DEFINING INNOVATION

DEFINING INNOVATION

1. General Concept of Innovation: Making changes to something established by introducing something new

   • Advanced Concept of Innovation: Applying innovation is the application of practical tools and techniques that make changes, large and small, to products, processes, and services that results in the introduction of something new for the organization that adds value to customers and contributes to the knowledge store of the organization
     • Operations: All the activities that provide an existing service or product to a customer, including manufacturing, human resources, and material planning
     • Innovation: Consists of all activities that change operations and are focused on the future needs that the organization will face

2. Concepts Related to Innovation

   • Invention
   • Growth
   • Creativity
   • Design
   • Exploitation
   • Change
   • Failure
   • Entrepreneurship
   • Customers
   • Knowledge
   • Society

3. Categories of Innovation

   • Product Innovation
     • Incremental Improvements
     • Additions to product families
     • Next-generation products
     • New core products
   • Process Innovation
     • Just in Time
     • Total Quality Management
     • Lean Manufacturing
     • Supply Chain Management
     • Enterprise Resource Planning
   • Service Innovation
     • Quasi Manufacturing
     • Mixed Services
     • Pure Services

4. Classification of Innovation

   • Radical Innovation
     • Making major changes in something established, it might change the industry. It offers high returns but it is a risky option.
   • Disruptive Innovation
     • Less ambitious in its scope and offers less potential for returns for the organization, but consequently the associated risks are much less.
   • Disruptive Innovation
     • A radical innovation is introduced that transforms business practice and rewrites the rules of engagement, the innovation happens thanks to new sciences and technology.