HOW DO YOU DEFINE INNOVATION? – LET’S TAKE A STAB AT IT

At its simplest, innovation refers to introducing something new or making changes that add value. The concept is often used to refer specifically to products, services or processes that supersede and displace earlier versions. But innovation can also describe implementation of new ways of doing things in government, nonprofit or other contexts beyond business.

In a corporate setting, it stems from identifying unmet customer needs and then mobilizing resources to develop novel solutions that fulfill those needs in a profitable way. Identifying white space opportunities where competition does not yet exist can lead to the most transformative breakthroughs. Innovation thus implies understanding customers deeply enough to provide something new that adds tangible value and serves either an existing market or creates its own new market.

While invention describes the creation of something completely new, innovation focuses more on the process of commercialization – bringing a new device, technology, product or service successfully to market. Invention and innovation are interlinked but innovation specifically involves widespread adoption driving business, cultural or other organizational changes.

At leading innovative companies, innovation is not limited to flash of genius ideas from individuals. It is the outcome of well-designed systems, processes and cultures that enable imagination, experimentation and measured risk-taking on a continual basis. Innovation is thus democratized across the organization, not restricted to an elite few in an ivory tower.

While product or service innovation may be the most visible type, there are diverse forms of innovation. Business model innovation reimagines holistic value creation, delivery and monetization for competitive advantage. Process innovators pioneer new ways of producing goods or services, often dramatically boosting efficiency. Organizational innovation refers to pioneering talent practices, social technologies or structuring work differently to extract maximum value from human capital.

With such multifaceted manifestations, innovation defies easy definition. It can seem nebulous or overused at times as a buzzword. But when transformed into concrete results that customers notice and care about, innovation takes on profound meaning. For visionary individuals, teams and organizations, getting innovation right unlocks growth, leadership and broader impact that transcends offering new stuff.