Disregarding relevant, progressive, and innovative strategies, tactics, methods, and tools in the business environment is perhaps one of the main issues many entrepreneurs overlook today. Despite the technical breakthrough, the availability of a wide range of unique inventions, and a high standard of living in many countries, not every company is ready to accept changes by investing in grandiose creations. Meanwhile, ignoring new technologies carries hidden and invisible drawbacks, among which one can single out common costs, irrelevant technical tools, outdated business procedures, and much more. It is known that innovations increase the efficiency and competitiveness of business, optimize several processes, and greatly simplify the work of organizations, eliminating unproductive tactics and other problems that arise on the way to outstanding achievements and results. Introducing advanced technologies and modern innovations in business operations is the key to a firm’s success, prosperity, development, and advancement.
Digitalization as the Key to Success for Organizations
Importance of Innovations
Primarily, one should state that digitalization is one of the most significant in the modern world. It is no secret that innovations and technologies are becoming increasingly entrenched in every economic sector in developed countries. In addition, they have almost wholly changed all aspects of business, and this process has never happened so quickly in history. Without technologies, most operations cannot be carried out in the 21st century. For example, even such a simple device as a calculator, revolutionary at this time, appeared due to innovative approaches. Accordingly, it is not easy to imagine returning to performing tasks manually since this would have brought humanity back a hundred years ago. Consequently, introducing innovations in business is becoming an essential tool for market conquest. If a company could earlier maintain its position in the market thanks to the consistent application of a proven interaction scheme with customers, now it may not work.
As practice shows, innovations have an effective, practical, and beneficial impact on conducting business for entrepreneurs, opening up the possibilities of quickly obtaining high-quality goods and services for consumers. Undoubtedly, it can be safely noted that innovations strengthen the brand, provide organizational stability, and improve business methods, allowing you to see opportunities for growth and development with prospects for the future (Caprelli, 2021). Additionally, in these days, many entrepreneurs are interested in participating in the technological revolution, increasing exports, competitive advantages, and business efficiency (Popkova & Sergi, 2020). Thus, enterprises can use technologies by using computers and various software to work more smoothly. They use it in different departments, including finance, manufacturing, human resources, and security. Properly applied innovations represent an inexhaustible source of growth for each enterprise. Thus, new technologies, devices, tools, and models are needed to keep up with the market leaders trying to get ahead of them. The introduction of advanced technologies offers not only competitive advantages but also gives companies hope for survival in an era of radical global change (Akpan et al., 2021). In particular, the appeal to this procedure was additionally demonstrated by the COVID-19 pandemic.
A Different Look at Things
Today, technologies actively revolutionize outdated and traditional business models and concepts, giving people the opportunity to look at things from a new perspective. Innovative business models creatively transform traditional patterns and improve them. The advantages of the innovative model over the traditional one are that the changes made affect all elements of a company’s activities, and not just one or two areas, as happens with the classical business models. In this case, innovations and creations begin to stimulate and accelerate the pace of development of companies’ activities, introducing sufficient changes into work. According to Rachinger et al. (2018), the digitalization phenomenon defines completely new and improved forms of interaction with companies, employees, and customers, as well as reveals new unique offers of products and services. Mobile technologies and constant innovations have allowed communications to reach a new level of hyperrealism, allowing colleagues to communicate via video chat or email. This event allowed businesses to have a broader global reach. The best example, in this case, is the Internet as an essential part of any marketing campaign, attracting customers worldwide.
Simplification and Improvement of Work
Technologies and innovations allow one to use fewer resources, improve quality at low cost and increase the speed of work tasks by automating numerous processes and increasing specialists’ productivity. Thus, the most well-known digital technologies, such as cloud, data analytics, AI, and blockchain, give some impetus to enhancing transformative business models, focusing on process automation, dynamic data matching, and real-time decision-making (Akter et al., 2020). Furthermore, technologies make it easy to store information, making it less vulnerable to hacking. Data can be obtained instantly when needed, and it can be analyzed not only to study past trends but also to predict the future; in turn, this can help in the decision-making process. Moreover, the vast abundance of data obtained through innovations makes it easier to analyze and better understand what customers are looking for. For example, even a Google account can already give a company an idea of where potential buyers are, which browser they use, and the reasons and time spent on a particular site.
Increase in Profits
Unique novelties permit organizations to increase revenues and scale operating models, expand a business and create new positions for hiring highly qualified employees. Research shows that technologies, as a rule, reduce transaction costs, as well as contribute to favorable economic and social moments within a company (Howell et al., 2018). In turn, technologies allow one to attract new customers and further increase the market share, predicting and modeling future demands, creating flexible goods and services for changing tastes. It should be emphasized that in this case, the possibility of increasing profits will depend on the type of innovation being implemented. For example, radical product innovation with no analogs in the world contains a much greater economic potential than a modifying product innovation that slightly improves specific parameters of already manufactured products when it is in demand.
Innovations are the critical growth drivers, but some companies and leaders today do not seek to create conditions for sustainable novelty. On average, 90% of enterprises consider innovations to be the key to success and prosperity. In comparison, 10% of organizations do not see the advantages and essential features of introducing various technologies into business processes (Caprelli, 2021). Investments in untested or breakthrough technologies can often be risky, and the management of enterprises usually feels more comfortable with “safe” investments aimed at expanding the capabilities of existing technologies. In this situation, achieving tangible success is difficult without an accurate idea of the final result. The most challenging goal is to systematically introduce innovations, from project to project, to ensure consistently high results, and most leaders cannot do this. Many people manage to implement individual ingenious developments from time to time successfully, but sometimes it is tough for them to maintain constant innovations and get high returns.
It is necessary to realize and understand that organizational changes and process reform should be part of the overall plan. However, to determine what innovations are needed and how they will accelerate the development of a new product, some organizations lack unity of views, proven principles, tactics, methods, or budget. Accordingly, in order to change the state of things, it will be required to develop a particular mindset, culture, and processes, although, indeed, it is easier said than done. Nonetheless, innovative technologies carry a wide range of positive aspects and bright sides for organizations. Consequently, there is no need to be afraid to try, implement, improve and form a positive image with the help of novelties because the risks associated with introducing innovations will undoubtedly pay off later.
Summarizing the above, it should be stated that innovative technologies, modern inventions, and grandiose discoveries give companies confidence and peace in a better, brighter future for an organization, leaders, and employees. Therefore, digitalization provides companies with financial stability, growth, and development in a specific market and provides a basis for understanding the current picture of the situation from the point of view of a completely different view. It has never been so easy, simple, and accessible with the technologies available today to share important information with colleagues or to track and analyze the most popular trends. Nonetheless, not every entrepreneur is ready for innovation and strives to turn to technology today. However, it is worth assuming that you should not be afraid of innovations because they will definitely pay off over time.
Akpan, I. J., Soopramanien, D., & Kwak, D. H. (2021). Cutting-edge technologies for small business and innovation in the era of COVID-19 global health pandemic. Journal of Small Business & Entrepreneurship, 33(6), 607-617. Web.
Akter, S., Michael, K., Uddin, M. R., McCarthy, G., & Rahman, M. (2020). Transforming business using digital innovations: The application of AI, blockchain, cloud and data analytics. Annals of Operations Research, 308, 7-39. Web.
Caprelli, L. (2021). 7 reasons why innovation is important. Lisa Caprelli. Web.
Howell, R., van Beers, C., & Doorn, N. (2018). Value capture and value creation: The role of information technology in business models for frugal innovations in Africa. Technological Forecasting and Social Change, 131, 227-239. Web.
Popkova, E.G., & Sergi, B.S. (2020). The 21st century from the positions of modern science: intellectual, digital and innovative aspects. Springer.
Rachinger, M., Rauter, R., Müller, C., Vorraber, W., & Schirgi, E. (2018). Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management, 30(8), 1143-1160. Web.