The term innovation is derived from the Latin word innovare, which translates as renewal. From an economic perspective, innovation is something new that offers advantages or value for an organisation, or for society.
The term management is often used in business and represents the controlling of tasks and process, and the coordination of activities to achieve objectives.
So then, together, innovation management can be defined as follows: the systematic promotion of renewal and innovation in an organisation through planning, organising, management, and monitoring.
With that in mind, we’ll move on and explore the types of innovation, which can be divided into three categories:
We already explained how innovation can refer to the development of new services and products on the market for the public, which answer needs that aren’t being met yet or solve problems that hadn’t been identified before. Technological innovation is only aimed at the technological aspects of a product or service, rather than the whole product or business model.
This type of innovation is essential to the development of organizations since they provide them with more effective production methods or new products that help raise an enterprise’s market share.
In business administration, a disruptive innovation is an innovation that stimulates a new value and market network, causing established and leading businesses, products, and alliances to be replaced.
Not all innovations are disruptive, even if they are in fact revolutionary. For instance, the introduction of the car was not disruptive for the transport industry at first because cars were a luxury, and the market for horse-drawn carriages wasn’t immediately disrupted.
Social innovations are innovations that are intended to respond to changing social needs in society. These innovations are made with the goal to help general society in areas such as health, education, internships, society development or dealing with inequality through more effective or powerful solutions. Examples include open-source methods and innovations with a social purpose, such as microloans or remote learning, among others.
I hope this information was clear for you, we’ll keep posting new things to keep you informed!