Innovation and Change

Introduction

Innovation is defined as exploiting new ideas leading to the creation of new products or services. Change is the response to the different variations in the external environment of the organization. The purpose of the essay is to define how innovation can help companies to increase their profits and stay ahead of the competition. Moreover it outlines how companies encounter difficulties in accepting innovation strategies and methods for using it within the organization. It also describes how a change in a company is not readily accepted and methods to solve the problem and the difference between innovation strategies and changes that companies make to compete in the market.

Body

Innovation is the formation of new creative ideas. Some companies see innovation as art of taking risks (Kuczmarski 2003). Successful growth of a company can be achieved through dedication to breakthrough innovation and adoption of an innovation mindset. Innovation of products and services results in larger profits, higher earnings and increased stock prices. Introduction of iPod by Apple created a huge profit for the company, the innovation of using hard drive technology and user friendly designs allowed them gain an advantage over the competition (Williams 2010). Innovation has to be one of the most important strategies in an organization and should permeate every aspect of its business. For an innovative idea to be successful the CEO has to develop the right strategies, allocate the right mix of resources and ensure a steady growth in earnings.

Innovation of products enhances company revenue. Products have to be completely renewed or updated for keeping a strong market presence. Change and improvement of products are regarded important for long term business growth. General Mills Inc’s Go-Gurt, the first ever portable yogurt in a tube is a good example of a product that made innovative ideas to establish in the market (Johne 1999). Moreover companies should have...