– Innovation is important for companies because it allows them to stay competitive in the market and increase their revenue.

– Companies that continuously innovate are more likely to attract and retain customers, as they are able to offer new and improved products or services.

– Innovation also helps companies increase efficiency and reduce costs, which can improve their bottom line. (COMMODITY TRAP)

– Innovation can also help companies enter new markets, and open up new opportunities for revenue and growth. (In a fast-paced global environment, companies that are not able to adapt and innovate run the risk of being left behind by other who do).

– Innovation within a company can also lead to a better and more engaging work environment for the employees, making them feel more motivated, challenged and satisfied with their jobs


– Encouraging a culture of creativity and innovation within the organization: this involves creating an environment where employees feel comfortable sharing their ideas, and where experimentation and risk-taking are encouraged.

– Embracing diversity and inclusion: having a diverse and inclusive workforce can bring a variety of perspectives and ideas to the table, which can lead to more creative and innovative solutions.

– Being open to new technologies and digitalization: companies must be willing to embrace new technologies and digitalization in order to stay competitive in today’s market.

– Emphasizing on design thinking: by using design thinking, companies can approach problems from a different perspective and come up with more creative an effective solutions.

– Constantly challenging the status quo and being curious: companies should strive to question the way things are done and look new ways of doing things. Encouraging the employees to be curious and to seek out new information, can lead to many new insights.

– Encouraging a learning and growth mindset: creativity and innovation come from continuous learning, experimentation, and implementation.


– Identify the need or opportunity: to identify a need or opportunity that can be addressed through the development of a new product, service or process. (identifying a gap in the market, a problem that needs to be solved, or a new customer need)

– Gather ideas (brainstorming)

– Evaluate and select ideas: involve assessing the feasibility, potential impact, and return of investment. (also be aware of other departments in the company such a sale department, marketing, administrative, etc)

– Launch and commercialize: once the ideas have been evaluated and selected, the next step is to launch the new product, service or process to the market. (may involve marketing and sales efforts, as well as ongoing product development and improvement.)


– Idea generation: This is the first stage of the innovation process where ideas for new products, services, or improvements to existing ones are generated. This can be done through brainstorming sessions, customer feedback, market research, and other techniques.

– Idea screening: In this stage, the ideas generated in the first stage are screened and evaluated for their feasibility, potential impact, and alignment with the company’s strategy. Only the most promising ideas are selected for further development.

– Concept development: In this stage, the selected ideas are developed into more detailed concepts, including specifications, design, and costs.

– Commercialization: The final stage of the process is commercialization, where the new product or service is launched into the market. This includes product development, testing, marketing, and distribution.

This process is not a one-time event, but rather an ongoing process that is continually repeated to identify and develop new opportunities for growth and differentiation.

It’s important to notice that for effective innovation management, the company should also have a clear and aligned strategy, foster a culture that supports and rewards innovation, have a structured approach for idea generation, and dedicated resources and budget for innovation activities.

4. STRATEGY FOR INNOVATION (the different strategies for innovation)

– Market-driven strategy: This strategy focuses on identifying and meeting the needs of the market by continuously researching and understanding the latest trends and customer preferences.

– Product-driven strategy: This strategy focuses on developing new and improved products to meet the needs of the market. It often involves investing in research and development to create new technologies and products.

– Process-driven strategy: This strategy focuses on improving internal processes and operations to increase efficiency and reduce costs. It can include adopting new technologies, streamlining processes, and implementing lean management techniques.

– Open innovation strategy: This strategy involves actively seeking out external partners and collaborators, such as other companies, universities, and research institutions, to co-create new products, services, or processes.

– Disruptive innovation strategy: This strategy focuses on introducing new products or services that disrupt existing markets by providing a cheaper, simpler, or more convenient alternative.

– Incremental innovation strategy: It refers to making small, continuous improvements to existing products, processes, or services, rather than trying to create something entirely new.

– Radical innovation strategy: It focuses on developing new products, processes or services that are significantly different from existing ones and can change the way an industry operates.

Different companies can choose different strategies depending on their goals, resources, industry, and competitive landscape. Sometimes, a combination of strategies can also be employed. It’s also important to note that innovation strategies should be flexible and adaptable, as the market and industry conditions change over time.


– Joint ventures: Companies can form a joint venture, in which two or more companies work together to create a new business or project. Joint ventures can provide access to new technologies, expertise, and resources.

– Licensing: Companies can enter into a licensing agreement, where one company grants the use of its patents, trademarks, or other intellectual property to another company in exchange for royalties or other consideration.

– Strategic partnerships: Companies can form a strategic partnership, where they work together on specific projects or initiatives to achieve mutual benefits such as increased market share, access to new technologies, or cost savings.

– Co-creation: Companies can engage in co-creation, where they work together with customers, suppliers, or other partners to co-create new products, services, or processes.

– Open Innovation: Companies can also use open innovation platform, such as crowdsourcing, hackathons, or idea competitions to engage with a larger group of external partners, customers or even the public, to generate new ideas and perspectives.

– Mergers and Acquisitions: Companies can also seek to merge with or acquire other companies to access new technologies, markets, or talent.