Strategic innovation
Strategic innovation has motivated and sustained economic growth all over the contemporary world and is a requirement for business endurance. As a result, strategic innovation plays an important role in different business dynamics and innovation activities. On the other hand, corporate organizations play a key role in transforming ideologies into useful forces, not only with higher competence and relatively lower cost but also with various innovation strategies, through the aligning of business products, processes, service design, production technology, or management strategies changes to improve the production effectiveness of businesses. Innovation has promoted and improved the development of emerging industries and technological advancement. Innovation has promoted the industrial chain’s continuous improvement and drove the development-related industries to maintain proper economic evolution. Therefore, the paper analyzes innovations in different XYZ industries and the significance of innovations in the Arab world.
Literature review.
Strategic innovation is the employments of new or important better goods and services, business progressions, different marketing approaches, current business organizational techniques in business practices, workplace organizational, or good external affairs. Business stakeholders are the beneficiaries of successful innovations; change always provides new and different ideologies in a business setting. The discipline of innovation is broad. In that, a systematic review of the areas of innovation that can offer entrepreneurial chances. Therefore, strategic innovation entails keeping track of the seven sources for innovative opportunities in the business world. The first set of innovative strategies is an unexpected success, failure, or an external event in a business setting. This source indicates the innovative ways based on the processes that cannot monitor every employee in the industry or every customer in the market structure.
The second source of proper business innovation contains the changes apart from business or industry. They are the demographics that include normal changes in perception, mood, and the meaning of particular business ideas. Therefore, companies’ capabilities to innovate are not limited to the developments of products, processes, or services. The business may target four main ways that include the improvements of the services to introduce or improve the quality of the products, the advancements to improve the processes offered in business, innovation to explain or retell the setting of the business or products, and strategies to outline or re-outline the dominant model of the businesses. Notably, the methodologies deliver an organized style to evaluate the opportunity grounds for innovation into businesses.
Pressures on businesses to make innovations into their business are triggered by trajectories, such as the rapid rise in technological progress and the numerous changes in a country’s economy. Businesses shareholders, competitors (rivals), customers, and product suppliers also play a huge role in pushing their businesses into modern innovation due to the stiff competition. For the business owners to eliminate the impairment of the status quo and the existing competencies, the management begins to look for better opportunities and resources to innovate and build new core competencies. Therefore, the businesses start an innovation process to the company and its workforces. The management shapes the way of production and the nature of their produce by transforming their products in a difficult way for the competitors to imitate.
On the other hand, even though innovation has different meanings and approaches, it is still demonstrated in different ways but adheres to one agenda. The descriptions of innovations are derived from the variety of meanings implied. The descriptions are generally grouped into two groupings: the description of the outside’s scope and under the operator’s scope. Innovation is practiced to produce a new model of doing in the business. Thus, product innovation is the most noticeable demonstration of innovation development. The products consumed by the market notify the traces of innovation development. Thus, the novel products are the outcome of the innovation practice, and product innovation is dedicated to the new technology or new marketing strategies. Therefore, the increasing influence of innovation on a business model for the established industries has brought about the discourse on innovation on different industries. Some of the industries are Healthcare, automobile, manufacturing, information technology, social media, logistics, retail, hospitality,
Healthcare
Innovation in healthcare systems is looked upon as modifications that help healthcare practitioners focus on the patient by facilitating healthcare professionals work smarter, faster, better, and more cost-effectively. The reason for innovating healthcare facilities in the contemporary world is to meet the community’s changes and expectations. Additionally, as the growing demand of patients, society, and the country concerning the efficient provision of high-quality healthcare services and improving the population overall health level. The workforces should then be maintained and involved through the ongoing innovations to workshops and open communication during the entire innovation scheme.
Healthcare systems also have made a representation that makes a significant union between the national innovation and the social wellbeing of the citizens. Therefore, scholars have categorically acknowledged that progress need in the healthcare innovation system has positive implications for society and a nation’s economy. Notably, the increase of the healthcare services and the consumer market for industrial products used in medical centers, health promotion campaigns, and prevention symbolizes the social gains, thus meeting the wants for capital accumulation in the healthcare fraternity’s private sectors.
Lastly, the need to perform important innovations in the healthcare system and the medical practices proposes a need to focus on the connection of the same forces in healthcare systems. The innovations do not refer mainly due to technological advancement but also the analysis of which is available in other disciplines of healthcare systems. The advancement in healthcare has adopted new ways such as the introduction and intentional application of new ideas, processes, products, or strategies that are purposely based on a group or society. Thus, a healthcare facility is a major place of innovation for developing medical knowledge, hence improving the increasing population’s lives.
Automobile
The automotive industry has been a driver of economic developments for most developed nations such as Japan. As a result, innovation has increased significantly to higher gross domestic product (GDP). Over the past decade, it is evident that most countries worldwide have been leaping innovations in the information and technology sectors where technological advancement in phones and computers completely altered the communication and computing landscape. Therefore, the focus has now shifted to automobile industries with huge attention and investments being poured into the industry. The automotive industry has now gained maturity, and high structure as globalization, government regulations, and technological advances in electronics, information, and communication sectors push the automobile industry to high innovation level.
Globally, the automotive industry has raised the revenue generated per year, raising developed nations’ (GDP). Accordingly, innovation in the automotive sector should generate good economic results, and simultaneously, a social and positive environment, which is not easily attained, provided the uncertainties that innovations bring out. The economic evolution is easily predicted, as there is huge evidence in the enormous quantity of tools developed for that purpose and innovative business corporations specializing in using them. Thus, causing the surrounding and the social effects more difficult to assess beforehand, as they show more variables, uncertainties, and interactions.
The automotive sector is more agile, flexible, and secure systems to continuously restructure communications systems. As a result, automobile dealers’ antagonism has rapidly augmented their capabilities to lead, with agility and efficiency, the chain of specialized suppliers and distributors. Moreover, innovation has helped to launch products with agility in the market. Automotive companies are applying the simultaneous development of innovation into the products, with various areas working in an integrated way, saving time and producing a significant effect by the commission of some stages of development. Therefore, the greater evolution of innovation into product development activities has made it easier for the suppliers and automotive assemblers to reduce the design’s complexity, shorten the development time, and the professional hours needed.
Information technology
Technological advancement and innovation have caused a great deal of speculation and controversy in the information and technology sector. In the contemporary global setting, innovation has developed such that each day, there is a discovery of the changes in information and technology. As a result, information technology is a new avenue for modern job creation, with networking sites enabling people to interact freely through innovations. Therefore, the study aims to close the research gap by assessing how information technology innovation influences business performance.
In the modern world, the pace of innovations has risen drastically due to trailblazing growths in the information technology sector. Over a decade and a half, electronic communication was still barely unknown in the business setting. However, today, any business would be nonexistent without information technology innovations. The accessibility of relatively inexpensive mobile data storage has drastically improved the entire businesses such as photography, media, or telecommunications as it has the capability to access the internet. Thus, the power of innovation has the capability to change the ways of living just overnight. Therefore, business stakeholders should always be at the forefront in adopting new technological advancements to keep up with the demanding market.
Business enterprises with an apparently incontrovertible market position are under danger from improving the market sector’s speed. From a different approach, the technological advancements options for digital services are have become crucial and are slowly gaining economic importance. Moreover, information technology innovation in many developed economies of different nations accounts for over seventy percent of (GDP) integrated. Furthermore, the ongoing development of information technology will result in a much further increase in the share of services and the rising number of opportunities to decomposition their benefit networks and their coordination.
Manufacturing
The interrelationship between innovation and the manufacturing sector has impacted the production of businesses in the modern world. From the same point of view, innovation has a huge role in the manufacturing industries’ growth, thus cannot be explained from a single perspective. However, innovation strategies may bring risks and dangers to manufacturing industries. In that, when a business enterprise introduces new products, it must adhere to limiting of the technical challenges, market competition and focuses with the sale strategies of competitors. As a result, manufacturing corporations should allocate more of their budgets to marketing approaches, market research, and investment technology when they present innovative products to the market.
These practices may cause an unexpected budget increase to push the manufacturing industries stakeholders to invest and supply more capital in the company’s operation. Similarly, when corporations undergoes an innovation process, it faces the challenges of significant increase in the cost of the products and it may harm their profitability and the expected returns of shareholders. Additionally, when manufacturing enterprises spend a massive amount of money on research and implementation of innovation ways, their financial presentation tends to deteriorate due to the gains from presenting new goods are only expected after consumers use and approve them.
The dangers associated with innovation projects can be outweighed by the potential higher returns for innovators. Thus, good acting manufacturing enterprises are likely to employ in innovative activities hence boosting its productivity. This suggests that technological advancement serves as an indicator that only better performing enterprises are likely to innovate. Innovation plays a key role in helping the manufacturing industries gain higher admittance to official loans and proper government support programs. Well-innovated manufacturing business may attract the customers by giving them confidence in your products hence an increase in the customer loyalty and satisfaction. The satisfied customers helps to market products by introducing the products to their friends and family, resulting in better revenue increase in manufacturing profitability.
Social media
Social media has been largely affected by the practice of innovation. Social media has provided with many businesses a new platform to facilitate innovation exhibition because the consumers are being more attached in the whole procedure of innovation. Therefore, businesses has used social media as an important tool to influence consumer’s attitude and reaction to the products. Social media has helped firms over the globe to brand their products in their platform, these has been because of innovation. The impact occurs in social media grounded brand communities because communal associates have the switch of determining, creating, distribution, and dispensing information and because the spread out of their skills and ideologies in the format of electronic word of mouth forms product images.
From a practical perspective, social media has increased the popularity and economic relevance in the contemporary world, thus enabling many users to share information, products information, and influencing the way organizations are building their businesses around connected people. Categorically, information and communication scholars have argued that institutions are highly affected by different communications arrangements and procedures. Different researches have examined the growing mediatisation of organizations and the influence that the news media and other information intermediaries have on organizations and on their relationship with external stakeholders.
Nevertheless, although the alertness of the dominant protagonist of media in modern society, which affects the information, concentrated surroundings where organizations work, there is a lack of consideration of how institutional procedures disclose in a mediatized society. Furthermore, there are few practical studies that efficiently define how alterations in communication forms and plans facilitate larger changes in social institutions and in how organizations construct their collaboration with stakeholder audiences.
Logistics
A growing number of logistics and transport leads to the increases in the market competition for logistics and transport sector. Innovation has made logistics to pursue the operational excellence so that the company may provide the excellent logistics operations to gain a business share for sustainable development in the long term. This is one of the key purposes of the industrial revolution that accelerates the growth of innovation capability in various businesses organizations. However, supply chain risks is one of the dangers hindering achieving operational excellence. Many scholars argues that the supply chain risk problem also affects logistics.
The capabilities of innovation has been in a long history of research. Therefore, modern businesses can gain and sustain competitive welfares by developing and organizing resources and competences. In essence, the competences are composite bundles of skills and gathered knowledge, exercised through structural procedures, which enable businesses to organize events and make use of their possessions. Having competencies in logistics industries endorses logistics operations, and effective logistic operation generates competitive advantage gains a business’s market share. Innovation has enabled logistics industry to seek perfection as one of the key priorities of operational excellence in the industry.
Innovation has played a significant role to improve logistics operation such as containerization. Over the past decades there has been a massive development in the logistics industry and many examples of innovation has portrayed itself. The significant way to find better ways of product movement was identified long time ago to connect the manufacturers with their respective markets. As a result, good roads, waterways, railways has been built to ensure that proper delivery of goods and services to the markets is reached.
Hospitality
Innovation has given every industry an indication that they need to undergo a technological driven transformation; similarly, hospitality industry has no difference. Services such as online booking services, good customer relationship management, and social media exposure have transformed the hospitality industry enabling a new level of customer service to be apprehended. The improvement in the technological level have had a greater influence in the future. In some developed countries hospitality has gone to an extra level such that services such that, lighting, temperature control, alarms, T.V and room service are controlled from a single tablet device or an app that can be downloaded and login from their devices. Therefore, the need to implement on the new technology will be dependent with the client’s desires to accept the services and use it.
Although there are many challenges brought by the new innovated technology, these advancements have been enhanced to change the hospitality industry in a positive way. Therefore, it is important to study the outline for studying the impacts of technological innovations in hospitality service. Good customer service is the pillar of this industry but innovation through modern technology helps the industry to deliver a memorable experience to the customers and guests.
Nevertheless, hospitality industry is a rapid growing revenue generator in many nations worldwide thus, improving the economy. It has also created employment opportunities for the people in the country and the immigrants. Hospitality industries is one of the firms that faces fierce competition from their competitors. Therefore, it is significant for the industries to maintain their competitiveness by distinguishing themselves from others through practicing of continuous innovation and improvements.
Retail
Innovations have changed almost every bit of human existence, including the ways that businesses market their goods and services to their potential customers. Innovations such as the internet, mobile devices, and social media has resulted into greater improvement in the retail businesses. The technological advancements have advanced the marketing strategies of retail products. Many firms spends many funds to keep intact with the technology to reach their objectives. for instance, many retail businesses seeks for cost saving mechanism and high production process, which reduces the labor cost thus increases the production efficiencies.
With the improved technology, many retailers spends more time in the online platforms in the attempt to better communicate and connect with current and potential customers, thereby making sales thus making of revenues. Serious businesses managers who keeps up with the trending technology tends to change the rules in a business world. The retailers are the determinant of the prices since they are the early adopters into the business. Retailers has developed predictive analytic capabilities, that uses its urbane personalized recommendation system, and has developed an advanced, original, and a single-click ordering system.
The technology advancements has resulted into new applicable ways and solutions, with their unprecedented effects and unfamiliar outcome to compel marketers to get ahead of the knowledge curve. For instance, it is crucial to know the effects of new technologies on both firm strategies and customer behaviors. Technology has the potential to shape the practice and discipline of marketing for the coming years. Therefore, retailers need to engage in multidisciplinary collaborations with non-marketers to tackle the big encounters and chances that firms face when they try to join the power of many new technologies.
Beauty
Over the past decades, there has been a huge kevidence in the in the greater reprensentation and emphasis on self-welfare that have set the wheels in motion for a defining new phase of the beauty industry. Innovation has caused a great deal of controlversy as many people got serious about their beauty impact. Everybody wants to look beautiful on a daily basis despite accepting that nature is still taking its cause. Categorically, respective beauty industries have benefitted a lot as innovation has provided with extraordinary results both beneficial to the customers and also to the investors.
Cosmetics manufacturers have really benefited from the fast growing beauty industries. Beauty industries has created a platform where people may learn the course at colleges and universities and get a job. Occasions such as weddings, and prom nights and fashion have given the beauty industry a greater mileage. The consumers mostly of the beauty industries are mostly women who are continuingly to enjoy new products and on a journey of exploration. As a result, there are different brands of the beauty products that are designed for different people no matter the age or skin tone.
Innovation has helped the development of the beauty industries in that there is new brands with new ideas of how to remain beautiful. As a result, the marketing and retailing entrepreneurship is boiling over the beauty industry. The young brands are mostly preferred by the consumers since they are cheap and still have better performances. Therefore, acquisitions by the major beauty companies of every smaller companies at very high values are drawing in more founders and driving more creativity on a daily basis. The big brands are encouraged to carry on acquisitions since they are threatened by the young, independent brands that the consumers wants most.
Music industry
With the increase innovation in music industries, there has been a reduction in sales thus affecting the record brands. Thus, the global music industry is facing a big challenge. There has been a huge decrease in the number of sales thus reducing the revenue generated from the industry. Technological advancement has led to the creation of streaming sites such as YouTube, which has reduced the number of sales in the music industry. Moreover, technological advancement has also promoted snubbing of music shows by the fans, as majority of them prefers watching the shows on the live television while at home. This has greatly reduced the sales in the number of tickets thus, reducing the revenue.
Additionally, the rate of piracy has been a great deal of speculation and controversy as most of the record stores and shops have been closed all over the globe. In a practical perspective, music business is a valuable transformation within structure of costs and revenues from varying to a new resource. Although there is reduction in the revenue due to factors such as piracy and online streaming, music industry has provided with huge source of employment opportunities. Music producers and editors has really experienced a great flow of jobs as teenagers in the contemporary societal have the urge of realizing and conveying their messages to the world through music.
Impacts of innovation in the Arab world.
Innovation have changed our lives in a wider perspective and it has influenced a ton on our journey to excellence. More so, technology has changed the style of our living and made our lives more adaptable. As a result, the Arabs nations have been quick in grasping the capability of innovation to enhance the lives of their citizens. For instance, Dubai city was reported to be the first city in moving the taxpayers driven parastatals into online platform to enhance productivity and diminish costs. Therefore, the innovation was later embraced by other nations all over the world. The study will primarily analyze the different impacts of innovation in Arab nations basing on industrialization, technological advancement, politics, and social growth.
The united Arabs emirates is a federation of seven emirates namely, Dubai, Ajman, Fujairah, Ras al-Khaimah, Sharjah, umm al-Quwain, and Abu Dhabi. The Arabs country’s has witnessed buoyant economic growth in the last decades boosted by the technology advancement. Innovation has enhanced development of infrastructure, which influenced the high rate of urbanization. As a result, the urbanization rate reached a stage, which was crowned to be one of the highest rates in the world. The economy’s growth contributed to a lot of trade in the countries, where foreign investors and large portion of emigrant’s workers have played a major part in creation of a sound banking system and financial market.
On the other hand, there has been a high demand of power due to the rapid growth, financial development and urbanization. For example, the high growth of economy has augmented the purchasing power of households for using energy efficient electrical appliances, which may influence electricity consumption rate. In the Arab world, innovation has been an assistance in solving economic problems as well as generating startups in unprecedented ways unimaginable. Technology has led to improvements in sectors of education. More funds have been used on public education in the Arab world to improve the quality of education in schools to produce compatible workforces in the increasing technology advancement. Lastly, the power of innovation is now deeply embedded in the daily life of an Arab youth. The Arabs world has provided free internet in hotels, trains, schools, city parks, and commercial buildings to empower young people to come up with their new ideas to the improvements of the technology.
Conclusion
In conclusion, the dominance of innovation and technological advancements in almost every sector of a business have created completely new strategies of doing the business. It has also destroyed the chances of the investors to survive in business who fails to adapt in technology thus, makes them adapt to this change. Innovation has expanded businesses day by day, and the goals of the business are met. Today, the changing competitive technology has become necessary thing that motivates new ideologies while partially reducing the value of traditional strategy concepts.
Therefore, a business should try to employ innovation by creating the appropriate culture, processes, systems, structure that enables the rise of technology. Business stakeholders should put more focus on strategic that integrates all area of innovation to ensure sustainability, long-term profit, competitive advantage and diversification. A planned viewpoint on innovation will lead the business to look at the whole system past product and process, guarantee motivation to cause innovations that will cheer contribution, plan and create value and will be the key to justifiable reasonable benefit for businesses.