Innovation and Enterprise
By Akram
Definitions
Innovation
Innovation is a dynamic process characterized by newness and it should bring about substantial benefits. It is all about
converting the creative ideas from thinking to doing by making them practical and flexible. It lives in being able to solve
problems, make the right choices, and move with the changing environment. Innovation involves technology, business
operations, new product creations, and so forth as key areas of progress, economic growth, and societal change that
reshape our daily lives, working environments, and interactions with others.
Enterprise
The term enterprise usually means a commercial, industrial or entrepreneurial company. It involves individual contributions
by labour, resources, and money aimed at achieving economic ends as well as producing and offering goods and
services in a commercial sense. Additionally, as it relates to entrepreneurship the term can also incorporate aspects such
as the will power to undertake novel ventures or initiatives that entail the spirit of innovation and calculated risk taking On
a larger scale, enterprise means any activities covering strategic management, resource allocation, market navigation,
etc., for a single economic subject aimed for sustained development.
Define innovation and enterprise
Blue Sky thinking
Blue sky thinking is a form of unbridled imaginations free from restraints that encourages free flow thinking.
Lateral thinking
The lateral thinking, for solution of problems implies thinking in untraditional, non-linear ways.
Serendipity
Serendipity refers to the occurrence and development of events by chance in a happy or beneficial way, often leading
to unexpected and fortunate discoveries or outcomes.
Intuition
Intuition is the ability to understand or know something without the need for conscious reasoning, often relying on gut
feelings or instinctive perceptions.
Benefits of innovation to businesses
1. Competitive Advantage: Innovation allows a business to stay ahead in the market by offering unique products,
services, or processes, providing a competitive edge over rivals.
2. Increased Efficiency and Productivity: Innovations often lead to improved processes and technologies, enhancing
operational efficiency and productivity within the business.
3. Adaptability to Market Changes: Innovative businesses are better equipped to adapt to evolving market trends,
consumer preferences, and industry disruptions, ensuring long-term sustainability.
4. Enhanced Customer Satisfaction: Introducing innovative solutions tailored to customer needs can significantly improve
customer satisfaction, loyalty, and overall perception of the brand.
Drawbacks of innovation
1. High Costs and Investment: Pursuing innovation can involve substantial upfront costs in research, development, and
implementation, and there's no guarantee of immediate returns on investment.
2. Resistance to Change: Employees or stakeholders may resist adopting new technologies or processes, leading to
challenges in implementing innovations within the organizational culture.
3. Uncertainty and Risk: Innovation inherently involves a level of uncertainty and risk, as not all innovative endeavors are
successful, and failure is a possibility that businesses must navigate.
4. Legal and Ethical Concerns: Some innovations may raise legal or ethical issues, leading to regulatory challenges or
public backlash, which can damage a company's reputation and market standing.
X3 examples of innovation/enterprise for your
chosen business
1. iPhone: Apple's introduction of the iPhone in 2007 revolutionized the smartphone industry by combining a
mobile phone, an iPod, and an internet communicator into one device, setting new standards for design and
functionality.
2. App Store: The creation of the App Store in 2008 provided a platform for third-party developers to create and
distribute applications for Apple devices, fostering a vibrant ecosystem of apps that significantly contributed to
the success and versatility of Apple products.
3. Apple Watch: The development and launch of the Apple Watch in 2015 marked Apple's entry into the
wearable technology market, offering features like health tracking, communication, and integration with other
Apple devices, showcasing innovation in both design and functionality.
Explain how each form of innovation has
resulted in success for the business
Success Impact: Success of iPhone made Apple an important stakeholder in the global smart phone market which is very significant
to total revenues and market capitalization of Apple Inc.
Market Leadership: The design and usability of Apple’s cutting-edge iPhone cemented its place as the leader in mobile technology,
building a loyal army of customers and ensuring continued loyalty towards Apple products.
App Store:
Success Impact: The profit made from the sale of apps is not the only thing Apple has benefitted from via the success of app store. By
this, a healthy surrounding has been built round Apple products which in turn boosts their value.
Ecosystem Integration: The App Store improves the overall consumer satisfaction that makes customers to stick to Apple’s
environment that translates in higher brand loyalty and enhanced perceived value for the company’s product line.
Apple Watch:
Success Impact: The introduction of a new wearable technology by Apple Watch has led to improved sale and market coverage.
Market Expansion: New customers have embraced fitness, health, and modern smartwatches due to the innovation brought by
Apple Watch. These efforts have propelled the brand’s growth and responsiveness to changing market dynamics.
You need to provide examples of forms of innovation and enterprise that may not have been as
successful as the business had hoped. Explain why this did not do as well as anticipated, i.e.: what went
wrong and why?
Apple Maps:
Innovation: In 2012, apple’s decision to ditch Google maps for it native apple maps app in ios devices.
Challenges: Apple maps were criticized heavily for lack of certain features that are available on Google maps; among them being
accuracy and inadequate information. It was a hurried release where navigation errors occurred and gave Apple a PR set back.
HomePod:
Innovation: The year 2018 saw the introduction of HomePod by Apple as a challenger to products such as Amazon echo and Google
home.
Challenges: It was costly as compared to other models and it offered third-party integration, but not that great audio quality as the
home pod. Additionally, the home pod has fewer smart home capabilities.
Mac Pro (2013):
Innovation: In 2013, Mac Pro was redesigned as a potent and modular workstation for specialized users.
Challenges: The Mac Pro had technical capabilities but received criticism for its weird design, restricted upgrade options, and high price
tag for a starter. This was never good and Apple had to revise how Apple had designed Mac Pro and released it anew in 2019.
Analyse the risks that were involved in innovation in a changing market: could it result in a loss of investment? Cultural problems
such as employees or customers not getting on board? Does the business need to drastically change how they operate? Do
they have the supportive systems in place?
Loss of Investment:
Risk for Apple: This means that Apple spends very much money on development of new products and services. Failure to
deliver customer expectations of a new innovation (product or service) is extremely costly and may cause bankruptcy.
Cultural Problems:
Risk for Apple: Innovation and design have earned Apple’s culture a name. Nevertheless, internal resistance could affect
the acceptance of new technology or strategy in an organization. This also affects the realization of good ideas within the
firm.
Operational Changes:
Risk for Apple: Apple may also need to change its manufacturing, distribution, and supply chain processes when
introducing a new product or service radically. Such operational changes may also result in disruptions or inefficiencies
within the company. The company might not be able meet with the customers’ demands as desired by the customers as
a result. These changes also might affect on the standards of the company.
Supportive Systems:
Risk for Apple: The key factor underpinning Apple’s success is its ability to smoothly combine hardware, software, and
support. It is possible that the company does not have appropriate supporting systems like robust software ecosystem or
effective supply chains, that can hinder its ability to put the innovated products into market conveniently.
Explain how and why innovation was beneficial to your business in a changing market: have the needs
of the market changed? Has it developed in any way that requires the business to innovate? Has new
competition entered the market? Provide and explain specific and relevant examples.
1. Meeting Evolving Market Needs:
How: The company continuously renews its product offering in accordance with changes in consumer demands and tastes.
Why: With change of consumer preferences, apple provides updates on all their products. For example, health and wellness became the focus
and gave birth to concepts like the ECG function in the Apple Watch and the launch of Fitness +.
2. Responding to Emerging Technologies:
How: Apple has always been an early adopter of new innovations in order to maintain its competitive edge.
Why: The ability to stay up to date with new technologies by introducing AR into IOS devices as well as improving camera quality proves that
Apple is a company not afraid to take risks.
3. Addressing New Competition:
How: Apple has been able to survive in a number of markets with the introduction of new entrants by adapting to its strategies.
Why: As new entrants join the smartphone market like Android based phones, Apple is still improving its iPhone models by giving focus on the
uniqueness of the designs, user experience, and the integration with their ecosystem so that they can maintain an edge over their competing
companies in this industry.
4. Diversification and Services:
How: Beyond its hardware business, apple is also in service provision, for instance, Apple music, Apple Tv, and Apple arcades.
Why: The company’s diversification goes beyond changes in consumer behavior such as the move toward streaming as it also creates more
income.
Explain the extent to which you believe innovation was a main contributor the business’s success,
without innovation would the business be as profitable? Has innovation led to increased marketshare or
customer loyalty?
1. Profitability:
Innovation Driving Revenue: The company’s innovative products like the iPhone, iPad and Mac have been main contributors of revenue. Apple
has also been relying on its ability to introduce better devices and supplemental services, which have significantly been boosting its overall profit
levels.
2. Market Share:
Innovative Products Setting Trends: The innovativeness of Apple’s products has not just earned the company additional customers, but they have
also established patterns in the market. As an instance, it is due to Apple’s innovative products, such as the iPhone that transformed the
smartphone industry and iPad that boosted the demand for tablets, thus creating a huge share of the market for this firm.
3. Customer Loyalty:
Ecosystem and User Experience: By integrating its ecosystem into hardware, software as well as services in the right way, Apple is able to provide
users with an exceptional user experience. It has further heightened the feeling of loyalty by many Apple product users who look forward to
consistency and quality.
Continuous Improvement: Consistency in upgrading products helps Apple’s loyal customers keep on purchasing their devices again and again.
New features, better performance and design excellence increase the customers’ satisfaction level and leads them to be loyal.
4. Brand Image:
Innovation and Brand Perception: Apple’s brand image is also due to its innovation status. Apple’s perception of leading technologies and design
excellence attract consumers and support premium positioning of Apple products.
Bibliography
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