Innovative Products and Services

Business Management Tasks
Task 3

Innovation is about creating a new way of doing something or creating something that completely new. The objective of innovation is to make improvements in how the company performs. In an effort to obtain a competitive advantage they are modeling their work views after those of smaller companies and making their work environments ones that are flexible and promote innovation and creativity. There are many reasons an entrepreneurial organization looks for innovative opportunities such as: new products and services, maximizing efficiency, improve brand recognition, and product and service differentiation.

1. New products or services.

Creating a new product or service is one of the most common forms of innovation. A new product may be a new version of an already popular item or a completely new idea. Consumers, who have used the older version of a product and liked it, will typically purchase a newer version or a new product that has been released. Consumers will stick with a brand they know and trust.

2. Maximize efficiency

When a company is the first to introduce new high-tech innovations, either as a service or product, they are more efficient. Being more efficient not only will lower costs and will increase the company’s profits. An example of this is when a company adds some new innovations in the production process. This increases accuracy and there are less product defects and inconsistencies which reduces internal failure costs. 3. Improve brand image

A company’s brand image is the opinion and portrayal the consumer about the company. The consumer is not just buying what the company in selling but also the image linked to the product or service. The brand image is what also sets a company apart from another company that is selling a similar item. An innovative idea that conveys the company’s vision in a unique way or above those of its competitors will be successful. A memorable song or slogan or updating the look can make people want to purchase a product. 4. Product or Service Differentiation

If a company can effectively differentiate its product or service it will give them a competitive advantage. To do this there needs to be a physical or value difference to set the company apart from its competitors. An innovative change in the products target market, create unique features, improving its durability, enhancing the coloring, having a good track record for reliability or terrific service plan will all help differentiate the company’s product or service from others in the market. If the company does this effectively it will enhance their products and their marketability.