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What does innovation really mean?
Simon Burhorst • Nov 28, 2022
What is innovation?
The word “innovation” derives originally derives from the Latin verb innovare what literally means renewal and describes the introduction of something new. The Business Dictionary defines “innovation“ as "the process of translating an idea or invention into a good service that creates value." In order for a good invention to become a successful innovation, it has to meet people's needs. It has to recognize a problem, look at it realistically and solve it.
Innovation is the only way for a company to generate a sustainable competitive advantage and market success. It shows that the more technology we had, the less manual work we needed. Optimizations of processes make cost reductions, economic growth, and better working conditions even possible - the history of the industrial revolutions has proven this repeatedly.
The history of innovation and its industrial revolutions
With the birth of the steam engine (Industry 1.0) or the beginning of electricity (2.0) with the introduction of assembly line technology by Henry Ford in 1913, many work processes were simplified and accelerated, which relieved people in the production process.
Automation with the help of computers in the 1970s shaped the third industrial revolution. In contrast to the previous serial production in the factories, the easy human work was now increasingly taken over by machines. So, what can we expect from the digital revolution (4.0)?
The digitization changes our communication, the personal way of working and helps us with international networking. People can work anytime, anywhere, and the entire economy is global connected.
The digitization offers companies numerous opportunities in all areas. Monotonous and tiresome work is taken over by machines. Human is relieved. Processes throughout the entire supply chain become even more efficient. So, to put it simply, a lot of
time is saved, and profits are maximized.
Goals of innovation – What does it need?
One of the goals of digitization is to secure a sustainable competitive advantage. In order to secure this benefit, companies must be creative and develop new "out of the box" ideas. Innovative spirit and a strategically oriented innovation management ensure the competitiveness of SMEs and large corporations in the medium and even long term. Innovative employees in particular are an enormously valuable resource in this regard.
Successful companies do not see innovation as a by-product, but implement innovative thinking in their organization and in this way use the potential of their employees. Digitization also helps to
react quickly to changing conditions. Companies that deal with innovations are able to react quickly and will also manage to be successful in the future.
From an economic point of view, the most important thing is of course to
reduce costs and increase productivity
in the company. For example, process innovations can significantly and sustainably increase the efficiency of a company.
After all, innovation has many advantages – in business, economic and personal terms. In order to translate an idea or invention into a service that creates value,
we need a positive mindset
that is an open attitude and relies on trust in new concepts. We should start seeing the added values of process optimizations, money savings and better working conditions to seize our opportunities instead of thinking about difficulties first. It does not finally guarantee to be successful, but if we do not even invest this, we can be sure that innovation will not happen.
The train of innovation is certainly already in full swing, so it's probably better to sit on board than to stand on the platform and wave afterwards. The positive thing about it is that we can decide for ourselves whether we want to ride along or literally stay where we are.
The importance of good food on board Waking up in the morning the first thing to do for many of us is to drink a cup of coffee. Our body demands it and our head reminds us of the daily ritual. We are always free to decide what we will cook for dinner and we expect to have a fully filled fridge when we come home from our regular working hours. If there is anything missing, we simply purchase it. We can also get in touch with our family, our partners and our friends at any time to have phone calls and meet outside for a drink or at least take a walk through the park.
The major purpose of standardization is to make things consistent and clear that anyone in an organization can access and utilize them in the operations. Standardization makes it easier to identify issues and speed up the time it takes for you to get actionable insights.
The importance of good food on board Waking up in the morning the first thing to do for many of us is to drink a cup of coffee. Our body demands it and our head reminds us of the daily ritual. We are always free to decide what we will cook for dinner and we expect to have a fully filled fridge when we come home from our regular working hours. If there is anything missing, we simply purchase it. We can also get in touch with our family, our partners and our friends at any time to have phone calls and meet outside for a drink or at least take a walk through the park.
The major purpose of standardization is to make things consistent and clear that anyone in an organization can access and utilize them in the operations. Standardization makes it easier to identify issues and speed up the time it takes for you to get actionable insights.