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
- Idea creation
- Initial experimentation
- Feasibility determination
- 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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