Innovations in providing better products or services or enhancement in delivering products or services. There are various definitions that are used for innovation. A dictionary defines innovation as a new idea or invention. Else, innovation is considered as a change in existing things or systems, especially new ones, with added value added to create a better product or service. A definition from the Merriam Webster’s College Dictionary defines innovation as skill or experience resulting from the study or observation of something new.
An innovation strategy should include a definition of what innovation really is and how it can be defined. Innovation is a long term plan of action to improve or enhance a process, product, technology, or procedure without changing the existing procedures. Innovation may come from many places including management theory, market research, venture capital, branding strategy, engineering strategy, and innovative processes. In order to determine if the business is implementing a true innovation strategy, business managers should first define what innovation is, how it can be measured, and whether or not it is meeting the company’s goals.
In order to understand the meaning of innovation for a business, managers should define innovation in relation to the three concepts above. According to management theory, innovation is a new product or process that provides a competitive advantage to the innovator. The definition also states that innovation provides the user with an improved product or service. The competitive advantage is derived from the new value created by the innovation. The third concept is that innovation produces new uses for existing goods or service which may not have been conceived or intended.
To create new ideas, senior management must understand what drives innovation. A good definition would be to create new ideas that drive innovation by meeting customer requirements and increasing the company’s role in providing solutions to customers. This helps senior management identify areas where efficiencies can be created or new roles can be filled. The company should define innovation that directly affects the business, such as customer requirements. For example, if a company needs to improve its online customer service, it should “invent” new online customer service strategies that directly affect the customer experience.
Another important element for defining innovation is measuring the impact of new ideas on innovation and continuous improvement. In order to measure the success of new ideas, managers should take the time to talk to customers and competitors to understand what customers are asking for, and what they are looking for. This way, managers can develop more efficient ways to meet these needs. Likewise, companies should implement continuous improvement activities, such as meetings and conferences, as well as tools to track and record improvement efforts.
Finally, to truly capture innovation, the entire organization must work together. The true innovation process works best when departments like marketing, research and development, and manufacturing collaborate to develop new technologies and methods. Where this collaboration occurs, the best approach is to establish partnerships. For example, a manufacturing company may partner with a design company to come up with new ideas for products. This type of collaboration is crucial to developing a winning innovation strategy. By cooperating across functional and organizational boundaries, an organization has a greater chance of generating new innovation and capturing new value chains.