Importance of Innovation and Enterprise for Business

This essay discusses the importance of innovation and enterprise for business, including idea generation, theories of innovation, and the diffusion of innovation theory. It also covers the advantages and disadvantages of adopting innovation and the importance of discussing innovative ideas with employees.

Essay

INTRODUCTION
It is essential for any business to adopt innovation to gain high success in market.
Generating various alternative ideas is helpful to adopt one best option from various alternatives.
The following essay covers reason that why innovation and enterprise are both fundamental for
business and the theories of innovation.
MAIN BODY
Idea generation will help a business to gain various opportunities to develop their
business through modification of product (Dziallas and Blind, 2019). A successful innovation
allows to add value to the business which further help to enhance productivity and profitability.
Innovation will help to improve process, product and services of a company to gain competitive
advantage within the industry. Business fundamentals are the basic skills and competencies
which are required to run a organisation. Today, when market is becoming customer centric then
it is essential for companies to offer them unique products and services to gain more profit.
When a company newly conduct its start-up in the market then it should focus on its products
and services and make sure that they will offer their customers something different and profitable
as compared to their competitors.
The diffusion of innovation theory is one of the well known innovation theory which
reflects the ways and techniques of spreading innovation throughout the society. There are five
ways for organisation to adopt innovation within the industry like Innovators, they are the
organisations who become first to adopt innovation within the industry and they are always ready
to take higher risk (Halton, 2021). Early adopters, they are the organisations who quickly adopt
the innovation as soon as innovators release their innovative idea within the society. Early
majority, these are the organisations which study the success factor for innovators and early
adopter and then adopt the innovation if they found any profit. Late majority, this are the
organisations which adopt innovation but after many days or even months. They only adopt
innovation when they found that their customers are switching new innovative product.
Laggards, this are the organisation who did not supposed to take any risk and who avoid to
adopt innovation within the market.
For example, Tesco is a retailing company in UK which uses drone delivery system for
delivering their products to their customers doorstep during COVID pandemic when no citizen is

allowed to move out due to lock down and social distancing government rules and regulations
(Stevens, 2021). Hence, this innovative idea help the company to create a good value among
their customers and market. Customers focus to order from Tesco only because this delivery
service provide them safe, secure and effective delivery services. The common factors which
lead to success for the Tesco's new idea for delivering system is that they have analysed the
situation first and then make decision. It is essential for the companies to analyse the situation
and marketing condition first and then make decision. Secondly, they analyse the clear
responsibilities of their employees to adopt this new innovation within their organisation. Their
employees get trained well for the drone system. Training of employees is essential for every
business who is planning to adopt any innovation. On the other hand, there are few of the
disadvantage of adopting innovation such as it is considered as expensive activity by the
company to adopt innovation because changing process, hiring new tools and machines is
expensive for companies. In context of Tesco, their 'Manna Drone' is expensive.
It is essential for a company to discuss their innovative idea with their employees (Jugend
and et. al., 2020). For example, when Tesco is planning about their drone idea then they take
suggestion from their employees and conduct a group discussion about the pros and cons of
adopting specific innovation within the company. Then they supposed to choose the best
alternative out of various suggestions and then they finally implement the innovation. It is
essential for the companies and people to become open minded to adopt any innovation and
generate any idea for their betterment. A clear and focused vision will help the companies to
grab the opportunities for innovation for their success. It is also important for the companies to
test their innovation that whether it is profitable for the business or not. For example, Tesco ask
their customers and employees to provide feedback about this new delivery system which uses
drone so that they will analyse the percentage of likes and dislikes for their new innovation
within the market.

CONCLUSION
It is concluded that innovation and idea generation is one of the most essential process for
a company to gain more customers and grow well within the market. Scanning the current
market is important to analyse the idea that what changes should be adopted by the company for
innovation. It is also concluded that discussing the innovation plan with existing employees will
also help the company to gain various alternatives for the implementation of idea in a proper
manner.

REFERNCES:
Books and Journals:
Dziallas, M. and Blind, K., 2019. Innovation indicators throughout the innovation process: An
extensive literature analysis. Technovation, 80, pp.3-29.
Jugend, D. and et. al., 2020. Public support for innovation: A systematic review of the literature
and implications for open innovation. Technological Forecasting and Social Change, 156,
p.119985.
Online-
Halton, C., 2021. Diffusion of Innovations Theory, [Online] available through:
<https://www.investopedia.com/terms/d/diffusion-of-innovations-theory.asp/>
Stevens, B., 2021. Tesco is expanding its 2-minute drone delivery trial, [Online] available
through:
<https://www.chargedretail.co.uk/2021/07/29/tesco-is-expanding-its-2-minute-drone-delivery-
trial/>