This article discusses the impact of innovation on management decision-making and explores the factors that influence innovation. It also provides insights on how to cope with change in the competitive business environment and emphasizes the significance of value creation and customer satisfaction.
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Running Head: INNOVATION0 Innovation and management decision-making
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INNOVATION1 Innovation “the need of time” Innovation is a kind of procedure that starts with the introduction of plan of any idea. Innovation is core activity that helps the businesses in bringing competitive advantage (Witell, Snyder, Gustafsson, Fombelle & Kristensson, 2016).By considering the business practice, it means the development of new ways of doing things for achieving any goal. Organizations that are able to regularlyfind out the opportunities for change are able to sustain for long time in the market. Digital revolution not only changed the perception of business but also given emphasis on the performance of business. In recent fast changing environment, innovation proves to be the key to success. There are certain factors that really influence the innovation in some or other way. I have also found the two essential factors named technological and socio cultural factors (Zahra, Filatotchev and Wright, 2009) Impact of technological factors It is true that changes in technologies have also changed the perception of people towards several services and products. If we go back to the past few years, we were having very less access to purchase any product on digital means. In recent time, due to some advancement in the technology, we come across the different E-commerce websites such as Alibaba and Amazon. It enables us in buying various products by sitting at our home. It has also saved the time of people, as people are not required to go to any shop for purchasing product. Advancement in technologies has made this thing possible by putting emphasis on the time and speed. It has also brought the various challenges in front of organizations to make new strategies regarding innovation (Teece, 2010). In the recent time, tradition approach has
INNOVATION2 proved to be ineffective as several changes has occurred in the marketplace due to increment in competition. In the recent time, competitive market has placed several choice in front of customers for standing out of the competitors. Impact of Socio cultural forces It is other essential aspect that require quite response on part of the business organizations. Both these forces are linked to several aspects of the society such as family, friends, media and colleagues that influence the opinions, interest and attitude. It is also essential for the business enterprise to give total emphasis on the particular market (Banu, Dumitrescu, Purcărea & Isărescu, 2016).Accordingly, it creates the product. The product that is created is required to fulfil the superior as well as basic needs of the customers. It is true that the failure in providing the appropriate responses can be seen as the costly mistake. For example- organization can also loss its brand goodwill and market share or else diminish it. People are also diversified in the society and therefore, if any organization trust on the established technology, it will not be able to effectively give response in terms of the innovation. In addition, it will also not able to experiment the new ideas (Birkinshaw, Zimmermann & Raisch, 2016). How to cope up with the change It is found that large number of suppliers as well as marketers presents in the market, customers can excellently choose among all the variety of products. However, they repetitively pursuing the value from all those products for whom they are paying. Therefore, it is essential for every organization to build such culture that will bring regular improvement and bring the immense success in organization. Due to changing environment, it is true that traditional paradigms will not work. All the required changes depend on the customer values and demand as well as their satisfaction. In every business, customers are the king. Therefore, it is important to satisfy their need in every aspect of business. Besides this, it is required to be customer centric that has the main aim to satisfy the customers. In this way, it is clear that business firm is only able to create the optimum value for all the customers by fulfilling their needs as well as demand. Conclusion
INNOVATION3 Theever-changing competitive business environment creates the several challenges for the enterprise. For becoming the competitive in the market, business firms are required to include the innovative changes for standing with the competitors. Related to the successful operation of business, I have found that they also consider the significance of value creation to each of the customer. They are also required to compel the tradition business paradigms for generating the innovation response to each element.
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INNOVATION4 References Banu, G. S., Dumitrescu, A., Purcărea, A. A., & Isărescu, S. W. (2016). Defining Open Innovation Concept Using Business Process Modeling.Procedia Technology,22, 1020-1027. Birkinshaw, J., Zimmermann, A., & Raisch, S. (2016). How do firms adapt to discontinuous change? Bridging the dynamic capabilities and ambidexterity perspectives.California Management Review,58(4), 36-58. Teece,D.J.(2010)Businessmodels,businessstrategyandinnovation.Longrange planning,43(2-3), pp.172-194. Witell, L., Snyder, H., Gustafsson, A., Fombelle, P., & Kristensson, P. (2016). Defining service innovation: A review and synthesis.Journal of Business Research,69(8), 2863-2872. Zahra, S.A., Filatotchev, I. and Wright, M. (2009) How do threshold firms sustain corporate entrepreneurship? The role of boards and absorptive capacity.Journal of business venturing,24(3), pp.248-260.