Answer to the question no: 1

Why is innovation so important for firms to compete in many industries?

Innovation enables firms to:

 Introduce more product and service variations, enabling better market segmentation
and penetration;
 Improve existing products and services so that they provide better utility to customers;
 Improve production processes so that products and services can be delivered faster
and at better prices.

Increasing globalization has both expanded the potential markets for many firms while
simultaneously exposing them to greater competition; this has resulted in firms putting more
emphasis on innovation as a lever of competitive differentiation. Furthermore, information
technology has enabled such process innovations as CAD/CAM, rapid prototyping, and
flexible manufacturing, enabling firms to produce more product variants faster and cheaper.
This is a double edged sword: it has enabled product lifecycles to shorten (making rapid
innovation more imperative) while simultaneously improving a firm's options for innovation.
Now that we’ve looked at the role of innovation from the society’s perspective, we can take a
closer look at the importance of innovation for organizations and businesses.

In general, it’s difficult to identify industries where innovation wouldn’t be important.

Although certain industries depend on innovation more than others, innovation and the ability
to improve considers everyone.

Even highly regulated industries, such as taxis and banks aren’t immune to change. Look
what Uber has done to the traditional taxi industry, or how innovation affects financial
services.

In general, innovation can deliver significant benefits and is one of the critical skills for
achieving success in any business.
Innovation increases your chances to react to changes and discover new opportunities. It can
also help foster competitive advantage as it allows you to build better products and services
for your customers.

Maximize ROI
Increased competitive advantage and continuous innovation often has a direct impact on
performance and profitability.

According to Global Innovation 1000, there’s a clear difference in both revenue (11%) and
EBITDA (22%) growth in favor of the more innovative organizations. These numbers show
that innovative companies not only grow faster but are more profitable than the rest.
Although measuring the ROI of innovation might be challenging especially in the beginning
or when talking about disruptive innovations, investing in innovation is often a surer way to
improve your numbers than not innovating at all.

Increased productivity
Economic growth is driven by innovation and technological improvements, which reduce the
costs of production and enable higher output. If we look at this from the perspective of an
organization, different automation solutions decrease manual, repetitive work and release
time for more important, value-creating tasks.
Improved productivity and efficiency makes work more meaningful as less time needs to be
spent on low impact tasks. The more time you’re able to spend on tasks that have a direct
impact on your business, such as improving processes, solving problems or having
conversations with your customers, the more likely you’re able to actually reduce costs,
increase turnover and provide your customers with solutions that truly benefit them.

Positive impact on company culture

Last but not least, innovation also has a positive impact on company culture as it increases
the ability to acquire, create and make the best use of competencies, skills and knowledge.
Innovation practices can help build a culture of continuous learning, growth and personal
development. This type of innovative environment can again motivate people to constantly
improve the way they and their team work.
 Answer to the question no: 2

What are some of the advantages of technological innovation? Disadvantages?

Some of the advantages of technological innovation:

1. Innovation allows us to lead safer, easier, more productive, healthier, and longer
lives.
2. It allows us to do that without having to work from sun-up to sundown seven
days a week as our forefathers and mothers did.
3. We now know what the weather is going to be tomorrow and we can plan for it.
4. It allows us to feed another six billion people on the planet that we could not feed
otherwise.
5. It allows us to lead long healthy lives that people a few generations back could
only dream about.
6. It allows immense increases in productivity that have increased the wealth of
mankind greatly. To our shame it has gone mainly to a small minority.
7. We no longer have to have seven or eight kids to get two of them to reach
adulthood.
8. It allows us to communicate instantly across the globe.
9. It allows us to travel comfortably great distances at less than staggering expense
to visit places of beauty.

This biggest disadvantage of technological innovation is adoption. Many customers are

reluctant to change, particularly when it requires re-training or re-thinking.
Technology has been a great boon to mankind but at the same time we must not be ignorant
of the drawbacks generated by some of these developments. Advantages and disadvantages
of technology are numerous and varied, but need to be observed carefully in order to utilise
this knowledge advantageously. There had been many important inventions but computer has
been … We can't envision the sector without technological advancements, for example, leds,
computer systems and machines, etc. Communication; The most prominent technological
device which is ruling our lives is the cell phone and the great use of it has actually started
controlling our lives too. Even though, there are some negative aspects and benefits of the
strategy. The advantages are that once one begins curricular innovation, it gets their members
included and they help out in the future. Disadvantages of technology include increased
loneliness, potential addiction, job loss, reduced competency, destructive weapons and instant
gratification. Disadvantages are that all must be willing to participate. Today, innovation has
improved in great bounds and leaps. Technological change cannot occur naturally or
automatically because any change is neither easy nor natural in organisations. Technology
continues to grow rapidly and to change different aspects of life daily. Advantages And
Disadvantages Of Technological Innovations. Decisions about technology and innovation are
very strategic and need to be approached systematically. This is just one aspect there are
thousands of technological advancements that have become part of our day to day life and are
full of advantages and disadvantages. We have adopted technology in our life to an extent
that it is impossible to think of performing our day-to-day tasks without the help of
technology. Advantages & Disadvantages of Innovative Technology. Technological advances
occur continuously, and businesses often feel the need to implement the latest changes to
keep up with the competition. Select One Of The Many Technological Innovations Of The
Past 50 Years, And Described How It Has Changed People’s Life Rehan Ahmed Karachi
University ABSTRACT Plentiful discussions and research has been made on technological
innovations of the past 50 years . Technological Innovation of Organisation in a Competitive
Environment (with advantages and disadvantages)! Now we’ve undergone some range of the
impacts of technological innovation nowadays, it truly is our very own accountability to earn
usage of technological innovation to enhance our lives, however we’ve to be confident we
conserve our civilization and environment, if we don’t have a grasp onto the making use of
technology we will windup damaging the culture and environment. They feel helpless if any
of these technological equipment, machinery or tool fail to perform. Technology improves
access to information.

Answer to the question no:3

Why do you think so many innovation projects fail to generate an economic return?

In Innovation projects it’s always a process of finding out a new thing or new outcome. In
that point throughout the project only the costs and expenses are associated with the project.
For example research and development, material cost and etc. As we can see only the
expenses are generated up to the final point of the project where the final outcome appears.
For example if a company runs a project on an innovation project which is about new fairness
cream until final product, the fairness cream only the expenses and costs are associated for
the areas such as research and development, materials for the cream, wages and etc. The
generating of revenue or economic return begins when the fairness cream reach the market
place and when there is the start of sales and marketing process of the company. Therefore to
reach the breakeven point it takes some time after the project. Therefore only project itself
does not generate any economic return as it only generates a final outcome which is a product
or a service. In that point economic return generation is a process which I s always after the
innovation process, that’s the main reason why all the innovation projects fail in economic
return generation. Innovation can also fail when organizations don’t know what their
customer wants and needs are. A lot of new innovations fail because organizations are
unaware of what user problem they are trying to solve, what do their customers want or come
up with products which customers did not want in the first place. For disruptive
breakthroughs, organizations need to understand what their customers are thinking and
feeling, how they interact outside of their business with other companies and their consumer
behavior. Innovation is an inherently risky undertaking. Most innovation projects are
characterized by both technical uncertainty and market uncertainty. In their eagerness to
innovate, firms are at risk of undertaking too many projects, overestimating their potential
returns and underestimating their uncertainty. This is compounded by the fact that many
people mistakenly believe that creativity can only be tapped through an unstructured process,
when in fact innovation is most powerful and has a greater likelihood of success when it is
planned and implemented strategically.