What is meant by Innovation? Explain the different elements in the innovation process.

Question

Accepted Answer

Innovation is the process of entrepreneurship which involves the translation of a useful idea into an application which has commercial value. It is a persistent, effort-driven process: the entrepreneur must work out analytically the details of the enterprise or service, develop marketing strategies, organise finances and strategize operations before the idea can succeed commercially.

The different elements in the innovation process are:

1. **Analytical planning** — carefully identifying the product or service features, its design, and the resources that will be needed. It establishes what is to be produced, how, and with what inputs.

2. **Organising resources** — obtaining the required resources, materials, technology, human or capital resources and bringing them together so that the planned work can actually be undertaken.

3. **Implementation** — applying the resources in order to accomplish the plans and deliver results; this is where the idea is executed and the product or service actually takes shape.

4. **Commercial application** — the provision of value to customers, rewarding employees and satisfying the stakeholders. This is the stage where the innovation is accepted by the market and generates value.

All four elements are sequential and interdependent — a weakness in any one stage can derail the entire innovation effort, so each must be managed with equal care.