Role of Innovation in Dynamics of Business

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- Recognition of a specific problem, challenge, or opportunity to be seized.

- Invention of a creative solution which helps address a problem.

- Development of an innovation by creating practical, actionable plans and guidelines.

- Implementation of an innovation to produce real examples, testing the innovation to see how it compares to existing solutions.

- Diffusion of successful innovations - taking and leading them to wider scale outside the firm.

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How to innovate

Only innovations are unlikely to make a significant impact on performance unless there is an equal change in how the enterprise operates. To create meaningful change, we need to transform the business. The following factors are important for this:

Stop Planning and Start Preparing

Firms need to stop planning and start preparing. While planning allows us to make decisions early, it is through preparing that capabilities can develop the ability to make decisions and adapt to change in later times (contingency plan).

Create, Deliver and Capture Value

Firms that can combine those three elements in a best way build enormously successful business stories. Firms that go through a process of innovation in the above three factors can make better products, deliver them good and fast through innovative delivery systems and capturing increased monetary value through innovative marketing strategies.

Prepare to Fail

The essence of innovating your business model depends on a continuous pursuit for how you can best create, deliver and capture value. Even the best models will eventually become obsolete with time. So the firms should adopt a continuous improvement and innovative techniques to overcome this drawback of time and learn from their failures and use it as their strength.

Innovation Management

Innovation management is the discipline of managing processes of innovation. It can be used to develop both product and organizational innovation. The focus of innovation management is to allow the organization to respond to an external or internal opportunity, and use its creative efforts to introduce new ideas, processes or products. It involves workers at every level in contributing creatively to a company's development, manufacturing, and marketing. By utilizing appropriate innovation management tools, management can enhance and deploy the creativity of the whole work force towards the continuous development of a company.

Measuring Innovation Management:

There are two phases the first phase involves the design of the innovation and the second involves its implementation. The measure of innovation at the organizational level relates to individuals, team-level assessments, and private companies from the smallest to the largest. Measure of innovation for organizations can be conducted using surveys. Management Innovation Index using regression model is used to measure the innovation of a firm by surveying all the stakeholders of the firm which are involved in the process of innovation.

Conclusion:

Innovation is inevitable, and the fundamental of successful business in 21st century and with the current pace of technology and development, it is becoming increasingly difficult for companies and businesses to continuously innovate and change their business. The firms which upkeep their business strategy and innovation with respect to time become successful and which do not eventually do not survive. In the perspective of Darwin's theory of evolution, the firms which do not adjust with the innovation will no longer survive.

References

GORDON R. FOXALL Corporate Innovation Marketing and Strategy

PETER E DRUCKER Innovation and Entre-premiership

DOUGLAS C. BASIL CURTIS W. COOK The Management of Change

http://ideas.repec.org/a/wsi/ijitmx/v09y2012i01p1250004-1-1250004-18.html

http://ideas.repec.org/p/dgr/kubcen/200121.html

http://ideas.repec.org/p/pra/mprapa/45069.html