Invention is the act of discovering a new idea, innovation is commercially exploiting an idea.

Types of innovation

  • Process innovation - New or improved ways of manufacturing
  • Product innovation - New technology or design to improve the product
  • Incremental innovations - New products or processes that modify an existing one
  • Radical innovations - Breakthrough that is a significant improvement

Forces driving innovations

  • The need to stay competitive
  • Potential to lower costs
  • Possible first mover advantage

o Sometimes better to be second mover to learn from the mistakes of the first

The innovation process

  1. Idea creation
  2. Initial experimentation
  3. Feasibility determination
  4. Final application

uNCERTANTIES IN INNOVATION

  • Market - will people buy it
  • Competitors - how will they respond
  • Technological - Will it work
  • Organizational - can our organization do it
  • Production - Is it cost effective
  • Financial - Will it generate a sufficient return

Managing uncertanty

  • External collaboration
  • Orient leadership towards change and innovation
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