{"id":143710,"date":"2021-08-26T00:00:00","date_gmt":"2021-08-25T22:00:00","guid":{"rendered":"http:\/\/qmarkets.net\/what-is-innovation-in-business\/"},"modified":"2024-09-03T10:57:25","modified_gmt":"2024-09-03T08:57:25","slug":"what-is-innovation-in-business","status":"publish","type":"post","link":"https:\/\/qmarkets.net\/fr\/resources\/article\/what-is-innovation-in-business\/","title":{"rendered":"What is Innovation in Business and How Can it Build Business Longevity?"},"content":{"rendered":"\n

You\u2019ve probably heard the term \u2018business innovation\u2019 being hailed as a practice to drive business success and to sustain growth during turbulent times \u2013 but what does it actually<\/em> mean?<\/p>\n\n\n\n

In this blog we\u2019ll endeavor to cut through the noise and give you a full overview of how organizations innovate, why they choose to adopt the practice, and what they achieve out of it. We\u2019ll also dive into how innovation helps drive business success and longevity.<\/b><\/p>\n\n\n\n

What Exactly is Business Innovation?<\/h2>\n\n\n\n

The Cambridge Academic Content Dictionary<\/a> defines innovation as \u2018a new idea or method, or the use of new ideas and methods\u2019. Fundamentally, this is what innovation in business is \u2013 the use of ideas to create something new, whether this be a new product, process, service, or anything else. However, what\u2019s important to consider is how businesses go about finding<\/em> new ideas and methods. This requires establishing processes and procedures that allow you to manage the discovery, development, and implementation of ideas, resulting in a repeatable, scalable, and sustainable way of innovating.<\/p>\n\n\n\n

Why do Businesses Choose to Innovate?<\/h2>\n\n\n\n

Organizations choose to adopt the process of innovation for a myriad of reasons; to tackle existing challenges by ideating for solutions, to generate new revenue streams, to improve existing products or services, and so on.<\/p>\n\n\n\n

Here a few benefits that organizations are most likely to achieve from innovation:<\/p>\n\n\n\n

Competitive Edge <\/strong><\/h3>\n\n\n\n

There are many examples of new businesses taking over the market and killing their competitors, but perhaps one of the most well-known is Blockbuster vs. Netflix<\/a>. \u201cIn 2000, Netflix approached Blockbuster with an offer to sell their company to Blockbuster for US$50 million. Blockbuster, was not interested in the offer because it thought was a \u00ab\u00a0very small niche business\u00a0\u00bb and it was losing money at the time.\u201d <\/p>\n\n\n\n

Of course Blockbuster\u2019s reluctance to move to a digital model was Netflix\u2019s gain, in 2020 the streaming giant achieved a total net income of $2.76 billion<\/a>.<\/p>\n\n\n\n

Growth and Revenue<\/strong><\/h3>\n\n\n\n

According to a report by Accenture<\/a> titled \u2018Governing Innovation: The Recipe for Portfolio Growth\u2019,<\/p>\n\n\n\n

that surveyed 1,090 executives across 11 industries, \u201ccompanies that govern innovation extensively over time expect stronger revenue growth\u201d.<\/p>\n\n\n\n

Accenture identified 12 key rituals that companies can practice to effectively govern innovation, which include; \u2018putting innovation at the center of corporate strategy\u2019, \u2018everyone generates ideas, and \u2018actively build a culture of innovation\u2019. Applying these rituals \u201cdelivered 2x revenue growth compared to those following a haphazard approach\u201d.<\/p>\n\n\n\n

Organizations that develop strate<\/a>g<\/a>ies to innovate<\/a> put themselves in a far greater position to generate revenue growth than those that don\u2019t.<\/p>\n\n\n\n