INNOVATION

What is innovation?

Innovation: Is defined as adding something new to an existing product or process. The key words are adding and existing. The product or process has already been created from scratch and has worked reasonably well. When it is changed so that it works better or fulfils a different need, then there is innovation on what already exists.

Innovation is the successful exploitation of new ideas.

All innovation begins with creative ideas. Creativity is the starting point for innovation.

Innovation is the process of bringing the best ideas into reality, which triggers a creative idea, which generates a series of innovative events

Innovation is the process that transforms new ideas into new value.

Innovation is the inter-section of invention and insight leading to the creative of social and economic value. The creation of value adding value to customer’s satisfaction-“delighting the customers”.

Principles of Innovation. Here are some principles which will help an entrepreneur to become innovative.

• Action-oriented that is:

     -Make the process or service simple

     -Make the process or service customer-focused

    - Start small but aim high

    -Try, test, and revise the process or service

    -Learn from failures

    -Reward good performance

   -Work, work, and work to innovate successfully

The Elements of Innovation

Innovation is the successful development of competitive advantage and as such, it is the key to entrepreneurship. The entrepreneurs are the “dreamers”, who take hands on responsibility for creating innovation.

Fiona Fitzpatric identified the following elements of innovation:

1. Challenge: What are we trying to change or accomplish-the “pull”

2. Customer focus: Creating value for your customers-the “push”

3. Creativity: Generating and sharing the idea(s)-the “brain”

4. Communication: The flow of information and ideas-the “life blood”

5. Collaboration: People coming together to work together on the idea(s)-the “heart”

6. Completion: Implementing the new idea-the “muscle”

7. Contemplation: Learning and sharing lessons lead to higher competence- the “ladder”

8. Culture: The playing field of innovation includes:

·         Leadership (sees the possibilities and positions the team for action-the role model)

·         People ( diverse groups of radically empowered people innovate-the source of innovation)

·         Basic value (trust and respect define and distinguish an innovative organization-the backbone)

·         Innovation values (certain values stoke the fires that make the “impossible” possible- the Spark)

9. Context: Innovation is shaped by interactions with the world

Forms of innovation

Innovation can take several forms:

i. Innovation in processes, including changes and improvement to methods. These contribute to increases in productivity. Which lowers cost and help to increase demand.

ii. Innovation in products or services, while progressive Innovation is predominant, radical innovations opens up new markets. These lead to increases in effective demand which encourages increases in investment and employment.

iii. Innovation in management and work organization, and the exploitation of human resources, together with the capacity to anticipate techniques

Innovation centres on people, culture, structure, process and technology. Innovation is the process through which the entrepreneur converts market opportunities into workable, profitable, and marketable ideas.

Therefore creativity and innovation are inseparable in entrepreneurship. Creativity brings in new idea-thinking about new things and innovation gives means in which that thought is put into a workable change. An entrepreneur therefore starts with creative thinking  followed by innovative approaches (operational strategy of a created thought)