Innovation can be defined as using ideas that push you in creating a product, service or processes. It is not only important the invention of an idea but also bringing that idea in the labor market. That means that an idea needs to be turned into action in order to have its effect. Innovation also means using the new technology while at the same time thinking outside the box in order to bring changes to society.
What types of innovations exist?
- Incremental innovation
Incremental innovation is the most common for an innovation. This type of innovation uses the existent technology and increases the value to the customer (features, design changes, etc.) within your existing market. Almost every company is dealing with this kind of innovation. For instance, adding or deleting a feature from existing products or services.
- Disruptive innovation
Disruptive innovation also known as the hidden innovation includes the process of applying a new technology or processes in the actual labor market of a company. It is hidden because the newer technology is inferior to the existing technology in the market. This newer technology is more expensive, has fewer characteristics and is harder to use. Only after many attempts, the newer technology surpasses the old one and it destroys the other companies for whom it is too late to compete with the newer technology. For example, the launch of the Apple product “iPhone” in the market of mobile phones.
- Architectural innovation
Architectural innovation is simply taking the lessons, skills, and overall technology and applying them within a different market. This type of innovation is amazing in increasing new consumers, as long as the new market is receptive. Most of the time, the risk of architectural innovation is low due to the reintroduction of proven technology.
- Radical innovation
Radical innovation is the one who we think the most when we consider innovation. This type of innovation creates new industries and destructs the existing ones by creating revolutionary technology.
Why is innovation important?
Studies have confirmed that every business wants to be more innovative, and almost 90 % of businesses think that innovation is a priority for them. In the current day economic scenario, innovation is a key factor influencing the strategical planning.
Today, we need more innovators than ever before. Every organization and business is influenced by globalization, migration, technological revolutions and climate change issues. Innovation will increase its value and widen the employment base.
The danger of innovation
New products and service get created in order to allow people to finish their duties or to do things that were not possible before. Innovation also brings risks.
If the risk of the innovation comes from the choices that people take, then that results on how informed and conscious their choices were, the lower the risk will be. If the system that the innovation will be launched is complex, then there is a high chance of risks and the consequences might be bigger. In reality, many risks don’t come from the innovation itself but from the infrastructure that the innovation was launched from.