The Oxford Dictionary describes innovation as the process of “mak[ing] changes in something established, especially by introducing new methods, ideas, or products. According to the OECD Oslo Manual, “innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations”. The word implementation plays a key role in order to determine what is
The concept of innovation Innovation is a process of creating something new good or service which can be commercialized in the market. This must be satisfied a specific need of a customer at an economical cost. The innovation focus on two main types. They are product innovation and process innovation. The product innovation is introducing something new to the market that can enhance the quality and the range of a product that use by consumers as well as organizations. Eg : computers, mobile phones
industrial revolution, and its subsequent splice with capitalism in the 18th century (i.e. the so-called industrial capitalism), did not only make the significance of innovation more evident, but also, and as historical evidence suggests (e.g. Hosbawm, xxx; Trebillock, 2000), it also reinforced its significance further. Since then, innovation has been one of the most significant drivers of capitalist economic development (e.g. Freeman and Soete, 1997; Freeman, 1974; Schumpeter, 1934; 1942). More importantly
Setting a Pace for Innovation In order to manage the process of making innovation happen, it’s important to understand the different ways in which change can be categorized. In this field it is not a case of “one size fits all” – you need to tailor your approach. One way is to look at how much “newness” is involved – rom incremental small steps to radical leaps forward. Innovating in Stages The results of innovation can be dramatic – from the first-ever automobile to landing a man on the Moon. But
the world's most efficient personal computer system. In 1996, IBM has lost $20 billion. The fundamental reason is that the transformation of idea is extremely slow for the company, and the enterprises, which in the information and technological innovation industry need become more resilient to support concept system. Once an idea rooted in personal mind, it is very difficult to change or give up this idea. Therefore, an appropriate organizational change and change management is very important for
. The similarities and differences between prescriptive and descriptive schools of strategy Both prescriptive and descriptive schools of strategy do not engage to a fixed, repetitive strategic planning because managers using descriptive analysis are willing to receive the unpredictability of decision making process. Otherwise, managers using prescriptive analysis supposed that the strategies will be designed thoughtfully in advance, and they are not taking considerations of changing factors as well
Also, producers can come up with the incremental innovation to improve the product line that suites to the recent lifestyles of consumers or users such as Apple that has developed their phone series from a normal touch screen phone to a touch and face ID to unlock the devices. However, there are some importances of innovation in entrepreneurship as it is considered as a key value for a business longevity. If there is no innovation in entrepreneurship, the business would not be able to survive
Economic development – A regional perspective The economic reforms have positively contributed towards the nation’s development in a macro perspective. Improvement in trade relations between nations and the free movement of goods and services led to increased growth in the economy. Thus the globalisation and liberalised economic policies by different nations has gradually frayed many national and state economic institutions. Globalisation has also played a key role in industrial development and
Property plays an important role in facilitating process of taking innovative technology to the market place. Peter F. Drucker, the management consultant and author of “Innovation and Entrepreneurship stated that “…Because its purpose is to create a customer, business has two—and only two functions: Marketing and innovation. Marketing and innovation produce results, all the rest are costs." So the question now is what is innovation? Generally put, an ‘innovation’ is developing a new idea and putting it
Entrepreneurship and Measures of Firm Entrepreneurship Activity The main hypothesis of the economic theory of entrepreneurship is that in the economy firm entrepreneurship contributes to production through the combination of the existing productive factors. Innovation and firm entrepreneurship are found to have positive economic effects mainly in terms of employment opportunities, taxation revenues and economic output. The measurements of these positive effects provide the basis of international comparisons.