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/

---

Business Innovation ? the Creative Process

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

Innovation Management ? The Harsh Facts Of Life For All Innovators

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

Innovation Management ? Famous Failures!

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

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 Management: Trying Out New Ideas

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

Innovation Management ? 5 Ideas An Hour

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

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

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

Mother Of Invention Or Dummy? You Decide!

What would you say to yourself if when faced with... Read More

The Hidden Superpowers Of Your Mind

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

Life ? The Teacher

You've probably heard the phrase "repetition is the mother of... Read More

How To Do What You Dont Want To

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

Creativity, Innovation, and the Importance of Spontaneity

Spontaneity occurs when ideas or behaviours are expressed without evaluation.... Read More

How to Turn Nothing Into Something

Excerpted from the Jim Rohn Weekend Seminar-Excelling in the New... Read More

Innovation Management ? predicting winners

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

Innovation Management ? Developing Ideas Within A Framework

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

Intuition: Your Best Career Coach

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

Fire Evacuation Drill with a Difference

I had been given the task to organize a fire... Read More

Prevention is Better Than Cure... Says Who?

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

Change Is a Skill Development Learning Process

Change, like almost every other life experience, is a learning... Read More

Mindfulness and Beliefs: Irrationally Yours

I can't help it--I am a confirmed neuroscience geek.So I... Read More

Starving for Intimacy

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

Take Your Good Idea One Step Further

Whether you're an executive, manager, professional, or entrepreneur, you need... Read More

Choosing a Winning Business Idea

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

Business Innovation ? the Value of Decision Makers

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

Business Innovation ? Confidence through Competence

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

Learn To Trust That Gut-Feeling

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

Knowledge Gains in Innovation

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

Innovation Makes Leaders

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

Can We Change People?

There was a class of "challenged" children and many teachers... Read More

Great Ideas and Radical or Disruptive Innovation

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

What to Do When You Are Chased by a Snake

I lived for several years on the Japanese island of... Read More