Importance of Innovation in Companies 1 Importance of Innovation in Companies Each day, innovators in the business world create new products, services, ideas, method, and technology to fulfil the changing needs and demand of people in the world. Innovation is the way of analysing existing problem in different way and come up with unique solution of the problem that others cannot. Innovation plays a different role that provides a stream value to the companies and determines the successful operation of the business organisation all over the world. Innovation is the key of growth, success, and continuous development of modern business organisations. The purpose of this essay is to analyse the importance of innovation in the companies and also examine the four components of creative work environment in the companies. Innovation helps the companies to stand out from the large numbers of competitors operating same business in the market. Innovation provides a platform to the modern companies to grow leap and bounce because it makes one-step forward to the companies. Innovation is one of the important key for remaining competitive in the market and face the tough competition with new and unique ideas, products, and services that attract people (Rajapathirana & Hui, 2018). Innovation does matter for public or private sector companies, small or big size companies, or new or old companies. Innovation makes the way easy for the companies to grow and develop leaps and bounds. A perfect innovation allows the company to offer something new and different what others are offering to the same customers. Innovation is not only related with inventing new products or services rather make the existing products better than old products is also a type of innovation. Therefore, the companies need to focus on innovation if they want to grow and develop in modern world where needs, preferences, choice, and lifestyle of people are changing every day. According to a research of McKinsey, 84% of chief executives of the large organisation of the world say that innovation is the key of future success and the future of the organisation depends on how organisation establish and maintain a creative work environment in the organisation to foster innovation (Amundsen, Aasen, Gressgård, & Hansen, 2014). However, it can be said that innovation is directly related to the need and preferences of customers and if the innovative product or services of a company does not meet the requirement or needs of customers then it can be turned as the failed innovation of the companies. It is really considerable that no innovation or new ideas stay beneficial for the long term. It means the companies need to focus on innovative ideas, strategies, and innovative work on continuous basis. Therefore, a
Importance of Innovation in Companies 2 company needs a creative work environment in the company to promote innovation in the company. It can be said that innovation is really important for a company but before that, a creative work environment in the organisation is more important factor for the innovation. Creative work environment provide a platform to employees to succeed in bringing innovation in the companies. Innovation does not happen by chance rather a creative work environment is necessary to develop an innovative ideas that will further developed innovative products or services in the company that fulfil the future needs and preferences of people. However, the modern organisations are very deliberately focusing on designing a creative work environment in the organisation to promote innovation in the organisation (Lewicka, 2013). However, the creativity of employees and their ability to taking risk after assessing the future needs and preferences of customers is also crucial for developing a creative work environment in the organisation. However, establishing and maintaining a creative work environment is the primary need of fostering innovation in any organisation. Creative work environment is the necessary factor behind innovation and every company needs to create a work environment that continuously accepting the challenges and are ready to take risk to bring innovation in the organisation. Innovation is the only way the helps the modern companies to stay competitive in long time of period (Tudor Zaharie & Osoian, 2014). However, the four major components of a creative work environment are as follow: The first component of creative work environment is related to thefreedom and autonomyof people at the workplace so people can develop new ideas and techniques that are crucial for innovation (Scherwin, 2017). A freedom of doing work, presenting the ideas, and developing new things in the organisations is really compulsory for every organisation to foster innovation in the organisation. However, it has been observed that most of the organisation has rigid work policies and schedule to perform a work in the company. Apart from this, every organisation have now a R&D department that continuously focuses on innovation of new products and new ideas. It will be really beneficial for a company if they give freedom to their employees to thinks different such as Google and Microsoft are doing. These organisations encourage the new ideas and opinion of the people in the organisation that will further lead to innovation. However, the lack of participation of employees in R&D, lack of freedom, and unsupportive behaviour from the top management some of the major causes that obstruct innovation in a company and does not help to establish a creative work environment (Chahal & Bakshi, 2015).
Importance of Innovation in Companies 3 The second most important component that fosters innovation in the organisation is ability of risk taking.Risk is always associated with the term innovation and risk is a crucial factor in creative work environment. The ability and willingness of organisation to take high risk is directly linked with the innovation and performance of the company. The organisation should allow the employees to seek out crucial information, analyse, and find out new ideas and strategies to develop new products that will allow the organisation to launch an innovative products or services to people (Dewulf, 2013). The employees should be encouraged by the top management and their supervisors to take the decision by their self and with risk taking abilities. However, the major issues in the organisation that most of the organisations are not willing to take risk rather they want to perform the business with safe and secure ways. The organisations do not ready to accept failure of people in the organisation. This is the major problem or challenge in establishing a creative work environment in the modern companies (Samson & Gloet, 2014). It is really essential for the organisation to give ample oftime to generate new ideas or innovative products or services. One cannot develop, generate, or explore new ideas if they do not have time for it (Gu, Tang, & Jiang, 2015). Most of the organisations consider that time is one of the important factors in innovation and it is crucial for the organisation to give adequate time to spend on creative and ambiguous endeavours. However, the companies are facing issues with allocation of time for the innovation and creating an innovative work environment in the organisation. Most of the organisations in the modern world are focusing on enhancing their productions with the objective of earning so much money. However, in such a scenario the organisations do not provide so much time to the people to work on innovative ideas in the organisation. If people are repeatedly doing the same work in the same way within the given timeframe, the chances of innovation in the organisation will be reduced automatically (Podrug, Filipović, & Kovač, 2017). Support of Top managementto the new ideas of people in the workplace is also crucial for the organisation to establish a creative work environment. The role of top management and supervisors are so crucial in establishing a creative work environment in the organisation. Idea support is really a most important component of creative work environment (Kafetzopoulos & Psomas, 2015). However, in the modern organisations, it has been seen that supervisors and top-level managers generally opposed new ideas because they view the new ideas as a threat for disrupting their power and security in the organisation. This
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Importance of Innovation in Companies 4 is really a major challenge for the modern organisations where supervisors, peers, and eve n some functional and departmental managers does not support the new ideas because of losing power or security. However, the organisation needs to train the supervisors and managers to support the new and creative ideas in the organisation and foster the innovation for the future growth and development (Dereli, 2015). In conclusion, innovation is the key of success in every organisation and it is only possible if the organisation establishes and maintains a creative work environment in the organisation. The four main components of creative work environment are freedom and autonomy in taking decisions and developing ideas, ability of taking high risk, time to develop ideas, and support of top management to the new ideas. However, it has been seen that most of the organisation avoid these components in the work environment and ignore the ideas of people or not providing them freedom to take risk of developing innovative ideas or product or services. This is the serious challenges for the modern organisation. If an organisation wants to grow and succeed in future, the organisation must facilitate their people for innovative ideas and taking risk to develop unique product and services and it cannot be possible if the top management of the organisation do not support the organisational people.
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