Innovation is a process of transforming new idea, thoughts or imaginations into a good or service, which will add value to the lifestyle of a consumer and he will feel encouraged to pay for such value. Innovation can provide value to the consumer if it is satisfying a specific need at a reasonable price. It is not necessary that innovation will provide new product, it can also provide new methods and processes of production. Creativity is the key to innovation. An inventor has to think out of the box to contribute any incremental innovation or enhancement. Innovation is necessary to create more opportunities for the survival, growth, and success of an organization, for the proper implementation of innovation, the management of an organization should be open- minded and provide collaboration to the employees to adopt the change of innovation.
Types of innovation: There are various types of innovations to inspire the innovation challenges of the inventor. Some of the innovations are as follows:
Incremental innovation: The inventor utilizes the existing technology and makes additions in that to increase the value of technology that will provide better services and experience to the consumers. The increment to the existing technology can be done by adding one more feature in the technology contrarily, the feature can be removed to provide a new experience to the consumer.
Red ocean innovation: In red ocean innovation strategy, an inventor or an organization have the knowledge of boundaries of the industry and the competitive rivalry. Thus, the aim is to grab opportunities for the existing market and provide intense competition to the competitors. Companies aim to grab the existing demand of the market by providing marginal changes in product features or prices. It will also increase the cut-throat competition in the market.
Service innovation: An organization provides new or changed services through the channel of interaction among clients and provides the combination of technology and service delivery system.
Business model innovation: When an organization completely transform the product and services of an organization or the business processes and come up with the new innovated business model. Companies usually adopt this innovation change to value the proposition, capture a new market and remove the competition they faced in the market.
Sustainable innovation: Sustainable innovation refers to goods and services or the processes that will contribute towards the sustainable development of an economy.
Blue ocean innovation: The blue ocean strategy has no boundaries or limits, an organization can innovate to the extent of its capability to create a new market and demand in the existing market. Thus, it extends the boundaries of the industry by reconstructing. It is beneficial for the organization having wide potentials of innovations, they will not face any competition and increase their profitability by creating new demand in the market.
Radical innovation: Radical innovation, provides new heights to the world by uprooting the conventions of the industry or directly changing the expectations of customers. The existing methods and technology will be replaced by the new one to properly implement radical innovation.