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Innovation Defined
Being innovative is
being different in a profitable way...
More
Innovation: A Paradigm Shift
Innovation is bringing a
paradigm shift in
the
way the business is done in a
rapidly globalizing economy.
This new economy is characterized by
enhanced frequency of innovations, shortening of product, technology, and
economic life cycles, rapid generation and
commercialization of new technologies, globalization not only large but
also small businesses, enhanced emphasis on
business partnerships
and
strategic alliances, intensive and multi-country research and
development programs and difficulty in accessing critical technologies.
Systemic
Innovation: 7 Areas
Technological Innovation Alone Is Not Enough
Facing a tidal wave of global economic,
technological and social change, you are not going to survive in the
new rapidly globalizing economy through
technological innovation alone. If you
are going to withstand relentless global competition, you need to radically
change the way of doing business. Innovation is everything that helps your
enterprise adapt to rapidly changing business environment.
Renewed Emphasis on Innovation
Shift to the
new
knowledge-based economy, combined with a dramatic increase in highly
capable global competition, demands a renewed emphasis on innovation. Rapid
changes in the competitive environment create the new world of competition – "a
fierce contest set in truly global context, with more capable players, higher
stakes, and vastly different rules of engagement from those that we have enjoyed
to date."3 This new economy is led by those who innovate – create,
find and/or combine knowledge into new products, services, and distribution
methods –
faster than their competitors. Innovation is above all spurred by
entrepreneurial
action, aimed at creating value through the application of
knowledge.
Engine of Economic Growth
The speed and efficiency of the diffusion of
innovation through the economy is critical to productivity and economic
growth. It can be pictured as a cascade process. Through the forces of
competition and imitation, an initial innovation is developed and improved
so that the impact on the economy is many times greater than that brought
about by the first application of the innovation.2
Leaders in technology development are not
necessarily leaders in technology adoption.
The most important economic
contribution does not necessarily come from the "early adopter" but from the
"fast follower" who adopts the innovative design that captures the
international market.2
As
Jack Welch, former CEO of
General Electric, puts it:"
The operative assumption today is that
someone, somewhere, has a better idea; and the operative compulsion is to
find out who has that better idea, learn it and put into action – fast."
In fast-moving sectors it is the new
enterprises with growth potential that are often the most innovative,
forcing established enterprises to respond to the change by themselves
becoming more innovative. Encouraging the emergence of new firms is a strong
force for innovation in many sectors.2
Continuous Change and
Innovation as a Norm
Companies, like any living organism, must become
learning organizations that change and
adapt to suit their changing
business
environment.
Jazz of
Innovation: 11 Practice Tips
According to Bill Gates, if you don't practice
the
change
management that looks after the future, the future will not look
after you. "...The tendency for successful companies to fail to innovate is
just that: a tendency. If you're too focused on your current business, it's
hard to look ahead..." The constant formation of new units within a
corporation is one means of gearing up to change.
To determine the improvements to make in
response to the change, you should continuously:
Yin and Yang of Value Innovation
Demand-side Innovation
With product life cycles shortening, make
innovation efforts
on the demand side. It's how
customer interactions are managed, not simply products are offered,
which determines success or failure.
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