Innovation is the practical implementation of new ideas that result in the introduction of new goods or services or improvement in offering goods or services. It is a systematic practice of developing and marketing breakthrough products and services for adoption by customers. Innovation often takes place through the development of more-effective products, processes, services, technologies, art works, or business models that innovators make available to markets, governments, and society.
Innovation is related to, but not the same as, invention. Innovation is more apt to involve the practical implementation of an invention to make a meaningful impact in a market or society, and not all innovations require a new invention.
Innovation is critical across all industries, and it is important to avoid using it as a buzzword and instead take time to thoroughly understand the innovation process. Innovation and creativity are often used synonymously, but they are not the same. Using creativity in business is important because it fosters unique ideas. This novelty is a key component of innovation. For an idea to be innovative, it must also be useful.
Simply put, innovation is about successfully implementing a new idea and creating value for customers and stakeholders. Innovation starts with a new idea, and it could be a plan for an improved product or service, an updated method for running operations, or a new business model. It can touch on any part of a business and does not necessarily need to be novel. Innovation also implies value creation, and it plays an important role, acting as a key lever to help a company survive and thrive. Innovation allows a company to remain competitive, and a company that does not innovate is at risk of becoming irrelevant, reducing its productivity, losing customers, and ultimately failing.
