Innovation and Competitive Advantage

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.

There are other useful definitions in this field, for example, creativity can be defined as consisting of a number of ideas, a number of diverse ideas and a number of novel ideas.

There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation. Whilst there is no sure fire route to commercial success, these processes improve the probability that good ideas will be generated and selected and that investment in developing and commercialising those ideas will not be wasted.

Innovation and Competitive Advantage

Creativity and Innovation are intricately linked to competitive advantage:

a) There is a positive correlation between new products and market share. This is best explained by examining what would happen if firms didn't introduce new products ? Microsoft would almost certainly have lost its dominance if it hadn't improved on Windows 95.

b) Firms have to introduce new products as life cycles decrease ? the average life span of a mobile phone is less than a year.

c) Competitors force the introduction of new products ? if Nokia didn't introduce new mobile phones every year then Motorola or Siemens would.

d) Macro changes push innovation ? China's entry into the WTO meant that Western firms would face competitions of scale and scope.

These and other topics are covered in depth in the MBA dissertation on Managing Creativity & Innovation, which can be purchased (along with an Innovation Bible, Creativity and Innovation DIY Audit, Good Idea Generator Software and Power Point Presentation) from http://www.managing-creativity.com/

You can also receive a regular, free newsletter by entering your email address at this site.

Kal Bishop, MBA

**********************************

You are free to reproduce this article as long as no changes are made and the author's name and site URL are retained.

Kal Bishop is a management consultant based in London, UK. He has consulted in the visual media and software industries and for clients such as Toshiba and Transport for London. He has led Improv, creativity and innovation workshops, exhibited artwork in San Francisco, Los Angeles and London and written a number of screenplays. He is a passionate traveller. He can be reached on http://www.managing-creativity.com/

---

Success Tip From Yachting - Try To Fix The Problem Yourself

At 28, Ellen MacArthur is a world record holder. In... Read More

Penny For Your Thoughts?

Every artifact, every tool, everything ever designed or created by... Read More

Going Seamless: Dissolving the Brain Divide

Are you a right-brainer or a left-brainer?The greatest thinkers are... Read More

A New Pair of Shoes

Do the NewAn old pair of shoesDo you have a... Read More

Peace Alliance vs. Fighting a Battle

We read in the press about the "War on Drugs"... Read More

Innovation Management ? moving past the wall

Creativity can be defined as problem identification and idea generation... Read More

Do You Need A Business Plan If Your Idea Is New, Untested, or Unproven?

Who Should Read This Article?Anyone nursing a new (especially untested... Read More

Innovation Problems and The flow of Thought

The most progressive Think Tanks, Brain Trusts, research facilities in... Read More

Business Innovation ? Confidence in People

Creativity can be defined as problem identification and idea generation... Read More

Improve Your Small Talk - Gain Big Dividends!

Do you hate to make small talk? If so, you... Read More

Business Innovation ? the Value of Frameworks

Creativity can be defined as problem identification and idea generation... Read More

All Fortunes Begin With an Idea!

A new idea is merely the combination of two or... Read More

Howd They Do That?

"How'd they do that?" I asked myself time and time... Read More

Great Ideas and Radical or Disruptive Innovation

Creativity can be defined as problem identification and idea generation... Read More

Choosing a Winning Business Idea

You've probably heard it a hundred times by now -... Read More

How To Benefit from The Power of New Innovations in the Year 2005

How many times have you heard the phrase "knowledge is... Read More

Intuition Power In Three Steps

Have you ever used your intuition to solve problems? Can... Read More

Types of Innovation

Creativity can be defined as problem identification and idea generation... Read More

Business Innovation ? the Best Ideas

Creativity can be defined as problem identification and idea generation... Read More

Create An Idea Journal

When I first heard Jim Rohn talk about the importance... Read More

Opportunity: Could You Be Colour-blind?

Do you consider your vision perfect? You may never have... Read More

Discontinuous Innovation

Creativity can be defined as problem identification and idea generation... Read More

Knowledge Gains in Innovation

Creativity can be defined as problem identification and idea generation... Read More

Learn To Trust That Gut-Feeling

It just might save your lifeThink of the many times... Read More

Why It?s Important to Make Your Idea Real

Say you have an idea for something new and exciting... Read More

Make Ideas Your (& Their) Own: Persuade Yourself and Others

Have you ever watched a TV program where the supporting... Read More

Innovation Management ? 5 Ideas An Hour

Creativity can be defined as problem identification and idea generation... Read More

Seeking Initiative and Innovation? Reward Failure!

Based on Proprietary Research"If you want to increase initiative and... Read More

6 Steps to Super Mindpower

Ever hear "You can't teach an old dog a new... Read More

Business Innovation ? Good Thinking NOT Leadership

Creativity can be defined as problem identification and idea generation... Read More

The Hidden Superpowers Of Your Mind

The mind is an infinite wonder. It has the fantastic... Read More

Owning Your Power

Owning your power, your power to be real, to be... Read More

How To Be An Innovator In A World Of Change

Innovators are opportunity-oriented.What's the hidden opportunity in that problem? Where... Read More