Innovation

Revolutions are born out of innovation. Innovation helps companies remain in market and the lack of it signifies that a firm may not allocate its resources optimally and the created value is decreasing over time.

BusinessWeek and The Boston Consulting Group collaboratively produced the second annual ranking of The 25 Most Innovative Companies.(http://www.businessweek.com/magazine/content/06_17/b3981401.htm) In the survey innovation was measured in different contexts – from business model innovation to innovation in technologies, operations and processes. The list of the most innovative firms included the Blackberry producer Research In Motion Ltd. (RIMM), Southwest Airlines Co. (LUV ), which reported significant operational improvements helping the company outperform major competitiors in the airline industry, Toyota Motor Corp, which prides itself in its constant manufacturing improvements, Apple Computer Inc. (AAPL ), which is often referred as the king of creativity. Creativity and innovation are not always equated. But creativity in business is a significant driver in business nowadays when consumers can choose from a variety of products and services and firms are forced to push the limits of their innovative and creative capabilities.