Business innovation: Difference between revisions
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<li>[[Conglomerate diversification]]</li> | |||
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Revision as of 18:28, 19 March 2023
| Business innovation |
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In the business world, innovation is used to mean the use or introduction of new ideas, work plans, processes and products and services. Business innovation is aimed at enabling the firm achieve their entire goals and implementing their vision. During innovation, the organizations always ideates the process. This is through generation, then narrowed down through consultative forums. The business partners or owners determine the viability of the ideas, their feasibility and then the desirability of the ideas before implementing any. It important to note that innovation improves the existing processes, products or services. It also aimed at solving existing problems and expanding the client base of a firm.
Importance of business innovation
One main objective of business innovation in a firm is to create additional value to the business. This value can be improved through various ways such as development of new income generating activities or improving on the existing means of revenue generation. Efficiency in a business saves time and money, promotes productivity and the overall performance of the firm. In summary, business innovation should result in more profits, gain a competitive advantage over other firms in the same market.
Business innovation cycle
In business innovation, just like any other innovation, ideas are articulated first. This is simply brainstorming different ideas that can lead to improvement of a product, service, the marketing strategies, processes and business models. After idea discovery, the ideas are developed and later on implemented. Creation of ideas and evaluating them is usually the first step in innovation. During this phase, the idea is evaluated for feasibility, viability and the value they have or can bring into a business. Most innovation may fail to pass this phase or those that are hurriedly passed may fail in the end. Therefore, this calls for a proper and well thought evaluation process. The second phase of innovation focuses on testing the ideas through piloting or proving of the ideas. This is a continuation of the first phase. More and thorough evaluation is done on the idea. Results from this phase give a brief picture of the wider scope in the business world if the idea will be implemented. In the next two phases, the ideas are scaled up. The idea is integrated in the business program or operation. Very few innovative ideas reach these two phases. Once an idea is in the final phase, the business and the leadership would have already gained reputation and established an environmental niche in the market. Interestingly, different leadership of businesses name these phases with different names but basically, the process of the innovation remains the same.
Innovation models
In the business world, there are different innovation models; some are simple while others are complex. To sum up the models, let us look into three types of models. Business model innovation: this model refers to the ideation and implementing new ideas to support a firm's financial muscles and mission. When the leadership of a business makes a decision to change the business into a totally different venture or industry. This model may be referred to as industry model innovation. The other model that is based on altering a revenue generation framework of a business firm, goals and mission is known as revenue model innovation.
What are the pros and cons of innovation in a business setup
Innovation is beneficial to an organization as it brings about improvement in products and services offered to clients, attracts and creates a wider and broader market, increased income, grows a firm, and new job and business opportunities and finally the reputation of a firm. Contrary, innovation is costly, ideas may never be realized as they fail along the innovation cycle and they may never please the customers.
References
- Blank, S. (2010). The Life Cycle of Innovation in Business. Business insider.
- Pratt, M.K., & McLaughlin, E. (2017). Business Innovation
