Question

Innovation is a term that is frequently heard in the business world today.

Respond to the following questions in 500 600 words.

Why is innovation so important to an organization?

What is the entrepreneurial mindset, and how does it relate to innovation?

What are the two types of internal innovations? How are they different from each other? Explain, using one example of each typ

Answer 1

Innovation:

The development of new product is called as innovation, as where the product and services would be unique with creative ideas and high end technology.

Importance of innovation in an organization:

The importance of innovation in an organization is explained below:

1. Through innovation the company selects on different ideas and adapt towards the best which fits the business and execute on the same for the growth of the organization.
2. The innovation helps the company to sustain longer in the market on through manufacturing and producing on unique product and services, as where the competitors would not provide the same.
3. The profit of the organization would increase through Innovation, as where the customer attracted towards high technology and innovation.

Entrepreneur mind set on innovation:

The entrepreneur has a mind-set that the customer would expect on unique and differentiation of the product and services. The entrepreneurs innovate new technologies, culture etc of the organization to increase their market share and profit of the organization.

1. The entrepreneurs provide good innovative quality with low price strategy as that impact on increase revenue of the business.
2. Increase high competition in the market for the entrepreneurs through innovating differentiation product and services.

Types of internal innovation:

Internal innovation is a kind of innovation which takes place within the organization.

Two major types of internal innovations are

1. Product Innovation: Within organizations emphasize is given to always improve their products in order to be ahead of competition in the market.
2. Process Innovation: In order to ease difficult and complex work in organization process innovation are given much importance.

Differences:

The difference of two types of internal innovation is explained below.

Product Innovation	Process Innovation
To bring in new and attractive features in a product	To reduce complexity by cutting down unnecessary works
Bring in revenue to the organization.	Saved cost of the organization.
Competitor’s advantage is built.	Empowers employees