Innovation, as the term is used in business, is meant to describe new products, services, methods, and organizational approaches that allow the business to achieve extraordinary returns. Boston Consulting Group (BCG) found that innovation is a top 3 priority for three-quarters of the companies in the 2014 BCG global innovation survey. They also found that:
■ 61% were spending more money on innovation in 2014 than in 2013
■ 75% of respondents reported that innovation investment was primarily aimed at long-term advantage and current competitive advantage
■ The top five most innovative companies were Apple, Google, Samsung, Microsoft, and IBM
■ 70% of executives felt their own companies’ innovation capabilities were only average and 13% felt they were weak.
Innovation is the machine that generates business opportunities in the market; however, it is the implementation of potential innovations that truly drives businesses to be remarkable. Although there is a value in being a first mover, there is also a tremendous value in being a second or third mover with the right implementation. PC tablets had been developed and sold for more than two decades before the iPad stormed the market. Many people forget that Apple released the Newton tablet back in 1992. Not only was the timing not right, but the product was not promoted in a way that consumers felt a compelling need to buy one. Many elements have to come together for an innovation to bring long-term success to a company.
Strategic Management and Business Policy: Globalization, Innovation, and Sustainability, 15th Edition, ISBN 978-0-13-452205-0 by Thomas L. Wheelen, David Hunger, Alan N. Hoffman, and Charles E. Bamford, published by Pearson Education © 2018.
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