Various Definitions of Innovation - Case Study Example

Innovation Innovation Introduction "The innovator ha for enemie all who have done well under the old, and lukewarm defender in thoe who may do well under the new law." Definition While many organization accept that innovation i ignificant to their growth and ucce, the "innovation" term ha variou definition: According to Yuri Ljuri and Robert Lawrence innovation ha the following feature; Innovation i 1. Product extenion (ame bae product with light modification; identical product in a new egment), 2. New platform product (net product from which product extenion are poible), 3. new-to-the-company product and 4. new-to-the-world (never been done before; no market exit). 5. A hock (a major failure) to the ytem, 6. Problematic earch, 7. Random variability in experimentation, 8. Deliberate deciion to invet in learning, 9. Match between a need and idea which already exit, 10. Formal vehicle for timulating innovation uch a reearch and development, 11. Managerial rik eeking or rik avere behavior, 12. Availability of lack reource, 13. Management philoophy and organizational climate, and 14. Cutomer need." Innovation i the application of a new or improved idea, good, ervice, proce or practice that i ueful. Reearcher who have tudied innovation generally plit the innovation under five main type of innovation: product innovation, proce innovation, organizational innovation, marketing innovation and buine model innovation. A conumer we enjoy new product and ervice that were not available a few year ago. Older product are available at much cheaper price. (Thompon, 88-119) General Outlook on Innovation Innovation i the key to future buine ucce. In a highly competitive environment when emerging problem need new and more efficient olution and where new competitor are alway in the competition, companie that do not ee invetment in innovation a important are at rik. (Thompon, 88-119) "The role of innovation i to provide new and alternative way of addreing common and recurrent challenge. Within the governance paradigm, which i itelf multi-faceted, innovative ytem and olution do not appear in predictable form. Innovation i more commonly aociated with reearch and development intitution, and buine development unit in the private ector, than it are with the public ector". Innovation and Buine In the buine we ue tool and technique which enhance organization' productivity more than that of previou generation. The competitive challenge for the future caue low-cot producer and low-cot innovator. A we al know innovation i putting new idea into practice and achieving commercial ucce with them. It contain efficient idea that lead to brand new product or ervice like a new flu drug or mobile phone and efficient idea which improve the way thing happen. Innovation i not jut about new technology, it i about new idea. New idea can improve all apect of the way in which firm work uch a ervice giving, financial management and manufacturing procee. In that ene there are many innovative factor which improve the operation of firm, intitution and ociety. Innovation control the productivity performance of the organization that enable the creation of new job and fater economic growth. (Thompon, 88-119) Innovation and Organization An organization' effort in innovation hould be integrated and form a trong foundation to build. There are many innovative firm which are managing technology and exhibiting growth in area uch a information technology and biotechnology and many other ector. The previou appreciation of innovation which baed on the concept of reearch and development and trading of new product and implementing new technologie, i not ufficient now. A wider definition and identification of innovation for any kind of organization i needed, it had better to know about the contribution of ervice and information baed indutrie to the economy. (Thompon, 88-119) Innovation reult not only from the application of Reearch and Development activitie but alo meeting and fulfilling cutomer demand, problem-olving and adapting to the changing buine environment in accordance with the fierce competition. An organization' ytem of innovation mut be comprehenive and flexible for forming and fortifying the all form of innovation. "Competition i the critical driver of performance and innovation. It benefit everyone by enabling u to chooe from an array of excellent product at affordable price. Competition encourage the adoption of innovation a companie evolve and offer new idea in order to flourih in the marketplace, Product hould compete on their own merit, and conumer everywhere hould have the ability to eaily chooe the bet product available for purchae. Fair and open competition dictate that the bet product win, and market force prevail". Innovation feed economic growth in the global economy. It provide a wide range of opportunitie that help u to reach new cutomer with new or exiting product and to erve today' cutomer with new product and ervice. (Thompon, 88-119) Categorie of Innovation Innovation can be conidered in two categorie: 'Incremental innovation mean any improvement made to exiting product or procee in term of organizational, financial and commercial apect. Improving current ytem generally need little invetment but may reult in outtanding profit increae. "Incremental Innovation i critical in nurturing revenue by effectively growing market hare. They are baically minor change made over time to utain the growth of a company without making change in major product line, ervice, or market which are currently being competed in". (Thompon, 88-119) One of the aim of an organization mut be to increae awarene of the benefit of 'incremental innovation' in marketing, buine environment and organizational diviion and department. Another innovation category i radical innovation. Radical innovation i believed to be better and more efficient than incremental innovation. "Radical innovation i a pre-requiite to navigate change uccefully during thee turbulent time. Radical Innovation i fundamental to buine rejuvenation and critical to urvival in chaotic time. Incremental innovation and cot cutting meaure are not ufficient to utain company growth and properity. While many large, etablihed companie have ued acquiition and external incubator to fuel their growth, internal engine of growth have been often neglected". (Thompon, 88-119) Radical innovation contain new idea, developing or adapting new technology, or new way of doing buine, i uually more riky and often require ucceful new invetment. Thi innovation category alo require information baed ytem and rik aement, to high capital cot for buine. If an organization applie to the radical innovation then thi organization mut develop and improve the relationhip between all player in the innovation ytem and build an internal and communication environment which upport innovation and rik-taking. (Yuri and Robert, 32-98) Both incremental and radical Innovation are dependent on trategic leaderhip. "trategic leaderhip demand the ability to make ound, reaoned deciion--pecifically, conequential deciion with grave implication. ince the aim of trategy i to link end, way, and mean, the aim of trategic leaderhip i to determine the end, chooe the bet way, and apply the mot effective mean. The trategy i the plan; trategic leaderhip i the thinking and deciion making required developing and affecting the plan".(Yuri and Robert, 32-98) Other eential component contain exploring new option, knowledge baed activitie and a trong reource and kill bae. trategic buine kill, leaderhip and planning are central focue if an organization develop a culture of innovation. Leaderhip and Innovation The ignificant force behind innovation i leaderhip. Leader who prove the following point and behavior lited below are alo demontrating a commitment that will caue the integration of innovation within an organization: * A contant definition of innovation to remove confuion and quetion mark in term of organizational expectation. * Combining innovation with an efficient organizational trategy. * Detailed planning and upport for trategically aeing, electing and following up the innovation opportunitie and initiative. * Acceptance of rik and elimination of the fear of failure. * Uing creativity and trength within individual and department. * Adopting creative effort. * Demontrating deired behavior to pecify the role and tak. * Encouraging and providing effective communication. * upporting and uing effective action. A leader mut conider the following point when he or he implement trategic olution and innovative method(Yuri and Robert, 32-98) A company culture that willingly adopt innovation including the key area uch a product/ervice development, proce efficiency and cutomer relationhip .trategic ue of innovation prioritie with buine goal, policie, procee and the trategie.A focu on the cutomer and focu on the market when aeing and undertaking opportunitie for innovation. Rik taking and an undertanding that have the poibility of making mitake and failure are often influencing future ucce. Emphai on exploratory thinking, idea generation, examination and unfamiliar method. ound interperonal relationhip and internal teamwork, with a climate of mutual commitment and upport. Cro-functional, cro-dicipline communication, collaboration and integration within the organization and with external partner. (Yuri and Robert, 32-98) Concluion Innovation hould be conidered a a central component of an organization' growth trategy. In thi repect it mut be managed like any other proce within the organization, by implementing target, financially funding, reource and accountability. Work Cited Yuri Ijuri and Robert Lawrence Kuhn, New Direction in Creative and Innovative Management: Bridging Theory and Practice, Ballinger Publihing (2008). Thompon, J.L. (2008). 'trategic Management Awarene and Change' (3rd edition). Thomon International Buine Pre. Read More