Innovation is the process that involves the translation of a unique idea into a product or service that can be sold to consumers or used to create value. In other words, innovation is simply an idea, but these ideas should satisfy a specific need in the market or must be translated or replicated at an economical cost.
The Difference Between Innovation and Performance
In the previous section, innovation was identified as an idea that was transformed into a product or service to fulfill the needs of a specific market and increase value in the market. More importantly, innovation is an idea that should be translated into an economic cost and benefit that should define its success and position in the market. Therefore, innovation is measured by the uniqueness and value that an idea brings to the company and the market. On the other hand, the performance of employees, department, business or industry is measured against known standards of speed, accuracy, completeness, reliability, efficiency, and cost.
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Sources of Innovation
Innovation, when thought as a unique idea that can bring about value, can be found or created from different events that are referred to ‘the sources of innovation.’ The sources of innovation can come from the shock of systems, accidents, watching and observing, regulation, advertising, and so on (Duggan 2013). Now, while innovation can sprout from many events and incidents in life, it is believed that the most common sources of innovation encourage the process of taking new ideas forward, revising the plans, and winding available knowledge together to convert the concept into a useful process, product, or service.
Shocks to the System
I would like to call this source a forced need for innovation. The shocks to the system entail the events of situations that happen to change the world’s perspective about a specific subject, thereby forcing people to innovate and find new preventive or opportunistic ways (Duggan 2013). For example, the 9/11 event was a shock to the security system/industry in the United States, which not only threatened the ‘name’ of the country, but also pushed for the need to find and develop new methods, machines, and strategies for security, fire safety, transport, and evacuation.
Accidents
Not to be confused with shock in the system, accidents are defined as sudden and surprising moments that offer new directions for developing and conceptualizing something new. Accidents are then considered annoying disruption in the process of research and development (Duggan 2013). However, in most cases, these accidents trigger innovations by opening a surprising and unexpected direction in research and development. For example, in the late 1980s, scientists who were investigating the UK-92,480 compound for treating Angina experienced negative results, which they pursued further and later realized the Viagra drug.
Watching Others
Watching others can help identify innovative ideas through benchmarking, reverse engineering, and imitating what others do. Watching others entails learning from others who are passionate about research and development and innovation. For example, Southwest Airlines adopted an efficient strategy to reduce the turnaround times at airports ‘ this strategy was observed and borrowed from F1 events.
Regulation
Regulation that encourages innovation aims at changing the mindset or perspective of a system or goal. These changes are meant to change the direction in which the company pulls or pushes innovative activities in their process. For example, the ongoing regulations and policies surrounding environmental pollution have driven companies to innovate materials, product designs, manufacturing designs, and processed in factories.
Advertising
Advertising in business entails amplifying and presenting possible needs in the market or any other field. The magnification of potential needs can spark innovation in different ways. For example, advertisements that state “Clean Hands in a Flash” can sparkle curiosity among innovators to find more ways actually to have clean hands in a flash.
Inspiring
Inspiration, also known as the Archimedes’ moment, which is often related to the urge or feeling of doing something creative and unique. For example, when Eureka Archimedes was bathing, the was inspired to identify the relationship between displaced water in the basing and the buoyancy force the experienced.
Knowledge
Knowledge is a common source of innovation because of its ability to utilize resources to push frontiers of science to create opportunities and improve R&D results (Duggan 2013). This process is known as knowledge push that involves steady and quality R&D. For example, Ford Motor Company became a powerhouse through pushed innovation and R&D in process innovation, especially around information technology and the growing automation field.
Recombinant Innovation
This strategy of creating new ideas employs methods that reinforce and amplify existing ideas by utilizing the current scarcity of a pre-existing plan to introduce it into a new field. Thomas Edison’s company, The Inventory Factory, is an excellent example of how recombinant innovation is a source of new ideas. Edison employed engineers from different industries and fields, and therefore, brought change in applications of technology in mass production, food processing, and automobile assembly.
The Innovation Funnel
Outline Concept
In this part of the innovation funnel, the organization examines or analyses the existing opportunities for a new product or product extension. This will then be followed by insight-based ideation that aims at finding the best fit for the company’s strategy.
Details Design
This stage entails conceptualization, where the team designs actual concepts for the idea that originated from the first step including different configuration of service or product features.
Testing
Testing involves evaluation and benchmarking, where the team tests different concepts through consumer responses and feedbacks obtained from the tests.
Launch
Launching comes after a go/no-go decision based on the results of the test. If the idea passed the test, then it is launched into the market with the hope that it will offer a solution and increase value to the market.
Innovation Selection Space
Bounded Exploration
This selection space involves organic search within a specific field or frame. Therefore, the bounded exploration requires extensive resources ‘ a necessity that is readily available in well-established organizations. An example of bounded exploration is research and development.
Exploit
Exploiting assumes a stable and shared frame where incremental development is practiced. This includes refining methods and tools for research with the goal of deepening the relationship with key stakeholders. Exploiting may be in the form of working with main suppliers, building strategic alliances, and strengthening consumer relations.
Co-Evolve
This innovation selection space represents the “edge of chaos” where innovation can be found as a process or product of co-evolution. For example, current models in health care will not survive for the next few decades because of the changing demographics, demands, and spending cuts. Therefore, innovation will eventually emerge due to these significant trends.
Reframing
This selection involves searching a space in which alternative architectures are generated. Examples of retuning include working with fringe markets or collaborating with uncommon consumers or clients.
Creating and Capturing Value
Capturing value occurs when changes in the distribution of value are made in the production line. The efforts included are focused on monetizing users, pricing efficiently, and providing liquidity. On the contrary, creating value occurs with the addition of perceived value to a client or consumer. The objective of creating value is to add value to something where none existed before ‘ this means building a strong brand and developing efficient operations.
Innovation Management vs Change management
Innovation management involves efforts to administer and organize programs and resources that gather, deliver, and refine new ideas to add value where none existed. Change management involves monitoring and directing transitions or transformations of the goals, objectives, or operations of a business.
Effective Change Using Innovative Techniques
A consultancy can use innovative techniques for improving and replace old business process in the bid to improve efficiency and productivity. This will then enable the business to expand and extend its product range of existing services. Also, the company can develop entirely new services and products or add values to existing products.
- Duggan, W. (2013).’Creative strategy. New York, NY: Columbia Business School Publishing.
