Business Innovation for Competitive Advantage
Through business innovation, an organization introduces new workflows, ideas, products, services, and methodologies. Business innovation should ensure that goals across the whole organization are met, and core business initiatives and objectives are also accomplished, just like IT innovation which involves using technology to come up with ideas to solve problems in an organization. Through pooling of ideas together, to come up with brainstorming solutions that leaders consider to be viable, desirable and feasible business opportunities, idea generation yields innovation. Business innovation should improve the production process, products or services and should also solve a problem or tap into new markets.
An enterprise creates value from new or existing revenue opportunities through business innovation, or sums up more revenue from existing channels by improving productivity, performance or establishing frameworks that save money or time or both. Hence, corporate innovation should boost profits and should also yield a competitive advantage for the organization, making it grow and reach or even surpass the strategic goals.
Business model innovation alienates the organization from its competitors by how the business operates, how it exploits new ideas and how efficient it is in service delivery. Besides the organization, customers who get to use new products and services also benefit from business innovation. Quality products or services are also disposable to customers, for example, in the case of the healthcare field, better medical treatment. However, very few companies have sought business innovation, despite it boosting profits and securing competitive advantage. The new product development process demands time, funds and energy that most managers and CEOs do not have. Most organizations lack an essential component for the success for business innovation; teamwork.
Organziation should pay attention to their personal needs and should know that they are different, if they are to succeed in business innovation. Furthermore a company should be flexible enough to accommodate change. Besides, possessing the will to kill an unproductive idea, companies should take risks, willing to fail first. Customer relationships can be excellent sources of revenue, depending on the business’ extent, hence, it is essential to know your customers. Customers say what they want, and they can be a guide since negative or positive feedback would aid innovation.
Most businesses also fail since they do not promptly act on the frustrations that are associated with business innovation. In this case, besides employees taking some time before adjusting, consumers may take time before adapting to the new product or service and there may be financial issues. In some scenarios, it may be not about how you alter the service or the product, but how you talk about it. For any organization to succeed in business innovation, marketing should be a critical aspect.