Why innovations is important

Invention is a new idea. Innovation is the commercial application and successful exploitation of the idea. Fundamentally, innovation means introducing something new into your business. This could be:. Innovation can mean a single major breakthrough — e. However, it can also be a series of small, incremental changes.

Whatever form it takes, innovation is a creative process. The ideas may come from:. Success comes from filtering those ideas, identifying those that the business will focus on and applying resources to exploit them. Innovation in your business can mean introducing new or improved products, services or processes.

There's no point considering innovation in a vacuum. To move your business forward, study your marketplace and understand how innovation can add value to your customers. For more information on analysing your marketplace, see the page in this guide on planning innovation. You can identify opportunities for innovation by adapting your product or service to the way your marketplace is changing. For example, if you're a specialist hamburger manufacturer, you might consider lowering the fat content in your burgers to appeal to the health-conscious consumer.

You could also develop your business by identifying a completely new product. For example, you could start producing vegetarian as well as meat burgers. You could innovate by introducing new technology, techniques or working practices - perhaps using better processes to give a more consistent quality of product. If research shows people have less time to go to the stores, you could overhaul your distribution processes, offering customers a home-delivery service, possibly tied in with online and telephone ordering.

If your main competitor's products have a reputation for being cheap and cheerful, rather than trying to undercut them on price you could innovate by revamping your marketing to emphasise the quality of your merchandise - and consider charging a premium for them. Innovation will not only improve the chances of your business surviving, but also help it to thrive and drive increased profits. There are lots of practical ways of assessing whether your ideas have profit potential:.

I tend to like the simple descriptors because then confusion is removed. However if they have utilised a new technology in the manufacture which gives a USP, I would then agree that this is innovation. Businesses often get confused between the meaning of other simple concepts such as strategy and tactics. Utilise KISS whenever possible! When […]. Being a business owner, if you want to exploit your product or service, whatever you are offering, you have to keep on innovating to provide good user experience to your target segment.

Facebook Twitter Linkedin Instagram Email. Posted in Business Development , Leadership Development. Andrew German on March 18, at pm. May you summarise the reasons why do we need innovation and creativity.

Lisa Caprelli on September 16, at pm. It is important to stay innovative and creative. Watch the video in this article! Return to Blog Homepage. What is Innovation? Download Our Free Guide to Introducing Innovation into Your Organization Why innovation matters and the steps you can take to make a meaningful impact on your current company. Innovation Helps Companies Grow As mentioned above, if you want to grow your business in order to become more successful and profitable, there are a few ways that you can go about achieving that goal.

Innovation Keeps Organizations Relevant The world around us is constantly changing, and in order for your business to remain relevant and profitable, it will eventually need to adapt in order to meet these new realities. More than new websites are created every minute. Innovation Helps Organizations Differentiate Themselves At the core, innovation is about doing something differently from everyone else operating in your space.

How to Embrace Innovation In order to drive business growth, stay relevant in changing times, and differentiate from the competition, business leaders must be able to think creatively and embrace innovation into their business models. Related Articles. Co-op vs.

EdD vs. The best of our graduate blog—right to your inbox Stay up to date on our latest posts and university events. Follow us: Facebook Twitter LinkedIn. Economic growth is driven by innovation and technological improvements, which reduce the costs of production and enable higher output.

If we look at this from the perspective of an organization, different automation solutions decrease manual, repetitive work and release time for more important, value-creating tasks. Improved productivity and efficiency makes work more meaningful as less time needs to be spent on low impact tasks.

Last but not least, innovation also has a positive impact on company culture as it increases the ability to acquire, create and make the best use of competencies, skills and knowledge. Innovation practices can help build a culture of continuous learning, growth and personal development. This type of innovative environment can again motivate people to constantly improve the way they and their team work. When the entire organization is supportive and provides the right tools for the employees to succeed in their jobs, it eventually has a positive effect on how people perceive their jobs.

When it comes to managing a business, innovation is the key for making any kind of progress. Small improvements eventually lead to bigger and better ideas that may one day become revolutionary.

Often, getting started is the hardest part as there are many ways to approach innovation. Our suggestion is to simultaneously work on developing your personal skills and business related aspects. You should, however, start small and pick your focus as it's impossible to achieve everything at once. If you want to start with innovation, we encourage you to try Viima. It's free for unlimited users! This post is a part of our Innovation Management blog-series. In this series, we dive deep into the different areas of innovation management and cover the aspects we think are the most important to understand about innovation management.

You can read the rest of the articles in our series covering innovation management by clicking on the button below. With the recent economic turmoil, we've seen many struggle, and want to do our part in helping to build back better.

We need innovations now more than ever, so we made Viima's Basic plan free for an unlimited number of users. All rights reserved. Innovation Continuous Improvement Innovation Management. Table of contents What is innovation and why do we need it? Macro perspective: The role of innovation in our society The fundamental outcomes of innovation Economic growth Innovation and the future of jobs Increased well-being Reduced sickness, poverty and hunger Communication and educational accessibility Environmental sustainability Micro perspective: The importance of innovation for an organization Competitive advantage Maximize ROI Increased productivity Positive impact on company culture Conclusion.