Discuss about the Innovation in Business for Rapid Changes.
Rapid changes in the business environment have force companies to make investment in research and development for the purpose of implementing innovations in business processes and products and services in order to meet the changing demands of the customers. Innovation refers to the conversion of an idea into in to reality in the form of goods and services that results in the creation of the value for its customers. Customers are ready to pay premium prices for the innovative products and services as it facilitates in fulfilling the needs and wants of customers. There is an involvement of imagination, initiative and information for the purpose of delivery of different and increased values from resources and processes through which idea is converted into final products and services. Organizations focus on innovations in order to satisfy the needs of the customers. Organizations grab different opportunities available in the market by the adoption of innovation in the volatile and uncertain business environment survive for long term. Besides this, they also gain competitive edge over other players in the market (Fortuin, 2007). The thesis statement is stated as ‘Organizations must innovate to survive and thrive’.
Organizations for the purpose of development of the agile innovation culture, global industry eco-systems and business management processes use innovation as a strategy to remain competitive in the market. Bringing innovation in the company helps in engaging employees in come up with creative ideas that can be brought in the products and services to meet the unmet demands of the customers. Innovation in the products and services also results in increasing the returns that the shareholders get on their investment in the company. If the organization regularly innovates and taps new opportunities then it attracts investment from large number of investors. It also facilitates in increasing the sales and profits of the company as customers are ready to buy innovative products that fulfill their needs and demands (House and Price, 2009).
There is a necessity to bring Innovation in the processes and procedures used by the company results in improving its overall productivity and performance. There is a presence of scarcity of the resources and abundance of the problems in the world. The company that thinks differently and converts the idea into action to solve the problems with available resources results in achieving high growth in the market. Innovation helps in finding new ways to respond to unpredictable events which are not anticipated in an efficient manner. This helps the company to gain a competitive edge over its rivals in the market. In developed economies innovation and creative skills by the companies in order to survive and thrive in the market (Piperopoulos, 2012).
Organizations face several problems due to the changes occurred in the business environment which can be resolved by the execution of the creative ideas that results in innovation. Creativity is considered the driving force of innovation. It is necessary for the organizations to invent new ideas in order to overcome the problems faced by the company related to processes and procedures. Innovation helps in encouraging the employees to think out of the box and invest time to explore new ideas to solve the problems faced by the company in terms of sales, customer satisfaction and so on. It also results in improving the process of solving problems. Different innovative approaches can be achieved by the business from its stakeholders such as employees, customers and partners (Bouwman, Vos and Haaker, 2008).
It might be possible that a customer while giving its feedback on the goods and services offered by the company might provide a creative idea to make changes in the existing products to meet the specific need of the customers. This might result in increasing the sales and profits of the company. There are different types of innovations adopted by the organizations in order to succeed in the market such as radical innovation and incremental innovation which helps them to attain competitive advantage over other players in the market. Radical innovation results in posing a significant impact on the economic activities of the firms in the market. Besides this, incremental innovation helps in increasing the performance of the specific product and service in terms of its sales and market share. Incremental innovation in the company facilitates in reducing the cost or improving the features of the existing products in order to increase its sales and profits of the company (Fortuin, 2007).
Google has released Gmail which is considered as the best e-mail service over the internet. It is the example of incremental innovation as it has made improvements in its e-mail services provided to internet users. During the launch of Gmail, it has very limited features but it has a great speed of sending and receipt of the e-mails in a quick manner. It is user friendly and did not flash advertisements to distract the user. There is a necessity for the organizations to innovate in order to remain in the market. Organizations which held as prisoners by their mental models find difficulty in surviving in the market. Mental model refers to the way in which the organization sees its employees, itself and its customers. It provides information related to the aim of the organization and the way in which the organization achieve it. Mental model helps in entrapping the company at the time of making adjustments as per the changes taking place in the organization (Schmitt, 2014).
Innovation is considered as a building block for the purpose of attaining prosperity and survival of the company in the market. For the purpose of successful implementation of the innovative and creativity ideas in the organization there is a need to achieve a proper support from the top level management of the company (Gawarzynska, 2010). Innovation can happen only in those companies which has a culture to involve the stakeholders such as employees and customers to come up with creative and new ideas to resolve the problems faced by the company. Companies must foster innovation in their processes and products and services which in turn results in gaining success in a quick manner. It is essential for the companies to implement innovation in every sphere of the organization so that every member of the organization concerned with new initiatives in their work as it helps in improving their performance and productivity (Latif, 2010).
Besides this, it also facilitates in attaining high level of customer satisfaction which in turn leads in increasing the market share of the company. It is also considered as a special tool for entrepreneurs which facilitates in exploiting opportunity in the market. Entrepreneurs search for the sources of innovation for the purpose of bringing changes in the organization to exploit opportunities in the market. Nowadays, it is important for the organizations to bring innovation in their products and services because there is an increase in the competition in the market and in very less time, other companies either imitate or launch similar product in the market which results in declining in the market share of the company (Mann and Chan, 2011). If companies brought innovation in their products on regular basis then the company can overcome competition in the market and have long term survival in the market. In addition to this, nowadays companies face high competition from the companies across the globe other than from local players in the market. This is the reason that there is a need for the companies to innovate and bring new ideas in order to overcome the competition from across the globe (Anna, 2012).
Companies which challenge themselves in the aspect of their operations and processes and engage in improving their activities will survive in the competitive environment for long term. Nowadays, customers also prefer innovative products and do not accept the old products with obsolete technology. The innovation cycle has become short as companies are constantly making investment in bringing innovation in the products and services in order to solve the problems faced by the customers (Taplin, 2006). In the current rapidly changing business environment there is a need to bring innovative ideas in order to survive and thrive in the market. There are many companies that constantly innovate new ideas and implement it to provide products with new features to the customers such as Apple and Samsung. This helps in attracting more number of customers (Alon, Jones and McIntyre, 2013).
Besides this, Apple has constantly bring innovation in its products by adoption of new technologies due to which it gained a first mover advantage in the market. In addition to this, Samsung is bringing innovation in their products by providing mobile phones for every type of customers. This help companied to penetrate in the market by providing products for all types of customers at reasonable price. Apple has added new features in its iPhone by keeping its design intact. This attracts new and existing customers to buy products. With regard to Apple, the company launches one phone which results in making the technology used in other models obsolete as the new model has some new features along with the old features present in the previous models (Håkansson and Waluszewski, 2007).
Innovation can be successful if there is an existence of a match between the changes made inside the company with its positioning and market segment to which it offers products and services. This alignment helps in successful implementation of the innovation practices and leads to an achievement of high sales and profits of the company (San, 2014). There are also large companies that finds difficulty in being innovative to respond to the changes occurred in the business environment as these companies have developed core competencies which helps in distinguishes it from other companies. At the time when there is a need to embedding with the globally competitive market the core competency becomes core rigidity due to which it is a necessity for the organizations to become flexible and bring new ideas to cope up with the changes taking place in the environment to remain competitive in the market (Solomonides, 2009).
It is required for the organizations to build a culture of innovation to motivate employees to come up with innovative ideas which might be adopted by the organization to improve its operational efficiency and productivity of the company. Amazon has also implement innovation in their processes for the purpose of providing a good experience for its customers. The company has brought innovation in its processes such as Amazon Prime in order to provide products to customers in an effective manner. Besides this, it has also launched an e-reader space with Kindle which offers its customers to read the article, books and novels online with clear picture quality (Aydogan, 2008).
Along with this, ATT has also implemented a program named Foundry to accelerate innovation in the company. It has made huge investment and provide an opportunity to its employees to experiment with the processes. It has also shorten the innovation lifecycle of its products or services. The Foundry offer products such as Cascade that helps in sending and receiving text messages from any connected device such as connected car, security solutions and home automation (Trapp, 2014).
Conclusion
It can be concluded that it is essential for the companies to bring innovation in the products and services offered by it in order to remain competitive and survive in the market for long time. In this rapidly changing business environment , the innovation lifecycle is shorten as there are very high customer expectations which has to be met by the company in order to increase its market share. Many companies have embedded innovation in every part of their business in order to gain a competitive edge over other rivals in the market. Thus the thesis statement can be restated as ‘Organizations must innovate to survive and thrive’.
References
Alon, I., Jones, V. and McIntyre, J. 2013. Innovation in Business Education in Emerging Markets. Springer.
Anna, S. 2012. Academic Entrepreneurship and Technological Innovation: A Business Management Perspective: A Business Management Perspective. IGI Global.
Aydogan, N. 2008. Innovation Policies, Business Creation and Economic Development: A Comparative Approach. Springer Science & Business Media.
Bouwman, H., Vos, H.D. and Haaker, T. 2008. Mobile Service Innovation and Business Models. Springer Science & Business Media.
Fortuin, F. 2007. Strategic Alignment of Innovation to Business: Balancing Exploration and Exploitation in Short and Long Life Cycle Industries.Wageningen Academic Pub.
Gawarzynska, M. 2010. Open Innovation and Business Success. Diplomica Verlag.
Håkansson, H. and Waluszewski, A. 2007. Knowledge and Innovation in Business and Industry: The Importance of Using Others. Routledge.
House, C. and Price, R. 2009. The HP Phenomenon: Innovation and Business Transformation. Stanford University Press.
Latif, A.H. 2010. Innovation in Business and Enterprise: Technologies and Frameworks: Technologies and Frameworks. IGI Global.
Mann, L. and Chan, J. 2011. Creativity and Innovation in Business and Beyond: Social Science Perspectives and Policy Implications. Routledge.
Piperopoulos, D.P.G. 2012. Entrepreneurship, Innovation and Business Clusters. Gower Publishing.
San, Y.T. 2014. TRIZ – Systematic Innovation in Business & Management. First Fruits Sdn. Bhd.
Schmitt, J. 2014. Social Innovation for Business Success: Shared Value in the Apparel Industry. Springer Science & Business Media.
Solomonides, T. 2009. Healthgrid Research, Innovation, and Business Case: Proceedings of HealthGrid 2009. IOS Press.
Taplin, R. 2006. Innovation and Business Partnering in Japan, Europe and the United States. Routledge.
Trapp, M. 2014. Realizing Business Model Innovation: A Strategic Approach for Business Unit Managers. Springer Science & Business Media.
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