Introduction

Innovation.

Before encountering the module 'Innovation' at University, I couldn't tell you what innovation truly is, how important it is or how it could ever be applied to a business case - I wasn't the only individual who was puzzled by the idea.

Within this blog I will attempt to define, analyze and evaluate Innovation, how companies manage Innovation and the various benefits of innovating.

I’ll look at some of the most well known companies in the world, and how they have got to where they are today.

A typical business definition of Innovation is "the process by which an idea or invention is translated into a good or service for which people will pay, or something that results from this" (http://www.businessdictionary.com/definition/innovation.html).

Innovation is evolving in companies all over the world, it helps them push the boundaries and test their limits. In Apple’s case this couldn’t have worked any better. The Ipod released in 2001, was just another Mp3 player, a product that was available for years before the Ipod. However, the innovative software and aesthetically pleasing style of the Ipod led Apple’s success in the mp3 industry and is still the case today.

Apple would be my number one example of innovation at it’s best, they show that you don’t always have to invent something new to make money. Sometimes you can look at something that already exists and make it even better.

Apple in 2011 was also voted the most innovative company in the world. (http://www.fastcompanby.com/-most-innovative-companies/2011/).

However Innovation doesn't stop at the product or service, it can branch out to various aspects of the company internally, which I will explore throughout the blog.

It’s important to understand that innovation is not solely he development of a new product. But it is important to ensure understanding of the difference between Innovation and Invention.

A definition of an Invention would be “an object, process or technique that displays an element of novelty.” (http://www.entrepreneur.com/encyclopedia/term/82314.html). And innovation being the actualization or realization of an invention whether it is a societal benefit, commercialization, market entry or monetization. (http://www.ipfrontline.com/depts/article.aspx?id=16295&deptid=5).

Invention is the creation; Innovation is what makes the creation successful.

My next blog will look into the various types of innovation and how they create competitive advantage.