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What is Innovation

  • The process of translating an idea or invention into a good or service for which the customer will be ready to pay.
  • The company's capability to implement a range of strategies to produce goods and services which are delivered to the market in such a way that it out performs the market.

Components

It has 2 critical components: 1. Invention 2. Commercialization

Types

  1. Incremental, example: mobile market where a new OS is introduced etc
  2. Disruptive
  3. Architectural
  4. Radical
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y-axis explains the knowledge of market
x-axis explains the expertise and knowledge of the domain

There are other types as well: - Product innovation: The product concept is completely new - Cost innovation: A product which improves the cost efficiency during production of other products. (such as software decreases labor which improves). - Business Model Innovation: You can have a completely new and unique business model. - Process and Technology Innovation: Some invention which can make the processes during production of something easier. - Social Innovation: Trying to solve society problems. - Market Innovation: Used by startups, listen to customers to bring their idea to the market. - Technology Push Innovation: Providing new technical services like cloud computing where people can store their stuff on the internet.