Business Innovation

Business Innovation: A Case Study of Apple Inc. and Reckitt and Benckiser



Importance of Business Innovation -A Case Study of Apple Inc. and Reckitt and Benckiser

Introduction

Innovation has become a major consideration for many organizations and businesses around the world. With increasing numbers of highly educated workers who grew up in the era of computer technology and the Internet, there has been a noticeable shift from manual labor to knowledge work. Employees are expected to create new products and services and generate unique ideas that will build a loyal customer base and increase the company's competitive advantage. The success of companies is measured by their ability to produce new knowledge and include it in new products, continuously (Datta 2008, pp.281-297). Although, innovation can provide businesses with a competitive advantage and a source of revenue growth, its adoption needs to be dictated by a genuine organizational need and not a current managerial fad.

Only when aligned with the firm's strategy, infrastructure, and external environment, innovation will produce the desired return on investment. When misalignment does occur, organizations often experience the dark side of innovation that manifests itself, in escalated team conflict, wasted resources, and lack of efficiency. In addition to the financial and human capital necessary to sustain innovation, innovation promotion and company-wide acceptance are heavily influenced by organizational leaders. Through, establishment of specific rules and procedures, reward allocations, and growth opportunities, which when represented, by shared perceptions of employees bear the label of organizational climate, leaders have the ability to foster and promote organizational innovation.

Discussion

The concept of innovation is directly related to business. Virtually, all business projects are originally based on innovation. In addition to running their first innovation and to avoiding the decline and disappearance, companies renew themselves through innovation. In a competitive and constantly changing face of environment, companies are conducting a debate on innovation that is essential for their growth and development. Indeed, companies, through innovation, can develop sustainable competitiveness.

Thus, firms seek to develop innovations taking into account the risks associated with it. Innovation enables companies to strengthen their competitive position in the markets. Indeed, innovation enables companies to increase productivity, improve the quality of their products or services and to develop key skills. Innovation especially allows businesses to improve their non-price competitiveness (Barker 2009, pp.138). It has been stressed by business experts that innovation is the key to competitiveness because it determines their ability to maintain sustainable competitive advantages in scalable markets. Innovation is a key determinant of competitiveness and profitability to companies and is, therefore, an essential element of corporate strategy.

Thus, innovation enables the company to have a competitive advantage in terms of cost or product supply. When innovation relates to methods of production, it gives the company an advantage in terms of cost. In this case, the company will be implementing a strategy of lower prices or a strategy to increase margins. When innovation is applied in terms of products, the company differentiates itself from its competitors (Bajaj 2002, ...