Thursday 13 June 2013

Innovation and business

Innovation is the appilication of the solutions that meet new requirments or existing needs through products, processes, services, technologies, or ideas. All innovation begins with a creative idea: innovation takes that idea, puts it to work.
Innovation in businesses is only beneficial if it has a practical appilication. Innovations in businesses need to be based on the needs of customers if they are to have any use. One of the most common reason as to why businesses fail is lack of viable market i.e. insufficient customers.
Entrepreneurs need to focus on the 'market-based' approach while developing products/ services. It creates the impression that the business is concerned with the needs of its customers.
There is a widely held notion that innovation concerns significant change or a novel concept. This is not necessarily so: innovation can be little repackaging of a product/ service through identifying problems and solving them.
SMEs play a major role in innovating new products, services, and processes. Smaller firms can take up new innovations that are less costly;this flexibility is made possible by the fact that they are small in size.
As an entrepreneur one can capitalize on innovation as a way of having competitive advantage, when price war is not an option. Successful innovation can be a key driver of a firm's revenue: a successful innovation is one that has the customer at its core. Customers' complaints and suggestions can be a source of innovation if viewed positively by businesses.

By John Muchiri.

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