Encourage Innovation to Boost Productivity

What is innovation? How can companies encourage innovation in order to increase productivity? When most people hear the word innovation, they think of gadgets like the iphone or smart cars. If employees were encouraged to be innovative, what could they produce?

A study from the Boston Consulting Group confirms that 92 percent of Chinese firms consider innovation to be a top priority. However, only 61 percent of U.S. firms say that innovation is a top priority. Other studies reveal that Americans are worried about their ability to stay ahead of the innovation curve. What does this mean for businesses?

Unfortunately, American's fears may be a reality because of the fear most organizations have of the concept of innovation. Organizations need to realize that when employees are free to make new suggestions and openly discuss ideas, positive change is more likely to occur.

Change is scary for most business owners, but without it, businesses will be stuck in a previous era while the rest of the world advances. For instance, doctor's offices used to keep their patient files as hard copies. Everything was either typed or handwritten and saved in filing cabinets. Over time, innovation and technological advancements enabled health care providers to store the files digitally, as well as a hard copy.

Some doctors have embraced this method, while others refuse to adopt new methods of information management. What can innovation provide for businesses? More productivity, new and improved business practices, improved employee morale and more revenue.

When innovation finds its way into a business, the opportunities for increased productivity are endless. Employees will feel the ability to discuss their ideas for improvements and changes freely, which will then enable the ideas to develop into something truly