Introduction to Innovation

• Thomas Edison said, "There is a way to do it better - find it."

What is Innovation?

• Innovation occurs when someone improves on or makes a significant contribution to something that has already been invented.
• Converting knowledge into wealth defines innovation.
• Defining innovation is a complex process.

Examples of Types of Innovation

• Process:
  • Enabling: Aligning talent and assets.
  • Core: Use superior methods to perform tasks.
• Offering:
  • Product performance: Employing distinguishable features and functionality.
  • Product system: Creating complementary products and services.
  • Services: Supporting and enhancing the value of the offering.
• Delivery:
  • Channel: Delivering the offering to customers and users.
  • Brand: Representing the offering and the business.
  • Customer experience: Fostering interaction.
• Finance:
  • Business model: Making money.
  • Networking: Connecting with other people to make money.

Innovation Process Cycle

• Involves creative ideas, innovation challenges, collaborative ideas, compilation (scientific evaluation), testing & developing, implementation, review (new ideas & inspiration), and market considerations.
• Innovation = Creativity + Commercialization

Difference Between Innovation, Invention, Creativity

• Creativity involves novel, useful, and appealing ideas that are communicated.
• Invention involves creating something new.
• Innovation means transforming an invention into a product form.
• Invention is the initial occurrence of a new idea, while innovation is the first attempt to put it into practice, according to Jan Fagerberg.

Goals of Innovation

• Improving quality.
• Creating new markets.
• Extending product range.
• Reducing labor costs, materials, and environmental damage.
• Improving production process.
• Replacing products/services.
• Reducing energy consumption.
• Conforming to regulations.

Architectural Innovation

• A change in product structure.

Modular Innovation

• A change in component technology.

Innovation Occurs at Three Levels

• National level: Government policies and support.
• Enterprise level: Enterprise policies, support, and initiatives.
• Individual level: Individual and group innovation activities.

Innovation Management

• Management of innovation comprises three things:
  • Linking of engineering, science, and management disciplines.
  • Planning, developing, and implementing technological capabilities to shape operational objectives.
• Enterprises should emphasize:
  • Planning and controlling systems with high flexibility.
  • Respect for individual initiative and personal growth.
  • Tolerance for mistakes and allowing room for failure.

Research & Innovation

• Encompasses innovation, knowledge & science, money, and research.
• Research, Development, and Innovation (RDI) are related, yet distinct concepts.
• Applied research is designed to solve practical, modern problems.
• Basic research is scientific research aimed to improve scientific theories for improved understanding or prediction.

Basic Research

• Starts with observation and concludes with a conclusion.

Applied Research

• Starts with a target to reach (problem-solving) and then observes and concludes.

Development

• Involves implementing the conclusion to solve the problem.

Creativity Needs

• Skill: Learned capacity to carry out pre-determined results.
• Talent: Natural endowments of a person.
• Personality: Patterns of relatively enduring characteristics.
• Webster's Dictionary definition: Artistic or intellectual inventiveness that generates new ideas to bring something new into existence.

Characteristics of Creativity

• Flexibility and adaptability.
• Curiosity.
• Positive attitude / broad perspective.
• Strong motivation and determination.
• Fearlessness / risk taker.

Individual Creativity

• A particular style and determination.
• Originality and flexibility.
• Competence and positive outlook.
• Experience.
• Creativity - capacity to think outside the box and combine existing ideas.

Resources

• Knowledge, expertise, and access to relevant information.
• Internal motivation - motivation from within your need or passion to be creative.

Stages in the Creative Process

• Preparation, verification, incubation, and illumination.

Phases of Creative Process

• Phase 1: Background or Knowledge Accumulation: Seeking information through observations, readings, seminars, meetings, etc.
• Phase 2: The Incubation Process: Entrepreneurs allowing creativity by taking a break from the problem and letting the subconscious mind work.
• Phase 3: The Idea Experience: Discovering the solutions to problems (eureka factor).
• Phase 4: Evaluation and Implementation: Requires high levels of persistency and patience; entrepreneurs do not easily give up.

Components of Creativity

• Creative thinking skills: Use of creative intelligence to approach problems.
• Knowledge.
  • Four styles of creative intelligence: Intuitive, innovative, imaginative, and inspirational.
• Motivation.
  • Extrinsic & Intrinsic.

Where do Innovative Ideas Come From?

• Unsatisfied customers.
• Demographic changes in society.
• Vision.
• Problem-solving.

Innovation Comes From

• Technology, inspiration, innovation, concept, and future considerations.

Knowledge Management (KM)

• A multi-disciplined approach to achieve organizational objectives by making the best use of knowledge.

• Knowledge Management may be viewed in terms of:

• People: Increase the ability of an individual.

• Processes: Its approach varies from organization to organization.

• Technology: It needs to be chosen.

• Culture: The biggest enabler of successful knowledge-driven organizations.

• Structure: The business processes.