Innovation culture is the work environment created by the organizations top management that truly believes that innovation can be done by anyone in the organization not just the top management. Innovation is important in rapidly growing markets and competitive markets and is an essential factor for success. Innovation empowered most companies that are now considered the best in the world such as Toyota and Wal-Mart. Innovation is a combination of creativity, risk taking, rewarding good jobs and everyone taking responsibility. It is a creative process that cannot thrive without proper funding and management should take the funding seriously even when things are not looking up because they will eventually. Innovation can take any shape, it can be from the inside, that is from employees or management or it can be from outside by listening to customers, suppliers, media reports and research. Organizations have been able to achieve their innovation goals by

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Analyzing the market-innovation AND ITS IMPACTS IN AN ORGANIZATION

This is made possible by understanding the customer preferences and likes and working towards achieving it, at all costs. Toyota, for example has been manufacturing cars for years and all this time the customer has been the boss for a long time. They get customer feedback and suggestions and pool their employee resources by getting them on various ideas of how to make better vehicles. Understanding what the customer wants is paramount in increasing your knowledge base. Market research enables the organization to target the audience of particular consumers who are most likely to consume your products specification. Talking to customers about what they may need in the future also helps in the innovation process, say info entrepreneurs, a member of the Canada Business Network.

How bad is the competition?

Somehow, a company should always know what their competition is doing to create a competitive edge. Is the competition offering better pricing? Create better products and offer a premium price. Customers will always pay more for a better product. Customers love free offers, so create them. Are they not going to the store? Offer online ordering and delivery at their door steps. Identify innovation opportunities and be flexible as a company and change with the changing trends, always improving, always creating something new. Identify better techniques and stick with them for better results. Always make sure that the companies product are the best a customer can get, they should always have a competitive edge over the others and be the product of choice, any time. Know what is new and develop a better option. Keep watch on what is happening in your sector and your competitor’s performance and build on their weaknesses.

Innovation impacts positively on the organization most of the time to produce extraordinary results. The best way for a company to remain stable in the market and compete with its subjects is through innovation. For innovation to achieve desired results, a company needs strategic planning and to make the right decisions. (Kuijt, 2017) Bjorn Kuijt goes on to explain that close customer participation on product improvement and paying close attention to customer service help in understanding the market and providing what is needed.


Innovation in itself is growth and proper growth grows brand, profits, employees and organizational structure as a whole. It’s the whole point of innovation and fortunes are bound to make a turnaround for the better through innovation and it’s probably because everything in the organization is making a turn around. Innovation improves productivity because the proper amount of morale makes the profits eventually look better as everyone is working towards the same goal of better returns. (Entrepreneurs, 2017) Innovation is essential for growth and economic development. (Gerguri & Ramadani, 2017) Innovation will lead to the cropping up of new businesses and improve the already existing ones.

Sufficient cost reduction-innovation AND ITS IMPACTS IN AN ORGANIZATION

Innovation in technique or equipment means that old processes that were slower and more expensive are eliminated and some money saved for other ventures. Reduction of cost may also translate to reduced prices which will be excellent for the customer. Various methodologies are innovated to determine just where cost reduction will be effective. It can be done in manufacturing or raw materials or equipment among others. Designs can be made towards reducing costs and Design to Cost methodologies can be used to drive this need. Design to Cost treats the desired cost as an independent design parameter that a company works towards achieving. It has been applied in mature industries to settle how the product will look and just how the organization will be at an advantage by having a good price offer. (Staack and Moebius, 2015)

Builds brand value

An organization that is innovative has excellent customer linking qualities and is more likely to have the most preferred brand. Customers due to their human nature are always on the quest to attain what they do not have or own and will therefore be attracted by what’s new and trending.  A study conducted in Amman City, on medical tourism, showed that innovation contributes significantly to brand equity building. It also showed that service innovation, product innovation and process innovation were capable of significantly improving the brand as a whole. (Shriedeh and Ghani, 2016)  James J. Piacentino, senior advisor to the office of the CEO at SAP, “Building a brand legacy is a multichannel process. When people, of all levels are given room to think beyond the four walls of their organization, leadership jumpstarts creativity and maximize business impact.”  (Davis, 2015) Innovation surely receives a boost from employees and can go a long way in improving the brands a company already has and even make them worldwide.

Establishes new partnerships and relationship

Being a lone wolf and in business is next to impossible and it’s not that advisable not to have partnerships. Partnerships are essential in starting industries as well as by the management. These partnerships aim at strengthening each other and providing advice when needed. Tesla may be a pioneer at innovation but even them, needed help at some point. The company’s reinvention of the automobile meant a massive investment in non-core parts. While Tesla has been rightfully lauded for a sleek exterior and technology breakthroughs in automation, it has faced complaints that the fit and finish of its interior car parts don’t meet luxury standards and lack features that consumers have come to expect. The company recently saw the need to hire Volvo’s head of interiors to help it compete. Because of this partnership, they will be a better brand. Mutual co-creation can occur when both partnerships in a sector learn to innovate within the relationship and create value. Many people believe that a partner is the only one that profits while in reality, nonprofit partners also accrue benefits (Austin and Seitanidi, 2012)


Innovation impacts on business processes that may take quite a while to get accustomed to. A company may lose some business and money when some processes are altered to fit new techniques. Extra training may be needed to support change and may cost some pennies. Extra resources will be needed before they can produce desired results. The need to protect intellectual property when an innovation is done and investing in its protection may be of importance to evade pirating. The result may also go the other way around. Hardships may lead to innovation. An organization called INSEAD decided to investigate India that has recently became the place to go for medical tourism. In an interview with Sing, chairman of one of India’s biggest health care company, he mentioned that it is hardships like calamities and a specific example an electricity blackout which makes them innovative. He went on to explain that while a blackout in America would cause a devastating loss, India would not worry too much because they have experienced that all too often and prepared for it.


Innovation is an integral part of any organization’s progress and as such should be taken seriously. Organizations ought to actively involve employees in its innovations because they are a rich knowledge pool. The power that customers hold in the driving forward of innovation should not be underestimated and in most cases it’s the customers’ needs that are the energy that the companies tap into. Suppliers and distributers may look like outliers but play a crucial role in driving innovations that affect them and which at the end affect everyone, so their input should be gold too. Innovation is the heart of organizations.






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