EVALUATION OF INNOVATION

Evaluation of Innovation

[Name of the Student]

[Name of the College]

[Level of the Class]

Evaluation of Innovation

Introduction

Innovation is an output which is unique and useful for business firm. Innovation links with productivity and evaluate the firms competitive advantage against its competitors. In terms of business, innovation is the formation and succeeding beginning of a good or service which is new or it may utilise for improving the existing products and services designs. This innovation and transformation in the product or service, not only enhances growth of business but also provides a stability and sustainability in business portfolios. Firms must establish proper polices for innovations. Because, the research and development (R&D) activity is totally different from this as it is a major internal part of the organization for the attainment of knowledge and it is also a flow chart that can lead a firm towards a competitive advantage (William & Amaria, 2012).

Discussion

Product and Service Innovations

Excel innovations whether in products and services produce benefits for the firms as well as for the customers. Customer's interactions help the firms to expand their transformational strategies in their products and services in order to make these better with maximum profits returns. The most important success criterion for a company is to identify the demand of a new product and then formulate strategies for its development. This activity consists of two levels: first level is the development product with high outstanding features in the field and the second level is the introduction of mandatory innovations and design for the long term success of that product in the market. The previous step is an implementation capacity and the concluding is a tactical approach which is supported by different methods. Some key points must consider before starting this activity such as; do not use the same strategies for every product, always make understandable grade measures, approvals and discussion should take place with the senior management of a firm and manage the overall activity with proper controlling and assurance (Filippetti, 2011).

On the other hand, service innovation is a new way for significantly improve the quality of services. The best example is the effective customer interaction through combination of information technology and internet. A service innovation includes the replicas that are capable to regenerate in different business environments. These elements are the outcomes of service or a part of its process. Similarly, like product innovations, service modernization and designs benefit both the producer of a service and the consumer who avails it. However, in services, the innovation does not result due to technology but it may happen in non-technological areas (Korth, 2005)

Innovations Add Value to the Organizations, Customers and the Environment

Innovation is not alone because it is there in a combination with product development. Therefore, flexible strategies with respect to product and service development are essential. These strategies should accumulate in the methodologies and beneficial to the society's norms and values. Involvement of employees, sharing of information, groups associated tasks, information technology, organizational structure, and training and development have a ...