Essay Sample on Innovation: Processes and Procedures to Increase Profitability

Introduction

Innovation processes and procedures are methods that try to push the company or firm into embracing new techniques that can positively steer the organization to reach new heights or more so increase the profitability of the business being conducted respectively. These methods help companies maintain their competitive nature and drive to keep up with the advancement and changes in the business environment hence making the company remain relevant all through. This work will provide a precise analysis of the different reasons entrepreneurs go for innovative opportunities.

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Competition

Competition stands out as typical drive as to why entrepreneurs come up with innovative ideas. The pressure from other competitive business setups triggers creative ideas in an organization as a firm may feel it is lagging in terms of revenues or profit margins hence opt for new methods that will enable it to continue its relevance or subsequent dominance in a respective field or industry. Renko, El Tarabishy, Carsrud, and Brannback, (2015) explain that the drive-by competitors to incorporate new methods, products or services in the market usually does specific businesses to make losses as consumers go for these new incentives bearing in mind that what is being offered is an upgrade to what the market previously provided. Entrepreneurs seek innovative opportunities to ensure their business setup and administration remains competitive and profitable throughout its operations. Products can be changed or new services introduced to encourage proper customers to stay loyal or more so attract new customers with the latest products and services being introduced into the market plan of the respective business.

Advancing Technology

The increased sophistication in the technological industry triggers entrepreneurs to ensure their respective businesses can keep up with the advancements present on the market. Small and large companies are expected to improve their operations and modes of doing business as a failure to accept changes may affect the company negatively leading to unprecedented losses that could have been avoided. Business owners may upgrade to better machinery and office equipment to enable the respective company to deliver reputable results on what is expected in the market. An entrepreneur may prefer to introduce new soft wares and systems that can help ease the operations hence a clear indication on how advancing technology help steer companies into making changes that can speed up the production process and productivity to be specific. Incorporation of social media platforms in the current world also triggers entrepreneurs to ensure their businesses can meet the market demand and technological delivery system to be exact. Consumers in the modern age prefer to conduct their business through online platforms hence the company may be prompted to majorly advertise its products on these sites to access more customers and more specifically to enable its respective customers to be able to access these services on online platforms the world is thriving in, consequently.

Consumer Expectation

Consumer expectations have continued to increase over time as the market exists in different platforms in manners, which the consumer's preference plays a crucial role in designing the services and products in which a company offers or produces. Tidd and Bessant (2018) agree that modern customers are more knowledgeable and informed with what they want and more so what is right for them. Hence producing of mediocre products or offering subpar services are scrutinized through platforms such as the online social media handles of respective companies consequently the company's image may be tarnished which shows how this aspect plays a crucial role in affecting the consequent businesses. Therefore, entrepreneurs may be forced to innovate their strategies in a way that product composition may be changed to meet the market demand or more so, what is profitable in the market. The increasing consumer expectation should guide companies in ensuring they deliver what is expected of them as failure to meet such demands may lead to subsequent losses and drop in customer influence. Entrepreneurs continue to invest and innovate based on what is marketable in the business platform.

Globalization

Increasing globalization triggers entrepreneurs to consider innovative opportunities and methods that can help establish the respective business in different markets across the globe. Outdated market plans and strategies that do not effectively promote and advertise the business properly are scrapped off and new methods incorporated to help strengthen the respective business's dominance and reputation in new markets. George, Parida, Lahti, and Wincent, (2016) explain that the global access triggers business owners to reconsider their respective market target as entrepreneurs may find expanding the business to new market may increase the profit margins and customer reviews. Hence this encourages business administrators to change their market strategy in a way that the company is innovated to compete in foreign markets effectively. Proper advertising strategies can be laid down, such as employing IT administrators and brand ambassadors that can help elevate the image and general outlook of the business. The more companies continue to package themselves for the entire world motivates entrepreneurs to make changes in companies that had not taken this path hence one is triggered to keep up with what other business setups are trying to do on the online and global platforms.

Conclusion

Entrepreneurs are triggered with new methods that can help improve their business setups to keep up with what is expected of them in the market. Profitability and delivery of expected services help in steering these entrepreneurs to ensure their business setups can satisfy customers' needs and demands. Thus such innovative decisions help in improving the general performance of companies.

References

Renko, M., El Tarabishy, A., Carsrud, A. L., & Brannback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), 54-74.

Tidd, J., & Bessant, J. R. (2018). Managing innovation: integrating technological, market, and organizational change. John Wiley & Sons.

George, N. M., Parida, V., Lahti, T., & Wincent, J. (2016). A systematic literature review of entrepreneurial opportunity recognition: insights on influencing factors. International Entrepreneurship and Management Journal, 12(2), 309-350.