What is innovation?
Innovation is the application of ideas in a way that creates a useful outcome.
What is the purpose of innovation?
The purpose of business innovation is to create new value for customers or to improve the efficiency or effectiveness of existing operations. There are three types of innovation – incremental, architectural or recombinant, and radical. Incremental innovation involves changes to the form or function of existing products or services, without a shift in either the markets served or capabilities deployed. Architectural or recombinant innovation uses pre-existing capabilities but reconfigures them to create entirely new value. Radical or discontinuous innovations are new capabilities that either substitute for existing solutions or serve market needs not previously addressed.
What is an example of innovation?
The Apple iPhone is an excellent example of innovation. It reinvented a mobile telephone, making it a personal productivity, entertainment, and communication device.
Why is innovation so important?
Innovation is important because it prepares companies for succeeding in the future. Innovation helps manage uncertainty by teaching a company how to satisfy the evolving needs of its customers.
Case studies on innovative companies:
- Case Study: Analog Devices
- Case Study: CUNA
- Case Study: CloudFactory
- Case Study: IMCA
- Case Study: Intel
- Case Study: LexisNexis
- Case Study: The Atlanta Opera