We usually say that innovation provides organic growth and sustainability. Innovation allows one to go beyond fusion & acquisition. It is an alternative to geographic growth and brings many more benefits than the ultimate cost reduction. Innovation is a weapon for fierce competition in the marketplace.
Yes but, more practically, an innovation addresses other customers or other customer’s benefits.
Innovation is a strong differentiation lever that:
Fierce competition pushes companies to innovate intensively. More new products must be launched more often. That cannot be due to chance or to artistic chaos anymore. Moreover, good ideas or smart technologies will not guarantee financial success.
Market acceptance, large-scale distribu-
tion, and then the payback of an innovation must rely on the companies’ abilities to structure and manage their innovation efforts.
We will talk about a structured innovation and an innovation process.