What role does "innovation" play in business?

Innovation plays a crucial role in business as it drives growth by improving products, services, or processes. When companies innovate, they are often able to create new offerings or refine existing ones, making them more appealing to customers and thus increasing their market share. This ongoing improvement can lead to enhanced efficiencies and reductions in costs, enabling businesses to provide better value to their consumers.

Additionally, innovation can differentiate a company from its competitors, helping it to sustain a competitive advantage in the market. For example, a business that regularly updates its technology or innovates in its approach to customer service can attract new customers and maintain loyalty among existing ones. In an ever-changing market environment, staying ahead through innovation is vital for long-term success and relevance in the industry.