Innovation definitions

There are a lot of divergent views as to what innovation actually is, and it can be hard keeping up with all the definitions that appear on the Web, in books and in journal articles these days. Here's a relatively new one from an article in the MIT Sloan Management Review:

" . . . the creation of substantial new value for customers and the firm by changing one or more dimensions of the business system."

The authors of this article, Mohanbir Sawhney, Robert C. Wolcott and Inigo Arroniz, state that there are 12 dimensions along which firms can innovate. This view of a product/service as being made up of multiple dimensions is really useful because it can help identify those areas that require innovation and those that do not.

Look at barber shops and hairdressers as an example of how innovation can occur in the wrong place. These places should be open in the evenings when people are finished work, but many of them still close at 5:30, 6:00 or 7:00. Pretty frustrating getting a haircut at times. The innovation here should be along the "when" dimension, not the product/service itself (the "what") -- I am already really happy with Veronica's cutting skills. And are customers expected to pay for that "innovative" new decor?

You can see here how useful it is to look outside your own industry and learn from other industries. Barber shops can learn from convenience stores. But don't stop at searching outside your own industry for ideas, try looking outside your region or country. The idea of looking outside your industry is nothing new, but is it actually happening in many firms?



innovation management in Asia