Recently, I’ve read an article which talks about the Big Hairy Audacious Goal. In the article, the author Larry Myler claims that BHAG encourages companies to adapt the changing condition while making innovations. As it shows that for firms, innovation can be more like adopting new technology and fitting the new business rather than a new product. Examples of Nextiva shows that the method of directly encourage employees to share their innovative ideas to managers strengthens the productive workforce. I agree Larry Myler’s idea as I think innovation is necessity for companies if they want to dominate the market in long run and meanwhile I have some add-on points.
To be more specific, the innovation of the business brings the company chances to win competitive advantage and dominates the market. For circumstance where companies bring out a new product using different methods and showing apparent differences with other products, it performs the companies’ uniqueness a
nd it helps to capture customers’ interests. The points of difference show that a successful innovation elevates the sales of the company and meanwhile makes the company valuable which offers chances to change the business model and operation of companies.
Moreover, as the article mentioned that Nextiva seeks for employees’ ideas as source of innovation, I believe that the value of innovation is not only for making money, but also for training and creating certain employees to entrepreneur and leads the company to be on the right and valuable track in long run. As innovation costs both implicit and explicit expenses, deriving ideas directly from existing employees saves huge expenses. Moreover, using ideas generated from employees strengthen the relationship between company and employees and furthermore, it is easier to supervise the employees.
All in all, innovation brings companies competitive advantages to compete in market and eliminate the possibilities to be replaced and obsoleted. Also, deriving ideas from employees not only strengthens the relationship between the company and the employees but also saves costs and provides simple ways to supervise the innovation through employees.
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References:
http://www.chrisducker.com/importance-of-innovation-in-business/
