Innovation Definitions and Processes

Changes to the way a product or service is offered or delivered to the market. This could involve packaging, pricing, or distribution strategies.

Changes to the core processes involved in creating and delivering a product or service, aiming to improve efficiency, cost, or quality.

Involves changing the fundamental understanding of a company's business or its role in the market. This could involve shifting to a new industry or adopting a different business model.

Changes to the product or service itself, adding features, improving performance, or creating entirely new offerings.

The ability to utilize existing resources and capabilities to seize opportunities and translate them into successful products and services.

A strategic approach to innovation selection that focuses on understanding and prioritizing key competitive forces, barriers to entry, the threat of substitutes, and the relative power of customers, suppliers, and regulators.

The final stage of the innovation process, where a company puts the chosen innovation into action. This involves gathering resources, partnerships, and addressing potential roadblocks.

The process of developing a clear and compelling vision for the innovation, ensuring that all stakeholders within the organization understand its direction and goals.

The ability of a company to constantly evaluate its internal processes to identify areas for improvement, adaptation, and innovation.

The set of unique skills and knowledge that a company possesses which gives it a competitive advantage. These can be tangible (e.g., equipment, patents) or intangible (e.g., brand reputation, expertise).

A systematic approach to innovation that focuses on continuous improvement and incremental advancements throughout an organization.

The process of aligning smaller projects with a company's overall vision to ensure consistency and effectiveness in achieving strategic goals.

The act of regularly reviewing and evaluating existing processes to determine if they should be enhanced, reduced, or replaced with new ones. This ensures that activities are aligned with the changing needs of the innovation environment.

The difference perceived by customers between a company's offerings and those of its competitors, which makes the company stand out and drives repeat sales.

A strategic approach that focuses on leveraging technology, intellectual property, customer relationships, and supplier partnerships to gain and maintain a competitive advantage.

Capabilities are the abilities that a company has due to its resources and how they are combined. They are distinct from resources themselves, which are the assets a company possesses.

Key characteristics of strategic competencies include: they are essential for customer satisfaction, unique to the company, take time to develop, are hard to copy, and involve a combination of resources, with a strong element of experience.

They are about the resources needed within a company, from individual skills to teamwork, whether within the company itself, with suppliers, or distributors.

These represent the company's internal culture and values, such as customer service standards, a history of innovation, and how the company manages change.

For capabilities to lead to a competitive advantage, a company needs two things: they need to convert those capabilities into products or processes that customers want, and they need to protect those capabilities from being copied.

There are nine factors that impact a company's ability to create value from its capabilities, including secrecy, accumulated experience, lead times, customer support, learning curves, complementary assets, product complexity, setting industry standards, being a pioneer in new products, and strong patent protection.

A firm's capabilities can become ingrained and rigid if they become too dominant, hindering adaptability and innovation.

A company's decision-making is based on a coalition of individuals, each with their own goals.

Customization where customers can choose pre-defined options like colors or features. Products are made to order using standardized components.

Customization where customers can choose from pre-defined designs. Products are manufactured to order, like choosing a car model.

Customization where customers can influence the production process from the start. Products are created only after a customer order.

Solutions designed to avoid or modify existing regulations. Often arises from new legislation.

The first stage of the innovation lifecycle, characterized by experimentation, uncertainty, and flexibility.

The second stage of the innovation lifecycle, where a dominant design emerges and sets the industry standard.

The third stage of the innovation lifecycle, characterized by standardization and integration of a product or service.

The process by which an innovation spreads through a population or social system over time.

Individuals within a company who drive innovation and new ventures, often facing challenges like securing resources and gaining legitimacy.

A crucial stage of innovation where individuals or groups make decisions about adopting a new technology or process.

The initial group of adopters who are less influenced by social pressure and rely on personal assessment to make a decision.

Later adopters who are influenced by social interactions, marketing, and peer recommendations.

A model explaining that people adopt innovations based on personal assessment or social influences.

The phenomenon where the adoption rate of an innovation accelerates due to social influence, often leading to a rapid increase in adoption.

Creating a new venture within a company that requires filling key roles like technical innovator, business innovator, and product champion.

The most useful indicators of innovation based on patents include the number of patents, citations per patent, current impact index, technology strength, technology cycle time, science linkage, and science strength.

Licensing allows others to use your intellectual property (IPR) by granting them permission. This can reduce costs, expand reach, and gain access to complementary technology.

A good innovation audit helps an organization identify its strengths and weaknesses in terms of innovation, promoting self-reflection and improvement.

Lead users are active and enthusiastic customers who are ahead of the market, providing valuable insights and feedback for innovation.

A well-structured and comprehensive innovation strategy involves four key stages: searching for ideas, selecting promising options, implementing those choices, and capturing the value generated.

Patent protection is a legal framework that grants exclusive rights to an invention for a set period of time. It's important for inventions as it provides a competitive edge and encourages investment.

Copyright is a legal right that protects the expression of original ideas, such as written works, musical compositions, or artistic creations. It doesn't protect the ideas themselves, only their specific expression.

Design rights provide legal protection to the unique appearance of three-dimensional articles. This is especially relevant for products with distinctive shapes or external designs.