INNOVATION IN BUSINESS (READING)

INNOVATION IN BUSINESS

(READING)

By MOHAMED RIZAL

​What does it mean to be innovative in business?

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In order for a business to survive in today’s world, it is important that we regularly review what we are doing and how we are doing it. By considering new ideas and new ways of doing things, and trying to innovate, we can improve on our products/services, increase sales, reduce costs and make our processes more effective and efficient. Innovation is key to increasing profits.

There are several ways a company can be innovative with its products and services. Today we will look at four of them.

​1. Using the latest technology to improve your product/service

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When we think of innovation, we often think of new technologies. While they might be impressive, we should not use new technologies just because they are available. It is important to consider how the technology can improve our product/service and make a difference to our customer. Companies that produce cars, toiletries, household appliances, etc. often have a large R&D department to work on making their products better.

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​2. Responding to customer demands by changing what is on offer

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By listening to customer feedback, we can get their opinions on how we are doing and find out about what it is that they want. We also need to be aware of changes in customer demands and keep up with the times. When fast-food restaurant McDonald’s realised that the market wanted healthier choices, they introduced fruit and salads, while removing the ‘supersize’ option from their menus.

​3. Offering a new product/service to reach new customers

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Your business might be doing well, but there is no growth or development and there is a risk that your competitors might take away some of your customers. Innovation sometimes means developing a new product that targets a different market. Although video games were often played by boys, in 2006, video games giant Nintendo introduced the game console Nintendo Wii, successfully targeting girls and older customers with games like Cooking Mama and Brain Training.

​4. Changing the way you provide a service

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By looking at the changes to the customer’s lifestyle and needs, we sometimes realise that there might be better ways to serve them. Customers who do not have a lot of time might prefer to have their food or their shopping delivered to their homes, or they might like to do their banking online rather than in an actual bank. Not all innovation will bring success to our businesses, but it can give us the opportunity to grow and learn more about what we do and what our customers might want.

​Choose the definitions with the correct vocabulary

Multiple Choice

... profits

• information about people’s opinions of something that can be used to improve it

• to know that something exists

• money that is made by a business after all the costs are paid

Multiple Choice

... innovative

• using new ideas or ways of doing things

• to look at something again to change it if necessary

• research and development, the part of a business that develops or improves its products

Multiple Choice

... a demand

• to direct a product at a particular person or group

• a need for something to be sold or provided

• to know that something exists

Multiple Choice

... to review

• to look at something again to change it if necessary

• research and development, the part of a business that develops or improves its products

• using new ideas or ways of doing things

Multiple Choice

... feedback

• information about people’s opinions of something that can be used to improve it

• a need for something to be sold or provided

• to direct a product at a particular person or group

Multiple Choice

... to target

• research and development, the part of a business that develops or improves its products

• money that is made by a business after all the costs are paid

• to direct a product at a particular person or group

Multiple Choice

... to be aware of

• using new ideas or ways of doing things

• to direct a product at a particular person or group

• to know that something exists

Open Ended

Fill in the blanks with the correct words

​Are the sentences true or false?

Multiple Choice

We innovate because we want to increase the amount of money our businesses make.

• TRUE

• FALSE

Multiple Choice

Being innovative is all about using the newest technologies in your business.

• TRUE

• FALSE

Multiple Choice

Customers often don’t know what they want

• TRUE

• FALSE

Multiple Choice

McDonald’s have not changed their menu since they started

• TRUE

• FALSE

Multiple Choice

If you always target the same customers, you might lose them to your competitors.

• TRUE

• FALSE

Poll

Nintendo understood that only boys will play computer games.

• TRUE

• FALSE