Innovation Definition Essay Example for Free

Innovation Definition Essay Innovation is about bringing ideas into life. Innovation is linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning and market share. Innovation takes place at different levels from modest improvements on an existing product or process to dramatic and even historically significant breakthroughs in how we relate to the world. In all cases, the capacity to innovate will be a function of our commitments, what we want to accomplish and our relationship with the circumstances we perceive we are in. If we are resisting or coping, we see no innovation and whatever change we generate will be as a reaction to the circumstances and part of the process by which those circumstances persist. When we are responding or choosing we are in a position to innovate and will do so naturally and consistently as a function of what we observe to be possible or what we observe is missing in our perspective of the world.Change based on this view is likely to be an improvement on what already exists. INNOVATION AND PERFORMANCE A successful organisation that turns its focus to innovation is looking for achievements. Innovation shows up in the quality and quantity of ideas and the efficiency and effectiveness of implementation of those ideas. These two parameters are independent, however, when combined they form the definition of innovation performance. IMPORTANCE Innovation is not only about technology, but is also about understanding and exploring untapped user needs that require to be addressed in an efficient manner. It must occur at every stage of a product or solution development and release cycle. Thus, managing innovation is fast becoming priority in a global business environment. Firms which innovate tends to survive and grow to a greater extent. The most successful individuals, managers and team leaders in latest business world are the ones who are not only innovative in their own work, but who encourage and assist others to be innovative in every aspect of their work. Some of the key innovation areas are: product development and improvement; manufacturing processes; creating entirely new set of products; etc. In area of supply chain management, innovations help in making the supply chain more responsive, flexible and efficient. Supply chain innovation can be used to reduce costs, offer better assortment of customer centric products, decreasing time to market and driving growth. INNOVATION SYSTEM The concept of the innovation system stresses that the flow of technology and information among people, enterprises and institutions is key to an innovative process. It contains the interaction between the actors who are needed in order to turn an idea into a process, product or service on the market. Systems of Innovation are frameworks for understanding innovation which have become popular particularly among policy makers and innovation researchers first in Europe, but now anywhere in the world as in the 90s the World Bank and other UN affiliated institutions accepted. BENEFITS OF INNOVATION Technology has a vital role to play in any modern workplace and can make a huge difference to the way your business operates, and how well your staff carry out their tasks. These days, an online presence is also expected by customers and therefore is an essential component for businesses. In order to understand whether a new technology could help your business, you should review the technology you are presently using and assess how well existing systems work with your current and future business requirements. INNOVATION TYPES A number of frameworks have been used to look at types of innovation. Generally these approaches for categorizing innovation consider the sources of innovation from past successes or attempt to identify where to look for new innovation in the future. The variety of innovation types demonstrates that the benefits of innovation are not limited to new product development. Categorization also helps in the measurement of innovation, allowing for performance comparison and evidence based choices that can guide where improvements or advances might generate the most return for a given investment. This is sometimes referred to as the Return On Innovation. The ‘4Ps’ model developed by John Bessant and Joe Tidd provide a powerful tool for such analysis. It builds on the hypothesis that successful innovation is essentially about positive change, and puts forward four broad categories where such change can take place. Product innovation’ – changes in the things (products/services) which an organisation offers. Process innovation’ – changes in the ways in which products and services are created or delivered Position innovation’ – changes in the context in which the products/services are framed and communicated Paradigm innovation’ – changes in the underlying mental models which shape what the organisation does.