An organization introduces new workflows, ideas, products, services, and methodologies, through business innovation. 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.
Through innovation in business, an enterprise creates value from new or existing revenue opportunities or summing up more revenue from existing channels by improving productivity, performance or establishing frameworks that save money or time or both. Hence, besides yielding a competitive advantage for the organization, making it grow and reach or even surpass the strategic goals, corporate innovation should boost profits.
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, better medical treatment in the case of the healthcare field. However, despite it boosting profits and securing competitive advantage, very few companies have sought business innovation. The new product development process demands time, funds and energy that most managers and CEOs do not have. Furthermore, for business innovation to thrive, teamwork is essential, but most organizations lack this commitment.
To succeed in business innovation, organizations should know that they are different and should pay attention to their personal needs. Moreover, a company should not be rigid, it should accommodate change. They should take risks, willing to fail first and to be brave enough to kill an unproductive idea. Customer relationships can be excellent sources of revenue, depending on the business’ extent, hence, it is essential to know your customers. Since negative or positive feedback would aid innovation, customers say what they want, and they can be a guide.
Most businesses also fail since they do not promptly act on the frustrations that are associated with business innovation. Employees may take some time before adjusting, financial issues and the fact consumers may take time before they adapt to the new product or service are some of the frustrations that the business has to deal with. In some scenarios, it how you talk about it, and not about how you alter the service or the product. For any organization to succeed in business innovation, marketing should be a critical aspect.