The challenge of defining innovation is a problem that often comes up and that I like to revisit from time to time since, how could I support my clients effectively if we have different ideas about what innovation is?
I try to answer this question by sharing a common vision of what innovation is and what it is not before starting to work on it, this way my clients and collaborators and I can move in the same direction and use the same parameters to work.
Some “classic” definitions (the most used, the most referenced) of the term “Innovation” could be the following:
Innovation is the “Systematic use, as an opportunity, of changes in society, the economy, demographics and technology.” (Peter F. Drucker, 1985)
Innovation is a “New, or significantly improved, product (good or service), process, marketing method, or organizational method, in the company’s internal practices, workplace organization, or external relations.” (Oslo Manual, reference publication on Innovation of the OECD and the European Union, 2005)
Innovation is the “Activity whose result is the obtaining of new products or processes, or substantially significant improvements to existing ones.” (UNE 166000 Standard, “Terminology and definitions of R&D&I activities”)
Innovation is “New ways of offering value to the customer” (O’Hare, 1988)
Innovation is “creation or modification of a product, and its introduction into a market.” (Real academy of the Spanish language)
If we look at these definitions of innovation, we can see that they all have the following parameters in common:
The sense of newness. An innovation implies some new way of doing things, there is a sense of something new in the concept.
The process vision. It is not a moment of inspiration, a brilliant idea, but a systematic approach to identifying and implementing ideas.
Orientation towards marketing. If the market does not buy, we are not innovating. There has to be someone willing to “pay” for this new way of doing things.
The simplest definition that we have seen that fits with the practical and results-oriented approach is: Innovation is New Ways of Systematically Delivering Value to the Customer. This definition brings together the sense of novelty (new forms), the process vision (systematically offering) and the marketing orientation (customer value).
Some more nuances, to be oriented:
About what innovation IS:
- “New” doesn’t mean no one has done it before. If it has not been done before in this context, then it is considered new.
- It must have the clear purpose of solving a problem, satisfying a need or satisfying a desire.
- Innovation is in doing, not just in thinking or conceptualization. Simply having the idea does not constitute an innovation.
About what innovation is NOT:
- Small adjustments and improvements to an existing process are not the same as innovation.
- Invention, which becomes innovation when it is successfully brought to the market.
- Technology. Not all innovation involves technology, either as a facilitator or as a result. The use of new technology does not necessarily mean that innovation has occurred.
- Creativity: Creativity is having a great idea. Innovation is about EXECUTING the idea.