SUPPLIER INNOVATION

Supplier Innovation

Abstract

In this paper, we try to focus on the supplier Innovation. The paper will discuss three major components, the first part of the paper will discuss about the Literature review about the supplier innovation. The next part of the paper will identifies the basic issues and concern relating to innovation. The last part of the paper will give some recommendation regarding innovation.

Supplier Innovation

Literature Review

Innovation is the successful application of new ideas, techniques, methods and technologies in order to produce some measure of positive benefit over incumbent concepts. Innovation involves using creativity to produce solutions that differ from the status quo; however, innovation is greater than the act of simply developing new ideas—it is the successful application and the diffusion of these ideas throughout society. Innovation will be a key in sustainable energy systems if we are to move into a more sustainable mode of energy production and use.

The Concept of Innovation

An inventor is someone who develops a new technology or idea, whereas an innovator is a person who manages to make the technology or idea work in practice. This is explained well by Jan Fagerman, who states that “an important distinction is normally made between invention and innovation. Invention is the first occurrence of an idea for a new product or process, while innovation is the first attempt to carry it out into practice.”

While innovation can broadly be described as the successful introduction of something new, Joseph Schumpeter defined innovation as being in one of five classes:

New goods; introducing new products and services to the market.

New methods; developing a new way of doing something.

New markets; the development of a new marketplace for products or services.

New sources; exploiting new resources of raw materials or components—whether that resource is one that exists and hasn't previously been utilized, or whether it has to be created.

New organization; reorganizing or configuring a market, industry, or organization to work in a different way.

Supplier Innovation

Supplier Innovation, in economic terms, is seen as a change to a product or method of delivering service that results in the creation of additional value. In the sphere of sustainable energy, value is something that is not construed as purely financial; it is defined more broadly in terms of an improvement that is appreciated by society. Supplier Innovation can also be defined in terms of better environmental performance or delivering energy services in a way that is more socially cohesive or in some way benefits the community.

Many believe that the path of supplier innovation will advance in such a way that the general structure changes from one of “centralization,” For instance supplier innovation of energy services where electricity and fossil fuels are centrally produced; to a world where energy generation is “distributed,” with users of energy becoming producer-consumers with embedded generation in their premises contributing to power generation. Innovative distributed generation technologies have social benefits; as users generate energy they become more interested in its production.

Furthermore, the rewards for energy generation are also distributed ...