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Creativity and innovation
|Creativity and innovation by lasbrey20: 6:39 am On August 1, 2018|
Why is it important to understand the process of creativity, innovation and change? Today’s reality dictates that only those organizations that embrace creativity and innovation management will achieve sustainable competitive advantage in the market place. Peter Drucker, a great management thinker said; “I have continued to stress over the years that organizations that do not innovate will not survive”
Successful innovations, on the other hand create change in the marketplace and in society. Just think of innovatively disruptive companies such as Uber, Airbnb, Facebook, and many others. In fact, it can be said that innovation isn’t about creating new products. Innovation is really about changing behavior.
However, merely aiming to create change is not enough. Businesses must make the “right” change by choosing the right ideas, create the right products, develop processes that will improve performance, create services that add value and create products that consumers want.
The above statement begs the question; What is the path to desired change?
If the product, service or process that has been created engenders change in the market place, then and only then can we say we have been successful. A successful innovation is always tied to the question of how markets behave.
“When Apple created iTunes it didn’t just create a faster, cheaper, better digital format for music, it altered the very nature of the relationship between music and people. eBay did not just create a platform for auctions, it changed the way we look at the experience of shopping and how community plays a role in the experience”. (Thomas Koulopoulos 2012)
Understanding the various levels of innovation, will allow us to some degree predict the degree to which our product, service or process will have an impact on the market place, even on society.
In a broad perspective, we can define four levels of innovation based on the degree to which value and newness is added to the product, service or process. These levels of innovation are:
We can also view innovation from the perspective of how they affect change. This view is particularly useful today with the advent of disruptive technologies and companies such as Uber, Airbnb, and others.
Incremental innovations involve modest changes to existing products and services. These are enhancements that keep a business competitive, such as new product features and service improvements.
Breakthrough innovation refers to large technological advances that propel an existing product or service ahead of competitors. This is often the result of research and development labs (R&D), who are striving for the next patentable formula, device and technology.
Disruptive innovation is a term coined by Clayton Christensen in his best-selling book The Innovator’s Dilemma, in which he shows that disruptive innovations “result is worse product performance, at least in the near-term. [They] bring to a market a very different value proposition than had been available previously” It describes a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
Game-changing innovation transforms markets and even society. These innovations have a radical impact on how humans act, think and feel in some way. Innovations that reach this level are always able to define a new category and fulfill an essential
Lots of people in manufacturing think of innovation as improving or creating a new product. Those in the service industry, think in terms of the services they offer. However, there are other areas in the public or private sectors where innovation can take place to create or improve offerings.
Market or position innovations
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