As a matter of fact, innovation is the main tool which can be effectively used by the management to have an edge on the competitors. Most of the renowned business organization has used it effectively in their competition strategy. Company lacking in this field may soon find them out of market or facing shrinking market share. It is said that innovation is not just the creative idea of your mind but it should be practically done to make something different.Quote by Ted Levitt quotes is worth mentioning here. He says, “Just as energy is the basis of life itself, and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress”.Innovation enable management to carry on business activities in a more efficient and effective manner by either capturing a new market or increasing the share of the company in an existing market which will place it in a better position as compared to its competitors. For example, by introducing a cheaper but same quality of raw material, a company can reduce its cost of production which will in effect reduce the product price and increase the sale and profit.Similarly, by introducing a new product such as Hair Colour having no side effect, the company can create a new block of customers which will give place it on an advantageous position viz. a competitor. Another example can be introducing new method of marketing its product such as home delivery of food items which will enhance its market share and thus increase its sales and profit.Innovation has become so important in business enterprises that a new subject, “Management of Innovation” has been developed. The study of this subject will help in understanding the process of innovation, improving the skills to create new ideas and in managing the innovation process. The subject will also help to understand the dynamics of change and their effects on the leadership amid the competitive world.
Innovation and its Relevance