Understanding Innovation
Innovation in every department is relevant to the development of the product, management methods, way of doing business and other areas. In every explanation of innovation, improvement or changing of the product or processes is common. In contrast to creativity, innovation starts with the introduction of a concept and progresses to the development of a new function (Tomizawa et al. 2020). The basic issue is that innovation does not imply creativity. While developing a new product might temporarily entice people, what is more, important than originality and invention is the process that might flow like a time cycle. By attaining maturity, other rivals might obtain manufacturing technology from which the company may profit. This study looks into the relevance of innovation and its critical role in the growth, survival, and success of businesses. The goal of this essay is to look at how innovation and change contribute to a company’s success and the country’s economic development. The example chosen for this paper is Apple Inc, and the country is the United States. Organizations have traditionally placed a premium on innovation.
Modern firms continue to thrive and prosper in today‘s business environment for a variety of reasons. Various companies are popular for their service, while some are popular for their products, and others are less clearly quantifiable qualities such as brand loyalty or intriguing advertising campaigns. Looking at companies that grab the attention of the public today as obvious leaders in their sectors, it is evident that they all have one thing in common – they accept innovation (Schot and Steinmueller 2018). Innovation is an idea that entails the method that an company or an individual performs that visualises new and fresh ideas, processes, and products or approaches ideas, processes, and products in new and fresh ways.
“Innovation” refers to the development of more efficient ideas, goods, and processes (Hendrickson et al. 2018). It might mean incorporating new ideas, developing dynamic commodities, or upgrading services for a business. It might act as a spark to help the firm expand and adapt in the market. Innovation id described as altering your company model and modifying your present environment in order to develop better products or services. Successful innovation should be a component of the business strategy, where the company can foster an imaginative culture and set the framework for creative thinking. It may also improve the company’s chances of success by implementing more efficient procedures that result in higher output and performance (Schot and Steinmueller 2018). To do so, company owners must be inventive and creative in order to find new opportunities. Attempt to adopt and create fresh ideas to help company outperform the competition.
In the business sector, a company might explore many sorts of innovations. These are usually linked to specific goods, business models or internal workflows or procedures. Several businesses use all three to promote development while responding to a continuously changing market. The inventive leaders embrace both newcomers, such as Amazon and Uber, which disrupted the status quo by changing core processes in their industries, and long-standing companies, such as Apple and Microsoft, which have been around for decades but owe their continued success to constant reinvention and innovation (Bjørnskov and Foss 2016).
The Relevance of Innovation in Business Growth
Apple is an excellent example of a company that has successfully accepted innovation at various points in its history (Li 2021). For example, in the 1990s, the company was on the point of bankruptcy however was able to save itself by establishing a connection with Microsoft, a business which had long been viewed as a competitor. This decision essentially impacted the whole business strategy of Apple, culminating with the launch of the iMac that served as a watershed moment for the corporation. Nevertheless, Apple’s partnership with Microsoft ushered in an age of imaginative risk-taking, culminating in the innovation of tech devices such as iPads, Apple Watches, Macbooks, iPhones, iPods, and others, as well as the launch of iTunes, that drastically changed the music business (Kerr 2016).
The rising demand for change and growth further offers an excellent deal of possibilities for companies. Almost 50 per cent of the US believe that in the last 50 years, advancement in technology has been the greatest advancement in life. Therefore, businesses that accept and implement innovation have a “hard sizable” benefit in eventually satisfying the needs of the consumers (Arkolakis et al. 2018). To put in other way, the business could not manage to stay in business if they do not embrace change and innovation (Coulson-Thomas 2016).
Apple is well recognized for embracing innovation in different units- services, software, and hardware. Due to innovation, $ 7 B sales and 8000 employees in the year 1997 turned to $ 260 B and 137000 employees in 2019. Much less well-known are the organizational architecture and accompanying leadership approach, which has been critical to the organization’s growth in innovation (Briganti and Samson 2019). The commitment of Apple Inc to innovation does not process determined. Rather, it is cultural. The main product of apple that was successful due to innovation was begun by a few individuals with no proper arrangement or pecking order as well as little business misunderstanding. However, to develop innovative ideas as well as fledgling technologies into a business which could persist in innovating for decades it necessities a lot of principles (Hendrickson et al. 2018). The company – Apple Inc has created an effectual innovation structure to make use of creativity in its employees, excite new and fresh concepts, rationalize the design method, and introduce profitable, successful new innovations. Some of Apple’s greatest innovations it’s that it created a cloud computing platform to assist web services of different businesses to run smarter and faster. However, Apple has also created a large business offering services to different businesses (Goyal Chawla and Bhatia 2016).
The eventual aim of business innovation is to generate sales and earn profit, regardless of the market condition (Goyal Chawla and Bhatia 2016). Innovation is a change in a fundamental business of a company that supports its revenue and growth, not a tiny modification or merely employing new technology since it is accessible. Innovation refers to observing and recording track of the direction of the market in answer to possible disruptions or any modification in the needs of the customers (Johnson 2018). Keeping up with customer knowledge enables company leaders to adapt to trends utilizing the purchase, development, and collaboration strategy.
A Case Study on Apple Inc.
Moreover, in many industries, innovation is currently the single most essential engine of competitive success. Many firms get more than one-third of their revenue from commodities produced in the previous five years. Product innovations help businesses maintain revenues by offering new, differentiating features (Arkolakis et al. 2018). Manufacturing becomes more efficient as a result of process advancements. Businesses must innovate in order to compete in a variety of industries. Technology and Strategic Management Over the previous decade, globalization has resulted in significant changes, and creative enterprises have grown considerably more competitive (Briganti and Samson 2019). Businesses must constantly innovate in the goods, processes, and services they deliver to clients in order to stay in the market and expand their market share.
As a result of the fast advancement of technology, client expectations and tastes are changing at a rapid and rising rate. As a result, for a company to thrive in the market, many innovations are typically required. The capacity to innovate is crucial for keeping GDP levels from falling due to economic cycles (Ahlstrom, Chang and Cheung 2019). Companies that want to stay in the market and compete with several competitors must continue to innovate. Businesses must be inventive in order to explore new choices. Clients have made changes depending on their preferences, and innovation is critical to meeting client expectations. As a result of technological innovation, many things may be redesigned. Technological innovation must accompany product innovation.
Furthermore, innovations play an important part in delivering economic growth and social prosperity (Yevgenyevna 2019). It strengthens contemporary business, lifestyles and the broader community. Nowadays, in the altering environment, the US not only accepts technology and service which was unimaginable a few time ago but has further learned to rely and anticipate on the ongoing production of fresh ideas and products. In the last few years, it has been demonstrated by the huge development in evolving technologies, including artificial intelligence (Ahlstrom, Chang and Cheung 2019). Economists have measured that roughly half of the yearly GDP growth of the US is credited to augmenting innovation. The regions and states which result in the alteration to the technology and knowledge found economy at present have huge benefits.
It is commonly agreed in economics that innovation is the primary engine of economic growth in cities, regions, and countries. Technological advancement enables more efficient manufacturing of more and better products and services, which serve as the foundations of prosperity (Bjørnskov and Foss 2016). The methods through which innovation is generated, accepted, and used in manufacturing, on the other hand, are complicated. Their extended study might yield significant new results in a variety of policy areas, including industrial policy, research and development policy, scientific policy, and regional and national development plans. Indeed, the notion of innovation, as well as the human and social abilities necessary for its development, may now be studied at a much finer grain level, potentially leading to contributions that benefit economic improvement, job creation, and higher education (Briganti and Samson 2019).
Innovations compel productivity, develop the market and assist in generating more employment and wealth. They are further at the core of making life better by enhancing the way we live (Baker 2017). In this regard, the United States has a proud and long background, created on weal built research base throughout society and culture, design, engineering and science. The UK also has top creative industries globally, which contribute to the enrichment of our lives and have an international influence. Further, there are substantiations that reveal US organizations which innovate grow at the double the speed of those firms that do not. As the globe is becoming more competitive, the US is confronting a slew of challenges, including climate change, advanced technologies transforming the corporate structure, and in most current – the Covid-19 challenge (Caliendo et al. 2018). Due to this, innovation has become important.
Innovation in Organizational Architecture and Leadership Approach
In the case of Apple, the largest and leading information technology company has over 500 retail outlets across the globe. Apple has been offering favourable economic influence in the US and also to the countries and cities where they have local staff working under them. Apple created 2,000,000 employees throughout 50 states of the United States (Deleidi and Mazzucato 2021). Further, Apple in the United States has also built over 80,000 direct jobs. Over 4,000 employments in the New York, over 8,000 employments in Texas, more than 36,000 employments are in California. Apple employment offers a broad range such as software and hardware engineers, marketing, customer support, retail, manufacturing, construction, scientists, and designers. Four hundred fifty thousand employments were created by the company’s suppliers in the United States. Jobs from suppliers in US total 24,200 in logistics and transportation, 23,800 in financial services, 33,300 in construction, 112,600 in manufacturing, 40,300 in facilities management, 58,300 in retail, 64,400 in technical services, 112,600 in manufacturing, and 92,900 in other sector. The Apple app store ecosystem supports 1,530,000 employees in the United States. Moreover, in the financial year 2016, Apple accounted and $ 45.7 B in net income and $ 215.6 B in revenue (Rikap 2018).
Apple has contributed so much to the economic growth of the US, from its technologically advanced laptops, tablets, smartphones, apps, and music to its support for civil rights as the largest and most profitable organization in the globe. In the last 3 financial years in the US, Apple’s contribution has considerably surpassed the 5 year aim of the company of $ 350 B, which was set in the financial year 2018. Apple has increased its contribution by 20 % in the following five years, encouraging US innovation and offering economic advantages to everybody (Gornall and Strebulaev 2021). “Tens of billions of dollars” would be invested in “5G innovation” and “next generation semiconductor” research throughout nine states of the US. During the time of rebuilding and recovery, the company is doubling down on US contribution to producing and innovating with an intergenerational commitment which might benefit populations in all 50 states of the US (Apple Newsroom 2022).
As mentioned above, Apple creates over 2.7 M employees throughout the US through developer jobs, collaboration with manufacturers and suppliers within the US, and direct employment in the flourishing Apple economy. Moreover, the company – Apple Inc is one of the greatest taxpayers in the United States and has spent nearly $ 45 B in national business income tax in the last 5 years. The contribution of Apple to the economy of the US is around $ 430 B, including direct collaboration with suppliers of the US, capital expenditures, data center investments, and other local expenditures, such as Apple TV+ manufactures throughout twenty states of the US, generating employment and strengthening the creative industry (Apple Newsroom 2022).
Apple is in its part of reaching its 2018 aim of generating 20,000 fresh employments in the United States by 2023. Apple keeps going up its operations around the country, and it now aims to have even more than 5,000 personnel in San Diego by 2026, which is 500 % higher than its 2018 aims. Further, Apple aims to expand its company in Culver City to over three thousand employees by 2026 (Apple Newsroom 2022).
Business Innovation: The Ultimate Goal
Conclusion
To summarise all of the above, today, innovation is very essential in the competitive business environment, particularly since consumers have become moiré tech savvy and demanding. Various companies are popular for their service, while some are popular for their products and others are less clearly quantifiable qualities such as brand loyalty or intriguing advertising campaigns. Innovation is an idea that entails to the method that a company or an individual performs that visualizes new and fresh ideas, processes, and products or approaches ideas, processes and products in new and fresh ways. Furthermore, innovations play an important part in the delivering economic growth and social prosperity. It strengthens contemporary business, lifestyles and the broader community. Nowadays, in the altering environment, the US not only accepts technology and service, which was unimaginable a few times ago but has further learned to rely and anticipate on the ongoing production of fresh ideas and products. Apple has contributed so much to the economic growth of the US, from its technologically advanced laptops, tablets, smart phones, apps, and music to its support for civil rights as the largest and most profitable organization in the globe. Apple creates over 2.7 M employments throughout the US by developer jobs, collaborating with manufacturers and suppliers within the US, and direct employment in the flourishing Apple economy.
References
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