INNOVATION

The process of translating an idea or invention into a good

or service that creates value or for which customers will pay.
To be called an innovation, an idea must be replicable at
an economical cost and must satisfy a specific need. Innovation involves
deliberate application of information, imagination and initiative in
deriving greater or different values from resources, and includes
all processes by which new ideas are generated and converted into
useful products. In business, innovation often results when ideas
are applied by thecompany in order to further satisfy
the needs and expectations of the customers. In a social context,
innovation helps create new methods for alliance creation, joint
venturing, flexible work hours, and creation of buyers' purchasing
power. Innovations are divided into two broad categories:
1. Evolutionary innovations(continuous ordynamicevolutionary innovation) that are
brought about by many incrementaladvancesin technology or processes and
2. revolutionary innovations(also calleddiscontinuous innovations) which are often
disruptive and new.
Innovation is synonymous with risk-taking and organizations that create
revolutionary products or technologies take on the greatest risk because
they create new markets.
Imitators take less risk because they will start with an innovator's
product and take a more effective approach. Examples are IBM with its
PC against Apple Computer, Compaq with its cheaper PC's against IBM,
and Dell with its still-cheaper clones against Compaq


Innovation
.
Innovation is a new idea, device or process.
[1]
Innovation can be viewed as the
application of better solutions that meet new requirements, inarticulated needs, or
existing market needs.
[2]
This is accomplished through more
effective products, processes, services, technologies, or ideas that are readily
available to markets, governments and society. The term innovation can be defined
as something original and, as a consequence, new, that "breaks into" the market or
society.
[3]

While a novel deice is often described as an innovation, in economics,
management science, and other fields of practice and analysis innovation is
generally considered to be a process that brings together various novel ideas in a
way that they have an impact on society.
Innovation differs from invention in that innovation refers to the use of a better and,
as a result, novel idea or method, whereas invention refers more directly to
the creation of the idea or method itself. Innovation differs from improvement in that
innovation refers to the notion of doing something different rather than doing the
same thing better.
What does innovation mean and why do you need it in your business?
There is always a buzz around the word 'innovation' and how embracing innovation can
transform your business. But what does 'innovation' really mean?
In large companies, innovation is often allocated time and budgets for specialist projects
such as new product development or implementing extensive research & development
strategies. For small and medium sized businesses (SMEs), it's not always possible to divert
resources to full-time R&D. However, that doesn't mean that a smaller company can't
innovate.
To keep it simple, innovation in your business means doing something new, different,
smarter or better that will make a positive difference.
In many cases, embracing innovation could lead to increased turnover, more effective
competitiveness and possibly a growth in profits.
Innovation doesn't have to be a ground-breaking, world-changing invention (although of
course it's great when this happens). And it doesn't have to be restricted to scientific or
technology-based companies.
Innovation covers every aspect of your business - you can be innovative with your
products, your services or your business processes. If you allow innovation into your
business, you could see huge positive impacts. And don't worry, you are not on your own.
The Encompass programme of free events, workshops and mini sandpits (where we will
look at creative problem solving as a group) will help you to recognise the barriers to
innovation and how you could overcome these.
Once you are ready to start innovating, we can offer one-to-one advice and support . If you
need university academics to work with you to take your ideas forward, we may be able
to help. We can also help you to navigate the funding landscape and point you in the right
direction of the funding option that is right for your business.
How to start thinking innovatively
As an SME, you have an advantage already - smaller businesses can often be more flexible
than larger firms and can act quickly to embrace new ideas.
Take a good look at your business and its current health, prospects and plans. Now imagine
your business 5, 8 or 10 years in the future and ask yourself a few questions such as:
Will your business be offering the same products or services to the same customers?
Will your turnover and margins be the same?
As well as focussing on the markets you are currently in, what are the markets you could be
in?
What really lies ahead for the business?
Do you like what you see?
If you have imagined your business performing better, for example, by offering different
products and services to different customers, where are these going to come from? Do you
know?
If you have imagined your business to be performing less well than it is today, you need to
put plans in place to avoid this.
It's all 'imagineering' and 'futurising' of course, but hopefully we've reminded you of the
need to plan ahead for your business. Today's economic climate is challenging, and needs
careful day to day navigation through untested waters, but this doesn't have to stop you
looking ahead. Thinking creatively and acting upon your ideas could help lift your
business above the competition.
Communicate and explore
You and your employees know your business better than anyone. You can tap into this
knowledge. Your employees may have valid opinions on which directions your future
business could take as well as a knowledge of the barriers that may prevent you moving
forward.
It's a good idea to talk to your customers and suppliers too, and also other companies in
your industry. Much more will emerge from your 'talking about the future' sessions, but the
ideas that spring from these sessions will flow thick and fast.
Taking ideas to commercial viability
Ideas are one thing, doing something with them is another. If you have ideas that you think
could make an impact in your business, it's time to talk to the Encompass team.
We have a full programme of events, workshops and seminars that will help you to find out
where you are on your innovation journey and when you are ready, we could help you
to access funding to collaborate with our academic specialists to progress your idea
HOW TO BE INNOVATIVE IN BUSINESS
THERE ARE SEVERAL DIFFERENT SOURCES