ESSENCE OF INNOVATION WHAT IS INNOVATION The

ESSENCE OF INNOVATION

WHAT IS INNOVATION? The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

We often use the words "creativity" and "innovation" interchangeably but we should not. Creativity is about coming up with ideas while innovation is about "bringing ideas to life. " While individuals may display creativity, innovation occurs in the organizational context only, by bringing creative ideas to life. Innovation is linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning and market share. It typically adds value by changing old organizational forms and practices. Organizations that do not innovate effectively may be destroyed by those who do.

INCREMENTAL VS RADICAL INNOVATION Evolutionary innovations (continuous or dynamic evolutionary innovation) that are brought about by many incremental advances in technology or processes and revolutionary innovations (also called discontinuous innovations) which are often disruptive and new.

5 PRINCIPLES OF INNOVATION First, Innovation starts when people convert problems to ideas. New ideas are born through questions, problems and obstacles. In order for the innovation process to flourish, it needs a climate that encourages inquiry and welcomes problems. Second, Innovation also needs a system. All organizations have innovation systems. Some are formal, designed by the leadership, and some are informal, taking place outside established channels. Systems for innovation fall into one of five categories: originatorassisted; targeted innovation; internal venturing; continuous improvement; or strategic transfer

The third principle: Passion is the fuel, and pain is the hidden ingredient. Passion is what propels ideas. It’s what transforms other resources into profits, but it never shows up on a balance sheet. Unfortunately, when pursuing a passion or following a dream, pain is part of the process. Innovation leaders need to take the pain with the passion and learn to manage both effectively. fourth principle that underlies the methods for innovation: Co-locating drives effective exchange. Co-location refers to physical proximity between people. It is a key for building the trust that is essential to the innovation process. It also increases the possibility for greater exchange of information, stimulation of

And lastly, Differences should be leveraged. The differences that normally divide people — such as language, culture, and problem solving styles — can be a boon to innovation. When differences are used constructively, they can be leveraged to enhance and sustain the innovation process.

PLEASE NOTE THAT To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers. In a social context, innovation helps

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