What is innovation? (2023)

While it has become a buzzword, innovation does play an important role and is a key lever that helps companies survive and thrive.

Why is innovation important?

Innovation keeps your company competitive.

Walkowiak said the most important question for business owners is "If we don't innovate, where will we be?"

The question is rhetorical. A company that doesn't innovate risks becoming irrelevant, reducing itsproductivity, lost customers and eventually went out of business.

Innovation requires taking stock and measuring impact, whether through qualitative means, such as interviews to assess customer satisfaction, or quantitative means, such as sales metrics.

Innovation: How can it help your company?

  1. Transform your existing business model to adapt to the changing environment
  2. Satisfy an existing but unresolved market need
  3. Bring new technologies, products or services to market
  4. create new markets
  5. Responding to Market Disruption

Three Types of Innovation: Incremental, Scaling and Disruptive

For companies looking to change, there are three levels of innovation you can implement:

1. Incremental innovation

These are small changes that improve the efficiency of the current business model.

"For example, you can adjust your processes, increase your digital offerings, cut costs or upgrade your products and services,"Walkowiak says, adding that this type of innovation is usually ongoing and can be accomplished in the short term.

Walkowiak suggests that small businesses shouldspend 60%Their efforts—whether monetary or human—incremental innovation.

2. Expand innovation

This is the change that comes with exploring new ideas. The aim is to maintain and grow the company over the long term.

"Here, we're exploring new depths, areas our competitors won't go,"Walkowiak says.

Expansionary innovations are usually related to science and technology. Many of the innovations we see today will use artificial intelligence or be part of the Internet of Things.

Extensive innovation also means testing and prototyping, as well as evolving business models. it can take12 to 24 monthsimplement. A company should focus onabout 30%its efforts to expand innovation.

3. Disruptive innovation

Disruptive Innovation: This is what people think of when they think of innovation. People are talking about new products and services.

Disruptive innovation is an innovation that creates a new business model, providing a novelvalue proposition.

"In practice, it means inventing or reinventing a product or service,"Walkowiak says"While the payoff can be big, it comes with a lot of uncertainty. This type of innovation, if successful, takes three to five years to develop. Most companies shouldn't invest moremore than 10%What they did for this innovation. "

real worldinnovator

Whatreal worldAn example of innovation?

whatsappin 2009, WhatsApp launches messaging service and platform. The company is targeting anyone with a smartphone and an internet connection, regardless of device and location. It disrupted the highly competitive messaging market dominated by telecommunications and free desktop messaging (like Yahoo!). Messenger and Skype. The company operates on an extremely low cost structure and benefits from the growth in smartphone usage.year 2013, WhatsApp service200000000only users50 employeesmember.Year 2014, Facebook with more than$19 billion.

sales forceYear 1999, Salesforce disrupted the customer relationship management (CRM) world by offeringCRM-as-a-Servicethrough the Internet. Its goal is to make enterprise software easy to use. Salesforce was visionary in anticipating the potential of the cloud, allowing it to scale easily and at minimal cost to organizations of all sizes. The company invests in hosting, monitoring, customer support and account management, and benefits from recurring revenue from service subscriptions.

Source: Invincible Company,Alex Ostwald,Yves Pinel,Fred Etienne Bull,alan smith

business model innovation

business modelInnovation happens when there is a shift in the processes a business uses or the way it brings its products to market. It's a challenging innovation that's often foisted on a company that has no choice but to change radically. This is not an incremental change, but one that could threaten elements of a company's brand.

Airbnb, Uber, and Spotify are examples of companies that disrupted the hotel, taxi, and music industries, respectively. As a result of these innovations, many large enterprises have had to completely rethink their business models.

How can a CEO lead innovation?

The CEO plays a strategic role in innovation. They can be real drivers of innovation, but they can also be obstacles to innovation.

"To spur innovation, CEOs need to articulate to employees what they want to achieve. Too often, we forget why we do things,"Gutman says.

The CEO should allocate the budgetAnd allow their teams some freedom to explore solutions. Innovation, like entrepreneurship, requires a certain level of creative trial and error. The team or the lead employee needs to have some autonomy to think differently.

What are the three stages of innovation?

Innovation projects generally go through three phases: design, test, and scale.

1.design phase: Now is the time to come up with ideas where you can imagine a new business model or a solution to a product or service innovation. Then you design a prototype that will become yourminimum viable product, which means it will have enough features to attract early adopters or investors.

2.testing phase: this is youQuickly test different versions of your innovation. "The faster you can test your ideas with potential users and customers, the faster you'll learn what's working and what's not,"Walkowiak says"It gives you the opportunity to tweak your solution before you go too far and make it harder to make changes. It's really a risk-reduction strategy."

3.scaling phase: Once design and testing show that your innovation solves a real problem, you can scale it up. In practice, this meansDevelop a detailed business planMake your product or service available to more people and launch a dedicated marketing strategy based on evidence.

Protect your innovation

Merely innovating is not enough. You also need a strategy to protect your innovation and ensure you get full value from your investment.

use thisFree Intellectual Property Strategy Assessment, developed by the Canadian Intellectual Property Office (CIPO) in partnership with BDC to help guide your developmentIntellectual Property Strategy.

opportunities for innovation
lead to innovationdrive-thruactually just means that thefast foodrestaurants, and rolling suitcases are the logical solution for lugging our heavy suitcases. Learn how simple changes can lead to huge opportunities by watching the videoWhat does innovation mean at BDC?


What is innovation? ›

Simply put, innovation is about successfully implementing a new idea and creating value for your customers and stakeholders. Innovation starts with a new idea. It could be a plan for an improved product or service; it could be an updated method for running your operations; it could also be a new business model.

What is innovation best answer? ›

Simply put, innovation is about successfully implementing a new idea and creating value for your customers and stakeholders. Innovation starts with a new idea. It could be a plan for an improved product or service; it could be an updated method for running your operations; it could also be a new business model.

What is a good definition of innovation? ›

1. : a new idea, method, or device : novelty. 2. : the introduction of something new.

How do you talk about innovation in an interview? ›

So how should you tackle the question 'Are you innovative'?
  1. the confidence to take on big, ambitious goals and take risks.
  2. the ability to adapt and be resourceful in unexpected situations.
  3. the motivation to identify where things can be improved and then act on it.
  4. the enthusiasm to try new things and gain new skills.
Jun 21, 2023

Why and what is innovation for me? ›

Innovation is creating new value. I often compare innovation to invention, which is merely creating something new. There are a lot of inventions that aren't providing value to anyone, these are failed products. And the person who gets to decide whether the new idea creates value is the customer, not the inventor.

What is a good example of innovation? ›

The Lightbulb. Although there's some debate on who invented the lightbulb, no one denies its significance. It's a great example of an innovative product that solved both explicit and latent pain points. Before lightbulbs, products like lanterns and oil lamps produced light but made houses more susceptible to fires.

How do you answer an innovative interview question? ›

Prepare a good example beforehand using the STAR method.

Make sure to describe an experience that included a significant challenge and a significantly innovative solution. Describe the situation within which you performed a job or faced a challenge.

What are the three key words that define innovation? ›

This blog series will explore and demystify these three mighty “I” words – invent, iterate and interrupt – as part of the larger goal of innovation.

How do I describe my innovation skills? ›

Explain how your creativity during brainstorming sessions has allowed you to contribute to a project. Include an example of how an idea of yours has helped your team save money or improve efficiency.

What is an example of innovative at work? ›

Common innovative examples at work

creating a new digital platform that streamlines your company's online processes or functions. encouraging collaboration between your company and another complementary company. designing a product that puts sustainability at the forefront of your company's actions.

How can I show innovation at work? ›

How to be innovative at work in 7 steps
  1. Be open to change. ...
  2. Seek out positivity. ...
  3. Study other innovative thinkers. ...
  4. Attend a workshop. ...
  5. Broaden your professional network. ...
  6. Bring your skills to the office. ...
  7. Have confidence in your ideas.
Jul 21, 2022

What does innovation mean to you in your work? ›

Innovation refers to the development of new ideas or the improvement of existing ideas. Being innovative at work means that you contribute ideas and solutions to workplace challenges or problems.

What is innovation 1 example? ›

Lego has been changing the materials of its famous bricks to biodegradable oil-based plastics. The first electric vehicles introduced in the car's market were also an innovation, and new batteries with longer ranges that keep coming out are also an example of innovation.

What words describe innovation? ›

Synonyms of innovation
  • invention.
  • creation.
  • product.
  • concoction.
  • coinage.
  • device.
  • wrinkle.
  • brainchild.


Top Articles
Latest Posts
Article information

Author: Catherine Tremblay

Last Updated: 13/09/2023

Views: 6274

Rating: 4.7 / 5 (47 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Catherine Tremblay

Birthday: 1999-09-23

Address: Suite 461 73643 Sherril Loaf, Dickinsonland, AZ 47941-2379

Phone: +2678139151039

Job: International Administration Supervisor

Hobby: Dowsing, Snowboarding, Rowing, Beekeeping, Calligraphy, Shooting, Air sports

Introduction: My name is Catherine Tremblay, I am a precious, perfect, tasty, enthusiastic, inexpensive, vast, kind person who loves writing and wants to share my knowledge and understanding with you.