Innovation Management Essay Example | Topics and Well Written Essays - 3500 words

Innovation Management - Essay Example In the current business environment, technological innovation is the key driver of achieving competitive advantage among the companies. Firms rely on the recently developed products as the major sources of revenue and increase in the profit margin. Thus, innovation is becoming a metric measure of the current performance level of firms in different sectors. Globalization has taken, and is taking place in the business world (Aalbers et al., 2014). As such, it has contributed towards the development of innovative strategies among the firms. Such emerges from the foreign pressure that local firms receive in terms of the quality of their products and services. Therefore, companies are engaging in the production of differentiated products and services so that they can survival foreign competition. The introduction of the new products ensures that firms have the potential of protecting their margins and lowering their production costs. Such includes improving on abilities of the firms in th e competitive market. Technological advancements have also triggered firms to focus on innovation. These advancements include computer-aided manufacturing and computer-aided design, which help in the short-run production, as well as the attainment of economies of scale within the production chain. The aim is to ensure that the products and services meet the customer needs. Such is essential because different customers express unique needs in terms of the quality of the quality of services and products that they receive from the market.