Innovation can give important benefits. It is one of the crucial issue for reach success in any business. For instance it can help you solve problems, generate profit, increase your market share and edge out competitors.
Advantages of innovation in business
Some of the key practical benefits of innovation are:
improved brand recognition and value
new partnerships and relationships
increased turnover and improved profitability
?nnovation enables problem solving and makes creative insight that allows you to look at things from a different outlook, regardless of whether you are developing a new product, refreshing strategy or finding an inventive way to stay ahead of the competition.
Risks of not innovating
Doing something undiscovered, unsubjected to examination may seem risky. However, the biggest risk of all for a modern business may in fact be not innovating.
Unwillingness or insufficiency to improve your products or services may leave your business unable to compete, diversify or just operate. Businesses that fail to innovate run the risk of:
losing market share to competitors
falling productivity and efficiency
losing key staff
reduced margins and profit
going out of business
Innovation can be unstable but the possible benefits can be vital to the continuing success of your business.
BENEFITS OF INNOVATION
Improved productivity & Reduced costs
A lot of process innovation is about reducing unit costs. This might be done by improving the production capacity and flexibility of the business to make possible it to exploit economies of scale.
Better quality products and services are more likely to meet customer needs.Assume that they are effectively marketed, that should result in higher sales and gains.
Building a product range
A business with a single product or limited product range would nearly definitely benefit from innovation. A wider product range provides a chance for higher sales and gains and also reduces the risk for stockholder.
To handle legal and environmental issues
Innovation might enable the business to reduce its carbon emissions, produce lesser waste or comply with changing product regulations. Changes in laws often force business to innovate when they might not otherwise do so.
More added value
Effective innovation is a ideal way to found a unique selling proposition (“USP”) for a product something which the customer is ready to pay more for and which supports a business differentiate itself from competitors.
Improved staff retention, motivation and easier recruitment q
Not an apparent benefit, but often important. Potential good quality recruits are often drawn to a business with a prestige for innovation. Innovative businesses have a reputation for being creative places in which to work.
RISKS OF INNOVATION
A strategy of investing in R&D and innovation can bring significant awards, but it is not without risk. Amongst the potential dangers are:
An innovation only presents a competitive advantage if competitors are not able to replicate it in their own businesses. Although patents provide some legal protection, the truth is that many innovative products and processes are hard to protect. One danger is that one research-driven, innovative business makes the initial investment and gets all the risk only to find it is competing with many me-too competitors riding on the coat-tails of the innovation.