Innovation Management-An Integrated Approach To Business Modelling

Abstract

The present study gives a detailed account of distinction between invention and innovation, and analyses how an invention can turn into innovation, and lead to development of a new innovative product for a business organization which can generate revenues, incomes and employment. While invention is about something new, innovation refers to the use of an idea for developing a new product, or service. Although invention generates new ideas, prototypes and even patents, it is the innovation which turns the ideas into commercial products, to meet the consumer needs in a market place -be it from industry or general public. The paper also discusses the role of knowledge base in creating possibilities for developing new products besides highlighting the innovation based a few global companies for dominating the worldwide markets. These innovation based companies, or multinational corporations generate revenues for themselves and contribute to GDP growth of the respective countries they operate in. Further, major types of innovation are discussed, including product innovation, process innovation, positional innovation, and paradigm innovation. In the end, the role of innovation in manufacturing is discussed and covers the various functional areas of operations. The re-structuring of supply chain of automobiles manufacturers is highlighted.