According to Scott Anthony, MD, Innosight, innovation is very simple to define. It is something that has impact. innovation is different from invention. It is not just the creation of something new. It is the application of something new.
Innovation has three requirements :-
- Inspiration or insight : There is an opportunity to do something different.
- Idea or plan to capitalise : There must be an idea or plan to capitalise on that insight.
- Turning plan into a real product/service : The plan is on paper. It must be converted into a real product/service or business.
Godrej had an inspiration some years ago. They wanted to reach 90 per cent of Indian homes which do not have refrigerators. It developed a plan to create low-cost, top-loading refrigerator. It launched the product called chotukool in 2009.
According to Scott Anthony, MD, Innosight, large organisations like IBM, Apple and the Tata Group could take advantage of ‘sustaining innovation‘ by making what exists somewhat better. Sony can improve its TVs by intoducing HD and 3D TVs. Large companies find it difficult to introduce disruptive innovations — innovations that transform existing markets or create new ones. Sony missed the bus when Apple introduced iPod in the music industry.