Innovation itself can be expressed in several ways, including
- open, participatory, inclusive innovation;
- frugal innovation - which seeks to be economical
- incremental innovation; and
- radical innovation, known as disruptive innovation.
But what does "innovate" mean? To answer this question, a few successful models come to mind: Elon Musk of Tesla, Mark Zuckerberg of Facebook, Jeff Bezos of Amazon. People who have succeeded in proposing small and large changes to existing systems, strengthening their ability to produce goods and offer services that meet market needs.
An official definition
There is an official definition: the OECD defines innovation as a new or improved product that has been introduced to the market. According to this definition, there are two components:
- the novelty of the product;
- the use of the product.
The assessment of novelty is subjective and depends on the context. Your organization may be lagging behind in the market and, in this case, your innovations will be adaptive, you will be in catch-up mode and you will seize the available techniques and technologies and adjust them to your situation. On the contrary, you can be at the cutting edge of your field. Then, innovation for you will consist of changing the modes of production, breaking the existing models and creating something new from scratch. You will have to be disruptive!
In all cases, innovation is an asset for the organization. By introducing a new service or a new product, it distinguishes itself on the market and profits from it.
No accident!
Innovation doesn't just happen. The Roman Empire already had everything it takes to start the industrial age: cylinders, gears and pallet wheels were in use, water pumps combined pistons and valves, and at least one steam engine produced enough energy to run a set of figurines. Yet it wasn't until 1500 years later that these elements recombined to create an unprecedented burst of prosperity in England and Scotland. So it's not enough to have the ideas, it's not enough to have invented the solution!
What more could the leaders of ancient Rome have done to enable a technological leap? This is a question for our contemporaries: what should decision makers do to make the most of ideas, discoveries and inventions? What are the mechanisms you can adopt in your organization to take the lead in your industry?
A process
A good process and a few key ingredients help you absorb ideas and inventions and increase your ability to generate new wealth. Your organization already has access to a wealth of knowledge related to science and technology, improved management processes, and better marketing techniques, but is it reaping the full benefits?
Innovation is the result of a complex process with many iterations where sales people perceive a solvent demand and an unmet need among their customers. This information is taken up by technicians, the most curious of whom will follow the trail and see in the available knowledge possible solutions. They will then bring them back to the commercial space to apply them to the need and the solvent demand identified by the marketing team. It's a tightly interwoven set of relationships that foster your ability to innovate.
This process is made possible by a particular climate within the organization, the personality of the leader, the presence of talent and the diversity of perspectives. The availability of risk capital, a favorable legal framework and a competitive environment are external elements that also contribute to your success.
Conclusion
In a few words, innovating implies offering a new good or service to the market or to society. Companies and organizations that are successful in this endeavor have an open management, a good work climate, they know how to exploit the environment. In addition, they have a business process that fosters idea generation, invention, prototyping of the best ideas, production and marketing of the new.
For more information
Innovation: analyze and improve the process
