Question Paper from: SBI PO MAINS 2018

We all are aware of the fact that nothing is permanent in this world, neither products nor technology. As day by day, improvements and updations are made in technology, leading to new inventions and innovations in every sphere of life. Invention refers to the creation of a brand new product or device. Conversely, innovation is an act of making changes to the existing product or the process by introducing new ways or ideas. At first sight, the two terms sound alike, but if you dig deeper, you will find that there is a fine line of difference between invention and innovation that lies in their connotations. While invention is all about creating or designing something, innovation is the process of turning a creative idea into reality. [A] There is often a fine line between genius and insanity. Innovation is not only important on the individual level, but can make or break a business as well. Innovative businesses create dynamic products, adjust existing services, and/or implement new ideas. [B] They are not afraid to colour outside the lines and try something new, even if it is risky. If a business is not innovative, they risk losing work to competitors. Lack of innovation also has indirect results such as losing staff and decreasing engagement. Therefore, innovation cannot be an afterthought, but rather a crucial element that is included in part of your strategy. It should be a cultural outlook that impacts thinking and improves problem solving. Many successful companies attribute their success to their innovative practices. That said, inventing and innovation are not one in the same. Invention focuses on creating new items or new ways to produce existing items. Very often, invention is a result of innovation, but it is not a requirement. Although invention can be beneficial to a business, the level of importance and necessity can vary according to the industry. [C] The era of invention is not over, but they have definitely been pushed aside for an era of innovation. While many people are still out there trying to come up with the next “big invention” that is going to improve humanity, businesses have discovered that innovation seems to not only trump invention in furthering a company’s brand and profitability, but it can be far cheaper when all the framework is already completed. This can be seen from many major businesses that choose to innovate rather than invent, such as Apple and Sony. First, we must distinguish the difference between invention and innovation. Invention is the creation of a product or introduction of a new process, for example the Alternating Current induction motor is an invention created in 1888. An innovation occurs when someone improves on or makes a significant contribution to an item or process that has already been invented; the Apple iPhone is an innovation of the cell phone. It seems that great inventors are smaller in number – perhaps business models are leaning towards enabling innovation.Sony’s influence in the technology market started with the invention of the first tape recorder, and through years of creativity and perseverance, became innovators of a variety of categories, from computing and electronics to entertainment. Sony shows corporations that for a business to thrive in today’s market, a company cannot stay stagnant with on particular item – innovations are essential. Innovation drives economic growth. Five combination patterns are what create innovation. These are, the production of a new good, a new method of production, a new market, acquiring a new source of raw minerals and the emergence of a new organization. [D] A company does not need to invent to have a competitive edge in the market, but need to innovate and create a product that is based on the needs and desires of the consumer.

How is innovation a crucial element that its absence impacts business strategy?