Innovation in Companies (Essay Sample)

Innovation in companies
Companies are currently operating in a very complex and unpredictable business environment hence innovation is highly considered a survival skill. For this reason, innovation is not only natured as a culture but also as a fighting strategy in the competitive business environment (Kahn, 2018). There are many reasons why organizations are pushing for innovation opportunities. Companies may receive pressure from the internal environment or the external environment to adopt innovation to remain competitive. In this paper, four reasons that force companies from the external environment to embrace innovation have been discussed.
* Catching up with the high global competition: Today, businesses are operating in a very competitive environment that forces companies to strategize their operations to remain profitable (Klein, Schneider & Spieth, 2021). The global market also presents consistently changing demand patterns that can make technology be outdated after some shorter periods after launch. This, therefore, makes more innovative ideas very important for companies to be sustainable in the ever-changing market.
* The millennial era in business: Businesses are currently faced with the millennial era where young people are taking over from the aged. These young people are very creative and ready to take risks to come up with new ideas. Because of this, businesses must also aim to find very new and creative ideas to catch up and remain viable in the market. This makes innovation very important for companies to design their products and services in a manner that can make them maintain their market share or even extend their territories.
* Changing customer preferences: As years are elapsing and technologies coming and going, customer expectations are also changing. With the innovation of social media and e-commerce, consumers have been more aware of what is available in the market. With this kind of knowledge about products and services in the market, consumers are increasingly demanding that companies be able to provide exactly what they want. This means that companies are put to task to come up with new ideas that can help them provide the solution to the market demand. Therefore, innovation becomes the only goal for companies.
* Advancement in technology: The world is taking a new direction in terms of technology. Businesses are moving from contemporary operations to modern ways such as digital marketing, social media marketing, and generally e-commerce that get more sophisticated as time goes. One reason for these technologies is that they help increase business