Business Inovation

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Business Innovation

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ECO 201

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October 1 2013
Abstract
The 21st century has been marked by increased growth in technological advancement, which is a result of the global economy changes that force organizations to strategize on ways through which, they can improve their efficiency and thus, enhance their competitive advantage. As such, productions of timeless brands and changes in business operation structure have become part and parcel of contemporary businesses. However, one way through which, businesses have managed to produce timeless brands, as well as change their operation structure is innovation. Innovation, as scholars assert has been proved to be the principal factor that influences modern businesses that are success and growth oriented. A good illustration of this is the high innovative companies such as Toyota motor company, which deals with production of cars and spare parts, as well as Nokia, which is a mobile phone company. Innovation has led to increased efficiency and discovery of new ways of operations from time to time; this has been intensified through involvement of open innovation communities, which generate innovative ideas that help entrepreneurs solve problems within their businesses. As such, the organization does not need to establish a research and development unit, whose sole role is to help in formulating strategies that will fit customer demands; a process that is very expensive especially for small and medium sized entrepreneurs, which face diverse financial problems. Nonetheless, innovation whether through organization R&D department or through open innovation communities, results to growth and success of the business as it enhances it competitive advantage, as well as maintenance and expansion of its market share. Introduction

One of the principal factors affecting the operations of businesses is the level of innovativeness that they adapt. Innovation in businesses allows continuous production of timeless brands of products, which in turn allows the business to maintain and expand its market share, as well as its competitive advantage (Leiponen and Helfat, 2010). This is based on the fact that technology trends seem to move in a circular motion, which means that a company must keep changing its way of doing business by maintaining an uptrend with the current technology. The uptrend of a business is maintained by continuous innovation, which is the principal cause for the frequent changes taking place in business technology. However, it is crucial for a business to comprehend that prior to undertaking an innovative strategy; it must be prepared to undertake change. Scholars hold that change is a catalyst for innovation, as it is the desire to change the way of doing things that encourages and enhances the process of innovation, by allowing people to create ideas that will help transform the business and take it to the next level in which, it will be better than its competitors, thus, have competitive advantage, as well as expand and maintain its current market share (Leiponen and Helfat, 2010). Therefore, the principal role of this paper is to establish the role played by innovation in a business, and how businesses that have already adapted innovation as part of their growth strategies are performing. Innovation

To begin with, scholars define innovation as the process through which, significant transformation takes place within a business or in its line of products and services (Leiponen and Helfat, 2010). However, for this process to take place, there is need for subsequent adjustment in the structure and functioning of the organization, and also, there must be a successful introduction, of the process, which all stakeholders within the organization appreciate and are certain that it will help in the attainment of organizational goals and objectives (Leiponen and Helfat, 2010). The reason behind this argument is that, lack of incorporating some of...