Innovation: meaning and myths

There is no shortage of definitions for ‘innovation’, including:

1. The process of making improvements by introducing something new
2. The process of translating new ideas into tangible societal impact (Krisztina Holly, Executive Director of USC Stevens Institute for Innovation)
3. The successful exploitation of new ideas (Department of Trade and Industry, UK).
4. Change that creates a new dimension of performance (Peter Drucker, Hesselbein, 2002)
5. A creative idea that is realized (Frans Johansson, Harvard Business School, 2004)
6. The capability of continuously realizing a desired future state (John Kao, The Innovation Manifesto, 2005)

The Australian National Innovation website defines innovation as being about ideas and transforming those ideas into value creating outcomes – products, processes and services. As it applies to the business world, perhaps the simplest definition is that stated by Australian innovation author and trainer, Roger La Salle….. “Change which adds value”. Changing the value proposition of a product can be as simple, yet as effective, as Colgate’s addition of whitening ingredients to toothpaste.

While innovation involves creativity, it is not the same as creativity. Innovation involves acting on the creative ideas, bringing the ideas to life, in order to make a specific and tangible difference. Innovation is also different to invention: “Invention is the first occurrence of an idea for a new product or process, while innovation is the first attempt to carry it out into practice" (Fagerberg, 2004).

Another myth surrounding innovation is that it always involves new technology or changing technologies. While innovation is often about creation of new products, services and processes, it is also about how we apply new technologies or how we solve problems, particularly for societal and/or commercial benefit. New technology often induces new business models and vice-versa. Sometimes the new business process that is developed can be more innovative than the technology itself.

Some texts refer to Big ‘I’ and Little ‘i’.   Big ‘I’ - sometimes also called Disruptive Innovation - refers to innovation that radically alters the way we do things, or even our lifestyle. Many companies are increasingly reliant on disruptive innovation to provide significant market edge and often to just stay in business. Nokia's transformation from being a Scandinavian timber company to a world-leading technology company, or the Polaroid Company’s development of the instant develop camera, are classic examples of this. On a more mundane level, the discovery in the 1970s of the highly absorbing capability of fluffed wood pulp led to the creation of disposable nappies. Almost overnight it killed-off cloth nappy manufacturing and cleaning services, as well as transforming baby care – and, unfortunately, the environment – in the process.

Little ‘i’ refers to incremental change to processes and products. The invention of television was one of the biggest ‘I’ achievements in recent times, because it radically changed our lifestyle, communication and even education. However, the upgrade to colour television was an incremental or Little ‘i’ improvement

Infact, most innovation is the result of incremental progress and value-adding; minor changes over time, without making sweeping changes to product lines, services, or markets. However, innovation is much more than just quality control and continuous improvement.