InnovationInnovationThe word innovation derives from the Latin
word innovates, which is the noun form of innovare "to renew or
change," stemming from in"into" + novus"new"Innovation is the
development of new customers value through solutions that meet new
needs, inarticulate needs, or old customer and market needs in
value adding new ways.i!usion of innovation research was "rst
started in #$%& 'y seminal researcher (a'riel Tarde, who "rst
plotted the )*shaped di!usion curve. Tarde +#$%&, de"ned the
innovation*decision process as a series of steps that
includes-.irst knowledge.orming an attitude/ decision to adopt or
re0ectImplementation and use1on"rmation of the decision Invention
and Innovation/n invention is a uni2ue or novel device, method,
composition or process. It may 'e an improvement upon a machine or
product, or a new process for creating an o'0ect or a result. /n
invention that achieves a completely uni2ue function or result may
'e a radical 'reakthrough. )uch works are novel and not o'vious to
others skilled in the same "eld.)ome inventions can 'e patented. /
3atent legally protects the intellectual property rights of the
inventor and legally recogni4es that a claimed invention is
actually an invention.The theory for adoption of an innovation,
called difusion of innovations, considers the likelihood that an
innovation is adopted and the ta5onomy of persons likely to adopt
it.Invention if the formulation of new ideas for products or
processes Innovation is all a'out the practical application of new
inventions into marketa'le products or services Sources of
innovationPeter Drucker, one of the greatest management thinkers
from the last century, defned in his book Innovation and
Entrepreneurship !"#$% & classes of 'PP'()*+I)IES, -e named
these the .S'*(/ES '0 I++'12)I'+., namely3 )he *ne4pected- /n
e5ample of the une5pected is the development of 6utra)weet. /
chemist developed a new chemical. /ccidentally he got some of it in
his mouth. To his surprise it tasted very sweet. This was the start
of a development tra0ectory that took many years 'efore 6utra)weet
was introduced 'y )earle into the market. Incongruities3
Incongruities or con7icts 'etween opposing functions, re2uirements
or values may 'e the start of an innovation. .or e5ample the
re2uest for a small car with still enough space on the inside seems
to 'e incongruent. This however was solved in a new design as the
)mart. Process +eeds3 /n old prover' says that 8necessity is the
mother of invention9. Industry and 5arket Structure- Industry
markets and market structure may o!er opportunitys for new types of
services. :utsourcing of activities such as maintenance of the IT
infrastructure is an e5ample.Demographics3 emographics have long
'een a ma0or source of innovation creating opportunities for new
types of products and services./hanges in Perception3 /n e5ample of
changes in perception as source of innovation is the following. In
older days health was seen as related to 'ody mass, meaning fatter
people were perceived as more healthy. In the last century this
perception changed as a result of medical studys that revealed that
overweight was a risk factor+e6 7no6ledge3 Last 'ut not least new
knowledge has produced many opportunities for new products. The
emergence of micro*electronics and new programming methods and
tools, 'iotechnology, nano*technology etc have 'een the main motors
of innovation and progress over the last decades. This will
pro'a'ly continue for the coming decades9. Importance or 8enefts of
Innovation5arketTo survive adverse changes in operating
circumstances;To make life easier for their customers and help them
improve their 'usinesses;To gain competitive advantage;To protect
market share;To reposition an organisation and raise its market
pro"le; E4ternal 0orces To comply with legislation +actual :r
anticipated,; To reduce competition and
