Importance of Innovation in Business - Advanced Innovation Management Essay

This essay discusses the importance of innovation in business, including how it can create a competitive advantage, establish the best method for business, and solve impossible problems. It also explores the benefits of innovation, such as satisfying consumer needs and looking to the future. The essay concludes that innovation is essential for businesses to remain competitive in the market.

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Advanced innovation management
Essay
6/22/2018
Student Name

1 | P a g e Advanced innovation management
Introduction
Innovation can be defined as the new idea or method to do a thing. In other words, it
can be said that it is a process of converting the ideas into the goods or services that able to
create its value for which customer will pay. Innovation is done by the entrepreneur top make
its dream into the reality. To be called an innovation, an idea must be economical in nature
and must satisfy the specific needs of the consumer. Innovation is similar to the risk-taking in
the business as in innovation entrepreneur introducers the new product or service while using
the new technology on the greatest risk. They are tried to create the new market in the
business so innovation is full of risk (Daily, Kieff & Wilmarth, 2014).
Importance of Innovation
There are many benefits for an organization to implement the new strategies and ideas
into the business (Gokhberg & Kuznetsova, 2011). The application of innovative
management techniques and process within the business make the business competitive and
gives the ability to sustain more in the business.
Creates a competitive advantage
One of the key aspects of any successful business is that the ability to come up with
the new and innovative brand and ideas to maintain the fresh feel for the customer by using
that service or product. In today’s competitive environment maintain the differentiation and
uniqueness in the product are necessary to have the competitive advantage in the market. It
will enhance the sale of the company and increase goodwill of the company (Drucker, 2015).
Establish the best method for business

2 | P a g e Advanced innovation management
Innovation is considered to be the best method to establish the uniqueness in the
business. Those businesses that are unable to cooperate and coordinate with the new
technology and development are done in the environment cannot survive in the business for
the long term. The business should use the innovation according to the current resources and
opportunities for development prevailing in the market (Christensen, Raynor & McDonald,
2015).
Looking to the future
Innovation is done to solve the problems of the people at large. Innovation is done in
the organization to stay relevant and viable in the market. The innovation is done by the
business by looking at the future needs of the consumer and market. For example Tesla, an
automobile company which is producing the electric cars as they have analyzed there is a
scarcity of the fossil fuel in the market. To have the substitute of fossil, company start
producing the electric cars as the new innovation in the automobile industry (Drucker, 2014).
Development
The innovation is necessary for the development of the business. New business came
into existence when the entrepreneur has new product and service to offer in the market.
Innovation leads to the globalization of business. This will reduce the barriers to trading
globally while negotiating the new international and national agreements to promote and
develop trade in goods and services. This trend will allow the more connectivity across the
globe and collaboration will occur (Johnston & Marshall, 2016).
Satisfying Consumer needs
There are significant changes occur in the needs and wants of the consumer. Increase
in the expectation of the consumer needs and wants make the person and entrepreneur

3 | P a g e Advanced innovation management
innovate more things in the market which are able to meet the requirement of the customer.
Due to increasing needs of the consumer, the organization becomes customer-centric through
innovative change. By using the changes done by the humans in designing the product to
improve the experience provides. Companies also finding the new ways to create and invent
new products and services as well as to implement the new plans and strategies that customer
value and cherish (Innovation X Change, 2018).
Solve impossible problems
The problems faced by the consumer can be resolved by using the innovation.
Generating the idea for a problem that the people are facing in their day to day life is an
innovation which makes the life simple and easy. Solving the problem of the consumer which
is something that makes the business who are giving the creative solution (Etzkowitz &
Ranga, 2015).
From the above innovation, it can be concluded that the innovation is the essence of
business. To remain competitive in the market and have a separate image in the minds of the
customer, the company should offer a different and unique product or service. Using the
concept of innovation in business, differentiation from other business can be done and are
capable to survive in the business for the long term in the market. Using the innovation in
business has its own advantages and benefits. This importance includes providing the
competitive advantage in the market; make the business different from others, workings as
the problem solver and development of the individual as well as of the country. Innovation is
the key to remain competitive in the environment
Reflection

4 | P a g e Advanced innovation management
Before doing this task, I consider innovation is done by the new entrepreneurs only.
The innovation is related to the concept in which the new ideas are generated in the mind of
the people and they try to convert them into the reality. But after doing the research on the
innovation and its importance I come to know that the innovation is much wider concept then
I think previously. After doing the research the innovation is the technique of transformation
of ideas into the products or services with some differentiation in them which makes them
different and unique in the market. The innovation has its own advantages and disadvantages
because of which innovation is risky as well as profit making for the organization. Making
the innovation is simply putting the business as well as money in the risky as it is going to
invest that money in the market where this innovation is new for the consumer. The
acceptability of the innovation is necessary for the success of the business (Castellion &
Markham, 2013).

5 | P a g e Advanced innovation management
References
Castellion, G., & Markham, S. K. (2013). Perspective: new product failure rates: influence of
argumentum ad populum and self‐interest. Journal of Product Innovation
Management, 30(5), 976-979.
Christensen, C.M., Raynor, M.E. & McDonald, R. (2015). What is disruptive
innovation. Harvard Business Review, 93(12), 44-53.
Daily, J. E., Kieff, F. S., & Wilmarth Jr, A. E. (2014). Introduction. In Perspectives on
Financing Innovation (pp. 13-16). Oxon: Routledge.
Drucker, D. J. (2015). Deciphering metabolic messages from the gut drives therapeutic
innovation: the 2014 Banting Lecture. Diabetes, 64(2), 317-326.
Drucker, P. (2014). Innovation and entrepreneurship. Oxon: Routledge.
Etzkowitz, H. & Ranga, M. (2015). Triple Helix systems: an analytical framework for
innovation policy and practice in the Knowledge Society. In Entrepreneurship and
Knowledge Exchange (117-158). Oxon: Routledge.
Innovation X Change. (2018). Benefits and Innovation in Business Retrieved from:
https://www.ixc-uk.com/Importance_of_Innovation_in_Business.html#
Johnston, M. W., & Marshall, G. W. (2016). Sales force management: Leadership,
innovation, technology. Oxon: Routledge.
Gokhberg, L., & Kuznetsova, T. (2011). S&T and innovation in Russia: key challenges of the
post-crisis period. Journal of East-West Business, 17(2-3), 73-89.