According to Utterback (2014), innovation in business is very critical as it brings new ways of doing business and producing change. Innovative companies are likely to achieve a better position in the market following value addition and product differentiation.An excellent example of creative business and the advantages that accrue to it is the General Electronics. GE has used innovation to develop products and diversity in the manufacturing business. Being an American multinational company in united states having its headquarters in Boston. GE’s innovation and diversification into different industries such as healthcare, oil and gas power, renewable energy, transportation among others. This is quite significant innovation that has accrued considerable benefits to General Electronics (Utterback, 2014).
A business can be inventive, but it may find it challenging to implement their ideas. Such type of innovation brings a package of benefits and disadvantages to business enterprises today. Some of the advantages that a business an get from such change may include growth and sustainability, in the long run, increased sales revenue and net profit, boosted the market and improved global reputation. This is just to mention but a few. On the other hand, innovation of such kind can bring some demerits in no small incorporation such as the General Electronic. It is likely to experience operational challenges in managing its respective divergent investments (Bessant & Phillips, 2015). Coordination of its markets can be overwhelming and can lead to huge losses in sales resulting to uncertainties in the market trends.
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Competition can also be a limiting factor in the full realization of the company’s goals and objectives. However, there are many business incorporations that owe their present successes following significant innovations like the case for General Electronics. It is apparent that significant change only brings positive impact on business in the long run (Bessant & Phillips, 2015).
References
Bessant, J., Lamming, R., Noke, H., & Phillips, W. (2015). Managing innovation beyond the steady state. Technovation , 25 (12), 1366-1376.
Utterback, J. (2014). Mastering the dynamics of innovation: how companies can seize opportunities in the face of technological change.
