When it comes to industry buzzwords, few terms have more power than innovation. Capitalism is credited with fueling innovation, and innovation has led the way toward modern life. However, tradition sometimes has benefits over innovation. It requires for people to have a critical look to realize that though. Here is an overview of the concept of innovation and how it should be viewed by businesses of various sizes.
For large companies, innovation is clearly a key for success. Apple was struggling before they launched the iPod, and the company would have gone bankrupt without a loan from Microsoft. With the release of the iPod, the iPhone and the iPad, however, Apple has vaulted into position as the top technology company in the world. Apple's innovation has more to do with synthesizing multiple ideas instead of creating new ideas, but the key point is that it worked. It should be noted, however, that innovation for large companies is not without risks. The iPod could have flopped and Apple would have gone bankrupt. That said, Apple was struggling to survive off of their desktops and laptops, and making innovation happen was necessary for them to succeed.
For small businesses on the other hand, innovation needs to be cost effective. Small businesses cannot take many risks. Even one failed product, can mean bankruptcy. For many small businesses, effective innovation deals with creative pricing schemes and clever advertising. However, there is room for offering innovation in terms of the products and services that are offered. A company specializing computer repair, for example, can sell specialized tools designed to monitor clients' computers. There are still risks involved, so small companies will want to ensure that they can survive a flop. This is mostly done through excellent change management. Though this can only be done by managers with outstanding leadership skills.
Making innovation happen in the office is also a popular concept, there may be some rewards for companies that innovate in the right way. In general, office innovation should revolve around increasing employee productivity. In some cases, making innovation happen the office may be about giving employees a louder voice in meetings. The best ideas often come from employees instead of managers, and companies that can tap into the latent innovation present in their employees may be able to succeed.
Innovation fuel success across the globe, and innovation has transformed the transportation, medical and educational industries. However, businesses should be assured that is still rely on traditional business techniques when appropriate. Innovation is no guarantee of success, and innovations that fail to bring in capital will likely lead to poor outcomes.