The Essential Role of Innovation in Business

The competitive business has one thing in common, “innovation,” the key to any success. Presently, the company faces a myriad of almost insurmountable challenges. Those that will succeed adhered to succeeding in implementing business innovation that creates competitive advantage or strong brand loyalty.

Organizations that thrive during a crisis are the established industry leader all embraced innovation. If we look around, Amazon, Uber is the current market leaders. These “new kids in the block” companies succeeded in reinventing the existing business processes in what Joseph Schumpeter called “creative destructions.” However, the old-timers, Apple, and Microsoft continue to sustain their success owing to their constant reinvention and innovation. Innovation remains to be a central element in their business strategy.

Innovation is undertaking new products, techniques, or ideas to improve the current work, process, and ideas. Various types of innovation businesses may want to pursue, such as product, workflow, or business models. Aggressive companies attempt to embrace all three pole vault competition and experience exponential growth in adjusting to a volatile market environment.

The theory of evolution is encapsulated in the phrase “survival of the fittest,” which means the species that evolved to its environment had a greater chance of survival. Similarly, businesses need to adjust to its environment to survive or even thrive always. For instance, the massive introduction of technology forced the company to adapt to these changes in the past years.

The almost chaotic environment changes bring to the business environment offered to firms new opportunities. Nearly half of the OECD population were unanimous that the significant improvement in their standard of living was attributed to technological advancement. As a consequence, corporations who embraced innovation generate huge advantages which eventually benefitted their customers. In other words, the business cannot expect to survive if they reject design and changes.

Entrepreneurs serious about growing their business, becoming successful and profitable, wholly embrace innovation and change. For beginners, design may appear as an obstacle. However, as the entrepreneur gradually perfect their product and process, the business incrementally grows. One alternative path to exponentially grow business is to merge or acquire other companies. But this path presents more risk but an excellent avenue for growth. A slower but deliberate lane is to reevaluate the product or business model but ultimately may scale up the business very rapidly.

Innovation is one of the top three business initiatives of the top 50 corporations, according to the survey result of the Boston Consulting Group. These companies sustain their growth and maintain their competitiveness.

At the center of the innovation, the concept is to do something different but better for all business stakeholders. For instance, a business undertaking product innovation to update or improve continue to pursue their goal to the point that there are no more similar product in the market. On the other side, a business vent on innovating their process wanted to proceed because the undertaking will save time, money, and resources compared to the old system competitors.

Essentially, business must not abandon other key advantages such as pursuing innovation that assist the organization differentiate its operation, product from the competitors which energize the company to sustain competition in a highly competitive market. Constantly delivering value to the customer must always be the major focus of the business.