Business innovation, the “new” entrepreneurship

In the areas of business today, one of the coolest items is the innovation, but this is nothing new. There are many innovations throughout our history, but the really hard part is innovate efficiently, making this a good thing for consumers who are bombarded with a lot of new and interesting products. But undoubtedly the innovation of a product that is not accompanied by a good marketing strategy will not have the desired effect.

business innovation

All are born, grow, mature and eventually die, it is inevitable and not a great discovery, but what really counts for humanity is how we take our growth and maturity to make a mark that is useful, and this is exactly the same objective pursuing the products and services provided daily by thousands of companies around the globe. And is that the products are not very different in this respect to us, they are introduced (born) have a growth, they are developing and dying (decline); without exceptions for any product. Perhaps there are many products that still decline, but, like everything in the world depends on human ingenuity to bring a new product to meet the growing needs of the population.

In the step of introducing the product is launched, where sales generally grow slowly as is known, profits are low due to the costs of advertising, marketing, etc. They are high and must be canceled at this point.

When the product is in the stage of growth, sales, which will need to expand production capacity, are strongly established. At maturity, you will appreciate that sales are beginning to stabilize, being the longest stage and perhaps where these are most products that exist today. This is where the product is more profitable. And finally, when it enters the stage of decline, when, steadily, sales fall, either quickly or slowly. Given that all the products go through these stages, the difficult thing is to try to predict all that will last each of these not that levels will reach.

So what is the importance of innovation? If a company in the technology area, has a good department of research and development (R&D), will have a very significant competitive advantage. So much so, that if any company launches new products that are innovative in their area, that company may charge up to 25% more than the price fixed by the marketing strategies. And where that money goes? As it is invested in research and development, and thus, is how Apple has released a record as many innovative products that have marked several generations of products (iPod, iPhone, iPad, Macintosh, etc.).