According to Schumpenter: Innovation is the process and outcome of creating something new, which is also of value. It involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales, while entrepreneurship only needs to involve commercialization (Schumpeter).
Or by other definition: Innovation is the introduction of new ideas, goods, services, and practices which are intended to be useful (though a number of unsuccessful innovations can be found throughout history). There is five types of Innovations.
1. Product/Service innovation, which involves the introduction of a new good or service that is substantially improved.
2. Process innovation involves the implementation of a new or significantly improved production or delivery method.
3. Marketing innovation is the development of new marketing methods with improvement in product design or packaging, product promotion or pricing.
4. Organizational innovation (also referred to as social innovation) involves the creation of new organizations, business practices, ways of running organizations or new organizational behavior.
5. Business Model innovation involves new way business is done in terms of capturing value
Innovative ideas are revolutionary ideas which brings dramatic change.
In it's most basic form, Innovation can be represented as a easy equation:
Innovation = Invention + Delivery
It is not enough to create something new, nor is it enough to deliver something. The combination of invention and delivery is greater than the sum of the parts.
Light bulbs are the iconic innovation story: Edison innovated, where others invented. He took an invention that had been proven as possible almost 100 years before, and made a practical product. It wasn't just the bulb that was the gigantic deal, either: the whole supply chain for electrical power distribution was rather important too.
In Edison's time, there was time to operationalize an invention. Now, new categories of technology appear very often, as do new business models. These both disrupt older models. In this environment, it isn't enough to see an opportunity in the market, and solve the problem first. Innovation includes the capacity to adapt to environments that don't exist at every, and that may be unimaginable.
Some Industrial Revolutions happened with: Steam, Electricity and Automation, and Connectivity & Knowledge. As i already said, Innovative ideas bring dramatic change to various sectors like creating new services, new products or marketing ideas or even business models which can put the particular organization into a more competitive advantage in comparison with the others.
Let's take an example with Blockbuster and Netflix and the way Netflix beat Blockbuster into the video renting market. Netflix recognized that the use of Information Technology precisely Web Technology is the future to go. So you either adapt to the new trends or your business have to die.
Regarding the trends we can divide them into groups like:
Regional Trends = Global Trends &
Variations & Differences.
Time & Timing, Risk and Opportunity and Organization support.
Regarding the Time and Timing we should be aware of following scenarios
What if we led our innovative idea:
Early = no customer interest
Soon = somebody can copy your idea
Late = no bussiness