Innovation Explained

Good ideas may surface from the furthest reaches of the organization. Thus, the challenge for top executives is to stimulate experiments across the entire organization, choose the most promising of the lot, and spread them quickly and appropriately throughout the business.

But the fact is that its unlikely those few agencies that have been lucky, will also include your organization.

We are life in a time when information and technology has given birth to abundance, so the competition in supply market is increasing at a steady pace. Good ideas, in times like these, need to be nurtured and applied as efficiently and effectively as possible, in order to reap economic benefits.

Early research on innovation tended to respond to the organization’s ability to meet and adapt to external and/or internal changes (Burns and Stalker) (Hull and Hage). Subsequent work on innovation stressed more on proactive innovation and distinguished between the types of innovation. There are three types of innovation (process, strategy, and product/service), each of which can range from incremental to radical and from sustaining to discontinuous.

More Information Surrounding Innovation

Emphasis was on the organization’s capacity to promote both process and product innovation, irrespective of an immediate need for change (Kanter).

Joseph Schumpeter defines innovation as the combination and creative application of existing and new knowledge of subjects to improve existing and/or develop new products and services, production processes, organization-methods, and commercialization, so as to create or preserve added value.

Because it is not possible to develop a truly innovative organization if creativity is ignored or stifled. And likewise, without effective processes in place in order to transform creative ideas into practical, real world, value added application, creativity is of now commercial value whatsoever.

When you truly understand the distinction between creativity and innovation, you can begin your process for success-by freeing and inspiring the creative ability lying dormant in your organization.

The Oxford English Dictionary defines innovation as ‘making changes to something established’. Invention is the act of ‘coming upon or finding discovery’. It is essential that we don’t mix innovation with invention.

Innovation is generated at individual, organizational, and environmental levels. Let’s look at various types of innovation.

It must involve everybody in the organization and everyone’s performance evaluation should include it.

Make sure that the members of the panel are communicating with one another in a free-flowing or perhaps even a freewheeling way.

Provide the adequate resources to the team, and make sure the members know that such resources are available.

A team normally consists of up to ten people, who devote about one-quarter of their time to the draft for three to four months. Participating in a team is regarded as a plum assignment, because it provides exposure to top executives.

Employees of China’s multinational electronics company Haier, for example, discovered by visiting rural customers, that they frequently used their washing machines not only in order to wash clothes, but likewise to clean vegetables. Taking this new information and the possible market into consideration, Haier made a few modifications to its machine, and was in a position to make it versatile enough to wash both clothes and vegetables. This helped Haier become the market leader in the countryside of its home country.

Managers of companies situated in developing countries, sometimes despair of the closure of the gap with bigger and better-funded multinationals. Clearly, there is hope for companies in any part of the world to win through innovation and creativity.

However, innovation in products is still the basic goal of any team, within an organization. Views of the customers through research and surveys are carry forwarded to the R&D team for further product innovation. Ultimately, it depends on how good you’re at learning from the market, your team, and industry. Johnson & Johnson, the American multinational corporation, is an excellent example of constant and successful innovation in its products.

Leave a reply