Innovation means using new technology and using new ways of thinking to add value to an existing idea or product and to make substantial changes in society.
Where do good ideas come from? I use this video with business people as well as in my talks to elementary school students!
According to McKinsey, 84% of executives say that their future success is dependent on innovation. Although innovation may sound like a buzzword for some, there are many reasons why companies put a lot of emphasis on it.
In addition to the fact that innovation allows organizations to stay relevant in the competitive market, it also plays an important role in economic growth. The ability to resolve critical problems depends on new innovations and especially developing countries need it more than ever.
What is Innovation?
The creation of value is a defining characteristic of innovation.
Innovation is a process by which a domain, a product, or a service is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value.
Why do we need innovation?
Successful innovation allows you to add value to your business so that you can increase your profits. If you don’t innovate well, your business will plateau. Innovation helps you stay ahead of the competition. With globalization and a rapidly changing market, there are more competing businesses than ever before.
1. Innovation grows your business: business growth is ultimately the increase of profit. Successful innovation allows you to add value to your business so that you can increase your profits. If you don’t innovate well, your business will plateau.
2. Innovation Keeps Organizations Relevant: 90% of the world’s data has been created in the last couple of years. More than 570 new websites are created every minute. 8 billion devices will be connected to the Internet by 2020. The world around us is constantly changing, and in order for your business to remain relevant and profitable, it will eventually need to adapt in order to meet these new realities. These changes have led to a new age of innovation across business models and industries, allowing new businesses to enter the market and disrupt incumbents in serious ways. In fact, executives today believe 40 percent of Fortune 500 companies will be wiped out in the coming decade due to this level of digital disruption. Just as a start-up often innovates in order to break into an industry, established organizations need to innovate in order to fend off competition and remain relevant in this changing environment.
3. Increased efficiency: A lot of business innovation happens by making existing business processes less costly, less time-consuming to complete, and more sustainable. Those changes save time and make it easier for an organization to adapt to industry shifts with agility, which cushions against volatility and risk.
4. Attract and retain top talent: Companies that have a reputation for being innovative also get their pick in recruiting top international talent. Establishing your brand as innovative can encourage top talent to apply and remain committed to your business, giving you a strong competitive edge.
5. Staying ahead of disruption: Business innovation means keeping track of the market’s direction in response to potential disruptions or a change in consumer demand. Staying on top of consumer information allows business leaders to respond to trends by using the buy, build, and partner model. If a startup is disrupting the market, a company can buy the startup, build it themselves, or partner with the startup.