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INTRODUCTION

WHY DOES INNOVATION MATTER?

Besides surviving into the future, the most innovative firms have much higher rates of return, 30 - 80% higher, than less innovative organisations. Here’s 7 more reasons to innovate:

7.Competitive advantage

6.Because cost-cutting is not enough any more

5.Higher revenues

4.Improve performance

3.Take advantage of opportunity

2.Better returns (business, societal, financial, personal)

1.Survival!

Simply working faster or harder or being more efficient will only go so far — what is really needed are fresh ideas to meet increasing consumer, business, political and social demands.

“When the pace of change inside the organisation is slower than outside the end is nigh”

WHAT DOES INNOVATION MEAN?

“Innovation in organisations is a series of processes that are designed and managed to create and apply ideas and knowledge, directed at creating and capturing value, and leading to new and different products, policies, processes, technologies, ventures and business systems” (Bubner 2002)

or more simply:

“innovation = idea + implementation → to create value”

BENEFITS OF INNOVATION

The benefits of innovation include:

•increased incidence of innovative ideas, policy and products.

•keeping up with rapid change.

•better quality solutions:

•more comprehensive.

•longer lasting.

•increased likelihood of success.

•greater exploration of alternatives within the organisation.

•increased support from stakeholders for proposals.

•greater responsiveness to emerging issues.

The bottom-line of innovation is this:

It is impossible to compete solely on the basis of lower-cost or superior quality because these can always be copied.

Only your latest idea will put you in front — and with a stream of new ideas, you can always keep ahead of the pack.

Continuous innovation is the only form of sustainable competitive advantage (Porter and Stern, 2002).