Innovation is the development of new products, processes, or services that create value for a business or for its customers. In today’s fast-changing world that combines uncertainty, complexity, and unprecedented technological opportunities, the ability to innovate is a critically important ingredient that can make the difference between success or failure for a company.
Many of these opportunities are themselves created by the disruptive innovations of recent years. The advent of smartphones and social networks have created opportunities for countless new types of services, digital products, and business models. Similarly, the internet of things (IOT) has yielded vast new data streams for companies to harness for process improvements and other valuable innovations.
While it may seem like innovative companies or entrepreneurs are simply blessed with special creativity, turning a good idea into a profitable business requires more than just inspiration. Successful innovators actively cultivate an entrepreneurial mindset that helps them approach problem solving challenges from fresh angles. And both startups and established companies that seek to capture the benefits of innovation must put in place product development processes and other systems to ensure the flexibility and adaptability required to take advantage of these new opportunities.