The importance of innovation for enterprise

The importance of innovation for enterprise
The survival and development of company depend on innovation. Innovation comprise of strategic innovation and management innovation. Enterprises must be changed with situation change, according to consumers habits, channel capacity and selectivity changes, force the enterprises to adapt competition, at the same time to make reaction at once. Historical experience showed more than once, the faster the response, the higher the rate of survival, the stronger competitiveness; on the contrary, it will be eliminated.
Operators often face with situation in the management: whatever you are the new enterprise that want to enter the market or have a certain status, and attempt to expand business, all that need a new and effective approaches to the development of the advance of guiding the enterprises which are relying on strategic innovation.
Strategic innovation is a kind of capable. Gary Hamel,[link widoczny dla zalogowanych], as a famous management said, strategic innovation is capable which analytics and reconstruct allocation of existing resources in business and industry to create new value for customers and create new wealth for all shareholders. Strategic innovation is the only way to get succeed for new company confront with disadvantage and the same to existing firms.
Strategic innovation helps the company redefine the market goal. Organizations to determine the business objectives will determine how companies determine their own customers, competitors, competitive strength, also determine to the opinions about critical successful factors,[link widoczny dla zalogowanych], and ultimately deciding the competitive strategy,[link widoczny dla zalogowanych], strategic innovation can succeed in dealing with a variety of competitive strategies even the opponents.
For example,[link widoczny dla zalogowanych], MBT shoes are distinguished from others, they are fitness shoes, good for health,[link widoczny dla zalogowanych], and can meet customers' requirements with fitness. They encourage perfect posture and gait, burn calories; reduce stress on knee and hip joints. They research and develop the new technology in advance about strategic innovation, so play an important part in fitness shoes.
The same to strategic innovation, management innovation also has an effect on new enterprises.
First, management innovation aims to improve enterprise efficiency of the allocation of limited resources. However the efficiency can be reflected on many index. For example liquidity faster, reduce consumption of resources system, labor productivity,[link widoczny dla zalogowanych], etc.,[link widoczny dla zalogowanych], but will eventually be reflected in economic indicators,[link widoczny dla zalogowanych], which improved the enterprise profit.
Second,[link widoczny dla zalogowanych], with management innovation, reduce the transaction cost as possible as it can. It is clearly proved that management and management innovation play an important role of improving enterprise efficiency to enterprise development.
Third, it supplies the more efficiency management ways, methods and means with management innovation. Management innovation keep the business with stability and strengthen the enterprise with many ways. Management hierarchy and effectively realize its coordination function, the level of the system itself becomes the persistence, the source of power and continue to grow. As the different unit has different business model,[link widoczny dla zalogowanych], for work of individuals or groups exist the restrictions.
Fourth, in business, management innovation affects marketing sale, assure to compete with other enterprises. While determined the competition and marketing, the enterprises will confront with many competitiors. If enterprises can be able to carry out the specific measures in management innovation, then conquer the rival party, this is management innovation.
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