Innovation is defined as the process of utilizing creative ability to make or introduce something new or new resources and wealth. Or Innovation is a way of transforming the resources of an enterprise through the creativity of people into new resources and wealth.
Types of Innovation
Every business can benefit from innovation. A variety of innovative approaches are seen as below:
- Business Modal Innovation: This involves the way businesses are operated in terms of capturing value e.g. telecommunication companies make changes in delivering their services so as to be able to compete with other firms.
- Organizational Innovation: This involves the creation or alteration of business structural practices and models. This includes process, marketing and business innovations.
- Process Innovation: This involves the implementation of a new or significantly improved flow of business activities or delivery method.
- Product Innovation: This refers to the innovation that involves the introduction of a good or a service that is new and significantly improved. These new changes may include: improvements in the functional characteristics of the product, technical abilities, easy to use of the item among others.
- Service Innovation: This involves the introduction of a new service that is improved.
- Supply chain innovation: This refers to innovations that occur in the sourcing of input items from the suppliers and the delivery of output products to the customers.
- Technological innovation, this primarily comprises of research and engineering efforts aimed at developing new products and processes.
- Products-market innovation, this consists of market research, products design, an innovations in advertising and promotion.
- Administrative innovationis concerned with novelty in management systems, control Techniques and organizational structure.