Innovation & Entrepreneurship
UNIT-1
INNOVATION
Innovation is the act of application of new ideas to which create some value for
the business organization, government, and society as well. Better and smarter
way of doing anything is innovation. It could be the introduction of,
New technology
New product line or segment
A new method of production
An improvement in existing product
Innovation comes from Latin word innovare for renew, whose root is novus or
new. It can be used for either the act of introducing something new, as in a
company that rewards creativity and innovation, or something that is newly
introduced.
An innovation is the introduction of something new. If you run a magazine about
new technology, then you're constantly looking out for the next innovation.
Innovation is the process of making changes, large and small,
radical and incremental, to products, processes, and services that
results in the introduction of something new for the organization
that adds value to customers and contributes to the knowledge
store of the organization.
Innovation is flexible thinking that results in measurable outcomes .
Innovation is the specific function of entrepreneurship.
Peter Drucker, It is the means by which the entrepreneur either creates new
wealth producing resources or endows existing resources with enhanced
potential for creating wealth.
What is creativity?
Creativity is the characteristics of a person to generate new ideas, alternatives,
solutions, and possibilities in a unique & different way.
It is not genetic but can be developed if someone keeps on learning things with a
rare and exclusive perception. Creativity is brainstorming and mind-blogging
activity in which a person has to think beyond his imagination for bringing
something worthwhile.
Creativity usually refers to the act of generating new ideas itself, regardless of
whether those ideas result in measurable outcomes or solutions. Thinking
creatively can be a very important part of innovation because thinking creatively
can help you identify new ways to do things and create tangible products that
contribute to innovative measurable outcomes.
Creativity is regarded as a key building block for innovation (Rosenfeld
& Servo, 1991) and is an inherent capability in all human beings. Creativity
is a mental process that results in the production of novel ideas and
concepts that are appropriate, useful, and actionable. The creative process
can be said to consist of four distinct phases: preparation, incubation,
illumination, and verification.
Difference between Innovation & Creativity
Creativity-
Creativity is an act of creating ideas, imagination & possibilities.
Creativity is an imaginative process
Thinking something new
There is no money consumption in creativity
The risk factor is negligible in creativity
Creativity is related to brainstorming and thinking about new ideas.
Creativity precedes innovation
Creativity does not depend on materialistic things
Creativity is about formation
The word creativity was first used in the 14th century.
Innovation-
Innovation is introduction of something new and effective into the
market
Innovation is an productive process
Introducing something new
There is money consumption in innovation
The risk factor is quite apparent in innovation
Innovation is related to introducing new ideas and technologies to
carry out production smoothly and efficiently
Creativity is succeeded by innovation
Innovation depends upon the monetary factor, i.e., how to
implement the ideas into profit-earning
Innovation is all about bringing change
The word innovation came into being in the 16th century.
Types of innovation
1. Incremental Innovation-
Uses existing technologies within an existing market.
The goal is to improve an existing offering by adding new features, changes
in the design, etc.
Example- Smartphone market where the most innovation is only updating the
hardware, improving the design, or adding some additional
features/cameras/sensors, etc.
2. Disruptive Innovation-
Applying new technologies processes, to existing industries.
Surpass the existing models and take over the market due to efficiency or
efficacy advantages.
Example- Amazon used Internet-Technologies to disrupt the existing industry for
book-shops.
3. Architectural Innovation-
Domain expertise, technology, and skills and apply them to a different
market.
Can open up new markets and expand their customer base.
Example- Amazon, Alibaba use existing expertise in building apps, platforms, and
their existing customer base to offer new services and products for different
markets.
4. Radical Innovation-
Involves the creation of technologies, services, and business models that
open up entirely new markets.
Example- Invention of the Airplane. This radical new technology open up a new
form of travel, invented an industry, and a whole new market.
Innovation Platform
What is Innovation Platform?
A technology or infrastructure that enables innovation by providing a common
platform for collaboration and development
An innovation platform is a technology or infrastructure that enables innovation
by providing a common platform for collaboration and development. It allows
organizations to create, manage, share, collaborate on, and deploy innovative
ideas.
The platform can be either an internal system within the organization or an
external cloud-based service that provides access to tools and resources to help
accelerate innovation according to their innovation charter. An innovation
platform typically includes components such as project management tools,
process automation capabilities, data analytics tools, communication channels,
team collaboration tools, workflow management tools, user feedback systems,
and more.
Innovation platforms are designed to streamline the process of idea creation and
evaluation by providing the right set of resources at the right time in the most
efficient manner possible. This helps organizations keep up with the ever-evolving
pace of technological advances while also allowing them to quickly identify
potential opportunities for growth and improvement. Additionally, these
platforms enable teams to capture insights from customers and other
stakeholders through surveys or interviews which can then be used to inform
product development decisions.
The benefits of an innovation platform go beyond simply creating a collaborative
environment for idea generation; it also provides organizations with an effective
way to measure performance across different departments or divisions. By
tracking key metrics such as customer engagement levels or total number of ideas
generated in each project phase, teams can easily monitor progress towards their
goals while simultaneously identifying areas where further improvements are
needed, for example with their own stage-gate model.
Choosing a Modern Innovation Platform
An important difference between traditional technology solutions such as ERP
systems and newer innovations platforms is that they focus on enabling open-
ended experimentation rather than only following predefined processes set out
by upper management. This makes them ideal for organizations looking to
encourage creativity among their employees without sacrificing control over
operations or security concerns that may arise with certain projects. Additionally,
modern innovation platforms often include features such as rapid prototyping
capabilities which allow teams to quickly build prototypes without needing
specialized coding knowledge or expertise; this makes it easier for non-technical
staff members who may have great ideas but lack technical knowhow to
contribute meaningfully towards projects in meaningful ways.
One example of a widely used innovation platform is Microsoft’s Power Platform
which integrates several products including Microsoft Teams (for team
collaboration), Power BI (for data analysis), Dynamics 365 (for customer
relationship management), SharePoint Online (for file sharing), Flow (for
workflow automation), and Azure DevOps (for software engineering). The
combination of these services creates an all-in-one suite that provides users with
everything they need from concept ideation all the way through deployment into
production environments – all within one unified ecosystem that simplifies setup
times dramatically compared with legacy IT solutions. There are also native idea
management solutions directly on Microsoft Teams.
Related Keywords: Idea Generation Platforms, Collaborative Technology, Process
Automation, Rapid Prototyping, Data Analysis
