What is innovation?
According to the original definition, innovation is the creation and application of achievements, technical and technological solutions, and management solutions to improve the efficiency of socio-economic development, improve productivity, quality, added value of products and goods.
“Innovation is the transformation/process of transforming ideas and knowledge into a specific result such as a product, service, process, etc., which brings added benefits to the socio-economy”. When an idea or knowledge, no matter how attractive and potential, if it has not been translated into concrete results to bring value, it is not considered innovation.
The function of innovation is to bring creativity and novelty into the socio-economic system to create new values. Without innovation, the economy will fall into a "static" state and not create new values for development. Therefore, innovation plays an essential role in economic growth as well as social development.
Innovation is not only in thinking, but also in applying that thinking in practice. Innovations play a very important role in the survival and development of businesses in the market, because they create different changes and support companies effectively in solving customer problems.
Why do companies need to innovate?
To adapt to the constant change in the context of the times
Specific examples for businesses to see that innovation is really important in the 4th industrial revolution
Nokia – the leading phone brand in the 1990s did not expect the explosion and usurpation of a series of emerging brands such as Apple and Samsung. They built a huge technology empire in the market while Nokia refused to change, keeping the old operating mechanism.
The first self-driving car was planned by Google in 2014 and launched in 2020. And not long after, a series of companies also launched similar products, expected to have a meeting. Switch between old and new cars.
According to Tom Goodwin: “Uber, the largest taxi company in the world, owns no cars. Facebook, the world's most popular media owner, makes no content. Alibaba, the world's most valuable retailer, has no inventory. And Airbnb, the world's largest provider of rental accommodation, has no real estate." And in less than a decade since Airbnb.com launched in the US, the sharing service has exploded into a worldwide sharing economy.
In the era of technology boom, it is difficult to survive if companies just follow the path and the truth is that Nokia has paid a heavy price for being afraid to innovate, afraid to change. Companies cannot be subjective because their competitors are getting stronger day by day.
Join the big changes in the economy, human resources, customer experience
The more exposure to technology, the more customers' s desires for service experiences change. For example, in the present time, customers tend not to listen to businesses self-promoting products but know objective products through intermediaries such as KOLs and KOCs. They are also more interested in emerging social networks like TikTok, or platforms like Facebook, Instagram instead of Website. Or they simply love to experience, interact and to understand this, businesses need to keep up with constant trends.
Innovation is the key to overcoming challenges
COVID-19 and its long-term consequences, global war conflicts, slow growth and climate change are not limited to any single country. Everyone is suffering the consequences of these problems, including Vietnam. Stability and sustainability now need to be reconsidered, Vietnam especially businesses need innovation as a vital option. In that time, new thinking and digital transformation are the keys to a successful breakthrough.
Innovative methods in company?
Empower employees
In fact, in the process of operating a company, there are leadership issues that are difficult to grasp thoroughly and specifically. Meanwhile, employees who directly perform the work understand these realities, have good suggestions, but do not have the power to make decisions. What every manager needs is a tool to influence the enthusiasm of each employee, so that everyone can work together to improve work.
What leaders should do is encourage and motivate employees to maximize their potential. Instead of following a pattern or stimulating creativity, go beyond the usual stereotypes to develop the ability to innovate.
Empowering employees does not mean letting subordinates do whatever, you must have your own method. However, it still allows them to have the right to choose and decide according to their opinions.
Enterprising
There are so many great, creative ideas out there. However, for various subjective and objective reasons, these ideas are not selected or selected but not implemented.
The fear of change, fear of failure, makes business leaders not dare to change. This mindset needs to change immediately because the days of people being afraid of changes are over. The 4.0 revolution has come and will be developed by many more innovations. Fear and concern will only lead to failure and setbacks.
Global thinking
Nowadays, people are aiming to become global citizens. They have enough creative breakthrough spirit, bravery, confidence, demeanor and basic skills for a new life.
Global thinking allows people to think bigger, farther, more trendy. Therefore, courses that equip company workers with open thinking and global thinking are essential for change. Without the above mindset foundations, it is very difficult to adapt to the new era, let alone innovate. For that reason, knowledge is always the core condition for people to go further and faster.
Leadership change
One of the biggest obstacles of large, long-standing enterprises is the thinking of the leadership apparatus. Generations of young workers have similarities but also differences from the generation of leaders. Different generational thinking leads to disagreements that are difficult to resolve. How to improve this situation?
Instead of giving orders vertically, leaders should consult with employees for input. Besides, it is leaders who should learn, need to learn, not only as expertise to improve skills or management skills, but the core is to learn to accept change, learn to adapt, learn to be flexible in the new age or learn to think open-minded.
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