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This paper gives an insight of a macro view of the advancement of innovation. It depicts different trends that have influenced changed the dynamics of the global market for organizations. It also provides an overview of co-innovation by creating shared value while considering stakeholders. Co-innovation is an approach to generate value creation, competition and new experience. Innovation is a way to move forward. Every organization in order to become successful and become more adoptable they need to embrace innovation. Innovation is a result of human creativity, usually as a result of certain ideas to fulfill a need. Innovation can also result unexpectedly from experiments or by accidents. Thus, innovation has been part of human history in the pursuit of a better quality of life.
The model of innovation must be based on the platform where internal, external, collaborative, co-creative ideas can be transformed to create organizational and shared value. This paper labels new approach to innovation "Co-Innovation". Innovation is a broad way, which creates value for the organization and other stakeholders such as customers, suppliers, partner organizations, communities, governments, or even the general good of humanity with new ideas and approaches. Innovation can be scientific inventions, patents, technological advancement, or even a simple new way to do things. This innovation is directly tied to value creation and also innovation has become the key strategy for any organization to survive and grow in the highly competitive and dynamic global market. The three shivering changes had changed the way of work and live of people: the agricultural revolution, the industrial revolution, and the information revolution. Corporate strategies are typically expressed competitive advantage based on location, financial assets, human resources, technological or scientific knowledge.
This rapidly shifting towards the network society in unpredictable environments, for the organization develops, to face competitiveness and being succeeded in the market, the innovation is the imperative key factor. During the last three decades innovation has been gone through the development steps to merges innovation and open-innovation. Other factors have been added as critical competitive assets such as location, technology, marketing and financial strategies, supply chain innovations, human and social capital, unique knowledge, management innovations. The traditional approach of self-reliance or self-sufficiency for global competition became a virtually impossible goal. Even the global leaders in their respective industries found it necessary to find collaborative partners to design an innovative value chain, combining their own core competencies with that of other world-class firms. New business models enable organizations to produce and deliver these improved goods or services in more efficient ways.
Building a co-innovation enterprise is not simple. It requires a new innovation culture, strategic vision, courage, direction, and sense of urgency. Although the road to co-innovate is not smooth and easy, organizations do not have much choice but join the race to become an effective value creating an organization for competitive advantage . The first area is to leverage innovative ideas to introduce new products, services or even new ventures. This process requires collaborative efforts with internal and external partners so that a new blue ocean, where there is no competition, can be created. New products or services may not be based on new technology or invention. They could also be results of new convergence or bundling with different complements or applications. New ventures can be based on a combination of entrepreneurship or inter organizational collaboration.
The second area of value creation involves value chain innovation to make the architecture more efficient which in turn will cut the cost, improve quality, and/or increase the speed of the process. Many process innovations, such as Just-in-Time, TQM, Six Sigma, Lean Manufacturing, etc. are all intended to make the value chain architecture more efficient. Any new approaches that improve procurement, the transformation process, or distribution channels will create value. The final area where innovation can create value is new business models. Business models represent the approaches that the organization strategized to produce and deliver its goods or services to the customer. The internet has revolutionized business models such as e-banking, e-business, e-government, electronic markets, e-auctions, and the like. Of course, not all new business models create value, as witnessed by the burst of the dotcom bubble. However, new ways to increase the speed of transaction, improve customer security and privacy, improve information exchange and service quality, provide new solutions to customer problems, and the like certainly create new value to all stakeholders. Disruptive innovations are also evolutionary in that they start as inferior solutions to relatively small market customers until continuous improvements allow these innovations to create value for the mainstream customers. Nevertheless, in the dynamic global market, evolutionary innovations may not be sufficient. Revolutionary innovations based on breakthrough discoveries or convergences may be needed for value-focused innovations.
Collaboration is especially effective for value creation through new products/services/ventures, process innovation, and new business models. Collaborative organizations are "simultaneously innovative and efficient, agile and scalable. Process innovation also needs well-coordinated collaborative efforts of internal personnel and external expertise. New business models, such as e-business, require ICT expertise of an external partner, banking or financial service firms, and changed internal business structures, all for the shared purpose of stakeholders. The new ecosystem of global business is the result of a complex interplay of mega trends and major forces that are changing the way businesses operate and compete. In the networked, interdependent, and hyper competitive global marketplace, innovation is imperative for businesses to survive and grow. However, innovation is a very broad concept which includes any new ideas or approaches, either based on technological advances or new ways of doing things that can create value for the organization and the stakeholders. However, in a co-creating process of value creation, the enterprise works in cooperation with all the stakeholders, especially the customers.
The core principle of co-creation is "engaging people to create valuable experiences together" while enhancing network economies. Innovation is the need of the time. The Globalization is based on it. The advancements and all the progression are taking place because of innovation. A proper qualitative and quantitative research is required to look into the success factors of co-innovation so that this can become more common and more widely accepted and society at large can benefit from it, to much extent.