© Scott Maxwell (Fotolia) Genius
© Scott Maxwell (Fotolia)
Definition
Definition
Perhaps, the best definition for innovation is to say that it is not renovation and it is not quite invention.
Innovation can be distinguished from renovation in that the former commonly indicates a significant transformation or alteration, while the latter points to more incremental changes.
As regards invention, well basically if an invention expands some product, practice or service for the public (usually for the better), then that invention becomes an innovation.
Types of Innovation
Types
Specialists have acknowledged many different types of innovation. These include –
Innovation of product -involving the introduction of a new improved product or a serviceProcess innovation -focusing on superior production or delivery methodsSupply chain innovation -the input of products from the market and the distribution of output products to customersMarketing innovation -new methods of marketing with improvements in design or packaging, promotion or pricing The importance of Innovation
Increasing rates of innovation in businesses
Research has shown that businesses generally want to be more innovative. In fact, some 90% have agreed that change and innovation is always among their top priorities.
Whether we are talking technical innovation or innovation in business practices, the reality is that the significance of innovation is considerably increasing.
Innovation important to businesses
Many agree that while efficiency within business practice is vital to its success, for sustainability and growth and therefore ultimately – wealth creation then often radical innovation is even more vital.
With this in mind, the entire business world is developing procedures to reinforce their capacity for business innovation.
The determining factor of Innovation
Competition and demand leading to innovation
Recent studies into innovation theory have shown that a combination of fierce competition and strong demand is a key motivation behind innovation. Intensity of competition has, in fact, always been the determining factor with regards to innovation and productivity.
End note
Nowadays, innovators are needed more than ever before. Globalisation, migration, technological and knowledge revolutions as well as climate change is having a major impact within every organisation and business. Innovation, whether it be technology innovation or more incremental innovation, is vital to all of us maintaining a certain quality of life.