CHAPTER 6: INNOVATION IN BUSINESS

Innovation is described as the creation of previously unknown items, processes, and technologies such as novel gadget or procedure.

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Organizations value innovation because it increases their competitive edge, generates a higher Return on Investment (ROI), increases productivity, and fosters a positive company culture.

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Shorter product life cycles have compelled organizations to come up with fresh ideas and innovations to meet market demand.

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Incremental innovation reconfigures a system, of components that comprise a product, process, or service.

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Experimentation is the procedure used to spread an innovation over time among members of a social system.

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The Everett Rogers Innovation Adoption Lifecycle categorizes these five adopters EXCEPT:

• innovators

• early adopters

• late adopters

• laggards

• early majority

The third step in the innovation process is:

• idea generation and mobilization

• diffusion and implementation

• commercialization

• advocacy and screening

• experimentation

These are the effect of innovation on society EXCEPT for:

• enhance technology development and accessibility

• creates a higher return on investment

• improved environmental sustainability

• increased economic growth

• improved well being

The first iPhone was releases in 2007, introducing the use of a smartphone. This innovation impacts the industry for the better, underperform current products when being introduced, and offers new features and benefits. This is the example of:

• incremental innovation

• radical innovation

• continuous innovation

• disruptive innovation

• architectural innovation

In business, there are innovation principles that should be followed such as:

• It should start small

• higher rates for innovative products

• innovation should be on a large scale

• it must show the complexity

• innovative products must be profitable