Business innovation is the process of an organization to introduce new ideas, workflows, methodologies, services or products.
Business innovation is the process of an organization to introduce new ideas, workflows, methodologies, services or products. Like IT innovation , which requires the use of technology in new ways to create a more efficient and agile organization, an innovative business should enable the achievement of goals throughout the organization, with goals aimed at achieving core business objectives and initiatives. Innovation often begins with the generation of ideas, in which ideas are reduced during brainstorming sessions, after which leaders consider the viability, feasibility and desirability of each idea. An innovative businessshould improve existing products, services or processes; or it should solve a problem; or should reach new customers.
What is the importance of an innovative business?
The purpose of the business innovation process is to create value for the organization. This is a business management method that all entrepreneurs should use to bring new perspectives to their business. This value can come from creating new revenue opportunities or from driving more revenue on existing channels; from creating efficiencies that save time, money or both; or from improvements to productivity or performance. In short, an innovative business should have higher profits.
In addition, the results of the innovation processof an organization should provide a competitive advantage; this should help the organization grow and achieve or better exceed strategic objectives.
An innovative business, like most business initiatives, has both advantages and risks. Among the disadvantages we can mention:
- the business innovation process can be an expensive process that does not always produce a return on investment (ROI);
- ideas considered likely to succeed could fail;
- whether they are employees, customers, partners or others – they could fight the changes needed to be successful.
- development of improved products and services,
- revenue growth and market share,
- organizational growth
- new opportunities and recognition as a leader.
Entrepreneurs who want to develop an innovative business turn to a business consulting firm or the services of a business and management consultant.