Why are innovation activities important in organizational growth?

The minimum requirements for innovation are to create a new or fully improved product, process, marketing method, or organizational method for business use. A common feature of all innovations is that they must be implemented and implemented roundly.

The nature of innovative activities varies greatly from sector to sector and even from one organizational unit to another. Some units are involved with innovative projects such as designing and producing a new product, and in contrast, some other units are moving towards innovation with the aim of continuously improving and upgrading their product or processes. Both of these can be defined under the innovation process. In other words, innovation can include implementing a significant change or a set of small changes that collectively constitute a big change.

Successful innovation is strongly associated with financial performance. Innovation is one of the most important factors of economic growth and brings wide benefits to society. Creative ideas and discoveries raise living standards and affect many aspects of human life, including safety, health, quality of products, services, etc. They’re effective. The most important benefits of innovation at the organizational level are as follows:

Creating new business markets;

Reducing the cost of the products produced;

Efficient employee management;

Increasing market share and growth of the company’s product portfolio;

Increasing the profitability of the company;

Increasing competitiveness in the organization.

In addition to items like competitiveness and cost reduction, shortening the life term of technology and rapid replacement of new products, innovation is not only an attractive option but a necessity for the survival of today’s businesses.