Why innovation is crucial to an organization's success?

"Innovation distinguishes between a leader and a follower"  -- Steve Jobs

The word, Innovation has become a trendy hashtag and in the last few years it is seen that all the organizations are interested in being "innovative". We all know the reason for this publicity is the success of the startups like UBER, PHONEPE, BOOKMYSHOW, MAKEMYTRIP etc.

First, we need to know what actually this 'innovation' is. Two vague perception is held by a lot of people about this word.

Innovation is not creation :

A lot of us believe that innovation is creating something out if the blue, an idea. It's just not an idea but many other factors are there to be considered. For example, if an organization wants to innovate, they have to create something new which will make their productivity increase without going out of budget. They also have to do research about it's realistic approach before implementing it. Without having a future plan, an organization don't usually go for innovation. So, innovation is the smooth existence of 'invention' and 'market' together.

Innovation isn't the synonym of Startups :

People easily fall in love with Facebook having a huge popularity in the world or Ola and Uber becoming powerful names in the cab market without having their own cab or Bookmyshow becoming popular without having their own multiplex or Paytm and Phonepe became great names without having their own banks. But these are not the only places where innovation exists. It can exist out of the software industry as well. It doesn't have to be the next Google or Microsoft with massive public relation behind it. Sometimes, "it's those quite achievers who can make just as big an impact without having to be ostentatious about it". WeWork is an innovative concept, providing entrepreneurs a place to work when their home, the public library or Starbucks won’t do any longer. The company has 174 office locations in 46 cities around the world. When an organization sets a creative work culture for their long-term success, that's also innovation. Innovation is something that solves a difficult problem differently without using much resource.

Why innovation is needed in an organization?

Solve Problems Easily :

When an organization gets innovative minds in their workforce, it solves difficult problems easier than others which increases the productivity and beats the competitors. A little innovation produces  great products or services.

 Meet Customer Needs :

People have too many things in their conscious and subconscious minds. For example, today they're preferring paying for bus tickets by cash. Tomorrow if there will be chance to buy ticket online, they will go for that. So, in order to remain in the market, organizations need to evolve themselves and innovate to have good hold on their customers.

Attracting Talent :

When an organization has innovative work culture, resumes pile in the mailbox. Because if you have innovative work culture then only you can attract those talents who are going to invent the next big thing. The more innovative people you have in your team, the more you will grow. Because innovative people love to be challenged and encouraged regularly.

Creating Brand Name :

People have a tendency to remember the unique. For example, companies are coming up with innovative marketing ideas to create their brand name. The giant of current telecom industry, Jio has grabbed the market with their innovative marketing approach.

Making Most of Current Resource :

Innovation doesn't only lessen the cost, time and efforts involved it also increases the productivity, quality and engagement. For example, online coaching apps can reach out to more people without using extra cost, time and effort. Innovation has direct impact on performance and profitability. Recent studies show that innovative companies not only grow faster but makes more profit.

Opportunity to Play in the Global Market :

With the advancement of Technology, another example of technology, both small and big organizations can get knowledge about the Global Market Trend and can actually compete with business from other countries with their innovative approach which will lead to the growth of the organization.

Stability :

Change is the ultimate truth. Our likes, perceptions, dislikes, behavior changes with the time. An organization must innovate to match the requirements of its clients and stay in the market for the long time. Not only startups should innovate to grow but also big organizations should innovate to ensure their existence. We should not forget what had happened to Nokia as they were too late to understand about the importance of software. In fact, according to Deloitte, only 12% of the Fortune 500 companies from 1955 are still in business and half of the S&P 500 companies will be replaced in the next ten years.

Innovation Repeats itself :

Innovation repeat itself. For example, Mobile Phone brands comes with new models at least once a year. A company which innovates, always try to produce something better. This competitive work culture makes the organization confident, healthy and active.

When there's so many reasons to innovate, every organization should at least try to innovate. The quote, "Practice makes perfect" is applicable here. Believe in the quote,

“If you look at history, innovation doesn’t come just from giving people incentives; it comes from creating environments where their ideas can connect." by Steven Johnson.

Start small, start today and keep it growing every day.