Business Innovation, the word innovation itself means to change or modify the existing products and services. The business itself cannot run on at a steady rate. When the time comes you need to be prepared enough to bring changes in the existing model, services, or product. The main goal of bringing innovation in the business is solely for increasing the productivity of the company. It is also a way of work Improvements.
Does Business innovation matter?
Business innovation is done only for one simple reason, “value”. To survive in this competitive world, every field is adapting itself. Changing for a good revenue system or a change for action. It is crucial to update yourself and try to improve constantly. A successful business is all about creating new revenue opportunities, making the work much more efficient, thereby improving the productivity of the company. If we summarize it, innovation is a step taken for the improvement of the company.
Types OF Business Innovation
Most of the innovations are very small and are hardly noticed by others. But it also plays a vital role in improving the company’s productivity. These innovations can be services or even the latest technologies science can give us. As the behavior of the customers and audiences are changing, you need to be proactive enough to cope up with the change and can serve your audience as per their needs.
These small changes alone can make lots of customer retention. For this, you need to be aware of all the innovations which are at your disposal and choose the best innovation which is best suited for the solution. Bet to analyze this innovation is to divide them into two dimensions. One for the technologies it uses another for the market it is in.
- Incremental innovation
- Disruptive innovation
- Sustaining innovation
- Radical innovation
Incremental innovation is all about keeps on improving at every step. Changes like improving the quality of the product, improving services, doing efficient work. Incremental innovation is like climbing stairs. One step is an improved version of the previous steps. In here time in exhausted to keep track of every change daily and try to surpass the previous results.
In this Business innovation, small changes are done daily. Changes like improving packaging volume, weight, etc. It does not create a new market as it does not increase the types of products, rather it creates products that the customers are demanding.
Let’s take the example of television. There are many brands that have 50-inch television but there is also some audience that they are not happy with the 50-inch screen they want a bigger screen than the previous one. What the brand does is that they produce new models with a bigger screen.
The main idea remains the same as selling the TV. They just innovate themselves by the change in customers’ behavior and launched an improved version of the previous one. The advantage that this Business innovation hold is that it does not have to go through all the problems of explaining the features of the product. People actually know all about the product, they just want to have a new and improved version of the previous product.
This innovation is a new breed of innovation that has been recently surfaced. This Business innovation disrupts the existing market by creating a new market as a whole. It works like that when a huge company starts giving its services a product with brand value and uses the method of incremental innovation. In addition, they just keep on innovating products day by day, launching new and innovative products.
Soon they forget about their old customers who still love that old classic product. This is where new entrepreneur companies come with disruptive innovation to attract those unhappy customers by providing them what they need. Hence, disturbing the market by creating a new market with the help of a value network.
Let’s take another example of understanding disruptive innovation deeply. Netflix did not reach the heights until and unless they started web streaming. During its early days, Netflix uses to sell DVDs which was not that popular. Now there are tons of movie which has a subscription service to watch from.
Sustaining innovation is the same as incremental innovation where it improves its product at every iteration as per Audience demands. It’s the exact opposite of disruptive innovation. In this, the product improves for the better of the company and the improvement can be much much more if there is a demand for it. However, the product can end up becoming a high-end product resulting in a higher cost than the previous product.
It does not have to be that the product needs improvement. In this innovation, as per public demand, the product can be made in a cheaper way with less costly prices. In the old business era, this method was quite common as it has a low risk. But nowadays this innovation is slowly getting less used because business is going for a larger profit. For this incremental or disruptive innovation is getting much more popular.
Radical innovation is the rarest of Business innovation used in the company. It can be compared with disruptive innovation but it is different in the way that it uses modern technologies and business tools for solving any problems they face. Nevertheless, this innovation is now being used by any company to solve many problems which seem impossible previously.
Technologies innovations like personal computers, use of the internet are some examples of radical innovation. These new technologies have transformed the world into a new world. Where manpower is solved with the help of the technologies.
This innovation if achieved correctly can change the way of doing the work. But it has a high risk and the adaptability is also very slow. Hence, it makes it hard for a businessman to go for this innovation. For the same reason, they try to use incremental innovation rather than radical innovation.
Other types of innovation
As mentioned above innovation is not the only innovation that is being used in the marketing industry. Many small-scale innovations are also very helpful if used correctly. Innovations are something that can pop up in your mind anytime. It will be correct to say that in the upcoming future there will be a new disruptive innovation that will surface up changing the whole industry.
Product innovation is the most common innovation that is done all over the world. Whenever a product gets old in the market, a new product is launched replacing that. That product can have an improved version of the characteristics.
In this innovation, a product can be an improved version of the old product or totally a new product. For example, wireless headphones to Amazon echo or iPhone max11 to iPhone max11 pro. Product innovation is good for improving the quality of the product and to have an upper hand over the competitors.
Service innovation is to improve customer interphase. In this, it is noted to improve the relationship between the company and the audience. This can make the audience much more loyal to the brand and the company. For instance, Uber who already runs a cab-providing service has done a lot of innovation in public relations to maintain its customers. They were successful enough that they were able to break out of their core business and start the UberEATS. Due to their PR, they were already on the phone of the audience which boosts their new business.
In this innovation, new technologies are used to provide services for the product. It’s an improved production or the delivery system of the product. The best way to summarize the process innovation is that it uses new technologies to do all the procedural work. This can speed the production rate and as well as they can improve the quality of the product.
In this innovation, the product does not change but the process of creating the product changes. For example, initially, huge firms used to have the manpower for the packing purposes but now that has been changed to the robotics machine, who does the same job efficiently.
This innovation is one of the factors of high competition in the market. Every company is using technology to expand its business. Whenever new technologies come in all the companies look for a way of utilizing them in their company.
For instance, a keypad phone with no access to the internet soon becomes an important part of our life after technology kick in. A normal phone with nothing but incoming and outgoing calls now has everything in it. This is how technology innovation is growing rapidly and will keep on growing. In fact, the growth in technology is a big motivation for STEM learning for children. Unrulysplats.com is a leader in teaching kids to code, preparing them for a long and successful career in the ever-expanding industry.
Business model innovation:
As its name suggests that it is a way of showing the USPs of the company and the way of attracting customers. Its core values are highlighted to show what their company is all about, and why to choose their brand over others. It is a way of delivering its values to the customers and grabbing their attention to do business with them.
In practice, they usually change the revenue system and pricing mechanism to attract the audience. For example, iTunes was a place where the music needed to be purchased. But after Spotify provided the freemium, it changes the whole music industry.
These are the new social method which is used for the solution of the current problems. Every day there is something new on social media. People share their new thoughts and a new view on each and everything. View on the real-life problem and different solutions to the problem is also placed on social media. This gives a broad view of the problem and provides a different solution for the same. It is an intersectoral approach and is applicable universally. Social innovation focuses on the process of changes. It mostly focuses on the solution of modern problems, and how the current society can be converted into a sustainable one.
Does innovation have an end?
Innovation is something that does not have any end. Business innovation can be divided into many categories, but once you start digging deeper you will come to realize that it does not have many ends it. As it can be used anyway or another, however, it seems to fit in your business module. Instead of using only one innovation tactic, you can use many as per your business suiting.
These innovations must be used after thoroughly analyzing the problems. For using the innovation with the best results you need to do a thorough check-up on your business on the following things:
- Analyzing the current state of your business
- Highlighting the areas which need improvements.
Divide the work into small fragments and then focus on each problem
- Plan the groundwork
- Implement the plans
Business innovations are the very core of every marketing company if you cannot adapt to the changing weather you are bound to fall sick. It means that if you are not good at changing and adding up innovation, you are bound to lose. Being able to change is a sign that you are keeping up with all the demands. This is not the end of the innovation. Nobodies know, what kind of innovation will arise for the betterment of the company. So, keep looking for innovation to work with.
Sandip Sah is a content writer and a content editor for TechNetDeals.com & TechTrendsPro.com, who has set sail to venture all the writing industry secrets. His passion for technology and ambition to express his thoughts through words has been the driving force in his journey. He is also a valuable guest blogger for sites like TheLegalGuide, SmartBusinessDaily, TopPrefference, and EmblemWealth. Sandip specializes in writing warm, humorous, engaging, and SEO-friendly content. He is also the co-founder of the Smart Business Daily, Emblem Wealth and Tech Net Deals. Sandip specializes in writing warm, humorous, engaging and SEO friendly contents.