Business Innovation: Why It Matters?

What is Business Innovation?

According to Raconteur.net, business innovation is when a company introduces a new process, service, or product that can bring positive changes to its sustainability.

Innovation itself is not limited to creating something new. Improving the quality of existing products, services, or processes is also a form of creation.

Ultimately, the goal of innovation is to keep a company "alive", whether by adding new value to the business or increasing development to productivity.

Innovation can occur because of need or because a company wants to differentiate itself from competitors.

Thus, companies can reach new niche markets for their products and services.

Ultimately, business innovation within a company aims to increase revenue, enlarge the consumer base, and win awards in the industry.

Why is Business Innovation Important?

Quoting from WeWork.com, here are some reasons why business innovation is so important.

make a business become a significant competitor in its industry

encourage the production of new products or services of better quality

improve work situations and safety in several sectors, such as from construction to manufacturing

enables companies to prepare for potential disruptions or changes in consumer demand

improve the efficiency of a company's business processes, starting from the cost, time, and sustainability of a product

make a company more attractive to job seekers and increase employee retention

provide a positive brand perception from the audience that can attract the attention of new consumers and increase the loyalty of old consumers

Types of Business Innovation

1. Business model innovation

The company creates a new business model or type of business model innovation.

From this innovation, the company will change how it does business, such as in marketing its products, generating revenue, and the structure of its internal operations.

2. Product innovation and performance

In product and performance innovation, companies create new products or improve the performance of previously released products.

Here, consumers play a significant role because this innovation answers consumer demand.

This includes consumer requests regarding features or functionality of a product to price.

Thus, changes such as products that are safer to use or more affordable can be a common form of this innovation.

Competition in the market can also influence this innovation, where companies focus on making the best products that make them stand out from competitors and attract new consumers.

3. Process innovation

Process innovation is when a company makes or improves the quality of the production process, distribution and product promotion to its customer service.

Usually, this innovation helps companies save money because they only focus on making production processes more efficient and faster.

The things that drive this business innovation are usually consumer demand and the company's costs incurred in its operations.

4. Network innovation

Network innovation is when a company makes changes, improves, or creates new methods for its networking and collaboration activities.

The company will look for a specific partner or customer, thus requiring it to create or improve its networking methods.

Companies can build more professional relationships and connections in their industry by changing how people interact with their businesses.

5. Marketing or sales innovation

This business innovation occurs when companies change how they market their products or services.

This is natural because marketing is an essential business operation. Thus, in this sector, innovation is widespread from time to time.

Usually, this innovation aims to find new ways to get consumers or leads to increase product sales.

6. Technological Innovation

In technological innovation, a company can create new technology and increase its use in its operations.

Technological innovation alone can increase sales and brand loyalty and make the company superior to competitors.

Not only that, but technological innovation also helps companies to make processes and work environments better and more efficient.

Well, those are some things about business innovation that you need to know. Without innovation, a company will be more vulnerable and have difficulty competing with competitors in its industry. Thus, innovation is the key to business development and a company's sustainability.