Innovation and Entrepreneurship Products

Question: Discuss about the Innovation and Entrepreneurship for Products. Answer: Introduction Innovation and entrepreneurship focus on how new or compelling ideas, products, and business processes can be used to improve business performance. Firms that want to be innovative aims at implementing new ideas, coming up with effective products that can be relevant in the market and through entrepreneurial mind be able to make an improvement in the existing services offered by the organization (Klamer Arjo, 2011). Innovation and entrepreneurship is a key point of focus on modern business since it is among the things that significantly promote success and growth of the firm organizations through better productivity and performance (Dyer, 2009). Types of Innovation Innovation can be explained to be of different types basing on its nature. Innovation can be resilient, renewal or revolution. First, resilience change in a business organization refers to a continuous improvement or reconstruction in the existing organizations process or product. This could also mean coming up with new products (Zoltan, David Audretsch, 2010). Secondly, renewal innovation is a type of innovation that refers to changing the approach to the existing business process. This is among the strategies that organizations use to gain a competitive advantage in the market. Lastly but not least, revolution innovation explains the type of innovation that ultimately changes the basics of the industry (Dyer, 2009). On the other side, innovation can also be explained to be sustaining or disruptive. When an organization brings a new product to the market that is less superior that the existing organizations product or service, the innovation is disruptive. This introduces a less superior product which can be cheap, less price or does not give the services as the existing product but gains popularity slowly among the customers and later on it is adapted to the market. Sustaining innovation is a type that attempts to satisfy the high demanding level of the market. It involves coming up with new products or services that are much more superior to the existing product or service offered by the company. This always gives an organization higher profit margin (Klamer Arjo, 2011). Finally, innovation can also be described to be open or closed. Open innovation means that ideas of change can come internal or external part of the organization. It means that an organization can contract someone from outside to bring innovation that will profit the company. Open innovation is strict in the sense that an organization is strictly for itself. In this case, creative guys are always part of the employees and always targets to bring to the market a new idea that has never been there at the market unlike open innovation (Dyer, 2009). How to Promote Creativity and Innovation in an Organization It is important for any organization that wishes to wants to attain growth and improved performance to promote creativity and innovation. First, the company should put a keen eye on its culture. Organizations culture is one of the key aspects that can hinder or promote innovation. Good business culture tends to promote creative ways of solving problems and improving existing processes in a given organization. It is, therefore, critical for organizations to align their culture in a way to promote creativity and innovation (Klamer Arjo, 2011). Organizations should also put a lot of focus on idea generation. Employees should be encouraged to come up with new ideas that can help improve the existing process, ways of problem-solving and solution-finding and therefore help deliver services in a better way possible. Idea generation will always give the organization a good competitive advantage and is a way to promote innovation and entrepreneurship (Dyer, 2009). Risk taking and mistake toleration are also among the things that encourage innovation in organizations. It must take risks associated with innovation to achieve. It should give room to accommodate errors to a certain reasonable extent (Kazimoto, et al., 2013). This will create a conducive environment for innovation that will greatly encourage employees to try out new ways of doing things unlike in a strict no mistake toleration environment. According to Bartolome (2012), innovation and entrepreneurship are promoted through proper conflict handling. Conflict resolution is among the secrets that will promote innovation. Conflict is friction and brings negative thoughts towards individuals or situations arising from perceived differences or incompatibilities. The organization should advocate for better ways of conflict handling and avoid conflict altogether (Cappelli, et al., 2010). Negatives perceptions of situations or individuals make people think negatively, and this can hinder innovation and entrepreneurship in a given organization. It is, therefore, important for organizations to seek and adopt better ways of handling conflicts to promote innovation and entrepreneurship (Bartolome, 2012). To sum up, innovation and entrepreneurship all other ways will work if there is a continuous learning culture in an organization (Cappelli, et al., 2010). Organizations management should always seek to promote and spread learning culture in an organization. If well handled, the culture will spread to other generations in the organization, and this will sustain innovation and entrepreneurship. Impacts of Innovation and Entrepreneurship to an Organization Organizations that embrace innovation enjoy many positive impacts. Being innovative means improving the existing business process, services or products offered while entrepreneurship will mean an ability to identify these opportunities from innovation and pursue them (Dyer, 2009). Innovation and entrepreneurship will therefore always help the organization to improve the income. Increased profit to an organization directly means the growth of the organization which is a key aspect of business operation. Therefore organizations should embrace innovation and entrepreneurship to enjoy greater profit margins (Klamer Arjo, 2011). Inventing new ways of the existing business process or improving the existing business process gives an organization a higher competitive advantage. At the moment, most organizations are using innovation and entrepreneurship as a strategy tool to gain a competitive advantage in the market especially using renewal innovation (Kazimoto, et al., 2013). In this type of innovation, the company seeks and embraces creative ways to change the approach of existing business process. This gives an innovative organization a significant competitive advantage. In addition to this, innovation and entrepreneurship give businesses continuity and sustainability. At present, to achieve business continuity and sustainability organizations need to embrace innovation and entrepreneurship. Continuous innovation will help the company to continue because the firm enjoys a greater profit margin and has a higher competitive advantage. This impacts on the growth of companies that embraces innovation and entrepreneurship (Bersin, 2012). Domestic and International Contextual Factors Contextual factors of an organization affect business and strategy in many different ways. This can be domestic or international contextual factors. Some of the contextual factors that affect business strategies in a business environment include cultural and social factors (Burns, 2008). This influences the type of customers that an organization should target, product type of offering and the type of communication to use to convey a message to the customers (Bersin, 2012). The political and regulatory environment also affects the business structure and strategy. At times an organization is limited to do certain activities because of the existing regulations (Dyer, 2009). The product and services offered must comply with the existing standards and regulations. This affects business strategy that the organization can take. Structure and strategy of a business organization are also affected by technology in many ways. Technology can help a business organization to sell more products or extend the services that are offered by a given organization. Every organization should embrace technology in its operation since it affects the business organization (Zahra, Filatotchev, Wright, 2009). Other environmental factors that affect business include competition level in the market. This affects the strategy and tactics that an organization should take (Christensen, 2015). In competitive environments, business organizations are forced to product performance or even shift to a less competitive business environments. Economic conditions also affect business organizations. The purchasing power of organizations affects business organizations regarding the type and quality of product to offer among other factors (Christensen, 2015). In addition to this, media also has an influence on business strategy to take. This determines the communication channel to use to convey a message to the consumers. It is, therefore, important for organizations to put a keen eye on the contextual factors since they have a great influence on the business structure and strategy. Conclusion In conclusion, innovation is one of the contextual factors that every organization should strive to achieve. The company should structure itself to accommodate and encourage innovation. It has many positive impacts on the business operation (Hair, et al., 2010). It helps the organization to gain a competitive advantage in the market and can also significantly improve the profit income to the organization that enhances the continuity, sustainability, and growth of organizations. It is also key for organizations to consider other contextual factors such governance and knowledge management that may affect business. References Bartolome, A. (2012). What are the causes of conflict between a franchisor and a franchisee? Entrepreneur Philippines: The six issues that may cause conflict between a franchisor and a franchisee. Bersin, J. (2012). How Does Leadership Vary Across theGlobe? Retrieved from https://www.forbes.com/sites/joshbersin/2012/10/31/are-expat-programs-dead/. Burns, P, 2008. Corporate Entrepreneurship: Building the Entrepreneurial Organisation, 2nd Edition, New York: Palgrave Macmillan. Cappelli, P., Singh, H., Singh, J.V. Useem, M. (2010). Leadership Lessons from India. Harvard Business Review, Christensen, C.M., Raynor, M.E. McDonald, R. 2015. What is Disruptive Innovation? Dawson, P. Andriopoulos, C. 2014. Managing Change and Innovation, Sage Publishing, London, U.K. Dyer, J.H., Gregersen, H.B. Christensen, C.M. 2009. The Innovators DNA. Harvard Business Review, December, pp. 60-67. Hair, J, Black, W, Babin, B, Anderson, R. (2010). Multivariate data analysis (7th ed.). Upper Saddle River, NJ, USA: Prentice-Hall, Inc. Hitt, MA, Ireland, R, Sirmon, DG, Trahms, CA. (2011). Strategic Entrepreneurship: Creating Value for Individuals, Organizations and Society. Academy Of Management Perspectives, 25(2), 5775. Kazimoto, P. (2013). Analysis of Conflict Management and Leadership for Organizational Change. International Journal of Research In Social Sciences. Klamer and Arjo, 2011. Cultural entrepreneurship Journal of The Review of Austrian Economics, 24 (2) (2011), pp. 141-156 Zahra, S.A., Filatotchev, I., Wright, M. (2009). How do threshold firms sustain corporate entrepreneurship? The role of boards and absorptive capacity. Journal of Business Venturing, 24(3, Special Issue Corporate Entrepreneurship), 248-260. Zoltan J. A, David B. Audretsch (2010). Handbook of Entrepreneurship Research.