Innovation Approaches
Innovation deals with the creation of new products and services in an attempt to create value in an existing market. This follows various strategies depending on the entrepreneurial base of the company. A recent trend is where companies are exploring international markets through globalization in an attempt to look for new ideas. There are various ways in which a company innovates new products and services to meet its demands. This strategy depends on the outlay of the visions of the company.
One of the approaches to innovation used by most entrepreneurs currently is research and development. This aid mostly the upcoming entrepreneurs and further the already established businesses to remain in the market (Hitt, Ireland & Hoskisson, 2013). Majority of the companies have been able to maintain their performance through this innovation strategy. It involves assessing the financial performance of its competitors and comparing it with the company’s performance. This process aims at exploring opportunities which the competitor may be lacking and therefore seizing them for the development of the company. These include those competitors both at the lower levels and those the company is targeting to defeat and take the positions.
It involves assessing the development and performance of other companies, especially competitors. This enables the company to gauge how it is performing and the extent to which it is updating its operations. The major aim of this research and developments in strategic entrepreneurship is to create a competitive advantage. Once a company has gained a competitive advantage over the others, they can obtain large market shares and making it difficult for its competitors to outdo them. They can rise to the level of controlling special resources and therefore putting a buffer to their competitors.
Apart from research and development, the other approach that companies can use towards its entrepreneurial innovation is the idea-driven approach. This approach involves the formulation of new ideas that may provide potential opportunities for the company. It will mostly involve assessments of the internal operations of the company.
This new approach first would involve every member of the organization. Every member is allowed to assess their areas of expertise and try to come up with new ideas on how to improve operations. The ideas are then to be filtered, and the best ones are tested for implementation. This is because a good entrepreneur should know that within everyone lies the potential for creativity. These can be tapped into the betterment of the organization. It would work best, especially where cross-functional activities are embraced.
For instance, employees can join up effort, talents, and skill and come up with new ideas of how to improve operations. This may involve reducing or combining the components of a product, for example, in a bid to come up with a new product into the market (McDaniel, 2014). This surmounts to the creation of value in the company’s products and services. The target is towards surpassing the commonalities that are in the market with so many substitutes.
By using the idea approach for innovations, companies can create new ideas internally using the available human resource. The company would gain a competitive advantage over there competitors. This approach is unique also because it involves the internal environment and would develop the company from the inside.
In conclusion, innovation is what enables companies sot to be unique and beat their competitors. Research and developments are the approaches that are widely used among many companies to innovate. The other approach is the idea generation which comes from the internal environment.
References
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic management: Concepts and Cases: Competitiveness and globalization (10th ed.). Mason, OH: South-Western Cengage Learning
McDaniel, B. A., (2014). Entrepreneurship and Innovation: An Economic Approach: An Economic Approach. Routledge.