Design Studio Website
Saturday, July 31, 2004
Innovation and Business Edge
Question: What defines innovation, and what can I do to promote a culture of innovative thinking in my business?

Answer (Part 1 of 2): The Business Week article "Hot Growth Companies" (June 7, 2004) stated that "Building a sustainable enterprise requires speed, flexibility, innovation, and at least a little luck to thrive in the face of relentless competition." The dictionary definition of innovation is the process of making changes -- a new method, custom or device. However, all innovation is not the same. Fortune magazine, in advertising the Fortune Innovation Forum in November, says that "innovation is ideas in action. It's the origin of competitive advantage, the engine of economic growth, and the indispensable strategy for increasing market share and productivity."

Donna Prestwood and Paul Schumann, in "Applications of the InnoVantage Grid" ( describe nine different types of innovation and display them on a grid, with the Nature (focus) of the Innovation along one axis and the Class of Innovation (how great the change is from current production) on the other axis.

The Nature of Innovation falls into one of the following three categories:

Product innovations: involve the way things interact with things -- the function provided to customers or the form that function takes. Examples include improvement in industrial machinery, consumer goods, software and component parts.
Process innovations: involve the interaction of people with things -- the way a product is developed, produced and provided. Examples include improvements in manufacturing, distribution and development systems.
Procedure innovations: involve the way people interact with people -- the way in which products and processes are integrated into the operations of the enterprise. Examples include improvements in marketing methods, administrative methods, sales terms and conditions, and requirements generation.

The Class of Innovation falls into one of these three categories:

Incremental innovations: those that reflect a relatively small improvement over present products, processes, and procedures -- advances that are a little better, a little faster or a little cheaper.
Distinctive innovations: those that provide significant advances or improvements, though not ones based on fundamentally new technologies or approaches.
Breakthrough innovations: those that are based on fundamentally different technologies and approaches, and which allow the performance of functions that were previously not possible, or the performance of presently possible functions in a manner that is strikingly superior to the old. Prestwood and Schumann go on to say that "breakthrough innovation results in the creation of a new industry or class of technologies," which "result in a significant number of distinctive innovations, and, these, in turn, result in a flood of incremental innovations."

Source: OrlandoSentinel,
here. (free registration required)
posted by Naina @ Permalink 7/31/2004 01:45:00 AM   0 comments  --- Google It! ---
Post a Comment

blog navigation
recent entries
monthly archive
innovation links
changethis manifestos
design links
other links
RSS and XML Feed Subscribe to Innovation with Bloglines
Listed on BlogShares I'm on orkut
My profile on LinkedIn My profile on Ecademy
Skype Me! Blogger Profile
Innovation Challenge Judge Blogstreet Profile

directions for using the blog
all links are in green: when you take your mouse-pointer over a link, it turns blue with a dashed gray underline. links in the post-body are also dash-underlined.

all links to useful information within the blog are under the *blog navigation* sidebar on the top-right.

the topmost right-corner advertises the yellow pages service provided by my parent organization, InnovationNetwork.

the ASIDE Innovation Blog does not advertise for third-parties and there are no pop-ups associated with the blog.

for any complaints kindly e-mail me at asideblog [at] gmail [dot] com.

Naina Redhu has no liability for the contents on the pages of the weblinks under the *innovation*, *design* and *other* categories.

the *ideas@aside* logo is the sole-property of ASIDE and Naina Redhu and is copyrighted under the Creative Commons like the rest of the graphics and writing existing on the ASIDE Innovation Blog.

the blog has been optimized for Internet Explorer and uses websafe colors. the color scheme has been extensively researched for eye-safety for on-screen viewing as well as for the impact of colors on the brain. the colors on this weblog are suitable for a stress-free read and will relax all five senses.

comments relating to subject-matter under innovation / creativity and design / colors are welcome.
All comments, ideas and thoughts on the ASIDE Innovation Blog
are property of their authors unless otherwise stated
Copyright Naina Redhu, 2004
ASIDE is powered by Blogger