what is innovation in business

Innovation in business refers to the process of developing and marketing new products, services, processes, and business models for customers. It is the ability to conceive, develop, deliver, and scale new ideas that are both novel and useful. Innovation can be a catalyst for growth and is a matter of resource allocation. It is not just about creativity and generating ideas, but also about acting upon it by refocusing people, assets, and management attention on the right things. Innovation can be grouped into two categories: sustaining and disruptive. Sustaining innovation enhances an organizations processes and technologies to improve its product line for an existing customer base, while disruptive innovation creates new markets and value networks, eventually disrupting existing markets and displacing established market-leading firms. Business innovation should improve on existing products, services, or processes, solve a problem, or reach new customers. The purpose of the business innovation process is to create value for the organization, which can come from creating new revenue opportunities, driving more revenue through existing channels, creating efficiencies that save time and money, or improving productivity or performance.