In the rapidly growing world and ever-changing market, new businesses and companies comes with hyperspeed into the marketplace with new concepts and strategies everyday. But only few companies reach the pinnacle of success, and what make a company or a business standout among the entrepreneurs world is innovation. But, before getting into the details as why companies should be innovative, first you need to know what exactly is innovation and the factors important for innovation.
What, exactly is Innovation?
Innovation is just not about creating a new product different from the competitors, but a complete set of methods and ideas transformed into practical reality.
In the business world, innovators think about new ideas and strategies to implement them. They create new products, and methods entirely different from any other product, or idea existing in the market. Innovation is the most crucial component in the success of a company. Innovators of a successful and big company think of strategies and organizational factors that could separate them from the rest of the businesses.
There are different types of innovations for a company to pursue. It could either be related to new products, internal processes of the company, or a business model. In the ever-changing marketplace and world of innovation, Apple is a great example of embracing innovation and implement new strategies, and launching new products.
Why a Company Should be Innovative
For a company or a business to reach the pinnacle of success, they should follow the “Adapt or die” strategy. As Darwin had said;
In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed”.
Brands and organizations should learn the evolution of marketing and adapt or expand accordingly.
Do you remember Blockbuster? Well, you are oldie. Blockbuster could have remained in the stream of growing businesses only if it were innovative.
Innovation Helps Business to Grow
In a survey conducted by The Boston Consulting Group, 79 percent of surveyed executives claimed innovation ranked among their top three business initiatives. To grow the business, companies consider evolving the product or business model or might merge their business with others as Apple once did with Microsoft.
Apple started a partnership with Microsoft while being on the verge of bankruptcy and that entirely changed the game. The iMac, iPods, iPhones, MacBook, Apple Watches are some of the innovative inventions of Apple that reshaped the industry.
The top companies value the positive impact of innovation and stay one step ahead of the competitors to continue to grow with rapid speed.
Innovation Keeps Organizations and Companies Relevant
Another reason why a company should be innovative is that innovation keeps the organization relevant. Businesses need to adapt to stay relevant and profitable. A driving factor in the need for change and innovation in technology as more than 570 websites are created every minute and about 90% of the world’s data has been created in the last couple of years.
Executives believe that in the coming decade 40% of Fortune 500 companies will be wiped out due to digital disruption. Innovation is what organizations need to fend off competition.
Innovation Helps Organizations and Companies to differentiate themselves
Innovation is about doing and accomplishing something differently from everyone else operating in your field and space. If your company is using innovation on its products, for example, then the objective is to create or update the items and products until there is nothing else like that available in the market. A company can use innovation in its processes; it is because doing so will save you time, money, or other resources, and give you a competitive advantage over other companies stuck in their systems. In either scenario, your organization is taking the time to try something new because sticking to the status quo simply is not working.
While the natural success that this brings can be reward enough for many companies, it would be a mistake to overlook another key advantage; innovation helps an organization differentiate itself and its products from the competition, which can be particularly powerful in an oversaturated industry or market.
While delivering value to your customers should always be a company’s main focus, doing so in a way that is memorable and different from everyone else can become a standout element of your brand identity and business strategy, as well.
What are the essentials of Innovations?
Since innovation is not a child’s play, therefore its importance cannot be denied. It is most difficult for the well-established and recognized companies, as it requires a set of converging practices and processes to structure, organize, and encourage it.
There is no validated formula or technique for success, particularly when it comes to innovation but if companies understand and apply these essentials, they can surely rekindle the lost spark of innovation and keep up with the change.
