Innovation: A Complete Step-by-Step Guide From Beginner To Advanced
Read Complete Article: Innovation: A Complete Step-by-Step Guide From Beginner To Advanced
Introduction.
Innovation is a very broad concept and at its core lies the Idea of Innovation. This, which can also be explained as the reinterpretation of products, processes, or services, is among the sine qua non of our age. Institutions, companies, and even individuals need innovation to achieve better.
Thanks to this, individuals stand out from the crowd, institutions achieve more efficient processes, and companies shape their operational structures and increase their sales thanks to the opportunity opened by innovation.
With this concept, thoughts such as brand new ideas, finding something that has not been discovered before, or doing something that has never been done before coming to mind.
But Innovation is not an invention in its essence, it is to develop by renewing; adding value to an idea, and turning that idea into a contributing one.
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What is Innovation?
Although we can use innovation as a concept in a very broad sense, it briefly refers to the development and implementation of new ideas.
An idea or product to be developed in the present, new ideas, and the implementation processes of new ideas should come to mind. In this way, it can be clearly understood that innovation is not directly related to generating something unique or an idea.
Innovation in a subject starts with the subject’s openness to improvement or the feeling of need for improvement in that subject. Take the hairdryer, for example. A standard hairdryer is a device that dries hair by blowing hot air.
However, only hot air blowing does not meet all the needs of consumers at the same time. The hot air should be adjustable, at the same time, mechanisms that prevent the electrification of the hair are needed. When these needs and demands are evaluated, innovation is activated and studies begin to make that product more efficient.
The innovation process, due to the nature of the concept, includes the needs of processing, changing, and differentiating the knowledge to provide economic and social benefits.
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Why is Innovation Important?
Innovation, one of the most widely used terms in the business world, can be defined in its simplest form as the transformation of an idea into a profitable product or service. It covers a broad spectrum, from new features in smartphone apps to new and cost-effective services for marginalized communities.
We can say that innovation and entrepreneurship are concepts that go hand in hand. Many business startups have innovation as an organization. However, innovation must not only revolutionize a particular industry but must also be able to meet a need in the industry because it is affordable and repeatable.
Commercial Value vs. Social Value.
In general, innovations can be divided into two as those with commercial value and those with social value. Innovations with commercial value are known as innovations that are created and reproduced as the basis for businesses to make profits.
Innovations with social value can be defined as innovations whose main purpose is to influence the social change that revolutionizes the sectors.
Solar energy bulbs created with the use of water or bleach, examples of innovation with social value can be counted among Although social value and commercial value innovations may seem like polar opposites of each other, social value can turn into commercial value and the opposite can be the case.
While innovations whose primary goal is to make profits can become tools that encourage social change, innovations with social value can be used as tools that will enable businesses to make profits.
Business owners are advised to take care to strike a balance between the two so that they can maximize the potential of these innovations.
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What Does Innovation Mean for Business?
Innovation in the business world is among the factors that enable businesses to stay one step ahead of their competitors. To achieve this result, priority should be given to the development of innovative ideas and strategies.
Among the best examples of this are social media platforms that are constantly updated to gain an advantage in the social media industry. In today’s modern age, pioneering technological innovations is always important and profitable.
However, being innovative also highlights the need for business owners to be able to best determine the interests of their clientele.
Risk is also considered one of the most important parts of innovation. Businesses need to take a certain amount of risk to develop innovations that will contribute to their customers.
Of course, there is also the possibility of encountering unsuccessful trials before creating innovations that will stand out and be highly profitable.
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Why is Innovation Important for Business?
Innovation is considered one of the most important concepts in the business world because it enables companies to penetrate different markets more quickly. Thanks to innovation, better connections can be established, especially with emerging markets.
At the same time, innovation can contribute to the development of original concepts as well as give innovators a proactive, confident attitude to risk-taking. Companies with innovative cultures can easily grow, although the process is not always easy.
While tried and proven methods are safe, companies that do not ignore the value of trying new things can be more successful. However, experts state that companies are more likely to focus on product and service innovations rather than innovating areas that form the inner face of the business, such as processes and workflows.
In businesses, while the importance of innovation is mostly due to the development of products and services that affect the profitability of the enterprise, the review of the internal business processes of the business owners and focusing on innovations in these areas are among the important factors in achieving a wide-ranging success.
Quality products and services obtained as a result of innovation can meet the needs of customers more effectively. If these services and products are marketed effectively, companies can reach higher sales and profitability figures.
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Types of Innovation.
1. Product Innovation.
Developing a new and different product and bringing it to market is called product innovation. Product innovation does not necessarily require the production of a new product. Modifications and developments made for existing products to have better and superior features are also considered as product innovations.
It is generally carried out in the form of simplifying the product and making it easier for the customer to use it.
2. Service Innovation.
Service innovation is when a business develops and offers a new and different service. As in product innovation, it is possible to change and improve the services offered in service innovation. One of the best examples of service innovation is companies that sell food online.
3. Marketing Innovation.
Products and services are offered to the market for commercial purposes. For them to be sold more, they must be able to appeal to more customers. This necessitates innovation studies on the design, packaging, and marketing methods of products and services.
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4. Organizational Innovation.
A business needs to develop and differentiate its working methods and business processes to gain and develop a competitive advantage over its competitors. All of the studies carried out for this purpose are called organizational innovation. For example, the fact that businesses move their internal correspondence completely to electronic media is among the examples of organizational innovation.
5. Business Model Innovation.
Business model innovation begins with evaluating customer needs and competitors’ business models. While developing the business model, industry trends, dynamic consumer preferences, advantages and disadvantages against competitors should be considered. Business model innovation is examined in three categories:
Innovative Business Models: It is a business model in which companies do similar things with new methods.
Extended Business Models: It is the business model that companies build on existing ones.
New Business Models: It is the transition of companies to another business model by leaving the existing one completely.
6. Radical Innovations.
Groundbreaking inventions in the field are also defined as irregular or disruptive innovations. It completely changes the industry tools, positively raises customer expectations, and offers new opportunities for the world we live in.