Innovation and research in business are crucial factors in efficient as well as durable development and also contribute to the creation of jobs. Innovation is the actual implementation of innovative ideas in the creation of new services, products, processes, or even new business models. Each innovation has the potential to transform, disrupt, or provide new solutions.
The reason for innovation isn’t all that important. What is crucial however is that every company must be creative, as it will make sure that it survives.
This article by Dr Jay Feldman, will examine the different sectors and the four kinds of business innovation that are available.
8 business areas of innovating
Innovation can be in a variety of forms. When we talk about innovation, they usually think of new products. Innovation in business impacts numerous other sectors, says Dr Jay Feldman. These are the top areas of innovation in business:
Innovation in product design
Innovation in product means the development of a new product or the enhancement of an existing product. This is most likely to be one of the most popular ways that businesses create new products, says Dr Jay Feldman.
Technology
The latest technologies are often the base for other breakthroughs. One example is the internet. Although it was an original innovation however, was the basis for the creation of a variety of other inventions that were based on it.
Business model innovation
The most successful businesses in the world have been able to change the way they conduct their business. Innovations can include the incorporation of new technologies into their everyday procedures or even targeting new markets. Therefore, they have to change the way they work to give better value to their customers.
Innovation in the organization
The way that corporate resources are managed and distributed is an area in which business innovation could aid. So, a company is able to find innovative ways to use the resources it has and its assets.
Process Innovation
Innovations in the company’s processes could boost its efficiency. Potential candidates for process innovation include modifications to distribution, production or customer service, for instance.
Innovative marketing techniques and sales
Innovations in this sector concentrate on the development of new methods to attract the interest of potential customers. This is achieved through the use of innovative techniques in sales and marketing, or through the expansion of channels to acquire customers.
Internet innovation
Networks and networks that are innovative generally connect different players and stakeholders to create added value. The kinds of innovations described above typically are made possible by using the latest technologies for information and communication.
Engagement of customers and the retention innovations
They are new practices to encourage more active client involvement with the intention of expanding or maintaining existing customers.
The four kinds of innovations in the business world
The first step is to know how innovations could influence a company’s product or processes in a variety of ways. Most often innovation is defined by four different levels which express the connection between the application for an already existing technology or new technology and the expansion of an existing market or a brand-new market.
Existing Technology, Existing Market
Incremental innovation is among the more popular types of innovation we’ll see in the marketplace. This kind of business innovation utilizes the same technology but with different modifications, such as the addition of new features or adjustments to design.
Take for instance the situation of smartphones, the incremental changes are related to software updates or the introduction of new features like sensors, cameras and so on.
New Technology, Existing Market
Disruptive innovation is a form of business innovation that utilizes new technologies or innovative business models that disrupt the market. Sometimes the innovations, particularly when they are in the infancy stage, appear superior to their competitors however in the end, they will ultimately prevail in the market.
To grasp the concept, we can look at the iPhones which were the first to introduce and popularise touch screens over conventional mobile phones with buttons.