Why do companies need to innovate?
Innovation has been one of the hottest topics in management in the recent past and am sure is gonna remain that way for a lil while ahead. I love this quote by Peter F. Drucker from his book “People & Performance” on innovation and I truly believe no one else has defined innovation like Prof. Drucker - 'Because its purpose is to create a customer, the business enterprise has two -- and only these two -- basic functions: Marketing and Innovation.Marketing and innovation produce results; all the rest are 'costs.' In its simplest form, Innovation is implementing new ideas to create value. There are quite a few factors that would prompt for Innovation – problems, new technology, new ideas, new services to be catered to, new possibilities for better solutions, newer products that meet consumer demand to mention a few. Innovation therefore means doing things differently, exploring new territories & taking risks. Well, I feel the primary reasons for companies to innovate are: -
1. To exist in the market place – mere presence.
2. To differentiate OR die!
3. To be competitive – Competitive advantage!
4. To add value to its customers, processes, people and all concerned stakeholders
5. To increase productivity & profits!
6. To increase 3Es (Economy, Efficiency, Effectiveness)
7. To ensure a sizeable market presence (market-share)
8. To motivate employees & ensure a better work quality.
9. To foster new relationships (with suppliers, customers, bankers, lenders, other external stakeholders)
10. To ensure growth in KPIs (Key performance indicators)
Most of you would have thought about many other reasons…? Willing to share em’? Keep your thoughts flowing...
1. To exist in the market place – mere presence.
2. To differentiate OR die!
3. To be competitive – Competitive advantage!
4. To add value to its customers, processes, people and all concerned stakeholders
5. To increase productivity & profits!
6. To increase 3Es (Economy, Efficiency, Effectiveness)
7. To ensure a sizeable market presence (market-share)
8. To motivate employees & ensure a better work quality.
9. To foster new relationships (with suppliers, customers, bankers, lenders, other external stakeholders)
10. To ensure growth in KPIs (Key performance indicators)
Most of you would have thought about many other reasons…? Willing to share em’? Keep your thoughts flowing...
posted by Sriram at 4:08 PM
3 Comments:
Great list Sriram - a busy couple of weeks for me so been unable to contribute much. But as we have to work to eat that is good news :-)
One thought from me about why companies need to innovate.
To REALLY discover the talent they already have in their own staff. The best innovative ideas are usually within the front line workforce - they just don't get asked for their opinions very often!!
It is as simple as that quite often. But you would expect me to say that I guess. :-)
9:09 PM
A very well defined article presented with thoughtful gesture and creative
Ideas.
Innovation is essential and its one of the prime components for all round
development and growth of companies for one reason that behind every
Innovation there is creativity of wisdom & knowledge of the innovator(s)
and keeping this in mind, my thinking would be-innovation adds to
ESTABLISH in the Market with major market share of the products rather
than to EXIST. Ultimately assesses the health, strength and wealth of the
Companies appear in the authenticated Annual Reports. Apart from this,
adds value to the Product and thereby increase its demand further, satisfaction
To the Customers, enhanced better image to people and impress the
Stakeholders.
1:39 PM
Sriram, i used the points listed in your blog for my college case study/presentation....your post was well worded... t'was of immense help....
thanks... and tc...
1:50 AM
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