Bussiness Innovation Essay Example | Topics and Well Written Essays - 2000 words

Bussiness Innovation - Essay Example Simply, innovation can be any item, thought, & process, which is new to a specific area but not essentially to the whole world. According to Austrian economist Schumpeter, J. A. (1982)1, there are 5 cases of innovation, such as- Dynamically Continuous Innovation: It involves the creation & radical change of a product. Example is compact disks as in case of this, 2 dependable factors are regarded. Like- dependence on the application & dependence on originality. Relative Advantage: This idea can be judged on the basis of other facts like advantage of storage or unpredictable & uncontrollable facts like war because relative advantage in innovation do not require so many labors who may be absent in the war time. Complexity: If the innovation is hard to understand or least perceived value to implement, the adopter will consume it less. For example, though the online trade policy of Amazon.Com is easy, for a person who does not use internet system will be very much intimidating. Communicability: It simply states that when the advantage of innovation does not promptly solve a consumer’s problem, it will refuse to diffuse through a community or society relative to the innovation that is more appropriate for problem solution.4 According to â€Å"Smart Spenders, 1000 Global Innovation† which is an article in strategy & business magazine, writers like Rakesh Bordia, Barry Jaruzelski, and Kevin Dehoff have identified 4 basic stages of innovation. But we can elaborate these stages into 8 major parts that are described below- Business Analysis: - Once management has decided on its product concept & marketing strategy, it can evaluate the business attractiveness of the proposal which involves a review of the sales, cost & profit projections for a new product to find out whether they satisfies the company’s objectives.6 Product Development: - For many new product concepts, the product may have existed only as a word description, a drawing,