Innovation Case

1. Introduction:

Innovation is a key driver of business success now and will be in the future according to 83% of Britain’s business leaders. They agree that it helps their businesses to achieve higher profits, engage employees, stand out from competitors and deliver growth. The research conducted with 500 UK company leaders found that many recognise innovation as making a positive contribution to their organisation - 72% of business leaders acknowledge that their business is innovative to some extent. For most companies, innovative products account for more than 10 percent of their annual sales. For almost half of the industries (7 out of 16), annual sales are based on new products for 20 percent or more. Four in 10 believe their current focus on innovation makes them more successful and 26% believe it helps them enter new business areas which is key to maintaining a competitive edge. Andrew Torrance, the CEO at Allianz Holdings PLC, says that: “Through our own experiences and understanding of innovation and the successes it can bring, we believe British businesses can use innovation as a weapon in their armoury to move through the double dip recession with optimism and excitement about what the future holds," he continues. "In my view the creative spirit that innovation brings is something British businesses cannot afford to lose, even in the most difficult of financial climates.”

It is clear that innovation plays an important role to the success of a business. However not any business can be successful with their innovations. The problem is not that business owners and managers don't see the need for innovation. Many just don't know how to encourage innovation. This paper discusses the question of what innovation is, its importance and process managing the culture of innovation in a business.

2. Discussion of findings:

2.1. What is innovation?

A simple innovation definition is to say that innovation is to make something new or to do something in a new way. Innovation is the manifestation of human potential and creativity. It allows societies to solve problems, and seize new opportunities, and achieve higher standards of living. Innovation is what makes businesses thrive.

The first authoritative definition of innovation in the context of commerce and industry was provided in 1967 by Robert L. Charpie in the influential report to the US Department of Commerce. In this submission, “Technological Innovation: its Environment and Management”, innovation is seen as: “The successful bringing to market of new or improved products, processes or services”. In 1968, the Zuckerman Committee defined innovation as “a series of technical, industrial and commercial steps” (Robertson, 1974). In 1969, Marquis defined innovation as “a unit of technological change”, quoting