Innovation in nowadays is the most important competitive advantage for a company. The future of many businesses depends on their ability to innovate, to be ahead of their competitors. Organisations have to go through a process of practice, mistakes and to bring together different knowledge, skills and ideas to manage innovation process to success. The word innovation comes from the Latin word “innovare”, which means “to make something new”. Innovation is a deceptive thing. People usually relate it to a development of a new or better product or process, but it is only one part of process called innovation. Innovation is a process, which has to be established in the company for continued enhancement. In reality, a view of innovation as a single action can never make the company to succeed in the long run. There are two different types of innovation; radical and incremental. Incremental innovation consists of small Continue reading
Business Innovation
Role of Innovation and Creativity to Enhance Entrepreneurship
Innovation is the process of translating invention or idea into a process, good or service that creates value for customers, government or organizations. Innovation also involve implementation of new or significantly improved product that creates value to the society. The idea must therefore satisfy a specific need in order to be regarded as innovative. The customers’ change in taste and preferences requires organization to generate new ideas that can be applied to processes, products and services to satisfy the needs and expectations of the customers. The innovation is prerequisite for business organization to create revolutionary products that create new markets. The scientific knowledge generated through experimentation studies has contributed immensely to creation of many things that has not previously been in existence. With this regard, organization need to allocate resources for research to stimulate innovation that increases competitive advantage. The IT industries producing electrical like phones, tablets, laptops and desktop Continue reading
The Emergence of Frugal Innovation
The old innovation paradigm was called closed innovation which was based on the strict control of successful innovation. Under this view, organizations generate their own ideas, develop them, finance them and support them on their own. In short, companies maintain complete control of all aspects of the innovation process and inventions are kept highly secretive. Traditionally many organizations followed this model and it worked well for most of the twentieth century. However, over the years a number of factors have led to the erosion of the closed innovation approach. First, due to an increase in the mobility and availability of highly educated people, large amounts of knowledge leave the research laboratories of many companies. Second, the availability of venture capital has increased significantly in the recent past making it possible for promising ideas and technologies to be further developed outside the organization. Third, other firms in the supply chain began Continue reading
Different Types of Innovations
Innovation is a very diverse term. In general, innovation means exploiting new ideas or change existing ones for the betterment. Innovation focuses on being creative at work. It can be technological, which includes product innovation or process innovation. Also, it can be related to changing business model, exploiting new markets, and developing new processes. The main aim of innovation it so make the business more successful. This can be done by increasing market share of an existing product or introducing a new product or reducing the cost of production. Innovation is important for both employees and the owner of the business. For the owner of the business, innovation helps to keep up with the competition. With the fast growing pace of competition, the organizations have to be on toes to keep an eye on the work of their competitors. The new processes or technologies developed by the competitors can be Continue reading
Case Study of Walmart: Business Model Innovation for Sustainability
A business model is a plan or strategy that a company uses to attain its goals and objectives. The goals and objectives of an organization relates to the identification of the targeted customer base, identifying the sources of funds and the various areas for revenues. The goals for most companies are to maximize the profit and to make sure that the company expands and grows in the process. A business model is an abstract depiction of a company. It integrates the various processes of a company and highlights the various strategies and approaches taken by a company to achieve its objectives and goals in the process. A business model is developed by aligning the goals of an organization with the structure of an organization. There are various types of business models. Some of them are, “Bricks and clicks model”, “collective business models”, Direct sales model” etc. These are some of Continue reading
Case Study of Dyson: Competitive Advantage through Innovation
Dyson, an electrical manufacturer, is solely owned by Sir James Dyson, and its headquarters are based in Malmsbury, Wiltshire. Dyson was the first company to introduce a bagless solution to conventional vacuum cleaners. After securing a significant market share in the vacuum cleaner industry, the company decided to diversify in to new products and countries. Dyson’s vision is to make products more environmentally friendly and easy to use; his ongoing mission is to promote design and innovation through the production of his products. Today Dyson has a presence in 45 countries and still maintain a 46 % and 32% share in the UK and US Vacuum cleaner market, respectively. Dyson has strong brand recognition, as the qualities projected by James Dyson become associated with the product itself. The product is instantly identifiable by the brand name, because of the innovative design portrayed. Even though Dyson is a leading vacuum cleaner Continue reading