Sunday, April 22, 2007

What is the importance of innovation in business?

Innovation is what gives life to a business in a market economy. The businesses that never get going or if they do, then fail or fail later under pressure of a changing economy or marketplace have all failed to innovate appropriately.

What is appropriately? "Necessity is the mother of invention." This is all very Darwinian. Only the fittest survive. Fit means passing the test of a changing marketplace which means learning that what had value yesterday may be, without innovation, un-competitive today. It means learning that the greatest potential value is almost always in something that is presently unknown,

Unfortunately, making money in the short term is always a matter of implementation - design the product/service, make the product, sell the product/service, deliver the product/service. Every step of the way is an opportunity for innovation. But, unlike innovation, implementation can be predictably costed and scheduled and so it is implementation that often receives disproportionate management attention.

A sustainable business needs coexisting implementation and innovation.

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