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
29
Series

BUSS3 Exam Technique Advice

BUSS3 is a tough paper - look through the advice and guidance in these tutor2u resources

Read more ›

Teaching & learning products

Edexcel A Level Business Year 1 (AS) Practice Exam Papers

This resource comprises two practice exam papers (with supporting mark schemes) for each of the two Year 1 (AS) papers. The format of each practice exam paper follows precisely the format of the specimen assessment materials issued by the board that have been accredited by Ofqual.

£75.00

AQA A Level Business Year 1 (AS) Lesson Worksheets and Case Studies

A complete collection of editable lesson topic worksheets and exam-style case studies that are ideal for teaching individual topics for the whole Year 1 (AS) teaching content.

£75.00