Introduction
Innovation is the introduction of a new idea or way of producing goods. A company must consider the personal transformation of employees, behavioral factors, and the team’s culture. The success of innovation depends on many factors, but most of all on understanding: “To truly manifest innovation, you must realize that innovation is three different things: innovation is a result, innovation is a process, and innovation is a way of thinking” (Kahn, 2018, p. 1). Any innovation is a very hard way, requiring some knowledge, but without it, the firm will quickly lose its competitiveness.
Discussion
An example of failed innovation is General Electric. I chose this example because it perfectly demonstrates that innovation is not just about making more money. Their attempt to massively implement a culture of innovation based on Eric Rice’s LEAN Startup methodology promised to be quite successful (MEDA, 2018). Unfortunately, the company did not have the stamina to go through with the mass transformation. In pursuit of short-term financial results, the new management limited the resources for its large-scale innovation program. Therefore, it is very important to remember that profit is a premium for the value created and recognized by the consumer. Innovative solutions are designed to continually increase that value and thus increase the likelihood of profits. If a company chases only finances rather than incrementally improving the quality of its product, the attempt to innovate will fail.
Conclusion
A striking example of successful innovation could be the product of the companies BVG and Adidas. These companies released a joint development, the uniqueness of which was that each pair of manufactured sneakers was built as a pass for public transport (Ong, 2018). The purchase of sneakers was much cheaper than an annual pass, so the companies wanted to accustom Berliners to ride public transportation and give up buying a car. With this startup, people wanted to improve the environmental situation, and since this topic is the most important problem of humanity, sneakers quickly gained popularity. I chose this example because it shows that innovative ideas must be as relevant and close to the consumer as possible; only then will the company succeed.
References
Kahn, K. B. (2018). Understanding innovation. Business Horizons, 61(3), 453-460.
MEDA, P. (2018). The mean startup, how GE failed at doing innovation by the book. Innovation Copilots. Web.
Ong, T. (2018). Berlin’s Transport Authority and Adidas release a pair of sneakers that doubles as a train pass.The Verge. Web.