INNOVATION

Innovation

Innovation

Introduction

The literal meaning of the word 'innovation' is a new thing and a new method of doing something. Thus, innovation is the process that translates an idea or any intervention into goods or services and creates value to it on which the customer will pay to you. This is actually the process of innovation (SHIH, 2011).

Several authors, experts have defined the concept of innovation, there are multiple definitions of a concept that is simple in appearance yet is ambiguous, and a large majority of definitions come from the definition promulgated by the Austrian economist Schumpeter on innovation which covers the following five cases:

1.Market introduction of a new good or service, which consumers are not yet familiar.

2.Introduction of a new production method or organizational method.

3.Creating a new source of supply of raw materials or semi-finished products

4.Opening of a new market in a country.

5. Implementation of a new market structure.

However to be called innovative or innovation, one must keep the idea replicable to the economical cost and it should also satisfy the particular need (Tidd, Bessant & Pavitt, 2001). Innovation is the process which involves various applications of information and imagination, it also initiates various values from the resources and includes those processes through which a variety of new ideas generates and gets converted into the useful products. In the business world, innovation is the results to those ideas which are further applied by the companies which further satisfies the needs and wants of the customers. Overlooking the social aspect of innovation, it helps in creating the new techniques for the creation of alliance, flexibility in work hours, joint venturing, along with creation in the buyer's power of purchasing (Scherer, 1984).



Literature review

This study is about the new way of planning of businesses i.e. INNOVATION, it does not have to be "technology", which is when it involves elements of science and technology. It makes a lot of innovation otherwise, of organizational or managerial, financial, commercial, etc. Innovation is the commercial application of an idea and as such is very diverse nature (Rosenberg, 1982). The study has clearly defined this Innovation through all the practices and has brought with a complete analysis of types of innovations which has been designed in order to make it easy for organizations to categorise their innovation processes. The types of innovation are also numerous. According to the scope, innovation can be of several types:

a. Innovation in product / service.

b. Process innovation.

c. Organizational innovations.

According to their impact on the market, we found different types of innovation:

a. Incremental or evolutionary, improving what already exists.

b. Radical or disruptive, incorporating the market a product or service itself is novel (Rosegger, 1986).

Depending on their origin, innovation can be:

a. Driven by technology.

b. Attracted by the market.

According to their degree of novelty, innovation can be:

a. Relative: new to the company and these are companies that innovate.

b. Absolute: are new to the market and usually are promoted ...