Definitions of innovation?

This short article analyzes what innovation is. Like many things, it has a different meaning for different people, businesses and markets. In fact, the following example definitions demonstrate how difficult it is to describe innovation. So, what is innovation? If you want to read the full story go to http://www.bocaratontribune.com/bocaratonnews/2018/06/inventhelp-changing-world-business/. And for the short version read on.

The innovation was defined by Joseph Schumpeter, the Austrian economist as:

1. The introduction of a good (product), which is new to consumers, or one of higher quality than that available in the past;

2. Production methods, which are new for a particular branch of industry. These are not necessarily based on new scientific discoveries and may, for example, have already been used in other industrial sectors;

3. The opening of new markets;

4. The use of new sources of supply;

5. New forms of competition, which lead to the restructuring of an industry.

(Schumpeter (1934) ‘The theory of economic development’ Harvard University Press, Boston)

By moving away from theory, from a business perspective, innovation has to do with the commercial exploitation of new ideas. These new ideas could be a new product or service reviewed or an extension of an existing range (think of the changes in Apple’s iPod as a good example of this). A successful innovation could be about the production process of the good or service itself. Examples of this include improved operations or an optimized supply chain. The innovation could be about positioning. An example of this is the low cost airline industry or the customization of products online (again, Apple and its online store capacity to configure its new Apple iMac or MacBook Pro). More difficult to define, and in fact develop, innovation could be through a new paradigm. This is defined as “how we frame what we do”. Examples include new platforms, such as the reinvention of IBM as a consulting business or iTunes.

Innovation can be divided into incremental, radical and discontinuous. By far the most common is incremental innovation, which is simply doing something better. Radical innovation, which is a bit more elusive, is doing something different. The most difficult and potentially threatening innovation is the discontinuous one. This tends to produce a significant change, often through the emergence of completely new and unpredictable markets or as a result of a new technological advance. The introduction of a new business model, such as Amazon, is an example of discontinuous innovation. An example of radical innovation could be the introduction of digital cameras.

Innovation is fundamental to the growth of an organization. Innovation surrounds us, and it does not have to be the main innovation of dreams. You can learn much more from this helpful article – https://blogs.ubc.ca/inventhelpreviews/. Most innovation is small and incremental in nature: are you / your organization innovative? Do you / your organization understand what innovation is?

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