Organizations all over the world strive to increase their market share and shareholders' value. But this is easier said than done. In today's harsh competition, various organizations get overwhelmed by the sheer amount of competition at hand. In such circumstances it becomes very difficult to survive the completion, let alone stand out of the competition. The question is, then, how should organizations separate themselves from the pack and achieve excellence in terms of market share? The answer lies in innovation.
Innovation, in terms of an organization, refers to bringing something radically new to the way it conducts its business. Innovation may be conjured up in an organization's products, services as well as business processes. There are countless examples where organizations have risen to new heights simply because of new innovative products or services. New product innovations fuel market interest and, in turn, propel an organization to distinguish itself from the competition.
In today's age, sometimes, the example of Apple Inc springs to mind as soon as we talk about new product innovations. Apple was facing some serious issues and was on the cusp of bankruptcy when the legal Steve Jobs took over the reins of the company and rolled out new innovative products. Because of the innovative products, Apple quickly came out of its bleak situation and became the largest company in the world, in terms of market capitalization. This example is a testimony to the fact that new product innovations can turn around the fortunes of any organization.
Apart from Apple Inc, there are numerous other examples of organizations which churned out new innovation products or services and walked up the ladder of market supremacy. Let's take the example of Microsoft's gaming service Xbox Live. Xbox Live was a revolutionary service by Microsoft which completely changed the gaming industry norms and shifted the focus on multiplayer gaming from the solo gaming experiences, which were the norm of the day at that time. Xbox Live gave Microsoft a really strong chance to compete against Sony's PlayStation which was dominating the market at that time.
Innovation is not necessarily attached to new innovative products or services. It can also refer to some radically new business process which can make an organization more efficient. For example UPS (United Parcel Service) brought innovation to its business process and created a state-of-the-art facility where the entire luggage was handled by automatic machines. This process welcomed the much needed efficiency to UPS and increased its service quality, which significantly increased the market share.
Thus, innovation is the key to success in today's business environment. Today's market is like a treadmill where you have to constantly keep moving ahead and can not afford to be inactive, lest you would be thrown back. In a nutshell, organizations need to bring out new product innovations to the table, in order to reach their zenith.