In today’s market, the life span of a product is shrinking. In fact, in some sectors like computers and cell phones, the life span of a model lasts for just a few months. New variants and updated models with added features are constantly emerging on the horizon now and then. Eventually, the old models become obsolete, and the consumer has no choice but to replace them. It is often becoming difficult to fix any problem as technology and the sizes of spare parts change because of developing changes.
Innovative advantage for businesses
A major innovative and competitive advantage for businesses is the ability to launch new products before their rivals, winning significant sales shares. Therefore, businesses should be able to continuously “be innovative” in order to maintain and strengthen their market position. Innovation includes all forms of invention, including coming up with fresh concepts, creating something new, coming up with new ideas, making improvements, and making changes. Also, it covers all phases, such as design and evaluation of how well this concept is put into practice.
An action in a business involving a brand-new or improved product service, method, or system marks the beginning of innovation. On the other hand, an invention is a concept, a design, or a prototype for a better or new product. This rarely leads to a business transaction, but it might cause a patent. Many studies have showed that innovative businesses, namely those that consistently develop, typically present double the profits of the competition. A lot of fresh ideas, however, fail to materialise into profitable innovations in products or services because innovation management is extremely challenging.
Innovation can affect any industry. For instance, significant impact areas include product and service innovation, process innovation, and business innovation. Tangible and intangible goods development and monetisation are examples of products and services. Business innovation refers to new methods of doing business to gain a competitive edge. Whereas, the process relates to new and different ways of manufacturing and providing competitive costs and benefits.
Invention vs innovation
Innovation is a product or achievement that results from diligent work, as well as a tangible or visible manifestation of an idea, quality, or feeling. Invention is defined as a sudden, dramatic, and significant discovery or development. It is also the process of gradually progressing towards a more advanced stage of discovery. It can also refer to a change that improves or enhances something. Both have the potential to impact socioeconomic, financial, and economic processes.
Using imagination or original ideas to create something is referred to as creativity. It is also the quality of being new, unique, or unusual, as well as the ability to solve hard problems in novel, clever, and inventive ways. It is unpredictable how creativity works. When something is creative, we can usually tell, but we don’t always understand why. The subject is particularly difficult to define precisely.
In the business context, creativity matters in enabling change initiatives in organisations. It can be defined as the entire process of generating, developing, and converting ideas into value. Creativity facilitates both innovation and entrepreneurship. Creativity is both an individual and a group process.
The most complex and creative projects require the participation of multiple groups of people. It is often difficult to give credit to everyone who contributed to a creative effort. Creativity is an ongoing activity in which various people collaborate, solve problems on their own, and then return to the team to reshape and improve their ideas.
The term “innovation” comes from Latin and refers to introducing completely new things. Innovation in the business context can involve manufacturing, technical, design, commercial and administrative activities, marketing of products or the use of improved or new procedures or equipment.
Peter Drucker says “Innovation involves finding a new and better way of doing something”, and “Entrepreneurship and innovation are companion terms”. Organizational innovation provides businesses with a competitive advantage. They consider innovation in emerging technologies and new business models. Enterprises and organizations develop new products and services, or reorganize production and operations processes, to facilitate innovation.
Innovation enables businesses to succeed and attract new customers. It establishes a dynamic business image and products that distinguish it from competitors on the market. As well as making it difficult for competitors to catch up. Enterprises that lose their innovative spirit will be surpassed by more active organisations.
As competitors become more powerful or their innovations become more visible, an increasing and pressing need for additional innovations will emerge. This will enable the company to maintain its market position. As a result, competition forces the company to implement innovations.
Creativity is influenced by competition, transformation, knowledge acquisition, culture, communications, procedures, interpersonal cultural interaction, and other contextual variables. In contrast, innovation implementation is a predefined act, but its primary characteristic is uncertainty.
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