Importance of Innovation and Enterprise in Business - A Report

This report delves into the crucial role of innovation and enterprise within the business landscape. It begins by defining innovation and its significance, highlighting how businesses leverage it to gain a competitive edge. The report uses the Burberry company as a case study, showcasing its innovative strategies. It then explores various innovation theories, including incremental, disruptive, sustaining, and radical innovation. The importance of innovation and enterprise is discussed, emphasizing their contribution to business growth, relevance, and competitive advantage. The report further analyzes the factors that contribute to innovation success and failure, emphasizing the importance of aligning innovations with market and cultural requirements. The conclusion summarizes the key findings, reinforcing the necessity of innovation for business success in a competitive market.

Innovation and
Enterprise

Table of Contents
Introduction .....................................................................................................................................1
Task .................................................................................................................................................1
Discuss the theories of innovation and also importance of innovation & enterprise in business
................................................................................................................................................1
The factors that lead to innovation success and failure..........................................................2
Conclusion.......................................................................................................................................3
References .......................................................................................................................................4

Introduction
Innovation is the process creation of new ideas and converting those idea into reality,
invention of new ideas is the first step towards innovation, real innovation comes after
implementing those ideas into reality or action. With increasing competition in the market, in
order to gain competitive advantage for the business enterprises innovation plays an important
role. Innovation is mainly about inventing something new or unique or adding value to the
product or services in order to enhance productivity and profitability in the market. In this report
the Burberry company, which is largest fashion house founded in 1926 by Thomas Burberry.
This report covers the importance of innovation and enterprise in business and also factors that
lead to innovative success or failure within an organisation.
Task
Discuss the theories of innovation and also importance of innovation & enterprise in business
The innovation and enterprise plays an important role in the success and failure of the
business. In this report in order to understand the importance and fundamental of innovation, the
recent innovation of Burberry company is taken as the example. The company in order to
increase their customer base and gain competitive advantages has introduced an large reality
shopping tool using google search engine, it allows customer to imagine products around them.
Company has been gaining profit after this innovative transformation (Berraies, 2019). There are
mainly four types of innovation which are discussed below:
Incremental innovation: Under this type of innovation, invention is through
continuously improving and modifying the already existing product or services in order to
enhance their profitability and productivity. This factor mainly focuses on the improving their
already existing product, either altering or modifying in order to increase their market share and
profitability in the competitive market (Lianghu and Ying, 2016).
Disruptive innovation: The another type of innovation is Disruptive innovation, under
this innovation is done through adding value to the product and services in order to attract
customers in the already existing market or in the new market. Offering value added product sto
the customers helps in building customer loyalty (Liao, 2016).
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Sustaining innovation: In this type of innovation, businesses tries to maintain their
position in the existing market by continuously improving their product and services. The main
focus of marketer is to maintain their position.
Radical innovation: The last type of innovation is radical innovation, under this the
innovator focuses on brining or using advance technology in order to gain competitive advantage
in the market. In order to satisfy their customers innovators tries to bring in advance and new
technology (Liao, 2018).
In context to the Burberry the company has use the radical type of innovation in order to
increase their customer base. The company has used advance digital platforms in order to bring
the innovative transformation in their business. With the increasing use of digital platform
among the customers, to increase the their customer base company has moved towards the digital
platform (Liu, 2021).
Importance of innovation and enterprise in business
Innovation and enterprise plays an important role in leading business towards growth and
success. Some of the important factors of innovation and enterprise are discussed below
 The innovation helps in the growth of the business, the business which are innovative and
continuously using creativity are likely to be more successful than the once who are not
doing any thing innovative.
 Another important factor of innovation is that it helps business to maintain their
relevancy and profitability through adopting with the dynamic changes and satisfying the
needs of their potential customers effectively.
 Another important benefit of innovation and enterprise is that it helps business to gain
competitive advantage in the market by being innovative and creative and standing out
from their competitors in the market (Noonan and Kelly, 2020).
The factors that lead to innovation success and failure
There are can be number of factors can lead to the innovation success and failure, the
main factor in the invention of creative and unique idea and implementation of that idea into the
reality, if the idea implemented is not matching with the customers or market requirement then it
will be a failure, and it is unique then it will lead to the success of the business. Another factors
that can lead to the success and failure of the innovation can be the innovation culture, as when
new innovation is introduced in the market, if it is not meeting the cultural requirement or not
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according to the culture then it can leas to the failure and vice versa. In order enhance the growth
and success companies needs to carefully analyse their culture in which they operates before
implementing any new innovation. In case of Burberry, with increasing availability of customers
on the digital platforms, company has implemented innovative idea of introducing reality
shopping tool using google search engine, where the customers can feel the products near them,
this idea has helped company to increase their profit and productivity also this has enhanced their
brand image and loyalty effectively. The introduction of this innovative idea was a success for
the company as they have considered all the factors satisfying the current needs of their
customers. (Tran and Vu, 2021).
Conclusion
From the the above report it is concluded the innovation is one of the essential factor in
the success and failure of the business, effective and creative implementation of the innovative
ideas leads a business towards success and growth, it is analysed that with increasing
competition in the marketing, the role of innovation and enterprise is also increasing. Companies
needs to be innovative and creative in order to satisfy their customers as well to gain competitive
advantage. The above report covers the detailed understanding of the innovation with its
importance and also the factors that leads to innovative success or failure within the organisation.
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References
Books and journals
Berraies, S., 2019. The effect of enterprise social networks use on exploitative and exploratory
innovations. Journal of Intellectual Capital.
Lianghu, M. and Ying, J., 2016. A Study of Coupling Degree between Innovation and Enterprise
Performance of Jiangsu PV Industry. Journal of Changzhou University (Social Science
Edition). p.03.
Liao, Z., 2016. Temporal cognition, environmental innovation, and the competitive advantage of
enterprises. Journal of cleaner production, 135. pp.1045-1053.
Liao, Z., 2018. Environmental policy instruments, environmental innovation and the reputation
of enterprises. Journal of Cleaner Production, 171. pp.1111-1117.
Liu, J., 2021. Impact of enterprise human capital on technological innovation based on machine
learning and SVM algorithm. Journal of Ambient Intelligence and Humanized
Computing. pp.1-13.
Noonan, M. and Kelly, P., 2020. Young people and the gendered and aesthetic dimensions of
‘enterprise’: Stories from a ‘Rust Belt’city. Journal of Youth Studies, 23(4). pp.481-498.
Tran, T.B.H. and Vu, A.D., 2021. Effect of university-enterprise alliance orientation on
university’s innovation performance and market performance: evidence from
Vietnam. Journal of Marketing for Higher Education. pp.1-21.
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