Value of Concept of Innovation - Essay Example

Value of Concept Innovation Value of Concept Innovation Innovation is defined as the creation of value for a process or product and the idea of capturing that value through different ways. Innovation might lead to a positive and an efficacious change. It may also be defined as doing something new to the business. It helps the company to gain new profits from the market. In order for an innovation to get accepted it is important that one should make a strong case for his innovation, Furthermore, it is also important that the person who gives the idea of innovation shows the strategy behind the implementation.

The acceptance of an idea of innovation by the higher management is a combination of many steps that eventually results in change of culture within the organization. In order for an innovation to materialize it is important to empower employees all from the lower lever to the upper most level, to provide entrepreneurial initiatives which are accompanied with strategy goals (Innovationmanagement.se, n.d.). Value and innovation often go hand in hand and in order to increase business value through innovation, it is important that the company analyzes both the opportunities and risks that it may face during the implementation of that innovation.

There are four key points that can help an organization to achieve value of innovation; and this is termed as the innovation performance framework. The innovation performance consists of Production innovation and technology strategy, management of portfolio, idea to launch process: stage gate and finally, culture and leadership. Product innovation strategy is an important key element that has the potential to make or break an idea and hence the lack of a strategy often results in trouble for the organization.

Portfolio management is to designate the resources and to make sure that the strategy is being achieved. Idea-to-launch process is a guide that helps progress each project from the initial step to the final one and includes all the minor and major processes that were required to achieve the final outcome. Climate and culture defines the behavior and values or ways through which a company behaves (Edgett, 2013). Business model canvas is a management tool that helps to develop strategies ad also helps in developing new business models and also suggests on improving the old one.

Business canvas model is one the most acclaimed methods both in the academic sector and the industrial sector which aids in the design of a business model, its development and improvisations (Shishkov, 2013). One successful example of the utilization of Business canvas model is by Apple inc. Apple changes the face of technology when it first introduced the Ipod to the consumers. With the help of Itunes, apple devices could download music and listen to that music all on one platform; although, Apple was not the first of its kind to introduce an mp3 player into the market.

However, the unique business model which was well executed allowed long lasting success of the product. The business model created by Apple consisted of a combination of the various key components that provided leverage to the product and helped to gain values (Martin, 2015). Another example of a company that has utilized the Business canvas model is LinkedIn which is considered as the largest network and has about 161 million members spread all over the world. Linked In provides a multi sided platform which solves the problems of various users by sorting them out into different categories of users.

LinkedIn is also considered an example of Freemium Business model which means that it offers most of its service to the customer free of cost. This premium offers Linked In mails and also the statistical information of a profile. LinkedIn promotes its networks by implementing the same side network effects which allows its users to spread or publicize about the website through word of mouth concept or through emails. LinkedIn also provides its users with solutions relating to the corporate world and offering of jobs.

LinkedIn recruiter is the basic source through which the hiring organizations hire the users on contract. The following picture depicts the LinkedIn business model over the business model canvas: (Bmimatters.com, 2012) The business model of Amazon which is the world’s largest internet retailer of the world is not as simple as many might think. Amazon is not only a retail market place for buyers but it is also a considered as the marketplace for previously used goods. Amazon.com has defined its lines of business and has divided itself into three sectors based upon the basic functions; online retail store, internet service provider and the Kindle ecosystem.

The business model canvas for Amazon.com is as follows: As can be easily accessed from the picture layout, the key partners of Amazon.com are the suppliers and manufacturers, networks of sellers and publishers, the Key activities are merchandising and production and design, whereas, the key resources are the warehouse, kindle platform and the development of web and application. One of the key features of Amazon’s business canvas model is that Amazon maintains certain things throughout its models such as the price and convenience being offered to the customers.

This allows Amazon to maintain its customer relationships and in this manner the company is expected to diversify into other relevant fields. Amazon.com has taken over the online retail world at the same time maintain the standards of a conventional retail business model (Noren, 2013). The business canvas model helps a company to achieve focus on the building blocks of the organization and helps to understand the relation between different processes and their links with one another. It helps the company to grow and expand and also helps the company to achieve qualitatively.

The business model canvas serves as a reference point for companies all over the world and hence any one can relate and compare their company with other in order to gain understanding and knowledge regarding the business model of that company. It is a great initiation point for a company who wishes to discover, build and develop to their utmost potential and play to their maximum abilities (Webb, 2014). References Innovationmanagement.se,. How do you Define Innovation and Make it Practical and Saleable to Senior Management?

| Innovation Management. Retrieved 19 May 2015, from http://www.innovationmanagement.se/imtool-articles/how-do-you-define-innovation-and-make-it-practical-and-saleable-to-senior-management/ Edgett, S. (2013). Innovation Excellence | Creating Innovation Value: Four Key Drivers to Success. Innovationexcellence.com. Retrieved 19 May 2015, from http://www.innovationexcellence.com/blog/2013/06/29/creating-innovation-value-four-key-drivers-to-success/?Itemid=92 Shishkov, B. (2013). Business modeling and software design.

Cham: Springer. Martin,. (2015). Business model generation, Corporate strategy Business Model Canvas: A Complete Guide. Entrepreneurial-insights.com. Retrieved 19 May 2015, from http://www.entrepreneurial-insights.com/business-model-canvas-complete-guide/ Bmimatters.com,. (2012). Business Model Canvas Examples | Understanding Business Models. Retrieved 19 May 2015, from http://bmimatters.com/tag/business-model-canvas-examples/ Noren, E. (2013). Analysis of the Amazon Business Model. Digitalbusinessmodelguru.com. Retrieved 19 May 2015, from http://www.

digitalbusinessmodelguru.com/ Webb, J. (2014). Advantages of the Business Model Canvas. Get2growth.com. Retrieved 19 May 2015, from http://get2growth.com/business-model-canvas/