CCI - Business Plannin - Essay Example

Change and Innovation in Business Planning “Innovation changes a business plan pretty much as a reflection of how it changes a business” (Berry, 2009). Change and innovation in business is not necessarily about spending the existing resources to incorporate new technology in the existing setup of the business. Change and innovation can also be about changing the work methodology in the business planning process in such a way that lesser resources are consumed without having any adverse impact on the productivity or profitability of a business.

For example, let’s suppose a business transforms from the tradition production process to lean manufacturing. “Lean manufacturing is a manufacturing strategy that seeks to produce a high level of throughput with a minimum of inventory” (Blacharski, 2012). This way, both the direct and the overhead costs of the business are reduced since the products are manufactured and delivered only when they are required and in as much quantity as is required. This not only reduces the wastage of materials but also saves the company the cost of waste disposal.

In addition to that, the reduced amount of waste has a positive impact on the company’s image in the eyes of the stakeholders and the public at large. Uncertainty is definite to come with innovation because wherever there is innovation, something not done before is being done. It might take some time for the business to derive the benefits of innovation, but the long term effects are definitely favorable and provide the companies with different kinds of competitive advantages. References:Berry, T.

(2009, Feb. 23). How Does Innovation Fit into a Business Plan? Retrieved from http://timberry.bplans.com/2009/02/how-does-innovation-fit-into-a-business-plan.html. Blacharski, D. (2012, July 12). What is Lean Manufacturing? Retrieved from http://www.wisegeek.com/what-is-lean-manufacturing.htm.