1. Innovation management

2. What is innovation?
Innovation is the process and outcome of creating something new, which is also of value.
Innovation involves the whole process from opportunity identification, ideation or invention to development, prototyping, production marketing and sales (Schumpeter).

3. What is innovation?
Schumpeter’s distinction between ”Invention” and ”innovation”
An invention is an idea, a sketch or model for a new or improved device, product, process or system. It has not yet entered to economic system, and most inventions never do so.
An innovation is accomplished only with the first commercial transaction involving the new product, process, system or device. It is part of the economic system.

4. What is innovation?
Today it is said to involve the capacity to quickly adapt by adopting new innovations (products, processes, strategies, organization, etc)
Also, traditionally the focus has been on new products or processes, but recently new business models have come into focus, i.e. the way a firm delivers value and secures profits.

5. What is innovation?
Innovation comes about through new combinations that can result in:
a new product
a new process
opening of new market
new way of organizing the business
new sources of supply

6. What is innovation?

7. What is innovation?
Product innovation  A good or service that is new or significantly improved. This includes significant improvements in technical specifications, components and materials, software in the product, user friendliness or other functional characteristics. Process innovation  A new or significantly improved production or delivery method. This includes significant changes in techniques, equipment and/or software. Marketing innovation  A new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing. Organisational innovation  A new organisational method in business practices, workplace organisation or external relations.

8. What is innovation?

9. Degree of novelty
Incremental innovations Radical innovations

10. Degree of novelty
Incremental innovation refers to simple changes or adjustments in existing products, services, or processes. Continuous improvement, what in Japanese is called kaizen, is the process of relentlessly trying to find ways to improve and enhance a company’s products and processes from design through assembly, sales, and service. Radical innovation involves introducing new products or services that develop into major new businesses or spawn new industries, or that cause significant change in a whole industry and tend to create new values.

11. Degree of novelty

12. New product process

13. New product process
Idea generation is the stage of the new-product process that develops a pool of concepts to serve as candidates for new products, building upon the previous stage’s results Screening and evaluation is the stage of the new-product process that internally and externally evaluates new-product ideas to eliminate those that warrant no further effort. Business analysis is the stage of the new-product process that specifies the features of the product and the marketing strategy needed to bring it to market and make financial projections.

14. New product process
Development is the stage of the new-product process that turns the idea on paper into a prototype. Market testing is the stage of the new-product process that exposes actual products to prospective consumers under realistic purchase conditions to see if they will buy. Commercialization is the stage of the new-product process that positions and launches a new product in full-scale production and sales.