The contemporary business world is typified by convergence of globalized
commerce, broad availability of information, and rapid technological
progress. This makes innovation and entrepreneurship critical factors in
maintaining and growing a company’s competitiveness within the world.
The need for innovation has necessitated that companies surpass the
conventional wisdom, which make companies think in a box. Companies no
longer pay too much attention to conventional business metrics that
sometime curtail the capability of companies in making breakthroughs.
Indeed, innovation is an effective way that entities can employ to start
or grow their business.
Innovation is usually associated with the creation of a new product or
service or processes, value creations, or implementation of a “culture
of innovation.” Innovation represents the process of coming up with
novelty via experimentation and creative processes geared at
establishing new products and services and generating new processes
(Dess, Lumpkin, Eisner, and McNamara 455). Innovation encompasses the
production, assimilation, and exploitation of value-added novelty within
the economic and social spheres, which yields to broadening of markets,
products, services, or process range through the creation of fresh
methods of production and institution of fresh management systems.
Innovation can occur in numerous ways right from technology change, to
products and services delivered, or to the business model change that
defines the value that the company delivers. Companies are at liberty of
deciding the forms of innovation that they require ranging from
incremental innovations, breakthrough innovation, and radical
innovations (Dess, Lumpkin, Eisner, and McNamara 432).
Benefits/incentives of innovation
Success in innovation is demonstrated by a number of factors including
commercialization of the concept, market introduction, and generation of
revenue, value-creation, and formation of a company based on innovation,
and integration into a product or service. In most cases, individual
product and services do not necessarily create value in isolation, which
necessitates their integration into a broad range of other physical and
process technologies (Dess and Lumpkin 147). Innovation can be sustained
through converged disciplines, cross boundary collaboration, and
establishment of an innovative business structure.
Innovation plays a critical role in attracting capital, creating jobs,
and improving the long-term economic health of the company. Innovation
within companies helps companies to make technological advances that
propel consumer market and drive economic growth (Hende 5). Companies
that effectively make innovation their core focus can position
themselves to be unique, and derive immense profits as is the case of
Google and Apple. Similarly, companies’ stat take the lead in shaping
innovations, as was the case of Apple in the 1980s, can position
themselves for future growth and gaining industry leadership. The
advantages of being innovative include” business agility, gaining
efficient work processes, saving money and time, and gaining diversity
moreover, innovation can also be a profit center. Innovation helped
companies to improve customer satisfaction, gain a competitive edge, and
improve compliance.
Xerox has utilized innovation and quality leadership to launch quality
initiatives and effect realignment of its product line. Xerox employs
open innovation paradigm to gain a competitive edge over its rivals.
Indeed, Xerox has successfully been able to gain turnover from most of
its innovations. Xerox divides its functions into three categories,
namely intellectual property management, research and technology, and
licensing and business unit operations. For instance, Xerox’s Palo
Alto Research Centre (PARC) played a big role in breakthrough research.
Xerox has successfully implemented an effective reward system, which
rewards innovation and has also successfully created an innovative
culture in which all employees know that innovation is a job
It has widely been acknowledged that the top growth driver in the
business world is innovation. Business entities are today compelled to
drive more innovation into their products and services in order to
survive in the global marketplace. Indeed, companies need to innovate
speedily, but cost effectively in order to obtain growth and
profitability. The ultimate role of innovation centers on creating
wealth and growth for the company. A wide range of internal and external
factors play a big role in shaping the success and failure of any
innovation. This necessitates that any innovation entering the market
offer differentiation against the existing solutions.
Works Cited
Dess, Gregory and Lumpkin Tom. “The role of Entrepreneurial
Orientation in Stimulating Effective Corporate Entrepreneurship.”
Academy of Management Executive 19.1 (2005): 147-156. Print.
Dess, Gregory, Lumpkin Tom, Eisner Alan, and McNamara Gerry. Strategic
management: Creating Competitive Advantages. New York: McGraw-Hill
Irwin, 2012. Print.
Hender, Jill. Innovation Leadership: Roles and Key Imperatives. London:
Grist, 2003. Print.