Innovation And Entrepreneurship

Question: Discuss about theInnovation And Entrepreneurship. Answer: Introduction Innovation refers to the process of converting a unique idea or invention into a service or a product that is of value to customers who are willing to pay for it. While ideas are many, for them to qualify to become an invention, they must be replicable at an economical value that being able to satisfy the specific needs of the end customers (Pisano, 2015). Incremental advances of technology results in evolutionary innovations. This is in direct contrast to revolutionary innovations that are disruptive and abrupt in nature (Corona-Trevino, 2016). We can therefore conclude that while innovation leads to profits; it is also synonymous with risk taking. An in-depth understanding of the end user, his needs and the ability to satisfy these needs are intrinsic to successful innovation. Need For Innovation Unfortunately, despite the huge investments of efforts, time and money, many organizations are unable to capitalize on the opportunities that are presented to them (Pisano, 2015). Innovation is essential to shaping the success of any new venture. However, the innovative processes need to be managed in a proper manner in order for the organization to reap the benefits of the process. We can see several interesting examples of innovation that captured the minds of consumers and lead to a significant boost to the profitability of the organization. This includes the introduction of ATMs by Citibank; the Walkman from Sony; the introduction of radial tires by Michelin and even the introduction of text processors that have contributed to the demise of the humble typewriter. Conversely all unresolved problems are lost opportunities for organizations which tend to suffer financial losses as a result of the inability to capitalize on the opportunity presented to them. The very concept of open innovation aims at creating inflows as well as outflows of knowledge so as to initiate and contribute to internal innovation (Corona-Trevino, 2016). Relationship Between Innovation and Entrepreneurship A combination of innovation, pro-activeness and risk taking are necessary for any entrepreneurship to kick off (Pisano, 2015). Conversely, entrepreneurship may be defined as the willingness of an organization to support risk while encouraging creativity and being flexible. This process helps ensure the renewal of the organization. While there are many who argue that any change that occurs externally necessitates an internal change merely because it insists on the organizations change so as to ensure its survival. Needless to say, successful companies tend to initiate changes in not just technology or marketing; but also in the organization as a whole in response to changes in the external environment (Rosenbusch, Brinckmann, Bausch, 2011). The emphasis here is on proactive, innovative strategies that include an element of risk taking for the organization (Pisano, 2015). We can, in fact, state that corporate entrepreneurship is known to contribute to the survival of the firm and its consistent performance (Barringer Bluedorn, 1999). Innovation is known to have a positive effect on the performance of all organizations involved in the process including SMEs (Rosenbusch, Brinckmann, Bausch, 2011). Identifying Niches, Target Audiences and Innovation Innovation is all about identifying the needs of or creating needs in end consumers. In other words, we can say that need is the single component that drives innovation across industries. The need may be through the identification of consumers wants (demand pull approach) or the creation of a need in the market (a supply-push approach). For instance the introduction of ATM cards can be considered a supply-push approach, while the introduction of the word processor may be classified as a demand-pull approach. The key element to be concerned is that entrepreneurs tend to argue that the idea under discussion is unique and offers a completive edge over their rivals (Rosenbusch, Brinckmann, Bausch, 2011). Smaller industries can capitalize on their advantages of quick implementation and innovative practices to pose a threat to larger and more established firms (Rosenbusch, Brinckmann, Bausch, 2011). Innovative Entrepreneuership and Differential Thinking We an see that innovative entrepreneurs tend to think and react differently when compared to their peers who are more laidback. Some the key traits that distinguish innovative entrepreneurs are (Bessant Todd, 2007) The ability to identify potential innovations ahead of their peers Being lazy as it provides incentive to complete a task with lesser efforts and higher efficiency Constant note takers who tend to jot down minute details The ability to strike a balance between perfection and practice Channelize fear to achieve innovation Enjoy disruptive as well as evolutionary innovation Are multi-faceted and able to think out of the box Thus, entrepreneurs are self-motivated and feel the need to constantly innovate processes and goods (Huszar, Pronay, Buzas, 2016). In fact, it would be accurate to state that successful innovations exploit change for the benefit of the concerned persons. It is essential that organizations are ready to abandon the familiar and embrace change for the success of the entrepreneurship. Emerging Technologies andEntrepreneuership Systematic innovation involves an organized and purposeful approach to changes, which we couple with a systematic analysis of the impact of these changes on the economy and society. We can clearly see that innovation is intrinsic to economic growth (Corona-Trevino, 2016). In other words, the introduction of innovative products and services, through innovative technologies are essential for the continued growth of any organization (Arafeh, 2016). Thus the seeds of innovation are needed for organizations to capitalize on them so as to generate profits for the organization as a whole (Pisano, 2015). However, while innovation is essential for technology based organizations, it is not a guarantee for success (Martin, 1994). The financial constraints and the global economic forces have contributed to the need for innovation based firms in the present economic situation. Innovation starts with a strategy that cuts across all departments and hierarchy levels in an organization (Pisano, 2015) . It can also be argued that innovation and performance are closely linked with each other (Rosenbusch, Brinckmann, Bausch, 2011). We therefore observe the existence of two predominant approaches to the manner in which emerging technologies impact entrepreneurship, viz., the supply-push approach d the demand pull approach. While the supply push approach is a more aggressive approach; the demand pull approach tends to be more proactive. As the names suggest, the demand-pull approach is identifying a need among the end consumers and being able to cater to them though the implementation f an emerging technology. A supply-push approach however means finding a product that is found to be economically viable and then creating market for the same using aggressive marketing technologies. This tends to involve a more aggressive marketing effort for creating he need for product or service as opposed to the former approach of merely catering to an existing demand (Pisano, 2015). Steps in Creatung and Implementing an Innovative Strategy Innovation needs to be conceptualized within his organization (Corona-Trevino, 2016). We have identified four steps in creating and maintaining an innovative strategy. The first step is identifying the need for innovation so as to create value for customer and the company. The second step involves the creation of a strategic plan for resource allocation in order to encourage innovation and innovative thinking. The third step is a more economic related initiative and is concerned with creating trade off between the needs of the consumer and the company. This step involves a significant amount of customer involvement. The final step is the need to recognize and identify those strategies that need to evolve so as to continue to be innovative for the consumer and the company, thereby generating benefits for the organization a whole (Pisano, 2015). The strategy highlights the need for simple initiatives like being prepared for contingencies, providing new insights into the process, and influencing the performance of the persons involved in the innovation (Rosenbusch, Brinckmann, Bausch, 2011). The question that is always faced by entrepreneurs is the extent to which entrepreneurs need be concerned about the impact of innovation on existing processes as well as the need for internal innovation in the organization. We can observe that while there continues to be a constant influx of young risk takers looking at a challenging existing processes, innovation that is both economical as well as viable is needed for the success of the organization (Zimmerer Scarborough, 2008). Conclusion All organizations that work across borders tend to be overwhelmed by the cross cultural environment in which they operate. They tend to be exposed to interesting challenges, opportunities and threats that have no precedent. The present day entrepreneur is not only concerned about profits, but is also keen on contributing to society. Therefore, we now see a new breed of innovative entrepreneurs who look at innovation as a means of contributing to society in general as compared to the vastly different nature of their counterparts roughly a decade ago. Innovation is thus a tool to exploit change, which we can achieve though a disciplined approach. Innovation has thus evolved as an adaptation of the changing business, and economic environment. We can thus safely conclude that the longevity of an enterprise is dependent on the level of innovation it is willing to embrace. References Arafeh, L. (2016). An entrepreneurial key competencies model. 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