Saturday, 18 June 2016

IMPORTANCE OF INNOVATION AND CREATIVITY FOR SUCCESS OF AN ORGANIZATION


Innovation is the process of creating and implementing a new idea. It is the process of taking useful ideas and converting them into useful products; services or processes or methods of operation. These useful ideas are the result of creativity, which is the prerequisite for innovation. Creativity in the ability to combine ideas in a unique way or to make useful association among ideas. Creativity provides new ideas for quality improvement in organizations and innovation puts these ideas into action.
Change and innovation are closely related, even though they are not the same. Change often involves new and better ideas. The new idea may be the creation of a new product or process or it can be an idea about how to change completely the way business is carried out. Successful organisations understand that both innovation and change are required to satisfy their most important stake holders.

For both established organisations as well as new organisations, innovation and change become important in a dynamic, changing environment. When a company fails to innovate and change as needed, its customers, employees and the community at large can all suffer. The ability to manage innovation and change is an essential part of a manager’s competencies.

Technical innovation involves creation of new goods and services. Many technical innovations occur through research and development efforts intended to satisfy demanding customers who are always seeking, new, better, faster and/or cheaper products.

Administrative innovation occurs when creation of a new organisation design better supports the creation, production and delivery of goods and services.
 
The various types of innovation often go hand in hand. For example, the rapid development of business to business e-commerce represents process innovation. But this new process requires many technical innovations in computer hardware and software. Also as firms began to use business to business e-commerce, administrative innovation soon followed. Further, implementation of process innovations necessitated organisational change. Doing something new means doing something differently. Thus, innovation and organisational change go hand in hand.
 
BY ALPHONCE BHOKE BAPRM 42527

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