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Brand new method of doing something. In context of corporate 'innovation' means the process by which an idea or invention is translated into a good service for which people will pay.
Positive change, improve and make someone or something better.
Innovation is a kind of ways which leads improvement in productivity and increasing wealth in an economy.
About new products, processes and services and all the scientific, technological, organisational, financial and business activities that produce them.
Complex and risky because it is so unpredictable.
For example, big company like IBM had huge amounts of money betting on their company new products. These kinds of investment are risky because innovation fails more often.
Sometime knowledgeable people can predict wrongly in this field. For example is the chairman of DEC; a major computer company once say that nobody will want a computer at home
Research shows that only 1 out from 10 new products will be able to reach the market.
New products are main source of growing and profitable companies. As products get older they are copied, matched or beaten by competitors.
To find new product opportunities:
Understand the trends and had a deep understanding on the industries, current markets, customer's demands in order to develop the right product.
Use (create or buy) new technologies in your business to make your products better and to reduce costs of manufacturing.
Introduce latest updated technologies into the products to the customers. Example: Mobile GPS systems.
Offer different idea or plan to different part of the market as this will help in optimizing the resource and maximize the profit.
Marked by discovery or a state of new existence, usually at the lab or bench
Inventor is the kind of person country needs in order to compete with world markets in order to be more successful and maintain the standard of living.
Inventors are in the leading position of the future.
Innovators are business's lifeblood.
Chances that inventors come up with a firsthand particular innovation is very low.
Even if a better invention is invented, it was hard to find a buyer to buy the idea even it was a good one.
People's mind set are mentally resist to make any changes. It was hard to find who can take the idea seriously.
The reason said by a consultant that why it was so tough to find a buyer because no one wanted to buy a unproven ideas and no one would like to be a volunteer to be the first one.
Research shows that new product failure rates are about 50% to 80%.
Survey done on one of the major companies which spend millions of dollars focusing on research and development, studying the market behaviour, and advertising the product found out that out of 58 internal proposals only 12 were selected and only 1 successfully become a product.
There is many things need to be done before we can get money from the invention.
The invention will need to pass few of the criteria like: originality of the invention, Will the invention really make a profit, will the consumers buy it, protection of the invention from other who tries to copy.
For University of Oregon, the innovation center determines to see if the idea can be commercialise. The kind of test approach the new invention are:
Legality of the invented item, safety toward the user, environmental impact, societal impact, potential market of the product, life cycle of the product, the usage, learning, product visibility, services provided, durability of the product, new competition, functional feasibility, production, possibility of the invention into a product, stability of demand, consumer friendly, marketing, distribution to the market, perceived function, existing competition, potential sales and market, development status, investment costs needed, trend of demand, product line potential, need for the product, promotion for the product, appearance and attractiveness of the product, price of the product, protection for the invention and the product, payback period, profitability of the invention, product interdependence, research and development.
There is always a chance that somebody else had already introduced or even in the market as goods.
It will be pointless and a waste of money, time and effort.
There are way to ensure that the idea or invention.
We can check stores and catalogs if the idea is target for consumer product or check trade associations & publication that relevant to the invention. Trade show are also a good place to see if any relevant to the invention. Check out the latest news and business press. Make a patent search and find anything related to the invention.
Consult people which in this field related and ask them did they ever heard or approach the kind of product or idea before about the invention.
Converting the invention into production & distribution
Normally inventors will present their idea to a big company they will consider about it, thinking that they had the money, capable to make production and feel that they will promote it in the market.
But normally big companies are less interested on ideas from outsiders. This is because they feel that the technology from outsider are quite risky and large company wants potential sales of the item.
Another way is to start a company as many potential buyers are businessman who focuses on the possibility of gaining profit and loss and familiar in the field about the potential of a company compare to technology of the invention.
On another hand, there is a probability small or medium size company will take up the idea as they are able to produce the product that the amount of sales are below the expectation of larger companies. Small company may lack of profession on sales and marketing. But still, it was hard on finding a company that would want the idea.
The potential of the invention or idea
The worrying part is where people get worried the possibility of success, can it survive in the market, changes of the market, and the risk, thus it will get difficult to find supporter to support the idea or invention.
Protecting the idea
If the invention is fresh after do some checking, it is important to protect it as a patent under the patent law in order to prevent other peoples steal the idea.
But even having a patent for the invention wont fully protect the invention. One of the survey had find out that above 70% infringement issues bring up by the patent owner in order to protect their patents but the patent was claim to be not certified.
Protecting a patent can be extremely expensive but if the invention didn't have a patent, the effort to protect the idea or invention can be said as none.
In a situation where the invention or idea are already presented to a company but sadly the company refuse accept it. However there is a chance the company will copy and put the invention or idea into use without paying the owner.
The safer way is to send them the info about the invention or idea without telling them further details and had a agreement with the company, promising that they will keep it as confidential, won't reveal or make use of it without any compensation for the owner. But normally they will wanted to see the idea thoroughly or they won't make any promises.
Invention : are the new ideas and concept or in a form of product that came from a persons mind or from researches.
Innovation : commercialize of the invention.
Invention may have little economic value compare with innovation.
To gain profit from an invention, it is important to convert into innovation when a market, target on the kinds of customer and consumer, and its application are found.
Few examples are show great inventions bring back low profit or nothing to the inventors.
In 1947, scientists from AT&T lab had created the first transistor and the invention was patented, but the organization wasn't able to find the application for the new device at that time. The scientists did a great job but weren't able to innovate the invention and in 1952 AT&T decided to license the transistor.
Another great company is Xerox and same as AT&T, Xerox was also a great inventor, but they can't transform such invention into innovation.
The first company who develop the personal computer, processing software, laser printer, local area network, and others was the Xerox few years before Apple and IBM, but still the company didn't make any profit from such great invention.
Innovation is costly, risky, unpredictable, and complex, but still many research show that innovation is important for job creation, better standards of living, and success in their business.
This is due to the nature of leading industry and services
For us to understand why this is so, we have to understand the nature of leading-edge industry and services. The intense international competition, market changes, non centralize network based and flexible firms and competitiveness are less from clearly seen assets like the capital investment but from not so clearly seen assets like skills, creativity and the capability of learning which also known as knowledge economy.
Innovation had transformed these not so clearly seen skills into such a form that is valuable. Knowledge had become important for all sizes of firms and became the very basic for economic competition.
If a firm fails to innovate, it will mostly not going to survive for a long term. For example, the Swiss watch almost fall down and the British motorbike industry went down.
As for innovative wealthy industries just like in Silicon Valley and Boston in social and economy condition, it was totally different compare to the previous ones.
Although innovation is hard but it was important, in order to improve and move forward to gain even more profits by better understanding the market and technologies.
The most important thing to know is that average time for invention to the market was about 20 more years and William Gibson point out that the future is already here only not properly distribute and he also say this ": innovation is far more about prospecting, mining, re¬ning and adding value to 'gold' than it is about alchemy. Rather than focusing on the invention of the 'brand new', one might better strive for creative insights on how to combine, develop and leverage what is already out there, but hidden, or not understood."
The most important thing is that we should not only can invent a product, but also know a way on how to bring the product on to the market.
It is the best to have a brand new product with a good manager who know how to innovate as management is the key of success for an invention.
For example, Joseph Swan who invented the electric light 8 month before Edison, but Edison was not only a good in invention, but also a good in promoting, publicity, and seeing potential markets for inventions. Thus he gets the patents, the market, and claims the inventor of light bulb.