Innovation and Enterprise: Importance in Business - Year 1 Essay

This essay explores the fundamental importance of innovation and enterprise in the context of business. It begins with an introduction that defines innovation and enterprise, setting the stage for an examination of relevant theories and models, such as the Diffusion of Innovation model, to un...Read More

INNOVATION AND
ENTERPRISE

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Theories and model......................................................................................................................3
Fundamental importance of innovation and enterprise in a business..........................................4
Examples of how organization implemented innovation successfully........................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Innovation is the application of developed ideas for improving the activities in a business
for achieving success. Enterprise is a business or company which are associated with a venture
for creating profit. This project will use theories and examples for explaining the importance and
fundamentals of innovation and enterprise in business.
MAIN BODY
Theories and model
Diffusion of Innovation model help a business for understanding the customer adopts
and grabs new technologies and products in a given period. This model shows how five different
categories or customers types adopt a product of the company (Al-Razgan and et.al., 2021). With
the help of this model business understands how to engage with such customers.
Source : Hanlon , 2018
According to this model the characteristics of customer which adopt the product of the
company are,
Innovators :
These are those group of people which are always exploring new products and new
technologies. These are bloggers and social media specialists which are doing it for online
marketing.
Early Adopters :
Illustration 1: Diffusion of innovation model

Such a group of people are also known as opinion leader who are sharing positive
testimonials about the product of the company. These customers require little persuasion for their
engagement.
Early Majority :
These are those customers which are influenced by reading the reviews of earlier
adopters. These customers get engaged with the product with the help of platforms like YouTube
where they look for the product (Hanlon , 2018).
Late Majority :
These customers are not keen for any changes and only adopts the product of the
company when they feel a strong need for the product. The ways of influencing them include
marketing material, evidence and reviews from opinion leaders.
Laggards :
These customers are those which do not have any interest in buy the product of the
company only reason they buy the product is when there are no alternatives. These customers are
usually influenced because of certain need as if they are forced to buy the product.
Fundamental importance of innovation and enterprise in a business
Innovation is the use of new technological ways and ideas for adding in existing product
or introducing new product for the success of business. The different fundamental importances
of incorporating innovation in enterprise are,
Creates Development :
For a new business it is very essential to have an innovative nature. Growth is achieved in
today's market by learning creativeness. New skills are learned by innovation while doing
business. Whenever a business enterprise develops new skills it is presented with opportunities
of development (Bouncken, Kraus and Roig-Tierno, 2019).
Continuous Improvement :
With the help of innovation business enterprise gets sustainability from the continuous
improvements in packaging and branding. Good managers of the company recognizes when
there is a need of innovation and increases the creativity of the company.
Reinforcing Brand :
Brand development is very important for any business enterprise. Reinforcing of brand
means making the brand develop itself in trend once again. This is why innovation is so

important for the business as reinforcing is considered as on of the key to success of the
company. With the help of innovation the companies get sustainability in maintaining brand
development.
Response to Competition :
Innovation helps the business to respond to the needs of the customers which is key to the
success of the business. This prediction of future trends provides the company with new ideas,
products and services for meeting the future demand of the customers. This help the company to
stay ahead in the competition.
Examples of how organization implemented innovation successfully
Tesco plc is a UK based multinational company which is a grocery retailer. Tesco has
been bringing innovation in its business over the years. This retailer company once introduced a
new product named TJAM. For the development of the product the company ask some of its
employees to volunteer in some challenges related to customer and the new product. After the
competition was over then last stage for the competitors were to vote for the best idea of
introducing the product to the market (Lee, 2020). Thus, the company was successful in
developing a strategy for its product and since then this product is being delivered by the
company in its supermarkets.
Primark which is a fashion brand situated in UK has also been seen bring innovation of
its enterprise. Usually this company provides cloth on online shopping website but had some
department stores where the customers can visit for checking out the products in person. In 2019
this company reinvented its one of the department store to make the biggest store ever (Russel,
2019). This store was opened by the company in Birmingham. This store was large enough to
make its place in the Guinness book world records. It was a great innovation by the company as
this created a desire for the customers for visiting the store not just for buying clothes but also
for checking the biggest store ever.
Sainsbury is company based in UK which deals with groceries, clothes, electricals and
etc. This company has set out a plan for bring innovation. The plan of this company is make the
shopping even more convenient by joining the services by connecting physical store and online
shopping. This was said to be multichannel business plan by the company (McDonald-Junor,
Rossiter and Smith, 2018). For this the company launched an application called Nectar which

showed promising results. This increased to sale of the company with 7% during a time period of
just six months.
CONCLUSION
With the help of this project it can be concluded that innovation is very important for any
business enterprise to achieve success. In this project the fundamental importance of innovation
in a business enterprise are discussed. This project proves that innovation is important for a
business with the help of theories and practical example of different companies.

REFERENCES
Books and Journals
Al-Razgan, M., and et.al., 2021. Using diffusion of innovation theory and sentiment analysis to
analyze attitudes toward driving adoption by Saudi women. Technology in
Society, 65, p.101558.
Bouncken, R.B., Kraus, S. and Roig-Tierno, N., 2019. Knowledge-and innovation-based
business models for future growth: Digitalized business models and portfolio
considerations. Review of Managerial Science, pp.1-14.
Lee, D., 2020. Who Drives Green Innovation? A Game Theoretical Analysis of a Closed-Loop
Supply Chain under Different Power Structures. International journal of
environmental research and public health, 17(7), p.2274.
McDonald-Junor, D., Rossiter, W. and Smith, D., 2018. From commercialising intellectual
property to facilitating open innovation: The evolution of UK biotechnology
incubators.
Online
Hanlon, A., 2018. what is the diffusion of innovation model? .[Online]. Available through:
<https://www.smartinsights.com/marketing-planning/marketing-models/diffusion-
innovation-model/>
Russel, C., 2019. How Primark Reinvented The Department Store And Made The Biggest Store
Ever.[Online]. Available through:
<https://www.forbes.com/sites/callyrussell/2019/06/14/how-primark-reinvented-the-
department-store-and-made-the-biggest-store-ever/?sh=6d4ebd1d245f>