Process, forms & types of innovation
A. define what is "innovation";
B. analyze what kind of innovation is needed and is feasible for your business;
C. compare the different types, fields and levels of innovation practiced by other actors of your market area.
Innovation is truly a confusing buzzword which many people love to hate. Every business leader agrees that it is important. But nobody can quite seem to agree on what it actually is or what it means.
If you ask Google for an innovation definition, it is less than helpful, coming up with over 300 million results with thousands of definitions. Its own definition is pretty much useless: “the action or process of innovating”. Using the traditional sources for a definition such as the Oxford dictionary also doesn’t help much, with their answer being “Make changes in something established, especially by introducing new methods, ideas, or products”.
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The word innovation primarily means novelty, the creation of something new. In practice, this term is used to label processes in which something new is created, resulting new products, services, technologies or methods.
There is a phrase saying that innovation lasts from the idea to implementation. But here is some other definition from innovation experts. INNOVATION MEANS...
• ... something new to your business that fills an untapped customer need. Ideally, the innovation builds a new market. – Jonathan Rowe, Gene Express Inc.
• ... turning an idea into a solution that adds value from a customer’s perspective. – Nick Skillicorn, Improvides Innovation Consulting
• “... staying relevant” – Stephen Shapiro, Innovation Instigator
• .... the implementation of creative ideas in order to generate value, usually through increased revenues, reduced costs or both. – Jeffrey Baumgartner, author and keynote speaker
• ... new, organic value creation by applying creativity, in-depth relationships with consumers and customers, and new thinking. - Michael Graber, Southern Growth Studio
• ... part of our everyday life. In the past, money, machines and land gave the wealth for change. Today constant development is the key to the success of your business.
Innovation means interaction between various actors.
“Innovators” can work together in various forms:
• Closed (conventional) innovation - the company uses its own knowledge-portfolio and the creativity of its employees to create something new
• Open innovation - is a combination of internal (knowledge-portfolio, creativity of employees) and external (e.g. counsellor) knowledge and resources
• Living Lab – means that the end users are involved into the development process, they cooperate in the innovation process and help the company with ideas.
People often credit their ideas to individual "Eureka!" moments. But Steven Johnson shows how history tells a different story. His fascinating tour takes us from the "liquid networks" of London's coffee houses to Charles Darwin's long, slow hunch to today's high-velocity web.
TIPS AND TRICKS:
Innovation is people using their imagination, experience, curiosity, instincts and relationships to develop and implement ideas that create value. Innovation is the fuel of our future — new products, new services, new markets. But it isn’t just the “next big thing.” It’s also a million small things. Innovation is about people working within a philosophy of continuous improvement and change.
If you are looking to spark this kind of innovation, here are 5 tips to keep in mind:
1. Innovation is everyone’s job. Whether you lead a team, a group, or an organization, you’ve got to involve and rely on others. Isolating “a creative few” as the sole visionaries in the organization simply won’t cut it anymore. Thirty years ago, by the time an idea got to the CEO, it had been sifted through multiple layers of management. Now, savvy leaders encourage e-mails, phone calls — anything to hear directly from people on the plant floor or on the front lines of customer service to get their opinions and suggestions.
2. The heart of innovation is trial and error. While many say they do, too few organizations truly encourage failure. I have, however, known hundreds of individual leaders (at all levels and from a cross-section of industries) who created environments for their departments or teams where failure was acceptable. Where it became a learning experience, and not something to be punished. These leaders shared their own failures and made it safe for others to do the same.
3. Tell stories that show how mistakes can become successes. One such story: For years Charles Goodyear labored to find a way to make rubber commercially useful. Then one day Goodyear accidentally spilled a mixture of rubber and sulfur he was holding on a hot stove. The chemical reaction of heat applied to this mixture resulted in the discovery of the vulcanization process used to manufacture rubber tires. And with that “mistake,” an industry was born.
4. Help stamp out the Not Invented Here (NIH) mindset. An example of generating motivation to break that mindset came from General Electric in the days when Jack Welch was in charge. Welch made it clear that the sharing of good ideas across the organization was a high management priority. This posed a challenge for GE managers because of the size and diversity of the company. If you did have a good idea, how could you identify the people in other businesses who might benefit from it? The Chief Learning Officer at GE came up with a simple solution. He created a “hot line” to be manned by his team. This operated similar to a dating service – only instead of matching people to potential mates, it matched good ideas with business units that could put them to use.
5. Broaden your definition of innovation. Move the concept of innovation beyond new products and services to include strategic innovations – new ideas about mission, values, and goals; administrative innovation – changes in internal systems; field level innovation – solutions from those closest to the customer on ways to better serve those customers; and job-related incremental change that encompasses everyone in every position finding ways to do things differently and ways to do things better.
Innovation is the key to maintaining the competitiveness of your business. Therefore this learning pill presents the steps, forms and types of the innovation process. Generating nor developing your company, therefore the business owner must ensure an innovative environment within the company. This learning pill will give you advise in this respect.
Take the ten types of innovation and write 3 ideas for each type a project idea that could be feasible within your business.
Define at least one measure that will make your working environment more innovation-friendly.