What is Innovation? Definition, Importance, Types of Innovation

innovation

What is innovation?

The innovation meaning is quite versatile. Understanding the definition of innovation is important as there exist various types of innovation, where knowledge of proper innovation changes is necessary for the business and organization. Here, another word for innovation can also be stated as renewing or changing.

Innovation definition:

The innovation definition means to renew, where it improves or replaces something. It is derived from the verb of Latin, innovare meaning to renew. Thus, we can define innovation using the innovation definition of, a process by which a domain, a product, or a service is renewed and new process or techniques are used to create new value.

What is innovation in business?

innovation in business is an improvement in business or product which is different from the firm’s previous products or business and is also introduced by the firm in the market.
Innovation also define drastic changes and is not just about business, as it needs implementation. Mostly, business innovation is based on the production of market goods and services in an organization.

Innovation is relatively a subjective consideration, which can take place in a:

  • company,
  • market or industry,
  • the whole world.

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Types of innovation:

1. Organizational Innovation:

While taking into consideration Organizational innovation, the development of a new organizational strategy that leads to change in a company’s business practices as well as its workplace is made possible.

  • Examples of organizational innovations:

A company approving a four day week working schedule in the beginning.
A company using the power of digital and allowing employees to use the same and skip the office and work from home as and when needed.

2. Process Innovation:

In Process Innovation production or delivery is improved that also includes changes in operational methods, and using techniques and also and the equipment or software.

  • Examples of process innovations:

A company using SaaS (software as a service) technology.

3. Product Innovation:

In Product Innovation introduction of a new product or service, where changes are made for improving technical specifications of the product. Further, innovation product idea does add to the potential users but do not generate any sales.

  • Examples of product innovations:

Electric vehicles are being introduced in the car market.

4. Marketing Innovation

While knowing and understanding the Marketing innovation, we take into consideration new marketing strategy which can produce change and even relates to designed or packed, or promotion of the product as well.

  • Example of marketing innovation:

waste-free container introduced by Haagen Dazs’

Other Innovation Types:

Some of the other common types of innovation are as:

  1. Architectural Innovation

  2. Radical Innovation

  3. Incremental Innovation

  • Architectural Innovation:

Architectural innovation is also known as ‘recombinative’ innovation that takes into consideration technology or methodology related to one field to another. It is a common type of innovation that even has around 40% of the patents registered and is also growing nowadays.

  • Architectural innovation examples:

  1. desktop vacuum cleaners
  2. Uber application that offers Ride-sharing, geolocation, etc facilities to users.
  • Radical Innovation:

Radical Innovation defines innovation in a sentence as it involves the birth of new technology and industries, which is a relatively rare form of innovation.

  • Radical Innovation Example:

Smartphones are the most common example of Radical Innovation.

  • Incremental Innovation:

Incremental Innovation when there is the growth seen or a rise from small scale to large scale. This is the most accessible form of innovation that can be performed without requiring huge budgets.

  • Incremental Innovation Examples:

  1. Gilette Company
  2. Amazon has remarkable growth in recent times.

Also Read- Solow Growth Model – Overview, Assumptions, and How to Solve

Which of these innovations was made possible by alexander graham bell?

An innovation made possible by alexander graham bell was a telephone device with the help of which two or more persons can communicate over distance through speech. It was made in 1876.

Advantages of innovation:

Some of the common advantages of innovation are:

  1. Solving Problems

  2. Adjusting To Change

  3. Make the best use of Globalization

  4. Facing Up the Competition

  • Solving Problems:

The problems related to customers should be solved as consumers or customers do share their opinions, complaints, and compliments. As, when customers are happy, your sales will also increase.

  • Adjusting To Change:

By using innovation with in the business, also adapt to the innovation environment, innovation culture that can help things change in the business. As the change in business leads to growth.

  • Make the best use of Globalization:

Now a days markets are interlinked and Globalization is also increasing. So, make better use of technology and new markets for your business to grow.

  • Facing Up the Competition:

With growing markets globally, competition has also increased, and to establish the company you need to have a dynamic business with strategic and innovative moves.

Conclusion:

Finding the right process of innovation is though difficult, but you can combine and choose different methods and strategies and use them in your business, instead of using just one innovation simple method.

Also Read- Infinite Banking – Overview, How It Works, Advantages and Disadvantages

Frequently Asked Questions:

1. Which of these innovations was made possible by alexander graham bell?

An innovation made possible by alexander graham bell was a telephone device with the help of which two or more persons can communicate over distance through speech. It was made in 1876.

2. What’s the definition of innovation?

The innovation definition means to renew, where it improves or replaces something. It is derived from the verb of Latin, innovare meaning to renew. Thus, we can define innovation using the innovation definition of, a process by which a domain, a product, or a service is renewed and new process or techniques are used to create new value.

3. What are the 5 types of innovation?

The common 5 types of innovation are as:

  • Employee innovation
  • Customer innovation
  • Partner or supplier innovation
  • Competitor innovation
  • Public innovation.

4. What are the advantages of innovation?

Some of the common advantages of innovation are:

  • Improved brand recognition
  • Solving problems
  • Adjusting to change
  • Make the best use of globalization
  • Facing up the competition

5. What are the elements of innovation?

The Four Key Elements of Innovation are:

  • Collaboration
  • Ideation
  • Implementation and
  • Value Creation.

They all work as important elements for innovation to work in any organization or business.

 

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