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/

---

Starving for Intimacy

Some are seeking love in a bottle. Others look for... Read More

Innovation Management ? Ideas From The Most Embarrassing Experiences Of Life

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

Three Step Problem Solving

How do you like to solve your problems? Do you... Read More

Innovation Makes Leaders

Basically what innovation does is making your business unique and... Read More

Innovation Management ? Isolating Problems and Implementing Solutions

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

Success Tip From Yachting - Try To Fix The Problem Yourself

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

Knowledge Gains in Innovation

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

Creativity and Innovation Management - Good Ideas Part 2

The relative ease of i) generating good ideas and ii)... Read More

Intuition: Your Best Career Coach

Since I derive most of my life lessons from reading... Read More

Innovation Problems and The flow of Thought

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

Prevention is Better Than Cure... Says Who?

You've likely heard this before... "An ounce of prevention is... Read More

Creativity Management ? When To Add Talent

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

Penny For Your Thoughts?

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

Innovation Management ? Testing Ideas

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

Become an Idea Collector

Have you ever gotten a really great idea ? one... Read More

Perfectionism - The Dangerous Trap!

Just when I have something figured out, along comes another... Read More

Managing Creativity and Innovation, Part 2 of 2

Leaders, consultants and managers must be competent in at least... Read More

Improve Your Small Talk - Gain Big Dividends!

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

Can A Simple Idea Change Your Life?

Ideas happen all the time. And when I say an... Read More

Innovation Management: Trying Out New Ideas

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

Business Innovation ? Good Thinking

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

Solve Problems With A Word List

To creatively solve problems you need to get your mind... Read More

Owning Your Power

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

Thousands of Failures, but Thousands of Patents

Thomas Edison failed thousands of times before he revolutionized the... Read More

Learn To Trust That Gut-Feeling

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

Seeking Initiative and Innovation? Reward Failure!

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

Business Innovation ? Masks and Trance

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

How To Do What You Dont Want To

Before I reveal it, shall we review some things that... Read More

Humankinds Greatest Inventions

There are a number of amazing inventions that have been... Read More

12 Tips for Taking Smart, Calculated Risks

Most of us know we should take more risks. But... Read More

The Pendulum Swings Right - A Major Shift is Happening Inside Our Brains

The world is now changing again, it appears. The logical... Read More

Innovation Management ? moving past the wall

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

What is NLP?

NLP Explained.....NLP is the study of how people organise their... Read More