Session 1 Innovation Definitions “What does innovation mean to us?”

Session 1 Innovation Definitions “What does innovation mean to us?”

Innovation Is: Merriam-Webster defines innovation as: 1) the introduction of something new, and 2) a new idea, method, or device. Adoption

Innovation Is: Part of World Class Performance. – Innovation is a critical component of being a world class manufacturer. Operational excellence is not enough to survive long term in today’s markets. Operational excellence and innovation go hand in hand – it is a “both/and” not “either/or” choice. From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Not Just Products and Technology. – Innovation needs to be understood in a broad context – it is about innovation in all aspects of the business, including processes, services, methods, management practices, strategy and business design, not just products and technology. From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: A Continuum – The “innovation continuum” runs from incremental process improvements to radically new business designs. Each company needs to make choices about how much resources it will focus on which part of the continuum. From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Strategy Maps by Kaplan and Norton identify four core innovation processes: 1) opportunity identification, 2) research and development portfolio management, 3) new product design and development, and 4) launch. From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Innovation is the process whereby ideas for new (or improved) products, processes, or services are developed and commercialized in the marketplace. The process of innovation affects the whole business – not just specific products, services, or technologies. (Industry Canada) From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Innovation – A new idea, method, or device. The act of creating a new product or process. The act includes invention as well as the work required to bring a new idea or concept into final form. (PDMA Handbook of New Product Development) From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. (Peter Drucker, Innovation and Entrepreneurship) From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Your approach to innovation needs to be driven by your “theory of the business.” You need a clear theory about where the best opportunities are for innovation in your markets (product; process; business design). Based on your theory about your business, you need to create clear screens and criteria for your innovation efforts (communicable visions and action plans). From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: Good Strategic Planning Accelerates Innovation. – A robust and disciplined strategic planning process creates the context for your innovation strategy. It describes the “strategic territory” that your company occupies now, and intends to occupy in the future. From: An Innovation Framework, a position paper of the Right Place Manufacturers’ Council, John Cleveland.

Innovation Is: A BusinessWeek definition: Innovation is the ability to create and capture economic value from invention. From: BusinessWeek, August 2005

Innovation Is: Another BusinessWeek definition: Today innovation is about much more than new products. It is about reinventing business processes and building entirely new markets that meet untapped customer needs. Most important, as the Internet and globalization widen the pool of new ideas, it’s about selecting and executing the right ideas and bringing them to market in record time. In the 1990s, innovation was about technology and control of quality and cost. Today, it's about taking corporate organizations built for efficiency and rewiring them for creativity and growth. “There are a lot of different things that fall under the rubric of innovation.” says Vijay Govindarajan. “Innovation does not have to have anything to do with technology.”From: BusinessWeek, April 2006

Innovation Is: The Economist: OECD: Innovation is new products, business processes and organic changes that create wealth or social welfare. Goldman Sachs: innovation is fresh thinking that creates value. From: Economist: Special Report on Innovation, October 2007

Innovation Is: Innovation as Language Action definition: We found that the key is to understand innovation as adoption of new practice. How do we know for sure when an innovation has happened? It is simple: we observe that a group or community has adopted a new practice. The word practice is very important. Innovators induce changes of habit by offering and supporting new tools or processes perceived as high value by adopters. Many people suffer great expense and frustration because they think clever ideas are innovations. From: Innovation as Language Action by Peter Denning and Robert Dunham, ACM May 2006

Innovation Is: CQIN Innovation Curriculum Project definition: Innovation is the introduction and adoption of something new that creates value. This can be a process, a product, or a service. From: The WIRED CQIN Innovation Curriculum Working Definition, March 2007

Innovation Is: Innovation is the introduction of something new that creates value. Value is indicated by adoption.

The Innovation “Funnel” The five different innovation processes relate to different stages of the “innovation funnel” – the progression from a broad set of innovation ideas to actual implementation and commercialization. 1. Opportunity Identification 2. Opportunity Selection 3. Development & Testing 4. Production & Launch 5. Managing the R&D Portfolio This example Innovation Funnel compliments of WIRED

Session 1 Innovation Definitions “What does innovation mean to us?”