Question

Define innovation and explain any five ways in which innovation may be linked to performance and growth in the organizational context

Answer 1

Innovation in general sense means a unique idea but it is not restricted to it. Innovation in today's world means translating a new idea into goods or services so that this unique idea may create some value to the society and public in general. There are three types of innovations

Product innovation: when demand for existing product is declining then company wants to introduce new products.

Process innovation: when company wants to continue with the existing product but to minimize cost of production and selling and distribution then this innovation is implemented

Bussiness model or structural innovation: this is not a frequent since it is related to the changes in management.

The innovation may be linked to performance and growth of the organisation as follows:

Organisation should turn towards participative culture from authoritarian culture so that workers can feel that they are part of a big goal and they can align their individual goal to that.(structural innovation)

Customisation of products can aslo increase the demand of existing products today's IT industry is the best example of this kind of innovation.(product innovation)

Trading in new or significantly advanced products.(product innovation)

Implementing teachonlogical advancement in production processes so that overall cost can be minimized for example a new machine that can do the work of 20 workers (process innovation)

If there is no new product in which organisation can trade then it should change priorties of sales department from product focused to customer focused.(structural innovation)