Innovation (“renewal”) is if we do something in a different way (and better) than before. That is the killer app; change the way people do something. The change can be induced by a new tool (e.g. software), but by introducing a new approach to. No big thing is needed, companies – especially startups – practice innovation regularly otherwise they won’t get a place on the market.
Talking about innovation the usual thought is off brand new or wholly renewed products, but there are other forms of innovation too. Many ventures are successful by introducing new business models (Apple’s iPod is a good example: Apple hasn’t invented mp3 players or digital music stores but successfully combined them to a successful service). But being innovative can also mean to renew or optimize processes.
Which of the three approaches got emphasis depends on the business strategy. A service company should focus on its processes, a high-tech company on new products and in the world of media probably the new business models are the most important.
Process innovation is very near to quality insurance because the wide spread quality methods (like Six Sigma, Total Qulity Management, ISO 9000) also promise to improve the traceability, documentation, optimization of processes and filtering out errors to provide better products and services. Yes the highly creative innovation and the – for many – “paper tasting” quality movement aren’t so far apart.
The sources of innovation can’t be only inside think tanks, developer groups or consultants. Plenty of good ideas come from business partners, suppliers, customers and last but not least employees. It’s first of all cultural question; it isn’t enough encouraging people to find new ideas but management should help to realize them. It seems that most ideas will never realize. If only the ten percent of ideas turn to real products, services or processes at your place you are lucky; it’s a very innovative environment.
Links: Wikipedia
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