Importance of Innovation in Business Essay 2022

Running Head: Innovation
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Innovation
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Innovation 1
Innovation is about big leaps forward, ‘eureka’ moments and radical breakthroughs – or is it
not? Using examples from a sector of your choice make a case for the importance of incremental
innovation.
The objective of this essay is to enlighten the reader regarding the details about the importance of
innovation and its impact on the business environment. Innovation refers to the development of
new and positive idea in the business environment. The process of transformation and
organization of resources is such a way that revolutionary change occur in the business
environment is called innovation. Innovation process involves the use of technology in the
business environment to produce something new and different that can help the business to
achieve its objective in the market. The innovation process involves translating the idea or
invention into goods and services that will create value for the customers in the business
environment. Yes, it should be noted that innovation is about big leaps forward that are eureka
moments and radical breakthroughs. Innovation helps the world in growing, proceeding forward
as without innovation people would be able to perform basic actions on a regular, and the world
would not gain the opportunity to grow and welcome new aspects in life. The process of
innovation helps the world in bringing new technologies in the environment attaining more
profitability as well (Garcia 2015).
Further, it should be noted that creativity and innovation has not be adopted easily in the
business environment. People focusing innovation have faced several consequences in the
environment, finally after all the struggle they have been able to use it attain success in the
environment. Considering the case of automobile industry, it should be noted that the automobile
innovation segment appears because of the breakthrough of innovation in the industry.
Incremental innovation refers to a series of basic improvements and upgrades made by the
companies in the existing products or services. The changes present in the environment takes
place slowly and gradually (Wagner 2017). Further, it should be noted that there are four types of
innovation in the environment that are incremental, modular, architectural and radical
innovation. Incremental innovation refers to the process of innovation that changes and improves
the existing structure or process of the product, service or company by improve the components.
This type of innovation refers to the innovative change that builds the expertise of the business
using technology within the established structure.

Innovation 2
This type of innovation does not innovates or develops new technology changes in the business
instead it alters the earlier and non-function segments and rectify them. Incremental innovation
involves series of small improvements in a defined product or product line that helps in
improving the position of the product and attaining competitive advantage as well. Secondly,
radical innovation refers to the innovation refers to the innovation that brings out a complete new
design of the product in the business environment. This type of innovation ideally makes use of
new components and integrates them to produce a new product in the business environment. This
new product is not an upgraded version of older product; instead, it is a product having
differential design and features as well (Guisado-González, Vila-Alonso, and Guisado-Tato
2016).
Further, modular innovation refers to the innovation that involves production using a completely
new design but similarity with one significant component. Under this process, the functions of
the innovative product remain similar like radio was converted into online music apps and
websites like spotify etc. Lastly, architectural innovation refers to the innovation that
reconfigures the established system to link together components in a new and differential way.
Under this type of innovation, the functions of the innovation significantly changes. Products
converted according to this type of innovation are improved components but are not essential for
living (Kahn 2018). Considering the given case of innovation as a breakthrough or radical, it
should be noted that there are four types of innovation and every innovation is different in its
own way. Thus, it cannot be said that innovation always needs to be breakthrough only (Maslach
2016). Considering the example of automobile industry, it should be noted that this industry
faces all four types of innovation in the business environment. The automotive industry is global
and a capital intensive industry that involves the vertical integration of economies of scale. The
industry has already reached its maturity position in the market, so it is believed that the
incremental innovation helps the business in much better ways than the radical innovation as
incremental innovation increases productivity with less expenditure whereas on the other hand
radical innovation involves huge cost and a high risk of success (Elverum, and Welo 2015).
In automobile industry, the companies like Tesla Motors, Toyota etc. allocate special funds to
the research and development department of the company, so it can be understood that the
companies continuously reach for incremental innovation in the business environment. This type