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The nature of innovation - Coggle Diagram
The nature of innovation
What is innovation?
Innovation has to be set in context with two other relayed concepts, inventions and creativity (Something that has never been made before or the process of creating something that has never been made before)
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Innovation is synonymous with delivering a commercial proposition to the marketplace, that is the final phase of a process the starts with creatvity
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Both the addition of benefits and the reduction of costs create differentiated products or services that will be attractive to consumes because of their increased value
Benefits can be either tangible or intangible - tangible benefits include added functionality, better durability or more attractive design, intangible benefits include efficient service
Tangible benefits stem from the purchase, usage and disposal of a product of service
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The wider economy can also benefit from innovation through the creation of jobs, and communities can also benefit from reduced pollution or safer working practices
The creation of value can be expensive and the price of innovation needs to be weighted against the possible returns
Types of innovation
Product innovation
The creation and subsequent introduction of goods or services that are either new or an improved version of previous goods or services
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Management innovation
Anything the alters substantially how the work of management is carried out such that it challenges existing management doctrines, affects an entire system, such as encompassing a range of processes and methods or forms part of an ongoing programme of invention
Management innovation differentiates an organisation from others in its industry through finding novel ways of planning, organising, commanding, co-ordinating and controlling
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Service innovation
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The internet has had a great impact on service innovation such as the development of price comparison websites where the internet has facilitated a whole new service previously unavailable