naija: A Brief History of Ugep/Yakurr

TYPES OF INNOVATION USED BY ENTREPRENEURS

Innovation is an essential part of every human and organisation because it gives them a mind-set of creativity in whatever they do, it plays and exceedingly important role within any organisation. New technologies like faster software and hardware and also improved manufacturing systems are increasing production and have change the way business across the globe is done, alternatively entrepreneurs tend to use their innovation because of the benefits attach.

Firstly, innovation is the development of customer value through solutions that meet new, undefined or existing market needs in unique ways. This solutions may include new or more effective products, processes, services, technologies, or ideas that are more readily available to markets, governments and society. (Boundless, 2015).

BENEFITS OF INNOVATION TO ENTREPRENEURS

A perilous factor in introducing innovation into any organisation is an awareness of the need to innovate and an understanding of the benefits innovation can bring.

Satisfying Consumer Needs: (Adviser, (2015)) innovating an existing or an entirely new products will help organisations to sustain their customers and this will create more opportunity for more customers to patronise the organisation.

Use of New Business Opportunities: creativity will give any organisation a chance to spot out unlimited avenue to show case their creativity mind-set which will attract investor’s capitalist due to the fact that prospects buy when they trust your value is applicable to them and believe your company is stable.

Markets Development: as a business strategy that helps organisations to segment their market innovation will be a useful tool for entrepreneurs to see new emerging market within that same industry to give their potential customer the best satisfaction. These potential customer groups may have been previously served by competitors or may not be presently marketed by anyone.

Personalized Services: (Kirsi, 2013) innovation will course customer loyalty to an organisation to increase because it will help them to interact with their customers and make them feel valued.

Increase Of Competitive Advantage: gives organisation an opportunity to become market leaders within that industry because they will be doing something different from what their competitors are doing and also they will add features to their product that will help in the sustainability of the product for the duration they need it to be.

Profit Increase: as a result of inventing new products for the organisation it will boost the inflow and outflow of cash within the organisation because the source of income in that organisation has expanded.

EXPLANATION AND EVALUATION OF THREE TYPES OF INNOVATION

 Incremental Innovation: This refers to the small changes organisation do in a product that helps improve the product performance, lower it costs and enhance its attractiveness or simply to announce a new model release and it seeks to expand the products and services that already exist, making them better and cheaper This is the kind of innovation that organisation use to pursue their innovation because it focuses on improvements that keep a product and brand of the company. They tend to be line or brand extensions, new bells & whistles, new packaging, new improved ingredients, etc. research shows that 60% of innovations claimed by the consumer products industry is nothing more than packaging improvements. (Ontario, 2015)

Breakthrough Innovation: This is a large discrete step change in concert, technology and value provided to users. It requires important change on the part of the innovating organization, both in terms of social and structures support. It creates accurate competitive advantage for it to be sustainable, although increasing shorter period of time and it involves significantly more risk-taking, which is why decision-making that results in accurate breakthroughs must in many ways be the opposite of the decision-making that supports incremental innovation. It requires much capital to push through. Ideas that come from breakthrough create new markets and business opportunities that did not exist before. For this reason breakthrough needs the higher level of consideration and judgment. (Anders, et al., (2015))

Radical Innovation: this kind of innovation is concerned with the exploration of new technology, is fundamentally different from incremental innovation that is concerned with exploitation of existing technology. It a product, process or service with either exceptional performance features or familiar features that helps entrepreneurs offer potentials for significant improvements in performance and cost and it creates such a dramatic change in product or services that can transform existing markets or industries or even create new ones. (Vadim, 2015)

Finally, in one of Steve Jobs quote he said “do you as an entrepreneur want to spend the rest of your life selling sugared water or do you want a chance to change the world.” Innovation gives a successful entrepreneur an edge over its competitors, it also helps entrepreneurs use the slightest opportunity they see to use what is less to come out with something big and different. Entrepreneurs should use the breakthrough innovation because there is no frame of reference due to the fact customers don’t have a frame of reference by which to easily judge the idea that has been created.

References

Adviser, B., (2015) Benefits of Innovation and Risks to overcome. [Online]
Available at: http://www.econ-it2.eu/en/training/5-innovation-management/5-3-benefits-of-innovation-and-risks-to-overcome/
(Accessed: 10 June 2015).

Anders, J., Eagar, R. & Harenstam, F., (2015) Breakthrough Innovation Survey. [Online]
Available at: http://www.adlittle.com/breakthrough-innovation-survey.html
(Accessed: 11 June 2015).

Boundless, (2015) Benefits of Innovation. [Online]
Available at: https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-culture-and-innovation-4/adapting-and-innovating-36/benefits-of-innovation-193-1046/
(Accessed: 09 June 2015).

Kirsi, T., (2013) Personalized customer service is about respect not about spying. [Online]
Available at: http://www.scn.sap.com/community/customer-edge/blog/2013/10/22/personalized-customer-service-is-about-respect-not-about-spying
(Accessed: 10 June 2015).

Ontario, N., (2015) Types of Innovation. [Online]
Available at: http://www.nwoinnovation.ca/article/types-of-innovation-355.asp
(Accessed: 10 June 2015).

Vadim, K., (2015) Radical Innovation. [Online]
Available at: http://www.1000ventures.com/business_guide/innovation_radical_def.html
(Accessed: 12 June 2015).