Question

What are the benefits of having innovation in business enterprises? Specifically in liquidity, controlling and literacy?

Answer 1

Q:What are the benefits of having innovation in business enterprises? Specifically in liquidity, controlling and literacy?

The successful exploitation of new ideas is crucial to a business being able to improve its processes, bring new and improved products and services to market, increase its efficiency and, most importantly, improve its profitability.

Innovation refers to creating and  implementing new ideas, improving services or creating dynamic products.It can act as a catalyst that can make your business grow and can help you adapt in the marketplace. By innovation, we mean changing your business model and making changes in the existing environment to deliver better products or services.

Some of the key practical benefits of innovation are:

• Improved productivity
• Reduced costs
• Increased competitiveness
• Improved brand recognition and value
• New partnerships and relationships
• Increased turnover and improved profitability

Innovation enables problem solving and provides creative insight that allows you to look at things from a different perspective, regardless of whether you are developing a new product, refreshing strategy or finding an original way to stay ahead of the competition.

Liquidity is your company's ability to pay the bills as they come due. We've all heard the saying "Cash is king,".There are many benefits included in the liquidity of enterprises...

• It will help ensure you have the proper cash flow levels for continued operations and company growth.
• Innnovations in financial liquidity allows a company to take advantage of opportunities as they arise. Because the company is able to quickly deploy cash when needed, this can also become an advantage over its competitors.

Organizational control has many varied benefits. Innovations in controlling help to better define an organization’s objectives so that employees and resources are focused on them. Benefits of controlling include,

• Improved communication, financial stability, increased productivity and efficiency, help in meeting annual goals, improved morale, legal compliance, improved quality control, and fraud and error prevention.
• Act as a safeguard against misuse of resources and facilitate corrective measures. Having good records means management will better understand what happened in the past and where change can be effective.
• Public companies are legally required to have extensive controls to protect stockholders, and good controls help a company to raise funds through stock and debt issuance. Innovation in these areas will increase the productivity of business.
• Employee morale may be higher when workers see that management is paying attention and knows what it is doing. better morale means better productivity. Better controls can mean more freedom and responsibility for employees. Management is able to step back a little, knowing that the controls will flag any exceptions.

Being financially literate can help you succeed in business. At a time when the demand for financial literacy is high and expected to climb, learning about finance can enable you to make better decisions, negotiate more effectively, and positively impact your organization. Whether you choose to read up on finance, network with other professionals, or take an online course, your financial literacy is in your hands.