Importance of Innovation in Business and Revenue Generation Mechanisms

Running Head: Innovation 0
Innovation
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Innovation 1
Topic – 1 Value Capture
Innovation process is most important part of business. It increases many things of a firm, such as
productivity, revenue, reputation and may other things. It is necessary to maintain increment in
innovation to extend the business. Value capture is an important part of an innovation process. In
this chapter, explain about the complementary assets and revenue generating mechanism.
Companies has followed business model to capture value through fulfill expectations of clients.
Therefore, they are intrested in the products and services of company. However, it is necessary to
satisfied stakeholders of company through generate enough revenue.
Many things are require for capturing value, such as standard products, innovative products and
quantity. Intellectual property rights can be used to protect new innovative innovations.
Companies can sale their products and services in good price with the help of innovations. It is
necessary to use new technology, such as Internet.
Different industries are depends on their process, such as consultant for advice, hotel services,
medical services, and many others. In those services, revenue is depending on their efforts at
innovation.
Many types of revenue generating mechanisms were present in the industry, such as
renting/leasing, brokerage fee, freemium, licensing/franchising, printer, and cartridge. Xerox
914 copier is a best example of revenue generating mechanism.