Understanding Innovation in Organizations and Its Implications

Abstract

Organizations incorporate innovation in their processes to grow and to achieve business excellence. Although innovation is a pervasive term, it appears to be elusive because of its different explanations. Organizations should recognize three aspects of innovation to reap its benefits which include: innovation is an outcome, innovation is a process, and innovation is a mindset. The outcome emphasizes what output is sought, including product innovation, process innovation, marketing innovation, business model innovation, supply chain innovation, and organizational innovation. Innovation as a process should be organized so that the outcomes are effective. This includes an overall innovation process and a new product development process. Innovation is a mindset which employees should internalize. Innovation should be ingrained with the creation of a supportive organizational culture. It defines necessary elements, considerations, and vernacular. It allows organizations to adopt effective strategies and to take better decisions which allow them to enable innovation.