Innovation is generally defined as "introduction of something new" or "new way to do something". Peter Drucker said: "Innovation is a change that creates a new dimension of performance." Many successful innovations add on existing product to make it faster, cheaper or more efficient. Other valuable innovations apply procedures and systems from one industry to another. Innovation can lead to a new product or increase of existing product – for example, adding new features to the product.
For example, Henry Ford is not recognized to find the car nor set up a meeting. His innovation was to change the way cars were built by applying motion equipment (already in use in another industry) to the automotive manufacturing process. Thus, Ford's innovation was a combination of existing goods (cars) with current procedures (assembly line). The mobile assembly method developed by Henry Ford allowed individual workers to perform certain tasks while vehicles moved along the assembly line, which greatly improved efficiency. This assembly process also reduced the amount of time needed to build each car, increase the production of cars and reduce the cost of producing each car. Ford's innovation in moving the transport system to the automotive industry enabled the company to sell more vehicles at significantly lower costs, which resulted from other companies in the market using less efficient manufacturing methods.
Innovation is not limited to enterprise-based technology. Businesses of all sizes in any industry can benefit from creative thinking and business. Many companies use innovations in internal procedures to optimize operations and reduce operating costs. Other companies apply technology from other industries to improve their own internal working methods.
Innovation is about solving problems and addressing insufficient market needs. New innovations address these problems or insufficient needs by "introducing something new" (new product or service) or "finding a new way to do something" that solves the problem or meets the particular need. The first step in innovation is to identify these problems or unmet needs, then develop desirable solutions.
To start, spend time thinking about ways to take advantage of your business & # 39; products or procedures. Is there any special need for your own market that your company can fill? Are procedures in other industries that can be adapted to your business to improve business? After you've identified some possible solutions, take up your answers for the future.