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Student in Business administration,

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How can innovation help an organization ???

Innovation is to improve and develop new products and services in the market.
Each and every organization wants to innovate to increase profits and become more successful.
However, does innovation always help in doing so ??

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    Nov 6 2013: The word innovation is now an overused term with anything new being called innovative, and the objective of every corporate, Government and even education institutions. However all its elements viz ideas, creativity, differentiation etc are all intangible inputs which have limited measure ability. Large corporate all claim to be innovative and tout the critical value of innovation, but the majority "buy innovation" by buying out the smaller successful company. The majority of innovation now seems to come from small groups working in boot strapped environments. Stories of success and innovation no longer exclude "college drop outs" debunking the value of ivy league education; and clearly showing that the resource of motivation and passion yields higher returns than any other tangible resource. But again these are intangibles that now dominate the reasons for commercial success. There are so many processes and claims on theories for innovation. So a small niche definition which one finds apt in today's era of rapid change, where every new knowledge seems to come with an expiry date. One considers innovation to be where "added value is constantly being created from existing resources including existing intellect". We should no longer assume that for every new idea we need new resources. This is of course a biased opinion, working for small business and such clients within a resource scarce environment like India.
  • Nov 7 2013: There is the game changing innovation and the incremental innovation. Everyone does incremental innovation and claims it , is a game changer. By the way, innovation is the idea and the execution. A great idea with bad execution usually is a bad innovation. A reasonable idea with great execution usually is a great innovation but usually incremental.

    Now you ask does innovation always help? the answer is no - there are many examples - Just look at some of the cases in a business book on innovations that failed. One example would be The New Coke.
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    Nov 4 2013: Not by itself only, but making their employees give the best of their knowledge and efforts?
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    Nov 4 2013: Innovation combined with power execution is key to success .
  • Nov 4 2013: Maybe you are more impressed with corporations than I am.
  • Nov 4 2013: Innovation is the start, but not the end of the process necessary to go from innovation to successfully get to the market. Innovation might provide a new method, process or product to solve a problem, but it needs to be coupled to a business plan that permits exploitation of the idea into eventual profit.

    So, does innovation help? Yes, it has the potential to make one company more competitive than another, all other things being equal. However, in life, all other things are rarely equal.
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    Nov 4 2013: Surely not. Sometimes a change, a new way of doing things, is a change for the worse, though it was not intended to be.

    Hopefully an organization learns from the record, good and bad, of its innovations.
    • Nov 4 2013: I agree with Fritzie surely not. Most companies that succeed find out what they are good at and do it better, faster and cheaper than anybody else. You might think that IBM has always made the best computers but nothing could be further from the truth. IBM's computers have always been mediocre at best but they have the best salesmen and know all the marketing tricks of the trade. IBM has the best marketers in the business and that is where they excel. Microsoft knew this early on and hired most of there marketing staff directly from IBM.
      Find out early what you are good at and focus most of your energy on that one thing! Build the rest of your organization around that but never forget what you are good at and your customers will not forget either.