Innovation and Enterprise

This essay discusses the significance of innovation and enterprise in driving business success and meeting social and business needs. It explores the importance of implementing novel and imaginative solutions to meet diverse consumer needs and improve productivity. The essay also covers factors influencing innovation success and the generation of new products and ideas.

Innovation and Enterprise

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Enterprise and innovation............................................................................................................2
Purpose and significance.............................................................................................................3
Innovation and new product generation theories.........................................................................3
Factors influencing innovation success.......................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The terms innovation and enterprise are closely associated with each other and are crucial
for success of business. Innovation is defined as the application of creativity and knowledge to
leverage any unique solution or idea while enterprise can be considered as application of
innovation results into practical application within society as social invention (Bennett and
McWhorter, 2019). The essay will discuss the significance of both these terms as fundamental
driving force of success in both established and new ventures.
MAIN BODY
Enterprise and innovation
Innovations refer to the new or unique solutions so that existing practices can be
improved and made more productive. Like with digital marketing online retailing companies like
IKEA and Tesco are able to make their marketing more interactive and transparent. Similarly
technological innovations bring more flexibility in time or comfort. Enterprises uses and apply
these innovation into practical application at business context so that each of the innovation can
be made feasible and accessible to the people. However enterprises can achieve success only
when they are able to implement and deliver novel and imaginative solutions which can meet the
diverse and rapidly changing consumer needs.
Innovation can result from various sources such as from employees, consumers,
suppliers, market research, educational research studies or even from the competitors. They play
crucial role in improving productivity and cost aspect along with the strong establishment of the
brand. It cannot be denied that the companies which have innovation in practice are more
successful in grabbing the attention of investors as well as customers. For gaining and
continuously improving the profitability and sales rate creativity must be made an integral part of
the business process (Schulman and Richman, 2019). Without innovation and creativity for
service delivery companies may fail to maintain competitive positioning.
Purpose and significance
The key purpose of bringing enterprises and innovation is to meet the social and business
needs and to improve the existing systems. There are limitations in existing practices. For
example when online retailing or digital marketing was not available it was not common to shop

for 24*7 and from distant place. Thus companies like Tesco and IKEA adopted technological
innovations so that they can overcome the shopping limitations. Innovations are also important in
terms of improving productivity and gaining competitive advantage. If organisations do not bring
any improvement or uniqueness over time then it can become boredom for customers and they
may not show long term loyalty or retention with organisation. By bringing innovations in
product or service delivery or strategies it becomes possible for the companies to address the
business threats.
The organisations who do not upgrade their services or strategies with time may not come
up with the new start ups which regularly bring excellent quality and improvement by means of
innovative solution. Enterprises aim to deliver improved and advanced solution for each and
every customer expectation which at once may seem as impossible. Inclusion of technological
innovations also improves productivity and operational efficiency which is important for
enhancing the profitability aspects.
Innovation and new product generation theories
New products and ideas can be generated only when companies used to provide a suitable
business culture to foster such ideas. As per the theory of new idea generation it is important that
there must be motivation and thorough research to identify the need of innovation and methods
to inspire stakeholders to bring new ideas and creativity in process. The suggested ideas must be
screened and undergo into feasibility testing so that start ups as well existing companies can
apply innovation with limited risk factors. Similarly diffusion theory of innovation explains the
rate and patter at which innovative practices are executed in real world (Švarc, 2020). Thus at
each stage of implementing innovation it is required that enterprises understand the purpose of
change and how it will be perceived by different people. The failure to do so can result in
inaccurate prediction of consumer needs or organisational capabilities and leading to the failure
of suggested change. The lack of proper innovation management not only enhances operational
inefficiencies but can also have adverse impact upon brand value and positioning of the company
(Howaldt, Kopp and Schultze, 2017). The start ups can use innovation to gain success in the
diverse market while established companies are required to maintain their brand value and
dominance among emerging competitors and increasing customer expectations.

Factors influencing innovation success
Organisational success depends upon several factors which drive the need of innovation
in new as well as existing firms. For instance globalisation and rapidly changing technology is
one of the factor which demands for innovation. For example due to global expansion firms like
IKEA, Tesco and Marks & Spencer have shifted from Bricks & Mortar approach to digital
platforms or online retailing. Another factor which affects outcome of any innovation is social
factors or social changes. When organisations introduced online retailing or home delivery many
customers used to avoid it. However with the increasing pandemic restrictions and working
population this innovation has been highly appreciated and demanded by consumers. The
innovations which are not accepted by any culture or customer segment may not achieve success.
Thus it is very important that companies who bring innovation must consider the cultural
beliefs or the population for which they are bringing creativity. It is also possible that for
particular segment innovation may add complexities or costs. Innovation success is also affected
by the political and economic stability (Pikkemaat, Peters and Chan, 2018). There are certain
innovations such as automated electric cars by Tesla which are not approved by political forces
or which does not suits in the unstable economic condition due to pricing factor. It can restrict
the success factor or scope of the innovation success and can even lead to its failure.
CONCLUSION
It can be concluded that without frequent innovation one cannot survive in the
competitive business culture. Innovation not only motivates or attracts new customers but also
helps in improving productivity of existing business functions.

REFERENCES
Books and Journals
Bennett, E.E. and McWhorter, R.R., 2019. Social movement learning and social innovation:
Empathy, agency, and the design of solutions to unmet social needs. Advances in
Developing Human Resources, 21(2), pp.224-249.
Howaldt, J., Kopp, R. and Schultze, J., 2017. Why industrie 4.0 needs workplace innovation—a
critical essay about the german debate on advanced manufacturing. In Workplace
innovation (pp. 45-60). Springer, Cham.
Pikkemaat, B., Peters, M. and Chan, C.S., 2018. Needs, drivers and barriers of innovation: The
case of an alpine community-model destination. Tourism management
perspectives. 25. pp.53-63.
Schulman, K.A. and Richman, B.D., 2019. Toward an effective innovation agenda. N Engl J
Med, 380(10), pp.900-901.
Švarc, J., 2020. Comparative analysis of the innovation capacities in the WBC with emphasis on
joint cooperation needs in the field of innovation. R&D and Innovation in Western
Balkans: Moving Towards 2020, pp.223-238.