The paper "Importance of Innovation, Its Examples and Implications of Practice" is a perfect example of marketing coursework. Innovation refers to the creation of more effective processes, technologies, products, and ideas, which are acceptable by governments, society, and markets. This is concept is different from the invention in that it entails considerable positive change rather than incremental change. In the corporate world, innovation is highly indispensable because it speeds up business growth. It helps in the advancement of communication and transport. This paper focuses on the importance of innovation, its examples, and implications of practice to marketing managers. Types of innovation and its importance There are different types of innovation in business, which include product innovation, process innovation, marketing, supply chain innovation.
First, product innovation involves the introduction of a new, improved service or product in the market. Process innovation involves the implementation of an enhanced and new production or method of delivery. On the other hand, supply chain innovation entails a change in the output products delivery and input products sourcing. In marketing innovation, there is an evolution of new marketing methods that have enhanced packaging, design, pricing and promotion (Verhees & Meulenberg, 2004, pp.
35-45). In the contemporary business scenario, innovation is highly essential since it helps in the effective implementation of a strategic plan. It is also argued that innovation is of immense significance in the creation of wealth. Baker and Sinkula (2009, pp. 56-62) argue technological revolutions and business ideas result from a measured and planned combination of objects, ideas, and people. Besides, valuable innovations are those that involve the introduction of new services and products that are strong enough to advance through painstaking commercialization processes. In addition, Aaker and Mills (2005, pp.
68-70) assert that an organization’ s competition and demand are key factors affecting innovation in business. Besides, productivity and innovation are determined by the intensity of competition in it. Moreover, in addition to services and products, innovation entails new management methods, business systems, and processes that are influential in growth and productivity. Therefore, innovation is highly essential in current society more than before. Apart from valuing and widening employment base, innovation improves the world for the coming generations.
Nevertheless, its significance lies in its ability to enhance the quality of life in the present hard economic times. Examples of innovation in various companies in the world In order to understand the essentiality of innovation in current businesses, it is vital to study some of the instances in which innovation has been used. The first case of innovation involves the GE Capital and Hyundai companies. The two organizations have participated in open innovation that is instrumental in the growth of their businesses through effective marketing strategy. The two firms clearly demonstrate how companies can successfully engage open innovation, in the financial industry.
They have managed this through their merger activities with different intentions. Hyundai’ s aim in this was to seek an investor that would help in the recovery of losses incurred from its credit card business (Lubinski, 2000, pp. 45-50).
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