Innovation can be defined simply as a "new idea, device or method". Innovation is the process of making a product new or better. It is can also be the process of doing some service or action in a new way. In business, innovation also has to include the concept of improvement. To innovate in business is not just to do something differently, but to do or make something better.A good business innovation definition, then, would be: business innovation involves developing new products or improving existing technologies, processes, designs and marketing to solve problems, increase efficiency, reach new customers, and ultimately increase profits.
96 % of Innovation Leaders say their Organizations bring new ideas and solutions to market quickly.
In “Innovators Become Leaders,” Harvard Business Review Analytic Services asked more than 1,000 executives how their organizations approach innovation across five key pillars of innovation: process, human capital, funding, customer experience, and data and technology. From the findings, Harvard Business Review Analytic Services developed the Business Innovators Index, which scores each survey respondent’s organization on a scale of 0 to 100, with 100 representing the highest possible score, or what might be considered the peak of innovative strategy, frameworks, and behaviors. Using these scores, each organization was segmented into one of three groups based on a cluster analysis of the data: leaders, followers, and laggards.
• Leaders had an average index, or mean innovation score, of 88, and accounted for 17% of all organizations. They have the broadest range of innovation capabilities.
• Followers had a mean innovation score of 66 and accounted for 42% of all organizations. Followers may have capabilities in some of the innovation pillars, but lack the breadth demonstrated by leaders.
• Laggards had a mean innovation score of 37 and accounted for 41% of all organizations. This group lacks a wide range of innovation capabilities.
Its possible to innovate smartly without knowing what your customers need, want, or expect—or how, when, and where they use your products or services? The answers to these questions are obvious. Many of the world’s most innovative companies obsess over understanding their customers and figuring out new ways to make their lives simpler, easier, or more enjoyable.