Innovation is about putting a new idea or approach into action.

Innovation is commonly described as 'the commercially successful exploitation of ideas'.

Successful innovation is mainly about creating or adding value. It does so either by:

  • Improving existing goods, processes or services (process innovation), or by
  • Developing goods, processes or services of value that have not existed previously (product innovation)

However, both kinds of innovation require a business to:

  • Challenge the status quo in a market
  • Have a deep understanding of customer needs
  • Develop imaginative and novel solutions to how those needs might be met

Innovation can come in many forms:

  • Improving or replacing business processes to increase efficiency and productivity, or to enable the business to extend the range or quality of existing products and/or services
  • Developing entirely new and improved products and services - often to meet rapidly changing customer or consumer demands or needs
  • Adding value to existing products, services or markets to differentiate the business from its competitors and increase the perceived value to the customers and markets

Whatever form it takes, innovation is a creative process. The ideas may come from:

Inside the business – e.g. from employees, in-house designers, sales staff

Outside the business, e.g. suppliers, customers, media reports, market research insights or from contacts at local universities or other research organisations

Successful innovation comes from filtering those ideas, identifying those that the business will focus on and applying resources to exploit them.

Featured
CPD courses

Teaching the New AQA A Level Business

Join Graham Prior and Jim Riley for a resource-packed CPD day which will help you accelerate your planning and lesson preparation for the new AQA A Level Business. We've packed this day with resources to help teach the new spec content. We also consider how best to approach the challenges of a linear Business course.

Learn more ›

Teaching & learning products

AQA BUSS4 Revision Guide

The latest edition of Jim Riley's concise 20 page guide to key topics for BUSS4 - essential support for your BUSS4 exam

£4.00

AQA BUSS3 Worked Answers (2013-2014)

Exemplar A grade answers to each of the three BUSS3 exam papers in 2013 and 2014

£5.00