INNOVATION IN BUSINESS

Literature Review: Innovation in Business

Literature Review: Innovation in Business

Innovation is now a decisive advantage in international competition. Competitiveness depends on its ability to innovate and continuously improve the products. Innovation is now helping to ensure a significant competitive advantage and sustainable for the company but it is a complex process control. Its modern design is defined as the economic development in the business of invention. We usually distinguish product innovation from process innovation (Adams, 2002, p253). The first is for a company to bring to market new products, while the second is based on the technical improvement of production processes and management methods. Innovation is then an opportunity for the company to new growth as long as the process is the management system.

A Joseph Alois Schumpeter (Trest, 1950), Austrian economist and sociologist, settled in the United States, is credited with introducing the concept of innovation, of great influence in the business field. According to the concept developed by Schumpeter, there is a state of stagnation business, as the author calls the economic circuit, and a state of growth, which called evolution. For Schumpeter, the passage of circuit evolution is by means of innovations, which are the engine of growth (Adams, 2002, p253).

When processes are restricted to the field of technology innovation, especially technological sophistication, they forget the purpose of the proposal contained in Schumpeter. On one hand, it refers to the total field of the company, and not only the technological aspects. On the other hand, suggests that innovation changes are aimed at customer satisfaction, which makes the company sustain and grow. Moreover, even when you have some technical tools, innovation continues primarily as the art of turning ideas and knowledge into products, processes or new or improved services that customers recognize and value. Turn knowledge and ideas into wealth (Adams, 2006, p5544). According to Hamel, to pretend to be innovative (in business terms), you must first properly understand the conceptual definition of a business. If you do not know what a company and we cannot characterize where we are working, you cannot innovate. This concept of business, according to the same author, must distinguish four elements:

Customer Relations

This element identifies the manner and means by which the company approaches customers, the knowledge you have of them, and the dynamics of this relationship that eventually is expected to culminate when the customer is identified with the company. The key strategy is the main element in the essential features of the company. It is the component that distinguishes it in the market and in society. So is the encounter with his mission. With the space it occupies and his performance style. Strategic resources involve identifying the most important thing and does the company have, in terms of knowledge of its staff, physical assets, and processes developed (Boschma, 1999, p853).

Connections value

This element identifies the mode and means of relationship between the company and its suppliers, with other companies with which complements products or services, and other companies of the ...