What is innovation? Inventiveness can be defined as the generation of something new or an invention. Innovation is not only visible to the naked eye but also intangible or subjective. Many businesses consider that innovation is a creation which adds value to a product, service, or process. It can be new ideas, technological developments, or scientific findings.
Innovation can also mean that there is a new application of existing procedures, techniques, equipment, or processes. Hence, one can talk of continuous improvement or development. Innovation can refer to a broad range of activities like technological change, business formation, reorganization, advertising and publicity, and financial engineering.
There are different ways of defining innovations. Some experts use quantitative metrics, while others prefer qualitative metrics. Still, others look for business innovations through legal frameworks such as patents, copyrights, and licensing rights. Still, there are some who believe that what is innovation is what the society needs, what it can benefit from, and what it should preserve.
In this fast-paced technological world, what is innovation became the key question. It captures the imagination and the attention of the public through its promises of better living and better times ahead. Innovation is actually the process of creating something new out of the existing resources. There are different types of innovations, each having different effects on the society.
Let us take an example. A useful definition of what is innovation can be stated as a new product, new process, or new invention. A useful definition can also be considered as the transformation of something into something else. Thus, the transformation can also be termed as what is innovation. In business terms, the transformation is what happens when new products, processes, or ideas are introduced to the market.
The other type of what is innovation is incremental change. This is what happens when small changes are introduced gradually to the market in order to yield large effects. Although the term is used loosely, there are different types of incremental change. For instance, innovation management focuses on using innovation to drive incremental change in markets, industries, or portfolios over time.
On the other hand, what is innovation means to implement the idea or concept of improvement through product innovations or scientific innovations. Examples of these kinds of inventions are improvements in processes, information systems, energy production, and various other things. There is another kind of what is innovation, which is what is called disruptive innovation. It is an innovation that renders old products or processes ineffective due to new innovations that render them obsolete. Examples of this are the innovation of electric toothbrushes that eliminates the need for traditional brushes and it has made them more convenient to use.
These are the major forms of what is innovation. Each has their own impact on the economy and each has a reason to exist. Innovation can destroy what is called non-value add because the new ways created may be able to deliver something of value. However, innovations can create value add by transforming existing processes and practices to better serve customers. There is no doubt that innovation will continue to play a major role in our future economy.
One of the main purposes for innovation management is to see that new ideas are developed and evaluated prior to implementation. In most cases, incremental innovation will yield the greatest benefits for the company. However, when a company must take on a large number of disruptive innovations at one time, it is wise to turn to what is known as incremental innovation management. This technique enables companies to focus on developing one important innovative idea at a time.
Incremental process innovation is necessary when a company must respond quickly to changes or else risk losing key competitive advantages. For example, a company may introduce a new product, find that competitors have already developed the same idea before, and attempt to protect their patent rights. This is not a smart strategy if what is needed are long-term competitive advantages. Companies that embrace this strategy make a mistake and end up being significantly less successful than their competitors who allow the product to compete unfettered.
Small and medium-sized businesses face many of the same difficulties that larger corporations do when trying to find the right approach to what is process innovation. Many of these companies possess little information about the innovative process and even less understanding of how to go about developing the new ideas. As a result, these companies either spend too much time and effort developing what they have and risk being sued, or they languish and lose opportunities to profit because they were unable to think outside the “box”.
The bottom line is that what is innovation is a very relative term that encompasses many different types of changes and innovations. It is important for those in leadership position to understand the different types of innovation and how each one impacts the company’s ability to stay ahead of competitors and develop new ideas. It is also equally important for those in the various departments of the business, to learn how to implement the different types of change so that the innovations can be put to good use.