What is Innovation?

September 24th, 2010 § 6 comments

Innovation is the successful exploitation and execution of the opportunity of an idea within a business model.

Innovation – This is the space following an idea generation session (creative thinking, brainstorming, etc.). Innovation deals more with quality, evaluation and implementation. It’s an idea that has the proper resources supporting it and ideal market conditions ahead. Innovation is about moving a novel idea into an idea of value that fills a specific need. Identifying an innovative idea can be a creative process.

Idea Generation – The generation of ideas. This deals with quantity and novelty. This is what we typically refer to as Creativity.

Opportunity – An opportunity looks at and depends on resources (capital, staff, sales team, etc.), and conditions (consumer need & desire, idea value, competition, timing, etc.)

Bottom Line: Innovation is when a highly creative person becomes a successful entrepreneur.

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§ 6 Responses to What is Innovation?"

  • Must innovation be constrained to business models?
    Are innovations the application of an idea, or an invention?

    Could an innovation be considered outside the boundaries of a specific business model (consider business model innovation versus process or brand innovation)

    • There are thousands of brilliant household solutions to common issues that we would label as “innovative”, but most of these solutions are not in the market as Innovations – either as products or services.

      I am more than confident that the vast majority of people out there have great ideas, but those ideas are worthless if something is not done with them. A true Innovation is the application (or putting to use) of an idea.

      As soon as the author’s idea is taken out of the real of the mind and soul, it would fall under a business model – whether the model is for profit or not.

      Thx Justin

      • Steven H says:

        Andre, this is a great article, but I don’t think innovation has to be something marketable. Sometimes just using old things around the house in new ways is both innovative and very useful.

        • Using “old things around the house in new ways” can be innovative. And there can be potential for the innovative household find to be an Innovation.

          Innovation is the successful exploitation and execution of the opportunity of an idea.

          There is a significant difference between how the idea is exploited within someone’s home, and how an idea is exploited on a larger scale in the marketplace that involves manufacturing, marketing, product development, customer service, etc.

          If the Innovation does not regard the Opportunity factor (conditions and resources), than it is merely innovative and clever.

          Thanks Steven

  • JustintSmith says:

    @Andreivanchuk: Why must an #Innovation be constrained to exploitation & execution of ideas within a business model? http://andreivanchuk.com/blog/2010/09/wh

  • smilesp007 says:

    RT @AndreIvanchuk: #Innovation is the successful exploitation & execution of the opportunity of an idea within a business model http://o

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