refers to finding new ways to improve the existing products, services, processes, technologies, and employee performance in an organizational setup. In today's competitive business environment, organizations have to focus on bringing innovation in each and every aspect of their business operations; like products or service offerings, enterprise resource planning systems, marketing and promotional efforts, and organizational structure. The market challenges and competitive pressures also force organizations to use a blend of all these innovation processes in their business activities. Therefore, it is vital to give an equal focus on product innovation, process innovation, marketing innovation, and organizational innovation within the limited organizational resources and capabilities.

Innovation is the process by which ideas are created, selected and implemented to bring about profitable change to organisations. Innovations come as a result of an identified need for organisations to change their current processes, activities or operations. Andriopoulos and Dawson (2009) explain that organisational change is ‘new ways of organizing and working’. They explain that change occur in two dimensions – movement of state and scope of change.

Innovation and change management have been and continues to be an important study on a number of levels. It plays significant part in economic growth as well as it is vital for firms’ survival and development. New ideas, new approaches and new products become critical guidelines in organisational strategy, especially for managers and business leaders. According to The Boston Consulting Group (2010) employers’ ranked innovation as a strategic priority with 26% citing it as a top priority and a

Innovation offers the companies a competitive advantage. Presently and within the future, more than any time in history, the key to competitive advantage is innovation. However innovation will facilitate businesses meet all of their strategic challenges, not simply competition; to illustrate, in confronting accelerating rates of change, globalization, apace advancing technology, a additional numerous workforce, associated a modification from an industrial to a knowledge-based economy. Meeting all of those challenges helps the firm attain competitiveness, and meeting these challenges suitably depends on innovation. Innovation allows a firm to workout its challenges in distinctive ways in which build competitive advantage either through relative differentiation, a relative low-priced position, or few acceptable level of each. Innovation cannot assure success, however success cannot be achieved within the end of the day without it.

Every where most of us talk about innovation, its benefits, its challenges, but nobody talk about “how to innovate” instead they simply tell us how important it is, how it is driving their business strategies, how it is changing business dynamics, providing more value, beating the competition, & so on. There is no solid and proven method that would help us with business innovation. In search for how to fish, how to create solution, more and more business people in India turn their attention to Breakthrough Management strategy.