Innovation is upgrading or creating something new better than what we have right now.
It means to create something that has never been made in the world which is different and better.
All these things are invented after a lot of deep study and several experiments. Converting any new idea into reality is creativity and then innovation happens through this creativity.
For example, when the phone was invented no one thought that video calls are also possible with it but because of an idea of how it was possible someone must have thought this idea then converted into reality and thus the innovation happened.
In this way with the help of invention and creativity innovation is done.
Innovation Importance in Business
We all know that the world is changing very fast and at the same time the competition is also increasing rapidly, to make a business sustainable one must keep innovating.
For example, if you have a phone company then you will have to keep innovating in the phone according to the market and customer demand.
If you don't do this then your phone will not be sold and thus you will be left behind in the market and maybe in future, your company will be shutdown.
As you all know, with time in the Nokia company and according to the demand of the people, they did not update their phones due to which the sale of Nokia stopped, and the company was also closed.
Globalisation today is the era of globalisation, everyone has the freedom to expand their business all over the world but before taking the business to the foreign market pay attention to its innovation, your product should be innovative then only you can beat the foreign competition.
It is a matter of simple that the choice of the customer keeps on changing every day when the customer is satisfied, then only the business will be successful.
In this way, it tells all the things about the importance of innovation in business.
Let us discuss what is the risk and challenges an organisation faces during innovation.
Technological Failure: Any product can have technical problems so before launching the product it should be thoroughly tested.
Financial Failure: Any innovation requires a lot of time and a lot of money so you must check your financial position according to the innovation.
Market Failure: We have innovated the product and many times we have also tried our innovative products but if the customer does not like it then we have to face market failure.
Redundancy: We launched the product in the market and in starting it rains a lot of profit but after a time our sales were closed because the technology got upgraded and the customers who are there, they prefer to buy the upgraded product, so we need to be updated with the market and technology.
Lack of structural and financial capacity for implementation: This challenge is for those who have start-ups that don't have any solid foundation and hence must find a partner who is an expert.
The organizational risk associated with innovation: usually the organization puts all its focus on innovation which leads to problems or obstacles in the day-to-day activities of the organization.
Therefore, it is necessary to create a separate innovation centre for the organization so that the day-to-day activities of the organization can be run smoothly.
Challenges are part and parcel of the organization but when overcomes this turn into opportunities, through this the organization gets to experience that it can become more creative and innovative and, in this way, an organization gets both name and recognition with innovation.
Types of Innovation
Product Innovation:
It focuses on how to upgrade an already existing product with new ideas.
For example, a smartphone that you bought 5 years ago for 10,000 and today you get the same smartphone for 10,000 or less with better features and upgrades from the same company.
Earlier the phone was used only for calling but in today’s time along with calling, gaming, music, videos, Google and much more that you get on a smartphone.
Just as it is necessary to change people with time, in the same way, it is very important to have innovation in the product.
Process Innovation:
By the way, in the food industry the work on the process is done very well we go to the restaurant to eat burgers or pizza.
So, what happens there is that whatever ingredients we eat in burgers or pizza, what should be quantity and how should it step wise, it is innovation in the process of all things.
Similarly, the assembly line of a car maker company is a whole process of how to design it from the beginning and how to upgrade it with new ideas, the same process is called innovation.
System Innovation:
If there is a car company that is only making a car if any upgrade is done in the engine in the car, then now the engine which will be installed is upgraded, they did innovation in the engine and the engine innovates the entire system.
Innovation Process
- Understanding the problem collects information and identifies the problem.
- Thinking about a solution and finding some new ideas.
- Take action and implement the solution.