a new method, idea, product or concept.
Innovation also means: change, alternation, revolution, transformation, metamorphosis, reorganization, restructuring, rearrangement, recasing, remodelling, renovation, restyling, variation
The Oxford English Dictionary defines “Innovation” as “A new method, idea, product, etc” The American Innovation Network calls it: “implementing new ideas that create value”Fundamentally innovation is just that – A way to improve how things are being done to get better results or find a new, better way of doing things.
While a new gadget with new features can also be described as an innovation, in technology, science, economics, management and other related fields innovation is generally considered to be a process that brings together new and different ideas so as to have a positive result. In economics and business, innovation is the catalyst to profitability & growth. In the organizational scenario, innovation may be directly linked to positive improvements and changes in product quality, competitiveness, productivity, efficiency and higher market share.
Need for Innovation
Innovation is a powerful tool for long term business growth and development and improvement. Successful and timely innovation or the lack of it, has turned around the fortunes of bankrupt companies, revived dying products, killed off the competition and has taken failing companies to global leadership. In a highly competitive and ever changing global market place innovation is a single most powerful and critical important element that can make the difference between success and failure. Organisations aspire to innovate for different reasons and objectives. Here are a few:
- Improve profitability products and services
- Be more competitive
- Improve customer experience
- Position an organisation as a leader
- Adapt to market challenges and threats
- Reduce costs enhance quality
- To enjoy benefits of new technology
- Building brand loyalty & brand equity
- Respond, manage and adapt to government policies, legislation, regulatory limitations
The process of innovation involves search & selection, exploration , analysis and synthesis, divergent thinking & convergence of ideas. In brief here the steps to the innovations process in the context of a new product or idea.
- Modelling & Analysis
- Need Finding
Methods of technological innovation
- Recognising or scanning the enviornment
- Aligning the overall business strategy with the proposed innovation
- Acquiring technology/ideas externally
- Expoloring the most suitable response to the environment
- Excuting and implementing innovation
- Learning lessons for improvement
- Implementing improvements across related disciplines
Goals & Objectives
There are many. However it is generally agreed that innovation has a commercial aspect tied to it, particularly in the context of organisational and business innovation. In a competitive, commercial scenario innovation is needed to improve how a company or its divisions & functions. , how marketing, product development, sales, finance, customer service, distribution are handled.
The objective being to improve performance, improve products, reduce costs, get better results, improve sales, beat competition, increase market share, improve competitive edge, create growth, improve productivity, build economic wealth, define a brand perception and more.
Ourcomes & Benchmarks
Fortunately, outcomes are anticipated if not predetermined in the innovation process and improved benchmarks are automatically created once the innovation has been successfully integrated in the organisation, process, product or service. The impact of innovation is therefore readily obvious to evaluate, compare and analyse which makes it a highly responsive and dynamic business component.
A successful innovation strategy adds value to the company, its products, service, brand and profitability. The exciting aspect of innovation is that it can be implemented in companies of any size, scale, segment or industry, by manufacturers or service enterprises, by traders or non-profit foundations, by startups and global blue chip companies. Everyone stands to benefit if they are willing to improve what they do and how they do it.