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Innovation[2]
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- 2. Meaning Innovation isthe implementation of new ideas at the individual, group or organizational level. A process of intentional change made to create value by meeting opportunity and seeking advantage. • Process: Innovation is a process (implying, among other things, that it can be learned and managed). • Intentional: That process is carried out on purpose. • Change: It results in some kind of change. • Value: The whole point of the change is to create value in our economy, society and/or individual lives. • Opportunity: Entrepreneurial individuals enable tomorrow's value creation by exploring for it today: having ideas, turning ideas into marketable insights and seeking ways to meet opportunities. • Advantage: At the same time, they also create value by exploiting the opportunities they have at hand.
- 3. Definition According toOxford English Dictionary – Innovation means introduction of something new. Thus Innovation can be defined as the introduction of a new product, service or process into the market place. The National Innovation Initiative (NII) of USA defines - innovation as the intersection of invention and insight, leading to the creation of social and economic value. ‘Innovation is celebration of creativity’, pronounced Dr A.P.J. Abdul Kalam, the President of India at Third Award Function of NIF (National Innovation Foundation). Many definitions of Innovation To sum up… Innovation = Invention + Commercial Exploitation
- 4. TYPES OF INNOVATIONS Thereare four distinct types of innovation, these are as follows: Invention - Described as the creation of a new product, service or process. Something that has not been tried before. Extension - The expansion of an existing product, service or process. This would mean that the entrepreneur takes an existing idea and applies it differently. Duplication - Copying (replicating) an existing product or service and then adding the entrepreneurs own creative touch. In order to improve it. Synthesis - A combination of more than one existing
- 5. SOURCES AND TRANSFEROF INNOVATION Unexpected occurrences : sometimes unexpected success or failure prove to be a major innovative surprise for the enterprise. These happenings are normally anticipated and unplanned. Incongruities : these occurs whenever a gap or difference exists between the expectations and reality. The gap motivates the entrepreneur to innovate with all the more vigour. Process needs : these needs are created whenever situation and surrounding circumstances generate demand for the innovation. Entrepreneurs are prompted to innovate to satisfy the requirement of process needs.
- 6. Industry andmarket changes :changes in consumer tastes, fashions, advancement in technology result in change in structure and design of product. These changes generate tremendous opportunities for innovation and improvements. Demographic changes : like changes in population, education, occupation, urbanisation etc, create entrepreneurial opportunities. Perceptual change : it is reflected in the change in peoples attitude, feelings, interpretation. Change in perception does not change, the object or fact, but changes the meaning or attitude towards the particular concept. Knowledge based concept : these are basis for the development and creation of new products and market. These are time consuming as these need testing and modifications.
- 7. HOW TO INNOVATE Organise for paid experimentation : examine, revamp entrenched routines, organizational boundaries and incentives to encourage rapid experimentation. Fail early and often but avoid mistakes : embrace failures that occur early in the development process and advance knowledge significantly. Anticipate exploit early information :recognize the full value of front loading, identifying problems up stream, where they are easier and cheaper to solve. Combine new and traditional technologies : do not assume that new technology will necessarily replace and established one. New and traditional technologies are best used in concept.
- 8. WHO INNOVATES Educated individuals Betterequipped to deal with abstraction More receptive to risk in general Higher in achievement motivation Higher in social participation More often engaged in interpersonal communication Active information seeker