Innovation can help businesses reach several key objectives by increasing profits, introducing new products or services, and establishing unique customer appeal. It can help businesses remain competitive in a marketplace that is constantly changing as more and more industries are being disrupted.
Business innovations can take many forms, including the creation of new products and services, enhancing processes in marketing, launching campaigns and transforming the company’s culture. They could also include modifications to existing products or services, for example, adding features or upgrading customer service. The most successful innovations are those that are unique and beneficial.
The most innovative ideas do not lead to innovation when they are not viable solutions to real-world problems. An innovative idea must be useful to both the organization as well as its customers to become an innovation. A business innovation is deemed successful if both it is unique and effective.
A successful business innovation will not just bring new value to the organization, but but also improve decision-making, problem-solving, and communication within the company. It is crucial for companies to keep track of market trends and customer feedback to identify opportunities for business innovation.
It is generally best to look beyond the industry in which a business is operating to find innovative ideas. For example, the invention of the modern accounting machine was a business innovation by IBM when the company realized that banks couldn’t purchase new machines in 1933 because they didn’t have money.
The introduction of scleral-type lenses in eye surgery is another example of the business’s ingenuity. Doctors used an enzyme to treat cataracts for more than 50 years, however, Alcon made it more profitable by having added an additive to preserve it. This was a new business idea that led to a completely new product as well as the creation of an international monopoly for the company.