WHAT IS INNOVATION?

Innovation and creativity are often used synonymously. For an idea to be innovative, it must also be useful. Creative ideas don’t always lead to innovations because they don’t necessarily produce viable solutions to problems.

Innovation can also be defined as a process by which a domain, product, or service is renewed and brought up to date by applying new processes, introducing new techniques, or establishing successful ideas to create new value. The creation of value is a defining characteristic of innovation.

Innovations doesn’t have to be breakthroughs in technology or new business models; they can be as simple as upgrades to a company’s customer service or features added to an existing product.

The importance of innovation in business

1. It allows adaptability
   The recent COVID-19 pandemic disrupted business on a monumental scale. Routine operations were rendered obsolete over a few months. Many businesses still sustain negative results from this world shift because they’ve stuck to the status quo. Innovation is often necessary for companies to adapt and overcome the challenges of change. Through innovation business owners can easily adapt new ways to avoid loss and some risk.
2. It separates businesses from their competition.
   Most industries are populated with multiple competitors offering similar products or services. Innovation can distinguish your business from others. When the owner of the business is innovative it helps a lot because the business becomes unique, that is, it comes up with new products that are different from others.
   Generally, consumers will see innovation as something which adds value to products or a company. When this is used the right way, it can give you an advantage commercially, especially in a market that is saturated or shifting rapidly. It can get you more positive exposure in the media and your customers will be more willing to pay the extra money for something that is well-designed and new, rather than picking the less exciting and cheaper rival.
3. Innovation can help grow your business
   Innovation can add significant value to your business by finding more profitable ways of doing things, introducing popular new products or services, or optimising your operations. All these things will ultimately increase profit. Through innovation, one can be able to grow a business so easily since he or she has new ideas or ways of improving a business for it to be different from other businesses.
4. Increases productivity
   One of the benefits of innovation in business is the increase in productivity of individuals, processes, and business models, among others. Simply put, innovation presents new ideas to business leaders to increase efficiency with minimum resources. Furthermore, it reduces business and other risks.
   
   Innovation can help you to see what exists now in opportunities or which ones will likely pop up shortly. Successful businesses don’t only respond to the current needs of their customers, but usually predict future trends and come up with an idea, service or product that can meet the future demand quickly and effectively.