Innovation: Definition, Characteristics, Types, Elements, Examples and MORE

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When we refer to the Innovation we are talking about when a person or group of people uses all their learning in some area to create a new way or way, to create something or perform a task. Each object or task has a different process, which makes it unique.

Also, it is defined as all new or original ideas that lead to economic or social improvement in a sustainable way. If you want to know everything related to this term We invite you to continue reading our article!

What is innovation?

The Innovation we are talking about when a person or group of people uses all their learning in some area to create a new way or way, to create something or perform a task. Each object or task has a different process, which makes it unique.

It is normally defined as the “realization of new combinations” that includes the introduction of new goods. New production methods. The opening of new markets, the conquest of new sources of supply. And the realization of a new organization of any industry.

The International Organization for Standardization in its management of the innovation proposes in the standards “ISO 56000: 2020” to define innovation as “a new or modified entity that creates or redistributes value”. However, many academics and government organizations have given their own definition of the concept.

Some common element in the different definitions is a focus on novelty, improvement and diffusion. It is also often seen as taking place through the provision of products, processes, services, technologies, works of art, or business models.

These processes are more effective than innovators make available to markets, governments, and society. A innovation it is something original and more effective and, consequently, new, which “bursts” into the market or society.

Innovation is related to invention, but it is not the same: innovation is more apt to involve the practical implementation of an invention (i.e. new / improved capability) to have a significant impact on a market or society, and not all innovations require a new invention.

In economics, management science, and other fields of analysis, the innovation it is usually seen as the result of a process that brings together several new ideas in such a way that they affect society.

Innovation Characteristics

Innovation Research

Innovative research implies the origin of events that lead to productive renewal. Everett M. Rogers He explained that there are several things that contribute positively to these innovations in the market.

It can be the subjective advantages of the product, the simplicity of the first experience, the possibility of experimentation, the affinity with the value system and the tangible evidence of innovation.

Creativity

Innovation means creativity. This means reordering and creating original content. This is the case with marketing, products and services that enter the market. Through innovative activities, the company seeks to attract and spread consumers.

Uncertainty

The results cannot be predicted with precision, so any innovative measure will bring a certain degree of uncertainty, even if the company feels the pressure to renew, it can interfere with the investment.

Risk is always contained in innovation, but innovation is essential for a company to remain competitive. Entrepreneurs will have to weigh or consider that there may be some kind of consequences.

Businessman

Innovative entrepreneurs are different from arbitrage entrepreneurs: depending on Joseph Schumpeter (Joseph Schumpeter, 1911), arbitrage entrepreneurs benefit only from price differences.

The market will demonstrate the degree of innovation and, at the same time, innovative measures will bring higher levels of well-being and more employment opportunities. If you want to read a book about innovation in companies, you can click here to see some.

Areas of Application of Innovation

Innovate in the area of ​​processes and products

In this case, the innovation aims to improve existing products and allow the same innovation in the process area to achieve the desired results. For example: products that use packaging to increase their durability.

Innovate in terms of organization

Innovation can not only respond to the fact of improving or creating products that can completely change the market, but it can also be applied to the organization of the company itself. This can be done by planning the organization itself, the tasks and the internal and external relations with the company.

The application includes innovative mechanisms and working libraries in its implementation. For example: including new software to support business management, new ways to contact customers through apps, and personalized email.

Innovate in the commercial area

An essential element is the ability to market successful products that involve brand survival. In business affairs, packaging and product design innovations can be accomplished in the following ways:

  • To have a significant positive impact on consumers, such as placing them at the point of sale, and conducting research and assistance on creativity and consumer behavior at these points.

It has a lot to do with innovation, or when making innovative promotions that stand out and attract the attention of potential consumers. For example: creating eye-catching shop windows, combining colors, smells and lights to attract the public’s attention.

Innovate in technology

If it is possible to innovate in social, commercial and organizational aspects, it is also possible to mention technological innovations that add value to products and obtain novelty through the use of technology, machinery or product manufacturing tools. For example: using artificial intelligence to develop and improve existing products.

Types of Innovation

Product / service innovation: Market introduction of new (or significantly improved) products or services. It includes significant alterations in the technical specifications, in the components, in the materials, the incorporation of software or in other functional characteristics.

Innovation in process: Implementation of new (or significantly improved) manufacturing, logistics or distribution processes. And in that way, have a better way to get the product to market.

Organizational innovation: Implementation of new organizational methods in the business (knowledge management, training, evaluation and development of human resources, value chain management, business reengineering, quality system management, etc.), in the organization of work and / or in relations abroad.

Marketing Innovation: Implementation of new marketing methods, including significant improvements in the merely aesthetic design of a product or packaging, price, distribution and promotion.

Innovation in product / service in management: Definition of new products / services or significant increase in the quality or functionalities of products and services that have already existed for some time.

Innovation in process and management: Definition of new processes, or the improvement of existing ones, aimed at increasing the efficiency level of the company. In management are the improvements in the management activities of the company (logistics, administration, warehouse, etc.)

Elements of Innovation

  1. Aspire: Having an inspiring vision coupled with strategic planning and linked to financial objectives is essential to promote innovative projects within the organization.
  2. To select: The value of new and creative ideas is intangible, it is important to know how to recognize which ideas should support and carry the organization forward.
  3. To find out: The Innovation is directly related to the discovery of new ideas. In addition to the option of waiting for inspiration to emerge, which may take some time, you can systematically examine ideas.
  4. Develop: Diversifying the revenue stream, changing the economics of the value chain, and expanding delivery models are all part of the innovative business models.
  5. Speed ​​up: Red tape and slow approval processes are often quite detrimental to innovation. The best way to accelerate innovation is by fostering collaboration, continuous learning, and relying on managers with skills and experience.
  6. Scope: Some ideas, such as luxury items or some mobile applications, are aimed at certain niche markets. Others, like social media, have a global reach.
  7. To extend: Innovation requires collaboration. And most of the time, collaboration must go beyond the boundaries of the organization. The flows of talent and knowledge transcend geographic borders.
  8. Promote: Another element of innovation is to stimulate, reward and support innovative thinking among employees. Innovation, strategy and performance must be connected.

Examples of Innovation

  • The tablet, a tool where you can have computer applications in the size of a notebook.
  • When the first companies decided to market electronically, many believed it was a crazy idea. Today it is an essential differential in many parts of the world.
  • Companies such as Tupperware or Avón carried out an innovative business model, where people associate with the company and sell the product to each other.
  • Give the customer the possibility to choose the characteristics of the computer.

Innovation is always possible!

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