Why innovation is vital for business
What is innovation?
When it comes to business, innovation is the production of new and fresh ideas that can be applied to any part of the organisation. It could be the continuous development of a product or service, or it can be focused on the company itself such as its business processes, marketing or internal structure.
What makes good innovation?
There is one main factor that enables good innovation: creativity. Creativity is the heart and soul of all good ideas and innovation makes those ideas become a reality within a business. Whether it be a new product, service, marketing method or any other business idea, having an innovative process in place to launch those creative ideas is vital for success.
Why is innovation so important?
When it comes to business, innovation is vitally important in every aspect. In order for a business to stay competitive and keep up with the latest trends, it must strive to continuously improve efficiency and effectiveness at every step. Companies need more than just a good product or service to survive; they need strong innovation in their day-to-day processes and management to drive down costs, increase sales and improve productivity.
As the expectation of customers is continuously changing, then so must the innovation processes that a business puts in place. With customers now being faced with so many options for a single product or service, a business always needs to stay one step ahead of the competition to differentiate themselves and their offerings. Innovation within business is one of the primary ways that this is achieved and why it is so vitally important.
Examples of innovative businesses
Over recent years, we have seen many businesses that have used innovation to really excel. Here are just some small examples of our favourites:
Google is continuously determined to be much more than a simple search engine, although the majority of their revenue still comes from its pay-per-click adverts. But, over recent years, they have continually added new approaches and specific new products such as: Google+, Google Glass, Google Shopping, Google Fiber, and many more. The list is almost endless and for this reason we consider them to be one of the most innovative businesses of our time.
In 2013, Dropbox doubled its users from 100 million to 200 million and they achieved this by constantly expanding their service into people’s digital lives. This has been extremely impressive as the likes of the big brands, such as Microsoft, Apple and Google, currently rule our digital world. To get a piece of the digital pie, Dropbox knew they had to make themselves stand out and they achieved this through convenience. With the release of new tools and technologies that could integrate with almost all other apps out there, their users could save and retrieve files directly through Dropbox and their Datastore service allows app data to sync across multiple devices. Is this a good use of innovation? We think so!
With so many on-demand TV services out there, you may wonder why Netflix is considered one of the best examples of good business innovation. Well, as Netflix became a success, many other companies came to the market to compete, including Amazon and Yahoo. Netflix knew they had to do a lot more to stay ahead of the game, so introduced the likes of their original programmes. This gave them good leverage by being able to air premium content that their competitors didn’t have the rights to show. As well as this, they have turned the world of TV into an app making it available on any device, where we can watch it wherever we like. Successfully applying these proven techniques to their service has been one of the most innovative moves we have seen in recent business times.