Innovation refers to idea, practice or object that is perceived new by people. It can be used as a tool to exploit change for a diverse business or service. Innovation is relevant concept for companies as they can use it as a source of generating additional revenues, saving costs and improving the existing business practices (Zawawi, et al., 2016). Innovation refers to anything helps in value addition by making the products/services faster, cheaper and better. So, whether the companies are large and existing, or new and emerging, they can contribute to innovation in their own way.
The new and emerging companies focus more on radical innovation that includes creation of new services or products involving new ideas and incorporating the changing needs and preferences of the customers. This type of innovation can result in creation new market (Zapfl, 2018). For example: Emergence of Amazon was a radical innovation. It changed the way people used to shop and provide them the comfort to get the things they want delivered at their place. In case of Nepal, F1Soft can be taken as an example of radical innovation as it created a market that does not exist before through its innovation. The mobile and internet banking system along with online payment gateway was new product offered by F1Soft was a new company.
In case of large and existing companies, the focus is on incremental innovation. Instead of developing a totally new product, they look for ways to make the existing product better and user-friendly. The automobiles or smartphone companies that launch new edition or version of the product by incorporating some additional features can be taken as an example of incremental innovation.
Most of the business experts these days believe that innovation ignites more in starts-ups than the large existing companies as they are too invested in past to create and new ideas. But in my opinion, the resources available with the large and existing companies can be used to fuel innovation. That is why if we look at the list of most innovative companies of the world, the large and existing companies like Google, Facebook, Amazon, GE etc. are on the top of the list (Govindarajan, 2016).
The large companies have enough resources to invest in research and development for innovation while the small companies cannot innovate in large scale due to financial constraints. Having said that, small companies and start-ups are more receptive to new ideas and processes. Thus, the companies irrespective of their size and history contribute in innovation in their own way for value addition.
Zawawi, N. F., Wahab, S., Mamum, M., Yaacob, A. S., Samy, N. K., & Fazal, S. A. (2016). Defining the Concept of Innovation and Firm Innovativeness: A Critical Analysis from Resorce-Based View Perspective. International Journal of Business and Management, 11 (6). doi:10.5539/ijbm.v11n6p87
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Innovation refers to idea, practice or object that is perceived new by people. It can be used as a tool to exploit change for a diverse business or service. Innovation is relevant concept for companies as they can use it as a source of generating additional revenues, saving costs and improving the existing business practices (Zawawi, et al., 2016). Innovation refers to anything helps in value addition by making the products/services faster, cheaper and better. So, whether the companies are large and existing, or new and emerging, they can contribute to innovation in their own way.
The new and emerging companies focus more on radical innovation that includes creation of new services or products involving new ideas and incorporating the changing needs and preferences of the customers. This type of innovation can result in creation new market (Zapfl, 2018). For example: Emergence of Amazon was a radical innovation. It changed the way people used to shop and provide them the comfort to get the things they want delivered at their place. In case of Nepal, F1Soft can be taken as an example of radical innovation as it created a market that does not exist before through its innovation. The mobile and internet banking system along with online payment gateway was new product offered by F1Soft was a new company.
In case of large and existing companies, the focus is on incremental innovation. Instead of developing a totally new product, they look for ways to make the existing product better and user-friendly. The automobiles or smartphone companies that launch new edition or version of the product by incorporating some additional features can be taken as an example of incremental innovation.
Most of the business experts these days believe that innovation ignites more in starts-ups than the large existing companies as they are too invested in past to create and new ideas. But in my opinion, the resources available with the large and existing companies can be used to fuel innovation. That is why if we look at the list of most innovative companies of the world, the large and existing companies like Google, Facebook, Amazon, GE etc. are on the top of the list (Govindarajan, 2016).
The large companies have enough resources to invest in research and development for innovation while the small companies cannot innovate in large scale due to financial constraints. Having said that, small companies and start-ups are more receptive to new ideas and processes. Thus, the companies irrespective of their size and history contribute in innovation in their own way for value addition.
References
Govindarajan, V. (2016). Stop Saying Big Companies Can’t Innovate. Harvard Business Review . doi:hbr.org/2016/06/stop-saying-big-co...
Zapfl, D. (2018, March 26). What types of innovation are there? Retrieved from Lead: lead-innovation.com/english-blog/t...
Zawawi, N. F., Wahab, S., Mamum, M., Yaacob, A. S., Samy, N. K., & Fazal, S. A. (2016). Defining the Concept of Innovation and Firm Innovativeness: A Critical Analysis from Resorce-Based View Perspective. International Journal of Business and Management, 11 (6). doi:10.5539/ijbm.v11n6p87