Business Principles

An innovation is something entirely new. Innovations affect the kinds of products and services offered for sale by other businesses. For example, clothing used to be made from only natural fibers, such as cotton and wool. Then chemical researchers developed synthetic fibers, such as rayon, nylon, and polyester. Now consumers have more choices in clothing and other fabric products.

 

Innovations also affect business operations. For example, since Apple Computer built one of the first personal computers about 35 years ago, computers operated by individual employees have increasingly influenced the way businesses do business.

Computers help businesses design and manufacture products as well as keep track of billing, inventory, and customer information. Computers are now involved in most key business functions. The Internet is an innovation that has literally changed the relationships between businesses and their customers.

Customers have 24-hour access to businesses without leaving their homes. Small businesses can compete with large businesses for customers from all over the coun- try and even around the world.