Innovation can be simply defined as a "new idea, creative thoughts, and new imaginations in form of device or method". However, innovation is often also viewed as the application of better solutions that meet new requirements, silent needs, or existing market needs. Such innovation takes place through the provision of more- effective products, processes, services, technologies, or business models that are made available to markets, governments, and society. The term "innovation" can be defined as something original and more effective that "breaks into" the market or society. Innovation is related to, but not the same as, invention, as innovation is more apt to involve the practical implementation of an invention (i.e. new/improved ability) to make a meaningful impact in the market or society. All organizations can innovate, including hospitals, universities, and local governments. Innovation processes usually involve: identifying customer needs, macro, and micro trends, developing competencies, finding financial support for new inventions, and at last practically applying those inventions for better solutions.
Innovation is:
- New stuff
- That adds value
- For various stakeholders
- Can be monetized
- Creates a competitive advantage
- And is sustainable
- Until the advantage deteriorate
Innovation is the process of turning opportunity into new ideas and of putting these into widely used practice. It is the management of the entire activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product. The process of translating an idea or invention into a good or service that creates value or for which customers will pay. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers.
For example, Godin (2008) defines 12 concepts of innovation which can be described as follows: A: innovation as process of doing of something new
- innovation as imitation;
- innovation as invention;
- innovation as discovery;
B: innovation as human abilities to creative activity:
- innovation as imagination;
- innovation as ingenuity;
- innovation as creativity;
C: innovation as change in all spheres of life:
- innovation as cultural change;
- innovation as social change;
- innovation as organizational change; political change; technological change; D: innovation as commercialization of new product