Theories of Innovation and Importance of Innovation & Enterprise in Business

Innovation and
Enterprise

Table of Contents
Introduction .....................................................................................................................................1
Task .................................................................................................................................................1
Discuss the theories of innovation and also importance of innovation & enterprise in business
................................................................................................................................................1
The factors that lead to innovation success and failure..........................................................2
Conclusion.......................................................................................................................................3
References .......................................................................................................................................4

Introduction
Innovation is the process creation of new ideas and converting those idea into reality,
invention of new ideas is the first step towards innovation, real innovation comes after
implementing those ideas into reality or action. With increasing competition in the market, in
order to gain competitive advantage for the business enterprises innovation plays an important
role. Innovation is mainly about inventing something new or unique or adding value to the
product or services in order to enhance productivity and profitability in the market. In this report
the Burberry company, which is largest fashion house founded in 1926 by Thomas Burberry.
This report covers the importance of innovation and enterprise in business and also factors that
lead to innovative success or failure within an organisation.
Task
Discuss the theories of innovation and also importance of innovation & enterprise in business
The innovation and enterprise plays an important role in the success and failure of the
business. In this report in order to understand the importance and fundamental of innovation, the
recent innovation of Burberry company is taken as the example. The company in order to
increase their customer base and gain competitive advantages has introduced an large reality
shopping tool using google search engine, it allows customer to imagine products around them.
Company has been gaining profit after this innovative transformation (Berraies, 2019). There are
mainly four types of innovation which are discussed below:
Incremental innovation: Under this type of innovation, invention is through
continuously improving and modifying the already existing product or services in order to
enhance their profitability and productivity. This factor mainly focuses on the improving their
already existing product, either altering or modifying in order to increase their market share and
profitability in the competitive market (Lianghu and Ying, 2016).
Disruptive innovation: The another type of innovation is Disruptive innovation, under
this innovation is done through adding value to the product and services in order to attract
customers in the already existing market or in the new market. Offering value added product sto
the customers helps in building customer loyalty (Liao, 2016).
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