Process of Innovation

According to Bressant and Tidd, in Innovation and Entrepreneurship the process of innovation must go through four key stages; recognise opportunity, find resources, develop venture and create value. This process is outlining the cycle of innovation from inception to succession; from the moment an opportunity is seized by defining a possible gap in the market or improving an existing market through to its success with the public and consequent position within the media. This process begins with the need for a change, perhaps to keep up with new technologies and race with your competitors to provide the best product or service that is available to the public. This change then needs the resources to help it grow and so you will invest money and time and may invest in knowledgeable staff that have the most up to date skills in this area. A business plan then needs to be drafted that helps the idea to move forward and flourish. Lastly, value in the product or service you are providing needs to be created as there is never a guarantee that the public will respond well to the new change, but always the risk that they may respond badly and so it is imperative for any business to prepare for this.

Considering this, we might ask, why is innovation necessary? It’s simple, without innovation a company will eventually die. Without constant monitoring of the market, competitors, trends, public interest and technology then it becomes impossible to overtake or even match what others are doing. This is supported in an article online by Forbes stating, “Where is AOL? MySpace? Or now Barnes and Noble? These companies were titans of success and innovation. Now, they are left behind. This is because management and their staff failed to recognize the dynamics of a free market, failed to provide their customers what they want.” (2011)

(2011) “Innovate Or Die!” Forbes, [online] 23 July. Available at: <http://www.forbes.com/sites/thesba/2011/07/23/innovate-or-die/> [Accessed 29 January 2012]

Bressant, J. and Tidd, J. (2011) “The Innovation Imperative,” Innovation and Entrepreneurship, 2^nd ed., Chichester, UK: Wiley & Sons, pp 2-52, (Note: You can also see the first edition available via Google Books at http://books.google.co.za/books?hl=en&lr=&id=kKvKh7pla8kC&oi=fnd&pg=PR11&dq=related:HixYGkNAZ0kJ:scholar.google.com/&ots=EMbHdLzRX9&sig=LNF2Ln8img4VyVVDWFF0MTWwpxo#v=onepage&q&f=false )