Innovation Concepts

INNOVATION CONCEPTS & FRAMEWORKS

The Background Business growth via Innovation is the key priority for Enterprises today. Innovation is critical to sustainable growth and prosperity. Apple, 3M, GE, Microsoft are a few names that bring the top of the mind recall in this field of Innovation Management. CEO’s worldwide visualize Innovation in the following areas:

1. Product Innovation, Service Innovation and Market Innovation

Business Model Innovation

2.

Operational Innovation

3.

4. Collaborating with diverse companies to co-create Innovation

Innovation & Future The new-age approach to Innovation consists of open innovation through collaboration with all stakeholders, competitors, independent innovators and universities as active participants in the Innovation process. The three biggest problems identified in the area of Innovation are:

Moving quickly from idea to market

1.

2. Leveraging on supplier strengths for new ideas and intellectual properties

3. Balancing innovation risks, timelines and return on investments

Differentiating Invention from Innovation The invention is primarily creating anything new. It can be a product, process, knowledge, or a combination. Innovation is the initial commercialization of Inventions by producing and selling an invented product, feature, service or a process. Innovation is the monetization of an idea into profits. Many Innovations, like Post-It pads from 3M, are accidental Innovations.

Three Types of Innovations

1. Incremental Innovation: These are simple changes or adjustments in an existing product, service or a process. Most companies attempt rapid innovations from this method. Continuous Improvement Programmes, Cost Reduction Programmes and Quality Management Initiatives are an example of this type of Innovation. Kaizen is an example of Incremental Innovation where it is a reliable process of continually and relentlessly trying to find ways to improve and enhance a product, process or service through the entire supply chain. It is a philosophy that seeks ways to

authored and complied by Niket Karajagi

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