Innovation can be defined as a process whereby new or updated products or services meet or exceed the requirements of an existing market, in the same category or sector. Innovation can be both a driving force and a product of innovation. Innovation can be a source of great value for society, creating jobs, better healthcare, and even cheaper energy. It is important to distinguish between innovations that are new and those that are complementary to others.
Inventors come up with new ideas that can be used to solve existing problems. Business innovators to develop new products or processes, sometimes through collaboration with customers, to capture new value in a new way. Customers, on the other hand, create new needs and want to be provided with new solutions. Innovation creates new needs or wants as well as new ways to provide goods or services.
For companies and governments trying to define an innovation process, it is helpful to first consider why an organization would want to innovate. Companies often pursue new market opportunities through the creation of something new, a disruptive innovation, that offers a distinct advantage over competitors. Other companies look to innovate in order to reduce costs, improve efficiency, reduce waste, or increase overall value. And still other companies look to innovate in order to build a stronger foundation for future success, such as establishing a better financial footing for a company or developing new or relevant technologies.
There are many different types of innovation projects that can take the risk to get innovative. Inventors are usually creative risk-takers, looking for inventive answers to old or existing problems. Entrepreneurs, on the other hand, typically look for new ideas to take risks that might not be viable on their own, but may have the potential to be very lucrative on the market.
There are several specific examples of how business organizations can use these different types of innovative activities to get a jump start on their business initiatives. One of the most common examples is from a business that has a large product line that’s been successful in the past, but which is losing market share to new competitor products that are lower in price, cheaper in quality, or just simpler in design. Businesses that have tried to use these innovative processes can attest that the results of their efforts are often lower than what they would achieve if they tried to stick with the same methods and products that had worked in the past. They may also be taking risks by trying to develop new products, technology, or processes without the help of a committee or a team.
The ability for any business organization to come up with good business innovation ideas doesn’t necessarily need to involve the assistance of an outside team. Business organizations can use many of the examples of process innovation to come up with their own innovative ideas and process new innovations on their own. This way they’ll have a higher chance of being successful. It also helps them stay flexible and adaptable should the need arise to change their existing strategies or innovation process in response to market changes or other new requirements.