Business Innovation: The Important Benefits of Innovation in Business
By Tigran Ghalumyan
Firstly, companies always want to be innovative. For a company to be able to develop its processes, bring new and improved goods and services to market, increase its productivity and, most significantly, improve its profitability, the efficient exploitation of new ideas is essential. With technological developments disrupting all industries, companies must do innovations in order to remain competitive and not be left behind.
Innovation distinguishes between a leader and a follower.
/American business magnate/
Introduction: What is Business Innovation?
Innovation in Business means when organizations introduce new processes, ideas, programs, or goods with the aim of improving the bottom line. It could include introducing new and improved goods or services (which can lead to higher revenue), making an existing process more efficient, or solving a current business issue (both of which save time and reduce costs). In other words, the main aspect of innovations is that it drives sales for the organization (Green, 2019).
According to McKinsey, 80% of executives assume that their existing business models are at risk of being disrupted in the immediate future. Furthermore, 84% of executives state that creativity is key to their growth strategy (McKinsey & Company, (n.d.)).
The Most Important Benefits
In this paragraph, we will underline the important benefits of innovation in the business process. Firstly, Innovation enables problem-solving and provides creative insight that allows you to look at things from a different perspective, regardless of whether you are developing a new product, refreshing strategy, or finding an original way to stay ahead of the competition (Nibusinessinf, (n.d.)).
Secondly, in the workplace, there are many reasons why you should cultivate creative thinking:
- Solve impossible problems
- Increase workplace productivity
- Showcase unique qualities
- Beat tough competitors (Kappel, (n.d.)).
To put it simply, businesses can not afford to stay afloat unless they embrace innovation and change.
Innovation Success Factors
When it comes to the improvement of your performance, there are many proven ways to do it. Firstly, you should calculate the whole process and enhance the transformations by using your own metrics. Secondly, focus on engaging customers and on being first on the market. Also by having a well-structured strategy you grow +30% faster the enterprise value.
It has also been shown that the best innovators are searching for a suitable portfolio to suits their priorities instead of relying on individual innovational initiatives. And last but not least the best innovators are more than 3 times open for cooperation both within the company and with external parties, whereas the rest rarely do so (Nieminen, 2019).
To sum up, we must mention that the concept of innovations nowadays become a prerequisite to business growth and prosperity. The potential benefits of it can be also vital to the continuing success of your business. Although a company in the past dares to innovate in order just to make an edge in the industry, today it has become an important element in business design for the business to survive and to gain profit. The organization will also enforce, maintain transformation, and create an environment that facilitates creativity. So by finishing, I need to mention a very important thing that If a business wishes to withstand the actual market competition, it must build a culture of changes and use these assets to beat the competition and sustain profitability.
Green. (2019, October 11). What is business innovation and why is it important? Wework. https://www.wework.com/ideas/growth-innovation/what-is-business-innovation#what-is-business-innovation.
McKinsey & Company. (n.d.). Growth & innovation. Mckinsey & Company. https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/how-we-help-clients/growth-and-innovation.
Kappel. (n.d.). 4 benefits of innovation in business. AllBusiness. https://www.allbusiness.com/4-benefits-innovation-business-111251-1.html
Nibusinessinfo. (n.d.). Advantages of innovation. nibusinessinfo.co.uk. https://www.nibusinessinfo.co.uk/content/advantages-innovation#:%7E:text=Advantages%20of%20innovation%20in%20business&text=increased%20competitiveness,increased%20turnover%20and%20improved%20profitability
Nieminen, J. (2019, October 10). 50+ statistics on innovation – What do the numbers tell us? Viima. https://www.viima.com/blog/innovation-stats