Importance of Innovation and Enterprise in Business

This study highlights the analysis of the importance of innovation and enterprise in business, start-up and established firms to operate in a competitive market. It discusses the significance of innovative ideas, the process of idea generation, and factors that contribute to the success and failure of innovation within an organization. The study concludes that innovation and creativity are essential for cost-effective business solutions.

INNOVATION AND
ENTERPRISE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................1

INTRODUCTION
Innovation refers to application of creativity with inclusion of unique ideas and solutions of
certain problems within an enterprise with an intention to improve or replace business processes
to enhance the productivity along with products quality (Nakano and Wechsler, 2018). This
study will highlight the analysis of provided statement which provides an overview upon the
importance of innovation and enterprise both fundamental in business, start up and established
firms to operate in competitive market.
MAIN BODY
The good organizations are become well with the enclosure of innovative ideas within their
operating functions. It is more than a discovery as it involves thoughts that persuade fresh and
innovative concepts along with certain risks that are also attached with this new impression.
Excessive capital or investments are not required if a firm has completely aware about the
innovative part of their activities and that can be effectively utilised in order to create innovative
and unique products. Ideas are the keys to innovation, without them there is not much in order to
execute. Execution is the key to learn for which new ideas are significant for making any kind of
improvements within the establishment. Only ideas alone will not make the innovations happen
as you need to be able to build a systematic procedure for management of ideas within the firm
(Muzzio and Paiva, 2018). Idea generation is basically a process of developing, creating and
communicating the theoretical, existing and optical ideas.
Companies may grab hold of upon high-quality thoughts that is able to provide them an
advantage but earlier or afterwards they surrender this benefit to a contestant who has establish
an improved design. Many researchers described that innovation is an important criteria for
success and it has been clear that organizations need to innovate in order to survive and achieve
good profit margins. For instance, Tesco make obvious their promise towards modernism when
they produce improvement into presentation organization. They calculate the performances of
the employees on the basis of their abilities in order to create new value added services, products
and ideas. Company managers reveal this in their usual subdivision gathering by focusing in the
examination of novel facts. They teach their workforce in the modernism procedure. They also
provide complete occasion to their employees in order to discover the information.

Imagination can be described as trouble detection and scheme production. Thus it has been
obvious that cultural description have to be established if ingenuity and modernization are to be
maximised. Sometimes the ideas work but from time to time there are numerous reasons that fail
the creative ideas to become innovations. It is because of the reason that there is various times at
which ideas seems as brilliant concept but flawed while applying it into practical terms. There
are various factors that create an environment of innovative culture within the workplace such as
the management of the firm completely committed towards the innovation management as it
involves the commitment of all managers from top to bottom stages. Innovative strategies also
act as an influential factor that work towards the company enhancement (Baek and Matsumura,
2019). The innovative process is a highly interdisciplinary procedure that necessitates the
participation of various practical areas along with employees to successfully implement new
product and services into idea. This activity clarifies the responsibilities and contributes their
maximum towards the success of innovation within the firm. Innovations and creativity requires
different structure and cultures in comparison to operative management and work as it built on
routine and efficiency. For example within Tesco, the managers are highly aware about raising
employees’ awareness about innovation through communicative measures. Apart from this,
change management and collaboration are some other factors as well contribute their role
towards the innovation and creativity within the firm.
However, certain factors that are also discuss about the failure of innovation within the
establishment such as if the managers are not philosophy for long term, requirement of improved
mindset, panic of failure, lack of innovative arrangement along with procedure, taking decisions
before even understanding customers needs, lack of team inspiration and lack of financial plan
are act as some factors that may leads to failure of innovation and creativity within the
workplace. Although, every firm is taking their responsibilities towards the proper allocation of
activities in a manner that minimises the drawbacks and enhances the benefits of innovation and
creativity concept within an organization (Ali, 2018).
CONCLUSION
From the above report it has been concluded that innovation and creativity goes parallel with
each other. Companies needs to take necessary measures so that their employees think outside
the box and giving them proper time along with resources in order to explore new areas for

implementing innovative ideas which is the key towards the cost effective business solutions for
the firm.

REFERENCES
Books and journals
Ali, Ü.N.A.L., 2018. Innovation Management in Healthcare Services R & D, Innovation and
Creativity. Health Sciences Research in the Globalizing World, p.1183.
Baek, I.G. and Matsumura, E.M., 2019. Individual Creativity and Organizational Innovation:
Can We Reconcile Creativity with Management Control Systems?. China Management
Accounting Review, 8(2).
Muzzio, H. and Paiva, F.G., 2018. Organizational creativity management: Discussion
elements. Revista de Administração Contemporânea, 22. pp.922-939.
Nakano, T.D.C. and Wechsler, S.M., 2018. Creativity and innovation: Skills for the 21st
Century. Estudos de Psicologia (Campinas), 35. pp.237-246.
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