Innovation is an idea which can change life completely, replacing the old with a new one. It is basically a conversion of some existing outdated norm into the latest ideas. This is not just centered to the older thing many times innovation is in the newly invented ideas and helps in generating profits in business.
In a book written by some great business person an idea is given precision which says that innovation is the center and a driving force for every business which helps in enlarging the chain of new market and customers. It has the power to re-structure the entire market scenario and even can turn the outlook of the customers towards itself.
Innovation is sometimes misunderstood as invention but actually invention is the base for innovation which means that the innovation takes place after invention. Invention is an outcome in the form of product etc and innovation turns the invention into the idea of earnings or profits. Customers are the whole and sole supporter for innovation.
Importance of innovation:
Innovation is one of the most important features which help the leaders in achieving strategic options easily. It improves the corporate existence which strengthens the company in both the cost perspective and also in terms of revenue growth. Another important feature is that it provides base to enter into new markets which simply means growth. Various companies have managed to gain status and success in the global markets by entering into variety business areas. The biggest example for this is P&G who entered into various sectors as a part of their innovation strategy.
Therefore innovation is nothing but a need for getting success in every area and every system.