Type: Business
Pages: 2 | Words: 524
Reading Time: 3 Minutes

Innovation performance – is a process that aims to implement the results of research and development departments or other scientific and technological achievements into new or improved products, which are sold in the market. Last decades of history were full of innovations. A lot of new different technologies, products, services had appeared. They changed the industry structure or even created a new one. Today the only chance for enterprise to survive is to be highly innovative. The threat to loss competitiveness is the main concern of all business segments. Before offering its products or services, companies should think about the product’s comfortability and attractiveness for the consumer. Consumer market is highly volatile and constantly changing, as the wide range of products and their substitutes make customers to be capricious. Therefore the enterprises have to take into account new trends and demands of the mass audience in order to survive in the market struggle. This fact requires enterprises to be flexible. The best way to be highly competitive and flexible is to be innovative.

The Most Important Reasons Why Organisation Should Seek for Innovation

The first reason why organisation should seek for innovation is business survival. Companies have to face nasty reality to understand that if they want to survive in this market competition and be profitable, they have to face fundamental changes and understand who they are, what they do and how they do. Therefore the main reason for business survival is innovations. Company should at first, change vision of itself and understand where it is going, and only after this to implement innovations. Entrepreneurial organisations may introduce innovations in products or services improvement, which they produce; in new product/service development; in the technological or manufacturing process improvement or even introduce some management innovations.

The second reason is to have higher returns. This is another important reason why companies should seek innovations, because without return increasing, company would possess no money for its development. With high returns company would have possibility to broad its business, to found new niche or even to create one with the new product/ service introduction.

The next one is about competitive advantages. If the company perform continuously innovative improving, it will get a jump in competition, because strong competition in market leaves the weakest companies out of business.

The fourth reason why entrepreneurial organizations seek opportunities for innovations is high production expenses. Today this problem cannot be decided only with cost cutting or production costs minimisation, because sometimes it is not enough to save the company’s competitiveness.

The last reason, but not the least, is taking the advantage of possibility. Sometimes, scientific researches develop the new theory and its implementation can give enterprise a good possibility to create a new niche. For example, it was found that gas is better to use in some manufacturing process, so the oil companies were happy as a new customer appeared by themselves.

Innovations are the most powerful source in today’s business. In the era of technologies development the only chance for enterprises to survive is to be flexible, to be quick to find new possibilities to broad the business, to improve product/ service or to create the new one.

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