Managing innovation is key driver of growth in the new economy Essay

Managing innovation is key driver of growth in the new economy - Essay Example If you want to sustain in this big ocean with lot of large creatures, you have to find out your own hideouts. Niche areas always help you to survive. But niche and exclusive areas will not continue to be as it is. One day some one will find this hide outs to trespass. Then there will be large number of players in the same field, which will in turn increase competition. In a highly competitive business scenario small units will find it difficult to survive with their limited resource. Without innovation, an enterprise could not strive for a long time. Entrepreneurship is considered as a key element in the new economy, and new enterprises are contributing to create a dynamic business environment through economic growth, opening of new job opportunities and innovation of production processes and products. (Enterprise DG Working Paper on Business-related services: a key driver of European competitiveness. An enhanced economic analysis, December 2004, European Commission Enterprise Directorate-General, December 2004). For guiding an enterprise into a long term success path managers need to concentrate more on innovative practices and products. Managers have a major role in starting the process of innovation in an industry. Investment in acquisition of new skills, new organisational structures, new ways of co-operation, creation of new enterprises and relations with customers and suppliers are some of the guiding forces, which help managers to go for innovative practices. (Enterprise DG Working Paper on Business-related services: a ke y driver of European competitiveness. An enhanced economic analysis, December 2004, European Commission Enterprise Directorate-General, December 2004). Constant innovation process will give industrial units an added advantage in the present global scenario. It gives companies an additional strength than competitors. But the word innovation is easy to say than implement. The word itself stands for risk. When you introduce an innovative service or a product, it is only a concept in the market. You have to convince the customers and clients on the new concept. There won't be similar model in the market. So it is a matter of hard work to get result. One in ten innovation drives fail due to lack of direction and commitment. The major concern is that people are yet to understand the innovation process. It is long term, struggling and expensive. Manager need to bring in skill and expertise to win the race. It involved lot of phases. It takes long time to give return. It is like a jump without circles. The innovator has to draw his own circle and change the peripherals as he moves on. In fact most of the entrepreneurs recognise that innovation is necessary to renew products, services and business processes and it is a key strategy for competitive advantage and growing shareholder value. But usually they won't jump into it due to lot of risk involved. As a business grows, there will be inertia in the organization. It asks the owner, promoter and employees to move in the same pace. They will look at any changes in the present operational level with suspicion. In many cases these people may have their own ideas to improve the service and product. But usually they won't like to take risk. Managers are actually apprehensive of the response of customers and cli