Unit 1- exploring businesses.
Assignment 3- How important is
innovation and enterprise to today’s
businesses? - Report.
, Introduction.
The definition of innovation is to make changes in something already established, especially
by introducing new methods, ideas, or products. Innovation is important for businesses as it
allows them to produce products more efficiently and reduces the costs of manufacturing
their products. Innovation can also give businesses an advantage over their competitors
because consumers are wanting to buy products that are more innovative than their
competitors. An enterprise is a business or a company. Enterprise is important for
businesses since it allows people of the public to start their own businesses and provide
products and services to consumers.
Innovation and enterprise.
Innovation.
The different types of innovation are product, process, service and increasing efficiency. The
first type of innovation is product: product innovation is when a product that already exists
is expanded on, e.g., businesses that are in the bicycle market have begun innovating their
products in order to be more unique in the market, products such as the introduction of
gears and the newer electronic bikes that are dominating the market.
The second type of innovation is process innovation, this type of innovation is when the
manufacturing or delivery of a product is improved upon, for example, Amazon Prime can
allow the customer to receive their product the same day they or the next day they have
purchased it, Prime can entice customers to subscribe to the service and give Amazon more
profits.
The third form of innovation is service, this involves the introduction of new services or
improvements on current services, for example Uber has improved on the taxi service by
implementing new ways for customers to track their driver for prices that are typically
cheaper than traditional taxis.
The fourth and final form of innovation is increasing efficiency. Increasing efficiency is when
a business finds new innovative ways of operating and reducing inefficiencies in their
business. This is important to businesses since being more efficient means gaining more
profits since the business is lowering their overall costs and increasing production.
Enterprise.
The definition of an enterprise is a business or a company, some examples of different
enterprises are: retail, technology, healthcare, banking/finance, and entertainment. Many
business owners all share an entrepreneurial mindset, meaning that they have attitudes and
behaviours that enables them to identify and capitalize on opportunities and view mistakes
that could affect their business. The entrepreneurial mind-set has several different thinking
skills, these include creative, lateral, blue-sky thinking, chance and serendipity, and intuition.
The first thinking skill is creative thinking, creative thinking is when entrepreneurs think
outside the box and come up with an idea that no one has thought of before, this means
that the entrepreneurs have a higher chance of attracting new or already existing customers
