Why innovation is so important in business

Growth is the cornerstone of all successful companies. Growth drives a rise in share capital for public companies. Growth gained the reputation of managers. Growth shows the ability of companies to launch markets and keep competition at bay. Innovation is one of the key factors in economic growth. Whether it's expanding existing product features, finding new markets and customer segments, discovering new products or developing new services, innovation can effectively define the ability of companies to grow.
The challenge has always been that innovation was something mystery. For most companies, the main breakthroughs came aside. In the brochure The Innovative Solution and the Solution to Innovations Clayton Christensen describes a certain definition of an innovative and systematic approach to the creation of enterprise innovation. There are two general types of innovation: maintaining innovation and disruptive innovation. Maintain innovation limits, as customers with a high end result are better than ever before. It is the most common form of innovation and that is what established business in the market is best built to do.

Each market is a certain percentage of goods or services that customers can utilize or accept. A company that is very good at maintaining innovations and who is in a proper position on the main needs of today's customers could very easily review what the same customers could benefit from in the future. Their taste of innovation would be faster than their customers & # 39; Ability to absorb this innovation. As a lot of ongoing innovation is incremental in nature, they could be difficult to discern from other companies in the market. Like Jeffrey Immelt, CEO of GE, Fortune Magazine (July 2004) said: "We're all just a moment away from product range."

Disturbing innovation begins with the promotion of products or services that are not as good as modern products. They are usually simpler, more convenient and cheaper. They appeal to new or less demanding customers. When these disruptive products or services took place in new or minimum markets, the restart time begins. As the speed or flavor of this speed accelerates over time, this initially inadequate product or service will definitely improve enough to meet the needs of demanding customers. When that happens, the company with disruptive innovation will overcome a highly established company.

The founding company will almost always conquer the struggle to maintain innovation. There has been a great deal of involvement by companies that are members. Well-developed capabilities and high cost structures that are the basis of certified companies & # 39; The benefits of maintaining innovation will be their downfall in the light of disruptive innovation. Founded companies are always encouraged to market and almost never interested in defending the new or minimum markets that disruptors find attractive.

There are two types of disruptive innovation: new market disturbances and low-end interruptions. New market positions compete with consumption. They are so much more affordable and easier to use to enable new people to begin using and using the product or service. As performance of a product or service, they will be absolutely good enough to pull customers from their original value into a new one and start with the least demanding tier. Because new market disorders compete against consumption and not invade the retail market, it is considered a leading company with no pain and a small threat until the disturbance is at the final stage. The main question a company should ask is: "A large number of people who historically have not had money, equipment or skills to do this for them and have gone there without having it completely or have to pay someone with a more expert to do it for them? "

Digital interference occurs in the lower part of the initial or general value network. While companies in operation look at new marketplaces, they are encouraged to escape the market in light of interruptions to the minimum requirements. Two questions the company should ask: "Are customers in the minimum market who would like to buy a product or service with less than enough success if they could get it at a low cost?" AND "Can we create a business model that enables us to earn winning profits at a discount needed to win business from these surviving customers afterwards?"

Interruptions can be hybrid: both new and minimum wages. The example used in "The Innovation Solution" is Southwest Airlines. It first targeted customers who were not consumers; They used to use cars and buses before and were not flying. However, because their prices were so low, they also pushed customers out of the low end of the major carriers worth the net as well.

Whether innovation is important is important that innovation is disturbing for all companies in a targeted market. If the company's idea of ​​a product or service appears to interfere with only some companies that are created, but could be a pre-emptive reform for others, then the company should not invest in the idea.

SOURCE SBOBET

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