Today's understanding of innovation

In my personal opinion or perception, innovation is related to introducing something new. But in order to understand it further, the term new does not have to be related to a new product. Rather, it can be a new method for making new products; a new technology that makes it easier to develop a new product. Innovations in that sense, can appear everywhere without being restricted. Examples of these could be services, new technologies, new devices and of course new products.

"Innovation ... is generally understood as the introduction of a new thing or method ... Innovation is the embodiment, combination, or synthesis of knowledge in original, relevant, valued new products, processes, or services"(Luecke and Katz 2003 p. 2).

The above definition by Leucke and Katz explains the importance of something new in the sense that companies use something new, if they would like to be more successful and competitive in the industry. According to the authors, both products and services can be tested to new ‘innovative pastures’. An example of this is when the company helps the buyers with installing the product and does not charge this service, or online services. A service is innovative if the company is the first one to offer this service. Leuke and Katz opine that if this company is the first one, it is then possible to gain a competitive advantage, hence benefiting from prioritising innovation.

Innovations will definitely work out in companies if there are a clear set of rules that are being followed and respected. As in many situations of the daily business life, rules are the key for success due to the fact that it is difficult to come up with good ideas and later on innovations without a structure. The above statement is a clear depiction of Ramsey; “In today’s global economy, continuous innovation is not an option, it is survival” (Ramsey 2003 p. 5).

At some occasions, creativity and innovation are used with an implication of having the same meaning. Creativity on the one hand implies generating ideas, where as innovation is the transformation from the creative ideas into successful products or services (Davila, et al 2006). Being creative on the one hand is inevitably necessary to be innovative on the other hand. Hence with-out creativity, the process of nurturing innovations and coming up with them could be a challenge or even impossible. Building upon this argument, is Amabile et al;

"All innovation begins with creative ideas...innovation is defined as the successful implementation of creative ideas within an organisation. In this view, creativity by individuals and teams is a starting point for innovation; the first is necessary but not sufficient condition for the second” (Amabile et al 1996 p. 1154-1155).

Most authors of the innovation literature agree that if innovation is not successful on the market or it has not been accepted by the customer, the companies cannot talk about it. On the other hand it should be mentioned that if the innovation is successful, it does not mean that it is accepted on the market.

I can be therefore be envisaged that through innovations, it can be easier to achieve a sustainable competitive advantage which provides a successful competition for the companies within the industry. According to the Business Dictionary (2008), the two different categories of innovations are;

1. Evolutionary innovations

· Continuous innovation in slightly changes of the product

· Dynamic continuous evolutionary innovations – but they require user-learning

2. Revolutionary innovations (discontinuous innovations):

It should however be noted that these innovations disrupt the routine of the staff, e.g.: the personal computer, the Internet and the photocopier. Revolutionary innovations are a risk for the companies, which require a big risk-taking potential. Innovations are ideas that are translated into goods or services. People must therefore be willing to pay for it. After all this general information about innovation, it is very important to note that without a good microclimate, innovations are hardly possible.

References

Amabile, Teresa M., Regina Conti, Heather Coon, et al. “Assessing the work environment for creativity.” Academy of Management Journal 39 (1996): 1154-1185

Davila, Tony, Marc J. Epstein, and Robert Shelton. Making Innovation Work: How to Manage It, Measure It, and Profit from It. Upper Saddle River: Wharton School Publishing, 2006.

Dictionary of business and management. “Innovation: Oxford Reference Online. Oxford Reference online premium web site. http://www.oxfordreference.com/views/ENTRY.html?subview=Main&entry=t18.e3281, ac-cessed March, 2008

Luecke, R., and R. Katz. Managing Creativity and Innovation. Boston, MA: Harvard Business School Press, 2003.


Ramsey, Robert D. “The supervision of innovation.” Supervision 67 (2006): 3-6