Often, people use and think of, "invention" and "innovation" interchangeably. They could not be more mistaken. The distinction between the two is that while invention is the creation or development of a new product, process or concept, innovation is turning it into commercial success. Or as noted innovation consultant John Emmerling says - "Innovation is creativity with a job to do".
In a sense, Innovation = Invention + Commercial Exploitation. Let's call this the Innovation Equation.
Mathematically speaking, to maximize the left hand side of the equation, both the right hand side elements will have to be maximized. In other words, companies need strong invention competencies and highly developed commercial leverage skills in order to be really BIG on innovation.
Remember the Sony Walkman? Or its modern day equivalent, the Apple I-pod? Each of these is a terrific example of a company that had a brilliantly radical idea and went on to deploy top-notch design, manufacturing, distribution and marketing skills to turn its invention into a mass rage. Superbly managing the transformation of a nerdy/geeky kind of laboratory idea into a sexy, marketplace success.
In the automotive industry, Toyota leads the pack with its innovations (Fortune ranks Toyota #3 in its recently published list of Most Admired Global Companies). The hybrid vehicle Prius, that created benchmarks in clean transportation technology, is a best seller too - it has sold nearly 2 million units since its US launch in 2000! Further validation of the innovation equation.
Honda is another auto company that has invested heavily in pushing the innovation bar higher. It is among the leaders in hybrids, CNG and fuel cells technology today. Its newest invention is FCX Clarity, a sedan powered by a fuel cell that uses no gasoline and emits only water vapour. The fate of the Clarity will be known later this year, when the vehicle debuts in California. Will Honda be able to apply its commercial acumen to the hilt? Can the Clarity, a powerful invention, become a truly successful innovation?
The whole world will be waiting to know...
In a sense, Innovation = Invention + Commercial Exploitation. Let's call this the Innovation Equation.
Mathematically speaking, to maximize the left hand side of the equation, both the right hand side elements will have to be maximized. In other words, companies need strong invention competencies and highly developed commercial leverage skills in order to be really BIG on innovation.
Remember the Sony Walkman? Or its modern day equivalent, the Apple I-pod? Each of these is a terrific example of a company that had a brilliantly radical idea and went on to deploy top-notch design, manufacturing, distribution and marketing skills to turn its invention into a mass rage. Superbly managing the transformation of a nerdy/geeky kind of laboratory idea into a sexy, marketplace success.
In the automotive industry, Toyota leads the pack with its innovations (Fortune ranks Toyota #3 in its recently published list of Most Admired Global Companies). The hybrid vehicle Prius, that created benchmarks in clean transportation technology, is a best seller too - it has sold nearly 2 million units since its US launch in 2000! Further validation of the innovation equation.
Honda is another auto company that has invested heavily in pushing the innovation bar higher. It is among the leaders in hybrids, CNG and fuel cells technology today. Its newest invention is FCX Clarity, a sedan powered by a fuel cell that uses no gasoline and emits only water vapour. The fate of the Clarity will be known later this year, when the vehicle debuts in California. Will Honda be able to apply its commercial acumen to the hilt? Can the Clarity, a powerful invention, become a truly successful innovation?
The whole world will be waiting to know...
I think innovation can be done inside an existing technology also, but invention has to be a totally new concept...
But we should note that despite selling 2 million units of Prius, the car has still not recovered the investment cost it had to incur. In the long run, green technologies would definitely pay off. But company's commitment to the innovations was commendable.
I think, Innovation is basically a breakthrough in existing process or technology, while Invention is a completely new concept / derivative.
e.g. Kodak/Canon/Sony (or any other) were into digital cameras, thinking that they were into business of photography printing and Nokia was into business of mobile phones. But Nokia brought into its technology the ready power of invention and integrated the digital cameras with mobile phones. So to say, some company invented the digital camera and mobile phone, but Nokia (may be any other) did an innovation with them. Nokia got into business of ‘ready memories’, i.e. pictures/videos that can be taken, seen and referred anywhere, anytime. That is innovation.
Some examples around us:
1. Say, wheel was an invention, rubber was another one. But ‘tyre’ can be categorized as innovation.
2. Ladder was an invention, but telescopic ladder was an innovation.
3. Bike racks on the spare tyre at the back of the vehicle is an innovation.
4. Solar powered car is an innovation.
5. Geared Bicycle was an innovation.
And many more…
So innovation is one great idea becoming reality.
I have posted a comment on Maithilee Shirgaonkar's post on innovation. There I mentioned that innovation is something you can do in smallest of tasks. This resonates with the Emmerling quote that you cited. Indeed, all examples quoted by you exemplifies large scale innovations, where collective or collaborative efforts matter. A lot factors that bear out on large scale innovation that are out of an individual's control.
I am very keen to see individuals bring innovation to their daily activities (I suppose you could say I am looking for Kaizen). It is gradual and incremental improvements (which in my view require not only diligence but also creativity) that is fully in an individual's control. I also believe and have observed from my experience that the small and incremental improvements when carried out in a sustained manner across an organisation, will create fertile ground for the erruptive innovations that take your breath away.
So while FCX Clarity might become talk of the town, there'd be a lot to say for the rest of us to keep chugging away with our eyes firmly on that next incremental advance;-)
BTW, this is the third comment I have posted in two days on the Mahindra Universe blog site. Keep up the good work.
Vijay Tase
vijayt@peertechnical.net