What is innovation?

Innovation means the practical application of fresh ideas by a company, including their commercial exploitation. Drucker (2007) observed that innovation is motivated by various factors, for example, changes in the industry and market, changes in demographic factors (e.g., employment levels, population growth, literacy levels, etc.), the upsurge of new knowledge, and changes in people’s perception regarding a topic, among others. Below there are other interesting ideas about the innovation process:

? All products and services need improvement; if not, over time, they run the risk of becoming useless or obsolete.

? During the development of innovative products and services the company should harness its unique talents and core capabilities.

? Innovation is not related to one specific department (marketing, R+D, etc.); it should always be part of a company’s philosophy which pervades all its aims and activities.

? The novel combination of knowledge possessed by an organisation and knowledge from other fields can prompt the generation of outstanding ideas.

? The innovation process should harness a company’s main strengths and capabilities and also consider the opportunities and threats in the business environment.

? Innovative companies tend to adopt an outstanding attitude of service toward customers; these organisations want to satisfy customers’ needs in the most effective manner.

? Dominant ways of doing things and ingrained conventions must always be challenged, questioned, and rebelled against during the innovation process.

? A company should never start with the innovation process when its products become commoditised or copied by others; the company should start this process much earlier.

A relevant question for self-reflection is: "How can our organisation be more innovative?"

This is an excerpt from the book "The Art of Compassionate Business: Main Principles for the Human-Oriented Enterprise" (2019, Routledge - Productivity Press), which has been published in March 2019. This book can be ordered here bit.ly/2MAkr4k