What is Business Innovation? – Importance, Types, and More
Table of Contents
What is Business Innovation?
Business innovation understands as the process of doing something new or something traditional under a new protocol or strategy. However, when we apply the concept of innovation to business, we cannot lose sight of the attribute of improvement. And it is that innovating in the industry is doing something different and doing something much better.
Therefore, business innovation involves developing new products or improving existing technologies, processes, designs, and marketing to solve those problems that may arise during growth and reach new customers.
One detail that must consider is that traditionally, business innovation and R&D concepts, synonymous with research and development, have been confused. And it is that business innovation goes beyond the limits of research laboratories, focusing on critical aspects of the company’s relationship with users and consumers through management tools, improvement, and processes.
Importance of Business Innovation
Business innovation is important because it allows a company to differentiate itself from its competitors. Thus, you can have an advantage over them if you can offer a product or service that better meets the needs of consumers.
In a competitive environment, a company must innovate if it wants to maintain its market share. In addition, these changes must constantly develop over time. Otherwise, the company will lose customers. This is associated with the concept of creative destruction. This refers to the change that must make in the business model as a result of innovation. For example, we can affirm that the Internet has modified how brands reach their customers through digital marketing strategies.
Types of Business Innovation
Business innovations can be classified, by their nature, as follows:
Technological innovation: It corresponds to an advance of a technical or scientific nature. For example, a new machine that allows automating several processes.
Commercial innovation: It is a change in the marketing strategy of the company. It may be, for example, that a clothing store decides to change its inventory more frequently than usual. This way ensures that visitors perceive that they should buy the product as soon as possible because if they return in two weeks, they will not find it.
Organizational innovation: It refers to the way in business management. For example, it may be that a business group that owns several media decides to centralize certain activities. Then, there will not be a group of photographers for each newspaper or magazine, but a single team for all the media. This way, it avoids that the same event cover by two photographers who work for the same company.
Example of Business Innovation
An example of business innovation can be, for example, the one that many communication media have had to develop with the advent of the Internet.
The virtual presence has allowed traditional media, through their news portals, to get closer to a broader audience, especially young people. However, having to adapt to the way the web and social networks work has been a challenge.
Aspects of Business Innovation
Currently, one of the aspects of business innovation that requires more attention is the digitization process. It should not be elapsed that more than 60% of users already know and contact a brand through the internet, making the digital channel an ideal communication tool between business and consumer.
For this reason, the digital strategy has become a primary driver of development, communication, processes. And innovation for companies that want to launch their online channel. There are many possibilities: eCommerce, social networks, SEO, blogging, etc. Ultimately, each company must establish which are the best tools based on its business sector. For an instance, if you are running an online ecommerce store on Shopify, there are lots of tools and apps that you can choose from and make use for your business. Online stores have become more creative and intelligent in terms of attracting the visitors and turning them in customers. Various strategies like gamification, pop-ups and more are being used. This article will help you understanding more about the same: 7 Must-Have Shopify Gamification Apps for your Online Store, published by Tada, this article offers various insights about attracting customers using gamification pop-ups and more!
There are a series of elements to consider in processes that mark the success or failure of the system in the business: team, ideas, implementation, and value proposition.
Without a good team willing to implement the appropriate changes, it is impossible to develop business innovation efficiently. Do not forget that the collaborative process is more than working together. It means the ability to think together and act in a coordinated way on complex projects.
This is one of the main difficulties that businesses that want to reformulate their strategy must face. And that creates more feelings of fear to undertake. Since in most cases it happens that the company itself exposes the modifications in a theoretical way but without any professional capable of applying or starting them.
Likewise, in the innovation process, the change must be positive, in the sense t because If this aspect is absent, we would not speak of innovation as it is, but “change.”
Undoubtedly, implementing business innovation systems is the new challenge that businesses want to bring something new to their market sector.
Business innovation is a change introduced to the good or service offered by a company or to the processes developed within the organization. This, to achieve greater competitiveness.
This type of innovation corresponds to any modification in the product offered by the company or within its processes. Thus, the idea of presenting this new element is to achieve better results in the company.
It should note that innovation can be different, whether technological, commercial, or organizational (about which we will detail later).
Related Searches to Business Innovation
[business innovation examples]
[business innovation models]
[business innovation ideas]
[small business innovation examples]
[types of business innovation]
[business innovation in entrepreneurship]
[innovation in business management]
[describe the role of business innovation]
[History of innovation]
[Innovation in education]
[Image of Innovation in management]
[Innovation in management]
[management innovation examples]
[importance of innovation management]
[what is innovation in business]
[key aspects of innovation management]
[innovation management framework]
[innovative management practices]
[innovation management system]