Why should companies innovate?

Reasons for enterprises to innovate:

Innovation is necessary in enterprises. If enterprises do not rely on innovation to maintain permanent vitality and create new profit margins, then enterprises can only take one step. Stepping towards the abyss of decline.

Innovation is the inexhaustible source of vitality for an enterprise. Because society is constantly progressing, the times are constantly developing, and people's needs are constantly changing. If a company cannot meet the needs of consumers and keep up with the pace of the times, it will be destroyed from the market and from consumption. disappear in the eyes of the beholder. And only companies that know how to continuously innovate as the market changes can gain eternal life in the market.

Innovation is to enhance the competitiveness of enterprises. If we use our awareness of innovation to improve production methods and organizational structures, improve the products produced, and open up and find new raw material origins and markets, then we will There is enough room to reduce costs, thereby enhancing competitiveness in the market, to obtain huge profits and the right to exist permanently in the market.

Innovation can fully and effectively make full use of the human resources of the enterprise, which is an important link in management innovation. Talents are the vitality of enterprise development. Through reasonable human resources management, we must attract a large number of capable and capable employees. Thoughtful and motivated talents promote the effective advancement of various tasks of the enterprise.

Under market economy conditions and in the era of knowledge economy, as the marketing environment changes, corporate marketing activities face many challenges. Many problems need to be solved through marketing innovation, so companies should continue to Innovation.

Enterprise innovation is an important part of enterprise management. It is the key factor that determines the company's development direction, development scale and development speed. From the entire company management to specific business operations, corporate innovation runs through every department and every detail. Enterprise innovation involves issues such as organizational innovation, technological innovation, management innovation, strategic innovation, etc. Moreover, issues in various aspects do not consider innovation in one aspect in isolation, but must consider the development of the entire enterprise in an all-round way, because innovation in all aspects There is a strong correlation.

How enterprises achieve innovation

In a highly interconnected society, enterprise innovation faces severe challenges. Nowadays, the disruptive impact of digital technology, new products and services are constantly emerging in the market, which is both an opportunity and a challenge for enterprises, because it may be quickly accepted by the market, or it may decline quickly.

Due to the chaos and cross-border competition in various industries, competitors come from all directions, leaving companies overwhelmed. The more changing the environment, the more important innovation becomes. Since the market needs new products and services that are fast, cost-effective, and new, corporate innovation needs to meet four requirements:

(1) Accurate positioning and accurate positioning The pain points of the market and consumers.

(2) The speed is fast, and the innovation cycle must be shortened.

(3) The price is low, and the cost of innovation must be managed more effectively to achieve both high quality and low price.

(4) Multi-dimensional, don’t be limited to traditional technological innovation.

Open Innovation

Enterprises need to open the door to innovation and establish an open innovation system. Innovation is not limited to technological innovation in the traditional sense, but also comprehensive innovation in processes and business models. So, what is open innovation? It advocates maximizing the use of external resources and introducing innovative subjects to participate in the enterprise's innovation process in order to improve innovation performance and achieve innovation goals.

Although high degree of interconnectivity has created new challenges for enterprise innovation, it has also provided powerful technical tools for enterprises to use external brains to carry out open innovation. It is precisely because of the advancement of these technical tools , enterprises have the ability to search and collect new technologies and new services. The boundaries of enterprise innovation centers continue to expand, including consumers, suppliers, partners, individual experts and institutions into their own innovation resources. .

Internal innovation

The relationship between innovation and innovation is not opposite, but mutually reinforcing.

When it is necessary to rely on external forces, you can judge by the following two points:

(1) The external environment in which the enterprise is located. When the external environment changes drastically, is highly complex, and has many uncertainties, it is difficult for companies to respond with their own resources alone, or the risk of independent action is too high.

(2) The scope and degree of influence of corporate innovation. Compared with the R&D innovation of a single product and the major organizational changes across departments and divisions, the latter requires more and more complex technical reserves, management capabilities, and innovation resources, which makes the demand for external resources more urgent.

Methods for starting a business

First of all, companies must adjust their development strategies in a timely manner. Whenever the environment changes drastically, it is a signal that the company should change, that is, it needs to innovate to keep up with the times. To this end, enterprises should formulate new development strategies, point out the direction for the development of enterprises, and meet the needs of consumers at all times. This is the eternal way for an enterprise to survive

Secondly, enterprises should pay attention to the introduction of technology . Today, when technology advances at such a rapid pace, it is unrealistic for a company to master all technologies. To this end, enterprises should use various channels as much as possible to introduce various technologies and management experience suitable for enterprise development. After all, the power of an enterprise is limited, which requires enterprises to strengthen cooperation with relevant enterprises to achieve a win-win situation.

At the same time, companies also need to have their own core technology. If they want to cooperate with powerful companies and achieve a win-win situation, they must have equal strength, that is, their own core technology. A company without core technology has no right to speak at the negotiation table. You can only passively accept others' choices, but cannot actively choose others. Even if you cooperate with a powerful company, you can only be regarded as a Those who do it cannot decide the fate of their own companies at all, they can only act based on the faces of others. Therefore, the presence or absence of core technology is also an influencing factor on whether a company can innovate.

Also, the ability of business managers to identify talents should be strengthened. The general managers and presidents of many companies may not have the awareness of innovation. Therefore, we cannot require all entrepreneurs to be like prophets and must be creative. If an entrepreneur can make good use of the creativity of others or subordinate employees, the same is true. A good entrepreneur. At the same time, relevant entrepreneurs should also pay attention to the latest international research trends. Not all entrepreneurs can see the profits of some technologies that have just come out of the laboratory, but entrepreneurs with a keen eye can see the profits at a glance and purchase their patents as early as possible to commercialize them. How to turn some random rocks into economically valuable ores is something every entrepreneur should consider.

Of course, we must be committed to the establishment of a learning organization in the enterprise. An innovative organizational culture is bound to cultivate a group of creative employees. Hold various technical academic exchange activities within the enterprise to promote organizational learning. Through the collision of knowledge from various people, new knowledge and inspiration are generated, and the organization's research and development are utilized. Only through comparison can we discover good ideas and innovate better.