INNOVATION AND ENTERPRISES: Business Report and Case Studies

This report delves into the crucial roles of innovation and enterprise within organizations, emphasizing their significance for growth, relevance, and competitive advantage. It defines innovation as the process of developing new products, ideas, and processes, or improving existing ones, and e...Read More

INNOVATION AND
ENTERPRICES

Table of contents
INTRODUCTION.........................................................................................................................3
MAINBODY...................................................................................................................................3
Importance of innovation and enterprise in the organization...............................................3
The examples of real business examples whose common factors lead to innovation
success and failure.....................................................................................................................4
CONCLUSION..............................................................................................................................5
REFERENCES..............................................................................................................................5

INTRODUCTION
The report is about the importance of the innovation and the enterprises in a business for
the fundamental in business and for the established organization. It is also important for the
competitive business markets. Real business examples are given for the common factors that
influence the innovation success or the failure.
MAINBODY
Importance of innovation and enterprise in the organization
Innovation in the organization refers to the process undertaken by the organization for the
formation of the products, ideas, process and the reviewing of the existing ideas, process and
products in better and different ways. There are various types of innovation a company can
pursue. The companies have acknowledged the fact that the innovation is necessary for the
growth and development due to the changes with time (Zhang and et.al, 2019).
Innovation provide the companies with:
Help in growing
Introducing innovation in the company is a slow process and involve the perfection of the
already existing products and the business model in the company. The products in the company
needs to be revolved and rethink about, this helps the company in expanding. Innovation can be
used as the business initiative for the growth. The companies can stay ahead of their competition.
Keeping the organization relevant
Innovation helps the companies to change according to the needs of the customers with
the changing time. Technology is used as a driving factor to meet the changing needs. The
changes have promotes the new business to the new age of innovation. A startup company have
to be innovative to enter in the industry, to set up the organization and to remain relevant with
the changing period (Edmondson, 2018).
Helps in differentiate the organization

Innovation is all about introducing something new from the others. Example, if the goal
of the company is to be innovative by its products and reach a level where no other company can
compete with it, then this will be the differentiating factor of the organization.
Enterprise is the plan for starting and running a business. This conclude the factors
together for the production, assigning each of the employees its task properly and after the
completion of the work paying them remuneration. The one who handles all this are called the
organizer of the organization. And the organizer is also responsible for the carrying out the loss
from everyone’s shoulders. The enterprise helps the organization by:
Organizing
The part of organizing are deciding the industry, where to start from, the amount of
production, where to sell and how (Komańda, 2019).
Directing and supervision
The organizer have to direct the organization for producing in a way that it remains
profitable and needs to supervise little details for the maximum production.
Risk-taking
The organizer have to understand the consequences with every decisions made. The
organizer have to pay the production factors in advance and this may lead to profitable business
or lead to extreme loss. The consequences have to be handled by the organizer because the
organizer hold responsibility of all that happens.
The examples of real business examples whose common factors lead to innovation
success and failure
A successful business model innovation can be implemented like the one by the Rolls
Royce. Rolls Royce is the best example for the successful business innovation. The model is
called “power-by-the-hour” business model. Rolls Royce is the manufacturer of the British
aircraft turbine. Before the implementation of the model the business was the product business
and the engine was the property of the aircraft manufacturers.
The new business model do not sell engines, but give hours to the airlines. The model
allows the airlines to pay for the engine’s operating hours. The airlines are not forced to by the
engines. The company remain responsible for the repair as well as the maintenance of the
engines. And the engines are the property of the Rolls Royce (Geissdoerfer, Vladimirova and
Evans, 2018).
The model of the Rolls Royce is a contracting approach that is performance based. The
Rolls Royce is being paid for the performance. It is not the value of the engines but the
performance of the flight hours due to engines that are valued. The price includes the cost of
maintenance, operation and repair. The innovation of Rolls Royce helps the company in gaining
advantage of not only for the customers and for itself but also produce a low cost airlines,
example Southwest Airlines.

The factors Rolls Royce looked were:
 Identifying the target customers.
 The benefits produced for the customers.
They only need to pay for the performance hours of the airlines are not forced to buy the
engines.
 How to create the benefit and the delivered (Krok and et.al, 2019).
The engines are their responsibility, the maintenance and the repair on them.
 How will the innovation help the company to earn money.
They start various revenue streams that involve flying hours and helped in reducing the cost
by providing the concept of effective services.
The blockbuster is the video rental company. It was popular in 2004 and it outrange the
change in the VHS and the DVD. The drawback it suffered was the lack in the innovation for
the market that allowed the delivery that made it much less streaming.
The Netflix at that time was shipping the DVD’s out to deliver the customers at home.
The blockbusters were thinking that their stores were able to please the customers. They were
the leader in the movie retail market for many year this make the management to think why it
is necessary for the change in their strategies.
The founder of Netflix Reed Hasting proposed the partnership with the Blockbuster
where Blockbuster will advertise the Netflix and in return Netflix will run Blockbuster
online. But this offer was downed by the CEO of the Blockbuster (Chopra and Veeraiyan,
2017).
In 2010, the Blockbuster was bankrupt and the Netflix has a $28 billion dollar company.
The Blockbuster consider the Netflix a niche business and did not think much that this
innovation might have saved the Blockbuster to close in the market.
CONCLUSION
It can be concluded from the report the importance of the innovation and enterprise in the
organization and the benefits of it in the organization such as it keeps the organization growing,
keeps it relevant and more. Some real life examples are given to give some factors that are
responsible for the success and failure of the innovation in an organization.
REFERENCES
Chopra and Veeraiyan, 2017. Movie Rental Business: Blockbuster, Netflix, and Redbox. Kellogg
School of Management Cases.
Edmondson, 2018. The fearless organization: Creating psychological safety in the workplace for
learning, innovation, and growth. John Wiley & Sons.
Geissdoerfer, Vladimirova and Evans, 2018. Sustainable business model innovation: A
review. Journal of cleaner production. 198. pp.401-416.

Komańda, 2019. ORGANISING OF EMPLOYEE TRAININGS RELATED TO
DOCUMENTATION AND DATABASES. Ad Alta: Journal of Interdisciplinary
Research. 9(1).
Krok and et.al, 2019. Rolls-Royce University Collaboration. In AIAA Propulsion and Energy
2019 Forum (p. 3890).
Zhang and et.al, 2019. The influence of management innovation and technological innovation on
organization performance. a mediating role of sustainability. Sustainability. 11(2).
p.495.