2. WHAT IS INNOVATION……
• INNOVATION IS THE IMPLEMENTATION OF NEW OR SIGNIFICANT
IMPROVED PRODUCT OR PROCESS.
• NEW PRODUCTS, BUSINESS PROCESSES AND ORGANIC CHANGES
THAT CREATE WEALTH OR SOCIAL WELFARE.
• FRESH THINKING THAT CREATES VALUE
• APPLICATION OF KNOWLEDGE IN A NOVEL WAY, PRIMARILY FOR
ECONOMIC BENEFIT

3. WHAT IS INNOVATION…..
INNOVATION IS
SIMPLY “THINKING
OUT OF THE BOX
AND
IMPLEMENTING IT”

4. EXAMPLE…..

5. MISCONCEPTIONS……
1. CREATIVITY
2. INVENTION.
• Every invention is innovation but every
innovation is not invention
• Invention is conversion of cash into ideas.
Innovation is conversion of ideas into cash
• Creativity is thinking new things innovation is
doing new things.
• People are creative. Products or processes are
innovative

6. TYPES OF INNOVATION…..
Product Innovation
Process Innovation
Marketing Innovation

7. PRODUCT INNOVATION…
• INTRODUCTION OF A GOOD OR SERVICE THAT IS NEW OR
SIGNIFICANTLY IMPROVED WITH RESPECT TO ITS CHARACTERISTICS.
• NEW PRODUCTS: DIFFERENT CHARACTERISTICS FROM PREVIOUS
PRODUCTS
• SIGNIFICANT IMPROVEMENTS: CHANGES IN MATERIALS,
COMPONENTS, AND OTHER CHARACTERISTICS THAT ENHANCE
PERFORMANCE.

8. PROCESS INNOVATION….
•IMPLEMENTATION OF A NEW OR SIGNIFICANTLY
IMPROVED PRODUCTION OR DELIVERY METHOD
(CHANGES IN TECHNIQUES, EQUIPMENT AND/OR
SOFTWARE)
•INTEND TO : DECREASE UNIT COST OF PRODUCTION OR
DELIVERY INCREASE QUALITY OR PRODUCE OR DELIVER
NEW OR SIGNIFICANTLY IMPROVED PRODUCTS

9. MARKETING INNOVATION…
• IMPLEMENTATION OF A NEW MARKETING METHOD INVOLVING
SIGNIFICANT CHANGES IN PRODUCT DESIGN OR PACKAGING,
PRODUCT PLACEMENT, PRODUCT PROMOTION OR PRICING
• BETTER ADDRESSING CUSTOMER NEEDS, OPENING UP NEW
MARKETS, OR NEWLY POSITIONING A FIRM’S PRODUCT ON THE
MARKET  INCREASING FIRM’S SALE.
• EXAMPLE: PRODUCT DESIGN OR PACKAGING, PRODUCT PROMOTION
ETC.