It sounds like a bit of a buzzword, but innovation actually has a big role to play in society. Sure, anyone can innovate, but it’s those significant changes that truly have an impact. Key though is that the best kind of innovation actually solves problems by creating effective processes, products, and ideas.
What is innovation?
By definition, innovation is the introduction of something new, furthering progress in society. Many people will say that innovation is the core reason for how we exist in the modern world. Remember, change is inevitable and innovation almost always creates positive change.
When it comes to products, the best are often the most innovative, providing a solution to a common problem. A good example is the Apple iPhone – they’re innovative both aesthetically and in terms of product features. Each new update provides new features such as voice recognition, fingerprint technology and synchronization between devices.
Key to remember though is that innovation does not equate to the invention. It can simply mean making slight changes to a business model or environment to ensure the delivery of products or services.
Innovation in business
McKinsey and Company estimate that 84% of executives believe their future success is dependent on innovation. In terms of businesses, innovation helps them to grow and plays a very important role in terms of economic growth. It helps problem solve, especially as the world’s problems continue to evolve. Innovation helps companies stay on top of constantly changing problems, especially in developing countries.
There are other very important reasons for innovation.
- A Deloitte Innovation Survey found that 66% of respondents believe innovation is important for business growth and development, helping the business to scale up.
- A business is not the only company in that particular market. There will always be competitors. Yet innovation helps businesses stand out from the crowd, mainly because you’ll be figuring out new ways to solve customers’ problems.
- Innovation also helps companies meet constantly changing customer needs. Innovation helps predict how the market will change, providing solutions before customers even realize there’s a problem. This means when customers come to you with an issue, you already have a solution.
- Finally, innovation helps to attract the cream of the crop when it comes to employees. Someone is going to join a company that is going somewhere, that is constantly working to improve and innovate.
The impact on society
Perhaps the biggest impact innovation has had on society is regarding technology, which is, in effect, embedded in almost everything we do. From agriculture to transport, technology is changing the way we live our lives and interact with those around us. This is especially true in relation to robot process automation (RPA) and artificial intelligence (AI).
In addition to AI, there’s also cloud computing and storage methods, blockchain, augmented and virtual reality and the Internet of Things (IoT). With these technological innovations, the world is becoming a more seamless place where almost everything is available to us, any place, any time.
The good news is that society as a whole is ready to embrace new technologies. It’s a given fact of life really, that as technology changes, society will need to adapt. The senior generation is no exception, with 69% of seniors feeling confident that they will be able to keep up with future innovations in technology.
As well as technology, innovation is also helping in terms of jobs and economic growth. It’s estimated that the world economy could more than double in size by 2050, due to technology-driven improvements. On top of this, more than 130 million jobs may be created by 2022. However, on the flip side, due to innovation such as AI and RPA, millions of jobs are on the line.
There is also some research that shows that wellbeing is inherently linked to innovation. Living standards rise alongside innovation and economic growth. When it comes to developing countries, digital technologies and innovative solutions are helping to combat issues such as sickness, poverty, and hunger.
Finally, challenges such as sustainability and environmental change require innovative solutions. This will continue into the future. New greener technology solutions such as environmentally-friendly cars, solar power, and green-based products certainly help and will offer more advantages in the future, there is still more to be done, which is where innovation steps in.
Innovation and the future
No one solution will fix all problems. Innovation helps to find many solutions to society’s issues, from technology to the environment, to the job market and everything in between. What has worked in the past won’t always work in the future, despite it being the best solution currently. Innovation involves risk, but there’s almost always a very big reward at the end.