Is Innovation a Secret Box or a Methodology for New Products Development?

Originally published in Mind

Innovations are trending. During the last few decades the business went through transformations from technology-driven to innovation-driven model. Innovation business model exceeds the efficiency of production and operation processes, it became obligatory for existing and much more for development under the conditions of increased customer competition.   

While the majority of companies do not have clear understanding on innovation, this model is getting wide spread. It represents a set of methodologies and practices for creating of new products under permanent transformations of preferences and needs of consumers, new technologies development, new challenges and problems for businesses and formation of unique advantages of the company at the market. Ukraine is a part of this process and such companies as DTEK, MHP, Alfabank, OKKO, Kyivstar are actively investing in this direction.     

As a result, it allows to enter new markets or even create the new ones, to increase market share in already existing segments, to increase own brand value as well as to increase rapidly the incomes. 

Effected by the digital revolution, spread of cloud technologies and mobile platforms, the use of IoT, robots, 3D technologies and augmented reality, the companies obviously need to change to innovation model of development, while being aside of new business conditions they face the risk to give up their market place to new products that take into account production technology changes as well as changes of new requirements of consumers. 

On one side an innovation is a result of innovation activity represented by new (automatic vacuum cleaner) or improved (phone with advanced camera) product being introduced to the market. On the other side, it is new (Apple Pay) or improved (4G connection) technology being used in manufacturing (3D printers), operational activities (Prozorro), marketing (Mailchimp) and sales (CRM systems, marketplaces). On the third side an innovation represents new approach for solving the existing social problems (Wikipedia) or those we will face in the nearest future (Elon Mask Space X).   

In fact, currently an innovation is understood as something new or something already existing but having new characteristics, features and functions, that create the value for the consumer, i.e. solves the tasks better or in a brand-new way.

Innovative activity is an instrument for creation of new products, from idea to solution, from implementation to successful sales and wide use.