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.
Still finding new opportunities for improvement and creation of value is a must nowadays. The companies should understand how emerging technologies can affect their competitive advantage and strategy, how they can help them retain their customers and bring new ones and thus implement changes that will help them to play competitive. Successful innovation means that companies should match the market trends and customer expectations with internal processes and invest into
Creativity is a vital part of innovation, is the idea of departure.” The most widely recognized idea regarding relationship between creativity and innovation originates from the opinion according to which internal business processes are fundamentally the same as to external ones. As regularly industrial sectors are categorized by an innovative change which is the outcome of a technological change, then we transpose the same progression inside firms and we imagine a sequence of events where creativity is the cause, while innovation is the impact. In other words creativity would be changed into innovation; according to this idea, creativity is the input and innovation the output. Then creativity would just mean producing ideas, and innovation would be the result of a selection process which purposes is to separate the right ones from the wrong ones. Once we have selected working ideas, innovation would rise from their application While creativity is a SKILL, innovation is a PROCESS that must use the skill of creativity to be fruitful.
In this competitive economy, firms nowadays are concern with ways to achieve not just competitive advantage, but sustainable competitive advantage. Firms use some version of strategy and approach in achieving the desired competitive advantage. This strategy inevitably requires incorporating ‘innovation’ into their strategies as well as into their business models, and nonetheless, into the corporation itself. Firms face difficulties in sustaining competitive advantage due to the rapid globalisation and commercialisation in goods and services. Therefore, firms see the need to innovate constantly, which in the process uses innovation to justify their strategies as innovation provides the primary means of differentiating a product from its competitors.
Entrepreneurs argue that the higher the risk, the higher the return on investment. As an entrepreneur it is advised that one weighs in on the size of the risk before making an investment. There are several types of risks faced by an entrepreneur and these are Competitive risk, Technological risk, political risk, economic risk, financial risk, human resource risk, strategic risk, environmental and health and safety risk. Competitive risk is the risk of a business facing competition from its rivals. Every new business faces the risk of competition because there are substitutes easily available in the market and existing players that are already offering a similar product in the same market.
In technology, the adage goes “you are as successful as your last innovation”. Before the incumbent firms could realize, new innovations had taken the market by storm. ICT (Internet, Communications, and Technology), IOT (Internet of Things), B2B, (Business to Business), android, have become technological waves and the new bywords. Economies around the world are seeing
They state that it is characterized as a new and dynamic venture, which accounts of various fields. For example entrepreneurship includes the examination of the relationship between entrepreneurship and organisations. It could also be understood as the process of grasping entrepreneurial opportunities or the development of new ventures. Moreover, it compromises the process of making effective use of entrepreneurship. The reader needs to be aware, though, that Arcs, & Audretsch (2010:2) explicitly exclude non-business organisations from their definition of
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
ROLE AND IMPORTANCE OF TECHNOLOGY IN DESIGN OF BUSINESS STRATEGY: Technology and management of technology are critical for an enterprise for its successful operation on long-term basis. Technology management however a part of total management system. There are three basic consideration for starting any new firm based on technological innovation. a) The idea for a technological innovation b) A potential market. c) Team work in both technological and business experts The idea of a technological innovation should be based or linked with the potential market and the technology team seam should closely interact with the rest of the divisions of the enterprise leading to a successful logical conclusion in terms of processes to be developed as per the set objectives set at the beginning.