The Role of Innovation in Business - 2932 Words

The role of innovation in business Introduction Innovation is defined in Schumpeters Theory of Economic Development (1912) in the field of economics. In Schumpeter’s view, innovation is the process that introduces new combinations of production factors into the production system to get potential profits (Shelton, 2009). Schumpeter argued that innovation is composed of five aspects: the introduction of new products, generation of new technologies, exploration of new markets, acquirement of new materials, implementation new organizational forms (Shelton, 2009). As the famous statement of Ralph Waldo Emerson goes, â€Å"If a man can write a better book, preach a better sermon, or make a better mousetrap than his neighbor, though he†¦show more content†¦In addition, Apples stock value has achieved $ 550 billion and has already become the worlds most valuable company (Amit, Zott amp; Pearson, 2012). Even so, growth of Apples stock price can not keep up the speed of profit rate growth in the same period, which means that there is still room to soar (Markides, 1997). Besides, Apple has become the worlds most innovative companies and won the champion of â€Å"Global Top 50 most innovative companies† of Business Week for six consecutive years (Cusumano, 2010). Apples innovation is mainly focused on product innovation and business model innovation. Apple specializes in creating attractive products. Jobs repeatedly emphasized the companys products will be clean and simple. This design concept runs through the entire product line (Thomke amp; Feinberg, 2009). The clean and simple design of Apple’s products is owing to its technological innovation. For instance, iPhone applies over 200 technological patents such as multi-touch, gravity sensor, light sensor, three-axis gyroscope (Pontiskoski amp; Asakawa, 2009). It can be clearly seen from this case that innovative strategy can make the company outstanding in competitive market. The way of nurturing, applying and implementing the imagination is highly creative in some companies which makes them turning into valuable companies in the market (Linden, KraemerShow MoreRelatedThe Role Of Innovation In Business Setting1226 Words   |  5 PagesInnovation in a Business Setting Innovation can be defined as a different and new manner of doing something away from the way it is usually done. In the current competitive global economy, managers have a responsibility of recognizing and seizing new opportunities to foster a competitive edge. From time to time, managers are expected to establish new techniques and methods of managing, distributing, marketing and promoting business. However, it is essential to note that such Innovations work onlyRead MoreThe Role Of Governments Play An Important Role Of Business Innovation1296 Words   |  6 Pages ‘Governments play an important role in business innovation.’ Discuss in relation to two sectors. Introduction It is a common notion that it is primarily the private sector that drives innovation and economic growth, while the government, at best, plays only organization role in ‘fixing market failures’. Under this myth lies a different story, where some of the best advanced economies in the world have been shaped directly by government ¬ led investments. By not being capable to recognize the governmentRead MoreDiscuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion.1637 Words   |  7 PagesDiscuss the relationship between entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion. Entrepreneurship, innovation and economic development are linked to one another through different factors and characteristics of each other. Entrepreneurship â€Å"is the result of what entrepreneurs do and refers to events and their economic impact† (LumsdaineRead MoreDiscuss the Relationship Between Entrepreneurship, Innovation and Economic Development. What Role Do Creativity and Problem Solving Play in This Relationship? Refer to Both Theory and Examples from the Business World to Support Your Discussion.’2397 Words   |  10 Pagesbetween entrepreneurship, innovation and economic development. What role do creativity and problem solving play in this relationship? Refer to both theory and examples from the business world to support your discussion.’ There are many links that bring together a relationship between entrepreneurship, innovation and economic development, and both creativity and problem solving play a large role within this relationship. Entrepreneurial activity can lead to innovation within a market for a productRead MoreThe Role Of Finance As A Driver Of Innovation1144 Words   |  5 Pagesemployees also affect on innovation performance. The age of the employees and RD outlay/innovation has negative relation. Also larger share of female employees in workforce increases the innovation performance of the employees whereas higher share of part-time employees has a negative share with the innovation performance (Wagner, 2012)Companies with fewer than five employees were important source of innovation in the industry (Jelling, agust 2016) FINANCE Finance has an important role to play in all typesRead MoreEssay On Social Entrepreneur1602 Words   |  7 Pagesentrepreneurial process requires capabilities, such as skills, decision-making and business acumen technology entrepreneurs: the danger is having exclusive focus on the product or service without due consideration to whether it addresses a real market problem with customers who would be willing to pay for it. Schumpeter (1965): â€Å"individuals who exploit market opportunity through technical and/or organization innovation† Drucker (1985): â€Å"the entrepreneur shifts resources from areas of low productivityRead MoreDesigning A Global Financial Trading Firm1131 Words   |  5 Pagesinnovative requirements while studying the performance of innovation in an organization. This portion will distinguish the key issues for managing the innovation. And analyze its impact in the organization. â€Æ' Through global innovation GMAFinance wants to provide commercial lending and leasing services to general public. The only way for that to successfully happen the company must be extremely organized with the innovative process. Beginning a business is a process. The process can be considered tediousRead MoreThe Cyclic Innovation Model ( Cim )912 Words   |  4 PagesCyclic Innovation Model (CIM) by Berkhout (2000) is a fourth generation innovation model. It consists of four different nodes of change: scientific research, technological change, product development and market transition, and the entrepreneur as the central role (Berkhout et al., 2010; Van Der Duin et al., 2007). New innovations may start anywhere in the cycle and cannot arise from confines of a single cycle, only modifications can (Kroon et al., 2008; Van Der Duin et al., 2007). The innovation processRead MoreEssay about Profit Comes from Innovation695 Words   |  3 Pages and reduce costs. This is done by an innovative process that begins with the three phases of the managed front end and the five phases of new product development (NPD) (Product Innovation Educators, 2012). Each of the phases is then followed by a gate meeting to decide if the project should continue (Product Innovation Educators, 2012). There are many checklists and rating systems that can be used at the gate meeting. However, it should directly relate to the industry in which the NPD is for. ARead MoreFormal Structure Interface With Internal And External Business Environment992 Words   |  4 Pages INNOVATION MATRIX [24] †¢ Formal structure interface with Internal and External Business Environment - The internal and external business environment plays a significant role we have to adopt innovation according to changes which are happening in internal and external business environment. [20] The success-survival-growth of business completely depends of innovation with scenario analysis [19] [20] †¢ How Innovation can be successfully implemented in Organization: Role of organizational