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


  • 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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