In the business world, the term innovation refers to the process of renewing, transforming, and formulation of updated and effective processes as well as products that would enable a business to remain competitive in the market. It would also involve the implementation of new ideas, adaptation of dynamic products and services improving on the already existing ones. All those were done from the fact that innovation, unlike the olden times, has been noted to be a catalyst for not only the growth of the business, but also the success and prosperity of the business. It is from that underlining principal that the paper will be expounding and giving further details on why, why, and how innovation is important in ensuring that the business remains competitive in the ever changing market of the modern time.
Innovation is a long-term driver of economic growth and the excitements of doing things in a different way are a motivation and bring satisfaction to an individual. As a result, supporting while at the same time investing in innovations is a wise idea since the returns are acceptable is a sentence that is true without any doubt. There are various reasons expounded with an aim of evidencing and substantiating that fact. To start with, factors such as globalization and outsourcing among others have necessitated businesses to not only improve, but also maintain efficiency and effectiveness in order for them to survive in an ever changing business environment (Roberts, 2007). A business does not require only a good product and service for it to survive in a competitive environment, but rather, they need to adapt sound innovative processes as well as management functions that would enable them to cut or reduce costs without compromising the quality. By so doing, they would have an opportunity of commanding a wide customer base bearing in mind that customer retention will be probable. That is unlike the olden times when organizations would stand a chance of existing in the market without innovation a fact that would be, as a result, of lack of options as well as the lack of a wide range of competitions (Lazonic & O'Sullivan, 2000). An addition factor that helps in proving how imperative the process of innovation has turned to be in the modern times is the customer expectations. Businesses are therefore, driven to by their customer expectation and they ought to meet them or risk losing them to their competitors bearing in mind that there are wide options from which the customers might decide to purchase. That happens because they are the end users of the products and services that would be produced and offered. The modern customers are more informed and, as a result, they will not accept anything less from their expectations since they market is full of options from which they might opt for (Roberts, 2007). Such facts explain how innovations have turned to be imperative to the business world in the modern era.
The further aspect to deliberate on is why innovation is imperative in the business environment. Economic growth is one of the reasons that necessitate a business to have and adapt innovation at all times. Bearing in mind that innovation is the only shorter route for economic growth; businesses have no option, but to heighten their innovation capabilities. Personal well-being is yet another reason innovations were catered for (Prahalad, 2005). Since innovation creates businesses and the businesses create jobs, individuals would be able to get income; as a result, they will have improved their well-being thanks to innovation. As a result of globalization, competition have been taken a mark higher and innovation remains to be the only way business might get a jump on the tight competition. As a result of innovation, they are able to get the conventional corporate wisdom that enables them to stay on course matching with their competitors (Lazonic & O'Sullivan, 2000). Equally, innovation is important because the cost-cutting strategies are not functional and applicable anymore. From the previous times, the profit equation indicated that for a business to experience profits at the same time maintain them, the costs ought to be kept at minimal. However, with the advancement of technological application in the business world, downsizing has taken place implying that the practices that only allow the company to stay on the game are no longer enough, but, innovation is. The desires for higher business revenues are yet another reason innovations have turned to be imperious in the business world in recent times leading to the notion that innovation in marketable (Lazonic, 2004).
Comparatively, businesses have been pushed to the limit by the advent of the internet. That has made innovation not only to be necessary in the modern global business environment, but also big and small businesses to equally specialize in order for them to be competitive globally. In other words, business ought to ensure that their innovation is ongoing or continuous in order for them to ultimately command a wide range of customers something that they as well must do strategically (Lazonic, 2004). There are various aspects that they must consider as they strategically develop their products and services. For instance, a business ought to carry out their innovation in stages bearing in mind that various innovations have not lived to see the light of day. In the process of innovating, searching ought to have been done because that would be the only way that a business would be able to meet the needs of their clients. Concept screening, business analysis, product development, and market testing as the other crucial stages that must be taken into consideration while a business in trying to innovate an idea or concept (Prahalad, 2005). Without a doubt, the innovation that stands out, and produces better results in most cases originates from the observable social conditions. Hence, the best time that a business might develop an innovation that might work would be aligning the social conditions to achieve the desired innovations outcomes within the business environment (Lazonic & O'Sullivan, 2000). That simply implies that the best innovation is socially driven rather than process driven bearing in mind that it would be used at a particular place and time for them be more effective.
In closing, it is without doubt that an innovation is an initiative force in the productivity as well as performance in the business because it enables them not only to grow, but also enhance their quality. Although many businesses would be able to survive and last even without innovation in the olden times, lack of it in the modern times would be catastrophic. The various aspects that make innovation such an imperative feature in the modern business world have all been revealed and expounded in detail herein (Prahalad, 2005). For instance, through innovation, an all the aspects of business such as sales and marketing, finance, human resources, and information technology stand a chance of performing excellently. That would be attributed to the fact that they all benefit from having a proficient and capable work process as revealed exceedingly. In addition, through innovation, all the business departments mentioned would have an opportunity to save time and money bringing about the much anticipated profits while at the same time reducing losses. The quality of services on the other brings about customer satisfaction and the benefits of having satisfied client base are paramount as discussed above (Lazonic, 2004). As a result of all those deliberated factors and many more not mentioned herein, one would be able to understand that an innovation is no longer a re-permutation of the noticeable. However, it has turned to be the exploitation of diversity through the transformation of angle leaving the future of it poignant inquisitiveness because it has the capability of transforming business perspectives as known in recent times (Lazonic & O'Sullivan, 2000).
Lazonic, W. and O'Sullivan, M. (2000), "Maximizing Shareholder Value: A New ideology of Corporate Governance," Economy and Society; 29, 1; pp. 13-35.
Lazonic, William (2004), "Indigenous Innovation and Economic Development: Lessons from China's Leap into the Information Age," Industry and Innovation; Dec 2004; 11, 4; ABI/INFORM Global pp. 273-297.
Prahalad, C. K. (2005), The Fortune at the Bottom of the Pyramid, Upper Saddle River, N.J. Wharton School Publishing
Roberts, Edward B. (2007), "Managing Invention and Innovation", Research and Technology Management, Jan-Feb, pp. 35-54.