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manuj’s blog

September 27, 2021

How Does Innovation Contribute to the Success of a Business

How does innovation contribute to the success of a business

There will be no progress without innovation, and without innovation, there will be no new. If a company isn’t progressing, it will quickly become irrelevant in a competitive market.

It might be difficult to understand the effects of innovation on our society as a whole because organizations frequently collaborate with other organizations.

However, innovation encompasses far more than just businesses seeking a competitive advantage.

The essential cause for modern existence is innovation. Although some of the effects of innovation are undesired, change is unavoidable, and in most cases, innovation results in beneficial change.

Innovation is in  charge of using new technology to solve community challenges in a sustainable and efficient manner. 

These new technology, products, and services address a social need while also enhancing capabilities and maximizing the use of assets and resources.

Top 5 ways innovation contribute to your success

#1. Growth of the economy

#2. Better access to information and education

#3. Increased well-being

#4. Sustainable environment

#5. Better health and prosperity

New technology, ideas, and methods aren’t the only things that define innovation; it’s also the process of discovering new ways to do things.

 It can also refer to changing business models and adjusting to new situations in order to improve products and services.

#1. Growth of the economy

Growth of the economy

Technological advancement is seen as a significant source of economic progress. Economic growth is defined as the increase in the inflation-adjusted market value of an economy’s goods and services over time.

 It’s usually expressed as a percentage rise in real gross domestic output.

There are generally two ways to boost the economy’s output:

  • Increase the quantity of inputs to the manufacturing process.
  • Create new methods for getting more output from the same number of inputs.

The goal of innovation is to come up with new ideas and technologies that boost productivity and improve production while using the same amount of resources.

When we examine the shift of the United States from a predominantly agrarian economy to an industrial one by the First World War, we can see that agricultural advancements and inventions were one of the most important contributors in bringing about the Industrial Revolution.

Agricultural productivity advances had already changed the way people worked in Europe, freeing farmers to pursue other interests and allowing them to go to the city for industrial labor. 

Productivity rose as a result of the change from hand-made to machine-made products, which had a direct impact on living standards and growth.

According to a new World Economic Forum research, roughly 133 million new employment might be generated by 2022, with AI, automation, and robotics displacing 75 million jobs.

#2. Better access to information and education

Better access to information and education

Even among the poorest 20% of the population, 7 out of 10 homes have a cell phone, according to the World Bank Annual Report 2016. This means that there are currently more people with mobile phones than there are with sanitation or clean water.

In addition, by 2020, the number of mobile workers is predicted to increase from roughly 96 million to more than 105 million. Mobile technology advancements such as voice control and augmented reality are empowering workers in entirely new ways.

Rural communities can also benefit from technological advancements in order to grow and become more sustainable.

Despite some obstacles to technology adoption, such as poor wealth or user capability, more individuals can have access to information and increase their knowledge.

#3. Increased well-being

Increased well-being

In general, as living standards rise, innovation and economic expansion improve well-being.

According to the Brookings Institution, countries with more GDP per capita had higher average life satisfaction.

According to another study, there is a correlation between innovation and subjective well-being.

However, not all of the advantages of innovation and expansion are shared equally. A growth in real GDP is frequently associated with increased income and wealth disparity.

Although there is no set amount of inequality that is considered excessive, larger socioeconomic differences are likely to have negative consequences.

In theory, income disparity isn’t a concern unless it affects actual purchasing power.

#4. Sustainable environment

Sustainable environment

Sustainability and environmental difficulties, such as climate change, are current and future challenges that will necessitate a great deal of effort and inventive solutions.

As consumerism develops and consumerism becomes the center of the modern economy, the Earth suffers. Although consumerism has a positive impact on innovation as a source of economic progress, increased consumption of creative products is sometimes blamed for environmental degradation.

Politics or other techniques are frequently insufficient to effect change at least not quickly enough. Policy changes take time to take effect, which is why our society’s and nature’s long-term existence is dependent on new policies.

#5. Better health and prosperity

Better health and prosperity

Developing countries rely on innovation since new digital technology and innovative solutions provide enormous opportunities to combat disease, poverty, and hunger in the world’s poorest places.

In order to overcome their own difficulties linked to these themes, developed countries rely on innovation as well.

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When it comes to alleviating hunger, agricultural production, for example, is crucial in emerging countries, where the next population boom is most likely to occur. Smallholder farms in developing countries play a significant role because they generate up to 80% of the food consumed in these areas.

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