Script

Innovation

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Introduction:

Would you believe it that today, humans become more of an innovator than an inventor?

Innovation is formally defined as adding a new idea in something that already exists. It means that the thing is there already but we have to add something to that thing so that it would be more valuable and add economic values to give more values also to the user.

The concept of innovation started during the industrial period where technology advances become the businesses competitive advances. Business enterprises must be innovative so that they would add value to their products and services. Also, customers will be more attracted to products and services that have more values and can respond to their needs.

There are various types of innovation but the most popular types are product/service and process innovation. Product and service innovation means adding more values to the product/service so that they would have more values to customers. With more product/service features come increased in economic costs and this would mean increased in profitability. In addition, process innovation means that there is a better way to produce a product or service.

The following are causes why innovation is becoming popular. Businesses today have close competitions. One of the causes of innovation is product differentiation. When product is different from the competitors, there is no product substitute. Also, innovation is the result of businesses that have big budget for their R&D.

The effects of innovation for a business is definitely for the company increased in sales, productivity and subsequently it would result to increased profitability.

Again, innovation has advantages. First, it would increase productivity and profits. Second, the business will have the opportunity for expansion that would result to knowledge sharing, technology transfer and economies of scales. The advantages of practicing innovation is it would entail costs for the company that may not be a part of its budget, hence a decrease in profit.

The best solution for the adoption of innovation is for the company to include innovation as part of its business and corporate strategies. Organizations in the UAE especially business enterprises should adopt innovation because of the increased competition and also because the business industry in the UAE is now becoming very dynamic and competitive.

In conclusion, innovation is not only for one organization to compete but it is adding value to the product and service that would be more inviting for the potential customers.