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Innovation can be simply defined as a “new idea,creative thoughts, new imaginations in form of device or method”. Pronunciation of the word has long been argued about due to the unusual sounding of the o becoming an i. The phonetic sound would suggest a spelling of inivative if taken at the word of a true scholar. While a novel device is often described as an innovation, in economics, management science, and other fields of practice and analysis, innovation is generally considered to be the result of a process that brings together various novel ideas in such a way that they affect society. A 2014 survey of literature on innovation found over 40 definitions. It is both a process and an outcome. According to Kanter innovation includes original invention and creative use and defines innovation as a generation, admission and realization of new ideas, products, services and processes.
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Workplace creativity concerns the cognitive and behavioral processes applied when attempting to generate novel ideas. Workplace innovation concerns the processes applied when attempting to implement new ideas. In business and in economics, innovation can become a catalyst for growth. A prime example of innovation involved the explosive boom of Silicon Valley startups out of the Stanford Industrial Park. In the organizational context, innovation may be linked to positive changes in efficiency, productivity, quality, competitiveness, and market share.
Innovation is the specific function of entrepreneurship, whether in an existing business, a public service institution, or a new venture started by a lone individual in the family kitchen. It is the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth. According to Clayton Christensen, disruptive innovation is the key to future success in business. The organisation requires a proper structure in order to retain competitive advantage. It is necessary to create and nurture an environment of innovation. While disruptive innovation will typically “attack a traditional business model with a lower-cost solution and overtake incumbent firms quickly,” foundational innovation is slower, and typically has the potential to create new foundations for global technology systems over the longer term. All organizations can innovate, including for example hospitals, universities, and local governments.
Still other innovative strategies include hospitals digitizing medical information in electronic medical records. There are several sources of innovation. It can occur as a result of a focus effort by a range of different agents, by chance, or as a result of a major system failure. Drucker, the general sources of innovations are different changes in industry structure, in market structure, in local and global demographics, in human perception, mood and meaning, in the amount of already available scientific knowledge, etc. In the simplest linear model of innovation the traditionally recognized source is manufacturer innovation. Another source of innovation, only now becoming widely recognized, is end-user innovation.
However, innovation processes usually involve: identifying customer needs, macro and meso trends, developing competences, and finding financial support. D help spur on patents and other scientific innovations that leads to productive growth in such areas as industry, medicine, engineering, and government. Information technology and changing business processes and management style can produce a work climate favorable to innovation. An important innovation factor includes customers buying products or using services. One technique for innovating a solution to an identified problem is to actually attempt an experiment with many possible solutions. This technique is sometimes used in pharmaceutical drug discovery. Thousands of chemical compounds are subjected to high-throughput screening to see if they have any activity against a target molecule which has been identified as biologically significant to a disease.
B testing is often used to help optimize the design of web sites and mobile apps. This is used by major sites such as amazon. Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the business plan, and to market competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. These goals vary between improvements to products, processes and services and dispel a popular myth that innovation deals mainly with new product development.
Most of the goals could apply to any organisation be it a manufacturing facility, marketing firm, hospital or local government. Whether innovation goals are successfully achieved or otherwise depends greatly on the environment prevailing in the firm. Conversely, failure can develop in programs of innovations. The causes of failure have been widely researched and can vary considerably.
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Some causes will be external to the organization and outside its influence of control. Others will be internal and ultimately within the control of the organization. Internal causes of failure can be divided into causes associated with the cultural infrastructure and causes associated with the innovation process itself. Diffusion of innovation research was first started in 1903 by seminal researcher Gabriel Tarde, who first plotted the S-shaped diffusion curve. Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the ‘s-curve’ or diffusion curve.