Introduction Innovation In the past years of knowledge on innovation and its effect on entrepreneurship, a massive variety of literature has been presented and researched on this specific topic innovation. Innovation as the name suggests refers to thinking out of the box in other words being creative or innovative. Innovation in terms of business refers to creation of products, services and processes in a more effective and efficient way and at the same time establishing a culture or environment capable to absorb the creativity (Crumpton, 2012). In Kotler(1997) words it is a method/process/system/product/service which is either significantly new or totally improved and also has been a complete success in the market. Entrepreneurship The word
However, innovation is defines as the act of creative thinking. Innovation is defined as the development or creation of new idea taking from the mind, defining ways to transform it to physical form. Innovation can be used in different ways; it can be used to upgrade a system or a process and coming up with new idea which will bring in the form of all together. Innovation is a thorough process which generates new ways for effective business practices. Creativity and innovation increase the performance and productivity of business as well as help business leaders to managers and drive their business towards success (Adams, 2001, p. 1).Creativity and innovation comes in the form of technological advancement or a change in business process which can bring advantages to the firm and help them in managing risk through effective systems.
Its workers were one of the best at building physical devices, which was good, but they did not pay much attention on programs that make devices work. Development process of Nokia was long years dominated by hardware engineers, but software experts were uncared for. For example in 2002 Nokia introduced its Symbian 60 series which had a good market response but with the introduction of iOS (Apple) in 2007 and Android (Samsung) in 2008, the operation system race was completely taken over by the two giants companies. Simply the Symbian OS have the small amount of application that customers need. When Nokia face with competition from Apple and Samsung, they continuously searching for some new staff, but they failed to create something unique that will attract customers.
Why innovation is important for company? It is because through innovation company can achieve competitive advantage, by innovation in technologies or new ways of doing things. Michael Porter (1990, p75) and also it allows the company to redefine the market place of their favour Rothaermel, F.T and A.Hess ( 2010,pp12-15) , simultaneously create value and fending off competitors’ imitation attempts. Ultimately bring the company to above-average and outstand its peers. Innovation is imperative for economic growth, despite the primary actor for innovation is the firm, leadership is also an important actor.
Other phones coming to the market were more innovative, offered more features and reliability for their price and just left Nokia products behind in the smartphone revolution. The company made too many mistakes (that could have been easily solved) which in the end resulted in the company totally fall apart. It was business and phone company that people loved and not only because they grow up with a Nokia but because they were different built quality phones than the ones today.
Innovation is accomplished when an original idea is provided and is effective, and that it is beneficial to society. Innovation is necessary for the workplace as it keeps the company relevant and always a step ahead of their competitors. Innovation should always be a part of the problem-solving process in any company. With creative thinking, problems can be solved strategically, as it can save time and
1.1 Managing Innovation Success in business today, innovation has become new imperative for management. In the globe, the three pillars of innovation are competency, which the ability to help the organization climb to the world-class innovator; Resource allocation is a significant strategy in order to achieve a clear path to a goal, and effective management needs to deploy resources wisely. Hence, organizations must create new products and services and adopt the state-of-the-art technology if they are going to compete successfully. In general, innovation is the outcomes of the process of taking a creative idea and turning it into a useful product, service, or method of operation. It is important in managing principles for an organization as
Part A : Distinguish between innovation and invention. Answer: Invention is the creation of a product for the first time, nevertheless it must be a completely advanced and a new product. Whereas, Innovation, occurs if someone enhances on or makes a significant contribution to a current product to make it better. An example of an invention is something like the first phone which was made in 1878, whilst an innovation is something like an IPhone X because the old product was used then altered and made better. Another example is the first earphones made but it actually was headphones, and the innovation is the new wireless earphones.