INNOVATION AND

INVENTIONS
Creativity, Invention, Innovation

Source: https://innoway.me
Elements in the Innovation Process

Translation of creative idea into useful application

Analytical Organizing Commercial

Implementation
Planning Resources Application

To identify: To obtain: To accomplish: To provide:

Product design Materials Organization Value to customers

Market Strategy Technology Product design Rewards for employees
Financial Need Human resources Manufacturing Revenues for investors
Capital Services Satisfaction for founders
Activity A consumer's experience of innovation
 • Entrepreneur systematically searches
for change, responds to it, and exploits
it as an opportunity

The Practice of • Systematic innovation is the

purposeful and organized search for
Innovation changes and the systematic analysis of
opportunities such changes might offer
for economic or social innovation
Types of Innovation

• Breakthrough innovations: extremely unique innovations, often establish the

platform on which future innovation in an area are developed. Usually
protected by patents, trade secrets, copyrights etc.
• Technological innovations: occur more frequently than breakthrough types
and in general not at the same level of scientific discovery and advancement.
Meaningful and offer advancements in the product/service/market area.
• Ordinary innovations: occur most frequently. Numerous, usually extend an
existing innovation into a better product or service or one that has better
market appeal.
Innovation Chart

Breakthrough Innovation
Uniqueness

Technological Innovation

Ordinary innovation

Number of Events
Peter Druckers’ Seven Sources for Innovative
Opportunity
Within the Enterprise:

1. The unexpected – unexpected success, unexpected failure, unexpected

outside event.
2. The incongruity – between reality as it actually is and reality as it is
assumed to be or as it ‘ought’ to be
3. Innovation based on process need
4. Changes in industry structure or market structure that catch everyone
unaware.
Peter Druckers’ Seven Sources for Innovative
Opportunity (contd.)
Outside of the Enterprise:

5. Demographics (population changes)

6. Changes in perception, mood and meaning
7. New knowledge, both scientific and non-scientific
 • Do’s
• Purposeful, systematic innovation begins
with analysis of opportunities
• Innovation is both conceptual and
perceptual
The Do’s and • Innovation has to be simple and focused
• Effective innovation starts small
Don’ts of • Successful innovation aims at leadership
Innovation • Don’ts
• Don’t try to be too clever
• Don’t diversify, don’t splinter, don’t try
too many things at once
• Don’t try to innovate for the future,
innovate for the present
 Innovation is work

To succeed, innovators must build

The conditions on their strengths

Innovation is an effect in economy

and society
 Innovation must be made attractive and
beneficial to managers.

Importance of the need for innovation and

Entrepreneurial dimensions of its time frame must both be
defined and spelled out.
Policies
There needs to be an innovation plan.