Can we agree to disagree that there has been confusion between innovation and creativity? The desire for innovation in an organization is sometimes mistaken for creativity, at times, it translates into running of creativity workshops with no real outcome. Innovation can be defined as using creativity to bring new products/services to market.
In other words, innovation can be seen as more action based whereas creativity is seen as in the creation mode. It is not about bringing the best and latest cool thing to market that defines innovation.
"Innovation has no destination"
Innovation can be seen as value creation in a different way or to a different element of the business;To introduce innovation into your organisation, there has been a surge in hackathons and design thinking initiatives to flex the creative muscles of employees to drive innovation.
There are mainly 4 types of innovation in business
Incremental Innovation is the byproduct of improvement of what you are doing today. Example, ramping up customer service for current products/services, reducing costs to stay competitive to the market or expanding current product line.This type of innovation occurs in the short-term and has low technological advancement and low market impact.
Architectural Innovation is the modification of existing solutions for an entirely new market.
Changing the how the products look like , repurposing of existing components/products into other new ways of application.To really classify an innovation as a architectural, the new market a company is pursuing needs to be so different from its current market that it requires an altogether different infrastructure.This innovation occurs in the short to medium term.
Disruptive Innovation is when new technologies and products are created to serve an existing market and most importantly, it changes the game. Example : AirBnb, Uber. In reason why disruptive innovation usually stems from the evolving needs of the customer base. For instance : Due to covid in Singapore, food delivery hosts emerged in residential areas to help organize group buys to help both food providers and consumers. it eventually displaces established market leaders. This innovation occurs in the medium to long term.
Radical Innovation is when an organization applies new technology to a new market. This type of innovation is when a new product, process, or service with high technological advancement has a high market impact and completely replaces an existing offering. This innovation occurs in the long-term.
CONCLUSION
Business thrive in positive disruption and any form of innovation stands to benefit companies especially when innovation brings about positive change. Determining your innovation type and plan will go far in leading the change.