Essay: Analyzing Innovation's Impact on Organizational Success

This essay critically evaluates the significance of innovation for organizational success, arguing that an organization's ability to innovate is crucial for long-term flourishing. The essay emphasizes the importance of continuous improvement, research, and data analysis in fostering innovation, as well as the need for a culture that embraces risk-taking and change. The essay highlights the benefits of innovation, such as generating unique offerings for customers and attracting skilled employees. It uses Tesla as a case study to illustrate how continuous technological innovation can drive growth and market share, emphasizing open innovation policies and employee involvement. The essay concludes that, in a rapidly changing environment, organizations must prioritize innovation to sustain a competitive advantage and ensure long-term success, supported by effective leadership, resources, and best practices.

Management

An organisation’s ability to innovate is critical to its ability to flourish in the long term
Innovation is said to be the new ideas, devices, methods, as well as new or innovative ways
of doing things. In the today’s competitive environment, innovations play an essential role.
Hardman, Shiu and Steinberger-Wilckens (2015) has stated that organisations are required to
bring innovation in order to succeed in the organisation. However, continuous improvements
are required as it might be possible that competitors copy the innovative capability of the
organisation. Continuous improvement is one of the on-going improvement that helps the
organisation in constantly searching for the opportunities in order to add value to the products
and services. Whenever the company in any of ways brings innovation, it has to sustain it for
time for bringing several positive aspects. Innovation is also seen that time when any
company shift from its traditional mode of management and operation to the modern
technology. Whenever any new thing is being launched, it requires deep research on the part
of employees for finding out its pros and cons for long term. In the recent time, every
traditional business is talking the initiative for innovation because they know that their future
growth and achievement depends on it (Teece, Peteraf and Leih, 2016). In this essay, I am
going to clear that organisation ability to innovate mostly depend on the long term success of
any organisation.
The success bringing of new ideas is significant for the business to improve its processes and
improving the products and services in the market. Competition has increased to a larger
extent as a result of higher access to the new technologies. Technological innovation is able
to transform the relationship with the stakeholders and customers. Technology has brought as
well as supports the innovation. It also allows the businesses to access information as well as
data. When an organisation ensures innovation on regular basis, it tends to generate a habit of
innovation. In such a situation, it do not take innovation as burden when any change has been
about to bring in the internal or external environment. In order to bring innovation, diverse
ways of learning is required. Research is most significant aspect for the organisation
employees. By ensuring proper research, it is possible to understand the changes in needs and
wants of customers. At the same time, data analysis is also one such technique proved to be
useful (Vadastreanu, Bot, Maier and Maier, 2015).
Innovation is the most significant element in the organisation that provides the competitive
advantage in the market by ensuring better connection. When company have innovative

culture, it is able to grow easily in its innovative capabilities. When any company first bring
the innovation, it mostly give emphasis on the key performance areas. However, innovation is
successful only when it is done by combining the efforts in different areas. It is one of the key
element of coming up with the new ideas to keep operations. In the innovation capability,
company who are able to take the higher risk tends to close the gaps and identify the new
opportunities. Most of the business professionals also agree that innovation is crucial to the
success of business. the fear of failure and risk is found any time. Therefore, innovation and
change prove to be the growth thrive on the capability to take the risk and deal with failures.
Most of the leading companies across the business units ensure innovation dye to their
leadership (Bashir and Verma, 2017).
Innovation offers several benefits o the company that assist it in long term. Through
innovation, right information is generated in the company that allow it to offer something
unique to the customers. At the same time, it is also seen that customers need is constantly
changing. Innovators are able to predict the changes in market and available with the creative
solutions before people even come to know (Teece, Peteraf and Leih, 2016). It is also true
that innovative and skilled people always want to work for the innovative company.
Companies are not able to attract the innovative people until has not done the innovation in
its history. When a company has innovation as its main aspect in the company culture, it is
able to flourish for long time. An innovative culture involves the innovative habits such as
bringing diverse workforce together, sharing of innovative ideas, experimenting. These
aspects play a significant role because without the diversified employees it is not possible to
satisfy the needs of diverse group of people. When different people of diversified countries
work together, it tends to bring the variety of ideas in the organisation which can be used for
bringing innovation (Butler and Martin, 2016). There is no doubt that innovation can drive
success, but in the recent rapidly uncertain world and changing environment, innovation
actually takes more than a breakthrough to sustain competitive advantage,"
In this regard, it is also stated that in order to ensure the long-term success in any business, it
is also significant to make the innovation an essential aspect of company approach. With the
creative thinking, problems are also easily solved. At the same time, right techniques of
innovation also helps in saving the precious money and time in order to gain competitive
advantage. Companies are also required to surround with those people who have different
ideas form the on. Innovation is required to be continuous. It is because a single innovative
service or product does not bring the long-term success. It is also not sure that innovation can

drive success because in today’s rapidly uncertain and changing world, organisation has to go
through much more for sustaining competitive advantage. For ensuring the growth for long
time, corporate leaders are required to manage innovation in its core or major business
function. They must put best practices and policies in place to bring innovation. At the same
time, they are also required to provide the proper resources for completing the process.
Without the adequate and significant arrangement of resources, it is not possible to carry out
the procedure in effective manner (Teece and Leih, 2016).
Tesla is the best example of bringing technological innovation continuously that helps it
achieving further growth and market share. Tesla has created viable models by evolving with
the technological advancements. Innovation is the reason Tesla ha created quickest car in the
whole world. Tesla is seen as the most innovative company as it effectively look beyond the
problems. It is rightly stated that Tesla has considered how energy system can be effectively
created in order to function effectively. Tesla also considers how energy system is created to
function properly. By giving continuous concern to innovation, tesla has created the own
superior battery that provides greater speed than any industry available in the industry
(Storey, Cankurtaran, Papastathopoulou and Hultink, 2016). Tesla has brought significant
innovation in the organisation by working on the innovative measures as per the changing
external factors as well as demand of customers.
(Bouwer,2019)
The graph presented clearly presents the increasing sales of Tesla by ensuring innovation in
several aspects.

Tesla is one such company that is able to create the innovative technologies by reducing gas
emission. Tesla tends to follow the open innovation policy that helps in fulfilling the need for
innovation among the producers of electric vehicle. Tesla has also believed that this initiative
will not inhibit the innovative progress. This open innovation policy proves to be crucial for
Tesla in addressing the industry wide. In spite of this, Tesla has to regularly give the
emphasis on the technologies in order to accelerate progress and overcome the industry
challenges that allows the tesla to give more emphasis on the formation of competitive
advantage. Companies such as Tesla has established the several systems for its employees in
order to submit the products and services suggestions and ideas. In order to improve the
outcomes and effectively driving innovation, companies are required to be strong in several
areas (Coad, Segarra and Teruel, 2016).
From the above discussion, it can be stated that innovation is the most significant element in
the organisation. However, several authors have criticised by stating that every organisation
is required to develop the innovative ability in order to enter into the growth stage and then to
success for long-term. Tesla has effectively understood that innovation is required to
undertake become new methods, technologies, business models and trends are transforming
several industries. Every change have multiple effects on the organisation that might work for
long term. In this way, mobile and social technologies tend to facilitate the exchange of ideas.
Therefore, due to the increasing competition, it has become significant to initiate the change.

References
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