Business Innovation: The Concept Of Innovation In Business

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Innovation can be defined as the process of translating an idea or invention into a good or service that creates value or for which customers will pay. To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need. Innovation involves deliberate application of information, imagination and initiative in deriving greater or different values from resources, and includes all processes by which new ideas are generated and converted into useful products. In business, innovation often results when ideas are applied by the company in order to further satisfy the needs and expectations of the customers. Innovation began taking root as a term associated with science and industry in the nineteenth century,…show more content…
From the early 1950s until the 1980s, innovation was understood as a process: theoretical research in labs provided an initial foundation; applications of that research were devised and developed; and from there, they became commercialized products. Innovation was thought of as a packaged, predictable research product, and government funding for these kinds of ventures directly corresponded to the rise of this understanding of…show more content…
As we noted above, it can be incremental improvements to existing products, the creation of breakthroughs such as entirely new products and services, cost reductions, efficiency improvements, new business models, new ventures, and countless other forms as well. The method of creating innovation is to discover, create, and develop ideas, to refine them into useful forms, and to use them to earn profits, increase efficiency, and/or reduce costs. The focus on how to do that, the starting point of innovation. In the quest for innovation it’s obvious that many ideas at the input stage become a few completed, useful innovations at the output stage, so people readily visualize the innovation process as a funnel: lots of ideas come in the wide end on the left, and a few finished innovations come to market from the narrow end at the right. The trick to making it work is knowing what’s supposed happen inside the funnel. Quite often, people think innovation starts by naturally creating a whole bunch of ideas, but that is not always the

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