Importance of Innovation and Enterprise for Business

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