Innovation is generally defined as the process of change or creation in order to generate optimum effectiveness amongst products and ideas (Business.gov.au, 2015). In accordance to Business.gov.au (2015), it is suggested that the utilisation of innovative processes can increase the likelihood of a business or organisation’s success as it enhances more efficient work and higher quality performance and productivity. Within a business context, innovation may include the implementation of new ideas, improving a pre—existing product or service or creating dynamic products. While innovation doesn’t necessarily mean inventing new products of services, by changing a business model and adapting it to changes within your surrounding environment, innovation
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Schumpeter often argued that anyone seeking to make profits must innovate (Śledzik, 2013). Schumpeter believed that innovation is considered an essential driver of competitiveness and economic dynamics, being the centre of economic change in causing gales of “creative destruction” (Śledzik, 2013). In accordance to Schumpeter, innovation is regarded as the “process of industrial mutation, that incessantly revolutionises the economic structure from within, increasingly destroying the old one, incessantly creating a new one” (Śledzik, 2013). Innovation can be categorised into different types, these include breakthrough, sustaining, new market and disruptive (Nielson, 2013). Breakthrough innovations often consist of incorporating the functions of several products into a single product. A key example of a breakthrough innovation includes Apple’s products where something new and bold is introduced into the market. While this type of innovation may appear new, often, the basis of the product or service itself had already been invented however has been drastically/radically improved. Breakthrough innovation is essentially a large, discrete step change in performance, technology and value to its users or consumers (Nielson, …show more content…
The process of innovation within a business or organisation often entails of various steps including strategic thinking, exploration and synthesis, cycles of divergent and convergent thinking – whereby the innovation processes involved in the exploration and exploitation of opportunities for a new improved product, process or service, based on either an advance, in technical practice or a change in market demand, cost and performance, and the response of its users. According to the Commonwealth of Australia (2009), it is suggested that typically, during the research stages innovation goes beyond the creation of “new ideas”, it is also imperative to consider the application of these ideas in addition to evaluating the benefits for the innovation. Strategic thinking assists in the establishment ever-changing society and essentially what consumers may value, therefore stimulating potential questions left to answer (Morris, 2013). The innovation steps of development, implementation, evaluating and adjusting allows for an increase in production or service capabilities through the additional use of logistical and manufacturing systems (Innoviscop.com,
Schumpeter often argued that anyone seeking to make profits must innovate (Śledzik, 2013). Schumpeter believed that innovation is considered an essential driver of competitiveness and economic dynamics, being the centre of economic change in causing gales of “creative destruction” (Śledzik, 2013). In accordance to Schumpeter, innovation is regarded as the “process of industrial mutation, that incessantly revolutionises the economic structure from within, increasingly destroying the old one, incessantly creating a new one” (Śledzik, 2013). Innovation can be categorised into different types, these include breakthrough, sustaining, new market and disruptive (Nielson, 2013). Breakthrough innovations often consist of incorporating the functions of several products into a single product. A key example of a breakthrough innovation includes Apple’s products where something new and bold is introduced into the market. While this type of innovation may appear new, often, the basis of the product or service itself had already been invented however has been drastically/radically improved. Breakthrough innovation is essentially a large, discrete step change in performance, technology and value to its users or consumers (Nielson, …show more content…
The process of innovation within a business or organisation often entails of various steps including strategic thinking, exploration and synthesis, cycles of divergent and convergent thinking – whereby the innovation processes involved in the exploration and exploitation of opportunities for a new improved product, process or service, based on either an advance, in technical practice or a change in market demand, cost and performance, and the response of its users. According to the Commonwealth of Australia (2009), it is suggested that typically, during the research stages innovation goes beyond the creation of “new ideas”, it is also imperative to consider the application of these ideas in addition to evaluating the benefits for the innovation. Strategic thinking assists in the establishment ever-changing society and essentially what consumers may value, therefore stimulating potential questions left to answer (Morris, 2013). The innovation steps of development, implementation, evaluating and adjusting allows for an increase in production or service capabilities through the additional use of logistical and manufacturing systems (Innoviscop.com,