innovation

• What is innovation?


  putting a new idea or approach into action
• innovation is mainly about creating or adding value. It does so either by:

  • Improving existing goods, processes or services (process innovation), or by

  • Developing goods, processes or services of value that have not existed previously (product innovation)
• Innovation can come from..

  • Inside the business – e.g. from employees, in-house designers, sales staff

  • Outside the business, e.g. suppliers, customers, media reports, market research insights or from contacts at local universities or other research organisations
• Product innovation


  Launching new or improved products (or services) on to the market

  Key advantages:

  Higher prices and profitability

  Added value

  Opportunity to build early customer loyalty

  Enhanced reputation as an innovative company

  PR coverage

  Increased market share
• Process innovation


  Finding better or more efficient ways of producing existing products, or delivering existing services

  Key advantages:

  Reduced costs

  Improved quality

  More responsive customer service

  Greater flexibility

  Higher profits
• Benefits of Successful Innovation


  Improved productivity & reduced costs

  Better quality

  Building a product range

  To handle legal and environmental issues

  Improved staff retention, motivation and easier recruitment
• Using Kaizen groups to drive innovation 


  • Linked with developing an innovative culture in business

  • Another kind of quality assurance

  • Based on concept / culture of continuous improvement

  • Encourages employees to engage fully with finding ways to improve quality processes
• Problems & Risks of innovation


  Competition

  Uncertain commercial returns

  Availability of finance
• Patents - Way of Protecting Intellectual Property


  To be protected by a patent, the invention must be:

  New

  An innovative step (i.e. not obvious to other people with knowledge of the subject)

  Capable of industrial application (i.e. it can be made and used!) Not be excluded (certain inventions don't count - e.g. scientific theories, artistic creations)
• Copyright - Way of Protecting Intellectual Property 


  Important protection for many industries – e.g. media, design, publishing

  Protection is automatic for any original work

  Lasts for 70 years after authors death

  Can control how copyrighted work is exploited (e.g. license, royalties)

  Widely used as a way of protecting creative work of all kind