Innovation is the discovery of new knowledge. It is neither automatic nor accidental rather it is a product of deep thinking, careful observation, and systematic activity. Scientific inquiry is an unending process and the object of this inquiry is innovation.
Types of innovation:
Product- Innovation in this category refers to the innovation in the quality of the product and both improvements to existing product lines or completely new offerings. The key is to add significant value.
Service- It involves the improvement of the consumer’s experience. It includes innovation in the offerings of the product, making it easier to use, fixing common problems. Here the objective is to make the product stand out.
Process- It is an inward-looking innovation, improving core competencies. It includes significant changes in technology, equipment, or software. For example, Henry Ford’s invention of the assembly line shortened the time necessary to produce a single-vehicle.
Management- It is the process of managing innovative ideas. The planning and process behind coming up with ideas, turning them into action plans, and developing them for the business until they become a reality. Implementation of new management practices, processes, etc that shows a departure from older norms.
Open- It refers to the innovation process to collaborate globally, bring out newer ideas, working beyond boundaries and expand the markets for external use of innovation.
Value-creation- It means to give something valuable for receiving something valuable in return. Value creation involves a process to make the product stand out,to deal with competitions, create demand in the market.
Radical innovation- It involves the birth of new industries and the application of revolutionary technologies. They allow society to take a leap forward. It brings about revolutionary changes in society like the industrial revolution.
Incremental innovation- Majority of innovation are of this type. It includes making improvements in existing products. the aim is to make the product stand out in the market and reduce competition around it. For example, the newer updates in smartphones and various apps add new features and improve their efficiency.
Disrupting Innovation- It involves the creation of newer markets and value networks which eventually disrupts the existing market and value network. It describes a process that initially a product is at the bottom of the market, it is less expensive and more accessible and gradually comes to rule the market. For example, Netflix disrupted the video rental business.
Architectural Innovation- It refers to innovation in the architecture of any product that changes or modifies the way various components of the system relate to each other.