Innovation
Innovation vs. Invention – What's the Difference?
- An invention is a completely new idea or product.
- An innovation is when that invention is improved or used in a way that makes it practical and popular.
- The iPhone wasn’t a brand-new invention—touchscreens, smartphones, and mobile apps already existed.
- But Apple combined them in a way that changed the market.
- That’s innovation.
- If you created a completely new type of battery that lasts 10 years, that would be an invention.
- If a company figured out how to make it cheap and put it in phones, that would be innovation.
Types of Innovation
Sustaining Innovation (Small, Continuous Improvements)
This is when companies keep improving a product to stay competitive.
Example- Smartphones – Every year, phone cameras, battery life, and processors get better.
- Video game consoles – PlayStation and Xbox improve graphics and performance over time.
- Cars – Newer models get better gas mileage, new safety features, and smarter technology.
How companies do this:
- Adding new features (like facial recognition in phones).
- Making things cheaper (like Tesla cutting battery costs).
- Expanding product options (like Apple offering different iPhone sizes).
Disruptive Innovation (Changes the Entire Industry)
- This is when a product or service is so new and different that it forces existing companies to change—or fail.
- Companies that don’t adapt to these disruptions often struggle or go out of business (like Blockbuster when Netflix took over).
- Streaming (Netflix, YouTube, Spotify) replaced DVDs and CDs.
- Uber & Lyft disrupted the taxi industry.
- 3D printing is changing manufacturing, allowing people to print objects at home.
Process Innovation (Changing How Things Are Made or Sold)
- This isn’t about new products but about improving how they are built or delivered.
- Process innovation helps companies save money and improve efficiency.
- Henry Ford’s assembly line made cars faster and cheaper to produce.
- Tesla’s advanced factories use robots to build electric cars more efficiently.
- IKEA’s flat-pack furniture makes shipping cheaper and easier for customers.
Innovation Strategies
Architectural vs. Modular Innovation
- Architectural Innovation – Changing how existing parts work together.
- Example:
- Early bicycles didn’t have a chain.
- Once chains were added, pedaling became much easier.
- Example:
- Modular Innovation – Changing just one part of a product while keeping the rest the same.
