The importance of Innovation

Revision sheet on why innovation is important within a business

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Importance of Innovation
R & D = Research and Development
Businesses spend £1,000,000s funding R & D
BENEFITS OF A BUSINESS HAVING R & D
New products/market = profit = long
term success
Become more efficient
Improve quality
Reduce costs
Motivation of staff = HR = recruitment
Increase capacity
Reduce environmental Impact
Meet regulations
Increase product range
BIGGEST INNOVATORS
Manufacturers
Defence (Rolls Royce etc)
Pharmaceuticals (this accounts for 40% of all R & D)
STRATERGIES TO INCREASE INNOVATION
Set up an R & D department, give them money and target objectives
Develop a culture of innovation
1. Quality Circles
2. Kaizen
3. TQM
Market research = find customers needs and wants
Protection (of ideas)
1. Secrecy
2. Patent and Trademarks
RISKS OF INNOVATION
Uncertainty/ customers may not want it
Operational difficulties of new products
Competition finding ideas and replicating them

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