The very first image that pops in our head when somebody talks about innovation is scientists sitting in lab coats and trying to find something new. But imagining scientists, their lab coats, and experimental labs are just limited approaches for defining the word innovation. Innovation needs a broader context to be defined with a bigger picture.
If not scientists, their lab coats, and their huge labs, then what is innovation? Let us try to explore and search for the actual meaning of innovation as we go through this article.
What Is The Definition Of Innovation?
Most of us think that innovation means either of these two:
- Bringing a change
- Brewing a revolution
There’s no denying that brewing a revolution can be the baby steps of innovation. So, this is proportionally correct. But most of us think that bringing a change is how you define innovation. This is wrong. Innovation is actually how you respond to a change and this response needs to be creative.
So, innovation is about responding to the change in the most creative way. You don’t have to bring a change and tag it as an innovation. You just have to come up with new creative ideas for revamping the existing changes that took place already. But how does this innovation thing works with business? What is the importance of innovation in business? Let us see.
Types Of Innovation
It is overwhelming to watch people building this figment of imagination whether an organization is innovative or not. This is a highly polarizing and simplistic perspective to refute or disregard the various types of inventions that companies are capable of doing. We can break innovation using two dimensions of technology and market.
Technology holds utmost importance because without technology, and innovation would simply fail to be executed. The market holds the second most importance because the market is a place where you get to know the actual worth of the innovation that you executed by using technology.
By considering technology and market, we can break down innovation into 4 types:
- Architectural innovation
- Radical innovation
- Incremental innovation
- Disruptive innovation
Architectural Innovation: Brief Definition
Architectural creativity essentially takes and applies the lessons, expertise, and technologies on a particular market. This innovation is incredible as long as the new market is open to growing new consumers. Often because of the dependency and reintroduction of established technologies, the risk associated with architectural innovation is low. Since it takes much of the time tweaking to meet new business requirements.
The Ames Research Center of NASA attempted to improve aircraft coil protection in 1966. They managed to build a new mold reacting to the pressure but magically returning to its original form. Originally sold as table pads and sports equipment for medical equipment, before becoming more successful in mattresses. This technology of “slow spring back foam” is subject to architectural innovation. It is also referred to as memory foam.
Radical Innovation: Brief Synopsis
What we think the most when looking at creativity is radical innovation. It creates (or swallows) new industries and includes innovative technologies. It creates new industries. The aircraft was not, for example, the first mode of travel, but was innovative in that market air travel enabled it to grow and thrive.
Incremental, disruptive, architectural, and radical innovations are the four styles listed here that explains how enterprises can innovate. More forms than these four are to innovate. The main thing is to locate and make a success of the type(s) that fit your business.
Incremental Innovation: Definition
Incremental innovation makes use of your current technologies and enhances consumer value within your existing market (features, design improvements, etc.). Incremental innovation occurs in almost every business.
Examples include incorporating or even removing functionality from current products or services (value through simplification). Also, minor user interface enhancements can provide value.
What Is Disruptive Innovation?
Disruptive innovation, also called stubborn innovation, requires the application of new technologies or processes to the existing market of your business. It is stealthy, as new technology is always lower than current technology on the market. This modern technology is also more costly, features less, difficult to use, and not as aesthetically pleasing.
Only after a few iterations does the latest technology overcome the old and disrupt all existing businesses. It could be too late to compete fast with the latest technologies for the existing companies. There are many examples of disruptive innovations, one of the most important is the disruption to the smartphone market of Apple’s iPhone. Most common phones used buttons, keyboards, or scroll wheels to access the iPhone.
The iPhone was the culmination of a longstanding technological movement, mostly by Palm Treo phones and personal digital helpers (PDAs). You can frequently find that the current market is not disrupted by the first mover. Apple had to cobble a stunning, easy-to-use touch screen and provide access to third-party mobile apps to disrupt the mobile industry.
These were the major types of innovation. But there is another type of innovation that is taking over the market and business by trickling the business owners and innovating perfect symmetry between business and revenue.
What Is Reverse Innovation?
Any innovation first introduced in the developed world is a reverse innovation. Clearly: Where the innovators are located and where the firms are, what makes an invention a reverse innovation has nothing to do with it. It has to do only with the locations of the clients.
Reverse innovation has historically been an unusual occurrence.
In reality, it’s common and intuitive for inventions to flow downhill from the rich world to the developing world. After all, in the wealthiest countries, the richest customers will still need the latest technologies. New technology costs decrease in due course and wages increase in the developing world. This tricks down inventions.
Be attentive. The intuitive belief that developing countries are increasingly coming into contact with the rich world is toxic. It’s a strategic blind spot that can sink an ever more common aspiration: generate strong growth in the emerging economies. The presumption can also hurt the domestic markets for a long time.
This is because reverse inventions remarkably often defy seriousness and rise into the realm of wealthy people. A loss at a half-world distance in a developed country will directly result in a stinging blow in your courtyard. Multinationals have to change gears to stop this troubling outcome.
They have pursued a simplistic global policy mainly for decades. Innovation for home markets. First, innovation. Then, exports to meet the local business needs, with at most slight modifications. In past times, when other rich countries were the largest export markets, this policy worked well enough. It’s going to no longer fit well.
Global companies must realize that they need to innovate and not merely export to win in emerging markets. And then they must be ready, from the developed to the rich world, to move those inventions uphill. This is not an underrated management challenge. It is loosely similar to calling on a vehicle manufacturer to drive cars both forward and back across the assembly line.
What Is Innovation In Business?
We discussed innovation and the branches that formulate it. Now let us see what does innovation means when we are talking in terms of business.
Corporate creativity is to introduce new systems, ideas, programs, or goods to improve the balance. This could include the introduction of new and improved goods or services (which can increase income), the efficiency of an existing process, or solving a current business issue (both of which cut down on costs and save time).
A business emphasis on brainstorming, design, or the creation of an innovation laboratory will drive company innovations. Innovation’s main element is that it drives the company’s sales.
Importance Of Business Innovation
Innovation offers few major benefits:
Getting Ahead Of Disruption
When conducted properly, business innovation studies where the competition is due to possible disruptors or changing demands of consumers. Businesses use this knowledge to make strategic improvements and to encourage entrepreneurship for their internal workers.
Similar to what new startups do and from those in this field, or partnerships with upstream companies (so-called ‘buy, create, partners’) these improvements could involve building a product or services.
Many innovations occur by reducing the expense, time-consuming, and sustainability of the current business processes. These changes save time and enable an organization, which coals against uncertainty and danger, to respond with agility to industry shifts.
Better Brand Perception
Consumers are more likely to purchase creative and socially conscious businesses.
Makes The Brand More Attractive
Employees, particularly thousands of years and Gen Z, wish to work in fast-moving, mission-driven businesses with a bright future. More than ever.
What Is The First Step For Managing Innovation During Discontinuous Change?
During the technology cycle process, businesses innovate by reducing costs and enhancing the efficiency and functioning of the dominant. In the traditional S-curve pattern of innovation, limited effort leads to large output increases. Lastly let us discuss, what should be the right mindset for innovation when the discontinuous changes overwhelm?
Iterative design is a design technique focused on a cyclic prototype model, testing, analysis, and process refining. Based on the results of testing, modifications and refinements are made in the latest design iteration.
Budgeting is the development of your money spending plan. The budget is known as this expenditure plan. Create this expenditure plan helps you to decide in advance whether you have enough money to do or want to do the things you need. Budgeting offsets the costs against income.
Establishment Of A Dominant Design
The dominant design influences may be widespread. Mainly because companies choose to expand on their current knowledge base rather than to build a new one, dominating concepts influence the accumulation of knowledge after their adoption.
Early Supplier Involvement
Early involvement of supply chain stakeholders builds better partnerships due to the need for cooperation. The more all parties are involved in the final product, the more creativity will occur.
Extra copies of the same data are removed during deduplication, leaving only one copy to be saved. Reducing the data transmission across the network will save substantial storage and backup money – savings up to 90% in some cases.
The Actual Core Values Of Innovation
Don’t underestimate the role that language and meanings can play when your team is on the same page. Even by reviewing the way your business defines this, new ideas can be unlocked and companies can give priority to initiatives. And the team makes significant strides in delivering genuinely creative solutions.