Innovationis the implementation of a new orsignificantly improved product

(good or service),or process, a new marketing method, or a neworganizational

method in business practices,workplace organization or external relations.

Creativity, innovation and entrepreneurs:

Creativity is thinking new things, and innovation is doing new things

 Creativity is the ability to develop new ideas and to discover new ways of
looking at problems and opportunities.
 Innovation is the ability to apply creative solutions to those problems
and opportunities in order to enhance people’s lives or to enrich society

Entrepreneurship = creativity + innovation

Creativity, innovation and entrepreneurs

 Researchers believe that entrepreneurs succeed by thinking and doing

new things or old things in new ways.
 Entrepreneurship is the result of a disciplined, systematic process of
applying creativity and innovation to needs and opportunities in the
marketplace.
 New ideas are much more than just random, disjointed tinkering’s with
a new gadget.
 Entrepreneurs are those who marry their creative ideas with the
purposeful action and structure of a business.
Methods of Innovation

• Invention - described as the creation of a new product, service or process

• Extension - the expansion of a product, service or process
• Duplication - defined as replication of an already existing product, service or
process
• Synthesis - the combination of existing concepts and factors into a new
formulation

Types of innovation

 Product innovation
 Process innovation
 Marketing innovation
 Organizational innovation
 Technological innovations
 Social innovations
 Business Model innovation

Product innovation
Product innovation involves the introduction of a new good or service that is
substantially improved. This might include improvements in user friendliness,
components and materials, software in the product, functional characteristics,
technical abilities or any other dimension.
Process innovation
A new or significantly improved production or delivery method. This includes
significant changes in techniques, equipment and/or software.
Marketing innovation
Development of new marketing methods with improvement in product design or
packaging, product promotion or pricing.
Organizational innovation
Involves the creation of new organizations, new organisational methods in business
practices, ways of running organizations or new organizational behavior, workplace
organization or external relations.
 Technological innovations
as new products and processes and major technological modifications to products
and processes.
Social innovations
in critical historic periods more important than technological ones (mail, educational
systém, social systém, health care,..)
Business Model innovation
involves changing the way business is done in terms of capturing value e.g.
Networking.

Innovation Managemment
Innovation management encompasses an integrated approach to managing all
dimensions of innovation, from innovation in products, services and business
processes to organisational and business models, through continuous monitoring,
development and improvement processes.