Term 4 2017: Discussion on Business Innovation and Sustainability

This discussion paper, completed as part of a Diploma of Business program, examines the vital connection between innovation and business sustainability. The paper defines business sustainability and innovation, emphasizing their importance in adapting to market changes and achieving long-term success. It explores different types of innovation, including product, process, and service innovation, and discusses how companies can implement effective innovation strategies. The paper highlights real-world examples of successful corporations like Netflix and Nintendo, illustrating the positive impact of innovation, while also contrasting them with examples of companies that failed due to a lack of innovation, such as Blockbuster and Blackberry. The paper concludes by reinforcing the necessity of innovation for modern corporations to thrive in a competitive and evolving market landscape.

Online Learning Component Cover Sheet
Week 5
Term and Year Term 4 2017
Assessment Type Discussion question
Date
Student Name:
Student ID No:
Submission deadline: Due at the end of Week 5 (upload on Sunday by 11:59pm) via Moodle Submission
Point
Qualification : BSB50215 Diploma of Business
Unit Code: BSBINN501
Unit Title: Establish systems that support innovation
Assessor’s Name
Student Declaration: I declare that this work has been completed by me honestly and with integrity.
Name:
Signature:
Date:
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Online learning/ evidence gathering conditions
Each online learning component is recorded as Five hours (5), Three hours (3) or Zero hours (0). A student can only
achieve competence when all online learning components listed under procedures and specifications of the fulfilling the 5-
hour online learning per week section are Satisfactory. Your trainer will give you feedback in the student learning
management system after the completion of each online learning component. A student who is assessed as Zero hours (0)
is eligible for re-submission. Should the student fail to submit the online learning component, a result outcome of Zero
hours (0) will be recorded. Any form of plagiarism or copying other students’ work would also result in a Zero hours (0)
record outcome and there would be no provisions for a re-submission.
Resources required for this Assessment
 All documents must be created using Microsoft Word.
 Upon completion, submit the online learning component (using this official template) via the student learning
management system to your trainer along with the completed assessment coversheet.
 Refer the notes on eLearning to answer the tasks
 Any additional material will be provided by Trainer
Instructions for Students
Please read the following instructions carefully
 This online learning component is to be completed according to the instructions given by your assessor.
 Students are required to conduct their research and complete this online learning component outside the class contact
time.
 Feedback on each task will be provided to enable you to determine how your work could be improved. You will be
provided with feedback on your work within 2 weeks of the online learning component due date.
 Should you not answer the questions correctly, you will be given feedback on the results and your gaps in knowledge.
You will be given another opportunity to demonstrate your knowledge and skills to be deemed competent for this unit
of competency.
 If you are not sure about any aspect of this online learning component, please ask for clarification from your assessor.
 Please refer to the College re-submission policy for more information.
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Task
Innovation is key to business sustainability. Discuss (not more than 800 words).
Business sustainability or corporate sustainability is effective coordination and
management of social, financial and environmental requirements and concerns to ensure
ethical, responsible and ongoing success (Bansaland DesJardine, 2014). Innovation is a
process of creating and formulating policies to improve efficiency in procedures, ideas, and
products. Innovation in business can be defined as promoting and implementing new ideas,
designing new products, or improving the quality of existing facilities. Many experts have
depicted that innovation in business operations is a key factor that assists in the
development of business and easily adaptation to changing market trends. The new
economic growth, globalisation, and digitalisation have created new challenges for modern
corporations relating to business innovation (Fisk, 2010). The companies are establishing
new business innovation strategy that provides them various advantages such as
productive and competitive workforce, creative development in products and facilities,
motivation and job satisfaction of employees and many others.
Many people confuse creativity with innovation, but both of them are completely different
processes. Creativity is referred as the procedure of creating new ideas and designs
whereas innovation is expanding on such ideas to turn them into reality and working
products. In the corporate sector, entrepreneurs and companies describe innovation is the
process of turning business opportunities into reality to address market challenges (Bos-
Brouwers, 2010). Innovation is divided into three categories in business sector, i.e.,
product, procedure and service innovation. Product innovations mean changing or altering
the physical characteristics of a product to improve its performance or usability. The
process innovation refers to changing or modifying the procedure of manufacturing or
production to improve its efficiency and adding beneficial changes. The service innovation
is related to changing or altering the services provided to the customers in order to
improve their experience or comfort. A corporation can adopt various methods to promote
and implement new innovative ideas into their operations such as duplication, synthesis,
invention, and extension (Girotra and Netessine, 2013).
In modern businesses, demand for new innovations has risen exponentially in past few
decades because of high competition in industry, constant reduction in the economy,
changing marketing policies, increase in the number of new innovators and incapability of
traditional processed to satisfy new requirements (Boons, Montalvo, Quist and Wagner,
2013). These factors required modern corporations to promote and support innovative
ideas in order improve their performance and sustain market growth. The regular activities
of a business are not enough to establish innovation in processes; the management is
required to promote and support innovating thinking and encourage its employees to
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establish an innovative approach to their work. There are several real-life examples of
successful corporations that have implemented an effective, innovative strategy to sustain
their growth. According to Borden et al. (2008), world’s most innovative companies are also
world’s most successful corporations as well, such as Apple, Google, Nike, and Amazon.
Netflix is a good example of success through innovation; Reed Hastings started the
company, and in the beginning, it shows movies and series after their television premiere.
During this period company collected a large amount of customer data that assisted in the
innovation of a new algorithm. The new algorithm predicted the viewer’s preference for
movies, and it becomes popular among users. Based on such data, Netflix decided to create
original shows like House of Cards and Stranger Things that become hugely successful
(Medium, 2016). The business innovation by Hasting allowed Netflix to sustain its future
development. Another example of success through innovation is Nintendo; the company
suffered a huge loss in their card business, and they decide to manufacture different
consumer products such as washing machine, dryers, instant rice, hourly hotels, and
others. After many failures, company created its first video game counsel, a software
engineer created Donkey Kong game for such counsel, and it introduced the world to Mario
after that Nintendo become one of the world’s most successful company.
The innovation of internet created substantial opportunities for businesses that allowed
companies such as Netflix, Uber, Facebook, and Amazon to sustain their business growth.
The companies that did not adopt an innovative approach failed in the market, for
example, Blockbuster was a massive success in movie renting industry but the company
failed to innovate its operations, and the introduction of Netflix bankrupted the
corporation. Blackberry is another example; the lack of innovation in its operating system
failed to fulfil the demand of customers due to which corporation suffered substantial loss
(Vocoli, 2014). The market conditions are constantly changing with the introduction of the
latest technology and new businesses. Innovation of processes is the only way a company
can provide its products and services as per latest marketing trends. Modern corporations
are required to promote and support innovative strategy because it a key to business
sustainability.
References
Bansal, P. and DesJardine, M.R., 2014. Business sustainability: It is about time. Strategic
Organization, 12(1), pp.70-78.
Borden, M. et al., 2014. The World’s Most Innovative Companies. [Online] Fast
Company. Available at: https://www.fastcompany.com/703052/worlds-most-innovative-
companies [Accessed on 24/11/2017]
Bos‐Brouwers, H.E.J., 2010. Corporate sustainability and innovation in SMEs: evidence of
themes and activities in practice. Business strategy and the environment, 19(7), pp.417-
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435.
Fisk, P., 2010. People planet profit: How to embrace sustainability for innovation and
business growth. Kogan Page Publishers.
Girotra, K. and Netessine, S., 2013. OM forum—business model innovation for
sustainability. Manufacturing & Service Operations Management, 15(4), pp.537-544.
Medium., 2016. 3 Companies Who Saved Themselves Through Innovation. [Online]
Medium. Available at: https://medium.com/@codeandmortar/3-companies-who-saved-
themselves-through-innovation-d858666b3c7d [Accessed on 24/11/2017]
Vocoli., 2014. 10 Companies That Failed to Innovate and What Happened to Them. [Online]
Vocoli. Available at: https://www.vocoli.com/blog/july-2014/10-companies-that-failed-to-
innovate-and-what-happened-to-them/ [Accessed on 24/11/2017]
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