In this article, the meaning of innovation, innovation Vs invention, and the types of innovation would be examined.
What is Innovation?
Innovation is creating new value and/or capturing value in a new way. Value is the keyword, stressing the difference between innovation and invention. The definition is simple, easy to memorize, and also good enough to encompass innovation in all the value chain.Victor Fernandes
In simple terms, innovation refers to upgrading an actual idea. It can also be a product or a method. Innovation is essential to all aspects of a business. There is a difference between innovation and invention.
Innovation and Invention
Invention means creating something (idea, product, method) for the first time whereas innovation aims at improving existing ideas. For example, the telephone is an invention while a mobile phone is innovative.
Types of Innovation
There are different types of innovation. It has been categorized into several forms. The common form is the innovative matrix, and they are of four types.
Architectural innovation is the application/reshaping of a successful idea, method, or technology in a new field/market. For example, the Uber App combines geolocation, freelancers, and ride-sharing to become innovative.
This is disruptive because it sets to change how people use existing technology. It creates a new value by either starting a new market or making consumers have easy access to the existing technology. For example, Netflix innovated video streaming in place of buying DVDs.
An incremental innovation makes use of an actual design or technology to improve customers’ experience. This gives more value to them because it is an update. It is a traditional type of innovation as most businesses do it often. For example, a brand can innovate by rebranding a product. Also, a website can innovate by upgrading the UX/UI and by adding new features. This type of innovation is constantly required in businesses.
Just as the word implies, it is a revolutionary type of innovation. It gives rise to a new technology/industry. For example, the rise of IoT (Internet of Things), 3D printing, and AI (Artificial Intelligence).
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