INNOVATION

Topics: Innovation, Economics, Entrepreneurship Pages: 5 (1436 words) Published: March 22, 2015
INTRODUCTION

This report aims to investigate the ability to innovate is becoming a critical indicator of business success. With the globalization of the world today, business have become more competitive and succeeding in the business environment have become more challenging, requiring more drastic measures such as adaptability in changing environment and ability to innovate as compared to decades past. This investigation is conducted in order to identify the key factor that drives a business success with focus on the ability for the business to innovate as a critical indicator of business success. The investigation is carried out by reviewing current and past surveys conducted by various researchers in different business environment. Compares of business goal attainment is made between highly innovative business and less innovative business in different business environment.

Based on research, it was discovered that for companies to remain competitive they need to nimbly and respond quickly to the changing business environment without getting caught in knots. It is important for companies to posses the ability to respond to market movement by transforming information into insight as core to sustainability. The main constraints to improved business success mostly are conflicting departmental goals and priorities, slow decision-making, silo-based information and risk-averse cultures. Companies are at a competitive disadvantage if they are not agile enough to anticipate fundamental market place shift. These are theories made from past research and survey and here is where innovative activities come in. This report discusses the different highlights, review, debates and current discussions on the innovative effect of business system on the success outcome of the business (Andy & Jasper 1998).

INNOVATION AS A CRITICAL INDICATOR FOR SUCCESS

Many companies will treat innovation as black-box, the serendipitous achievement of a few gifted individuals. But this survey found that innovation leaders consistently outperformed laggards on five manageable capability areas. In the past, most successful companies were duopolies or mono polices as compared to recent times were free market trade, globalization and the ability to satisfy the customers expectation is the key to profitability. Innovation involves exploiting new ideas resulting in the creation of new services, product or process. It is not just the development of a new idea that is important, but bringing the idea into the market and putting it into practice by exploiting it in a way that leads to new services, systems or products that add value and improve quality. This is a critical indicator to most business success as customer satisfaction is fully derived from the product and services and not just for the selfless gain of the company (Eric Almqust 2013).

Apple is an example of innovative company as they are able to develop new versions of the iPhone which is similar in nature but still at the same time gain high profitability by the ability to make customers see the uniqueness and need for it. This involves a high level of creativity to succeed above others in the mobile industry. It possibly involves management restructuring and technological transformation. Business innovation involves exploiting new technology and employing out-of-the-box thinking ability to develop new value and to bring out noticeable changes in the economy leading to economic development and growth. Economic growth brings more profitability to the company, this is an after effect derived from innovative business activities and seen from companies that employ the use of appropriate innovation system in their business activities (Vadim Kotelinikov 2012). Research also shows that if a company is not agile, the rate of success is limited because customers are not static.

Current debates shows that planning for the unpredictable may appear to be an impossible...
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