Environment and innovation

by: Rand qatawneh .

• What is Innovation?
Innovation is the process of taking a new idea and putting it
into practice .

• Types of Innovation :
• Product innovation : result in new or improved goods or services.
• for example : an improvement of the performance of the existing product ,
such as an increase in the digital camera resolution of the iPhone 7, or a new
feature to an existing product, such as power windows to a car
• process innovation : which result in better ways of doing things.
• for example: Henry Ford’s invention of the world’s first moving assembly line.
This process change not only simplified vehicle assembly but shortened the
time necessary to produce a single vehicle from 12 hours to 90 minutes.
• Business model innovation : result in new ways of making money for the firm.
• for example : Uber takes a 5-20% commission on all the rides made through its
service. Since all payments are done automatically through the app, Uber ensures
to capture a part of the transaction.

• Social business innovation : which result in finding ways to use

business models to address important social problems.
• for example : to open a bakery/restaurant or another food-providing
establishment that focuses on building employment skills for underemployed
groups, such as at-risk youth or former drug addicts. The profit from sales of
food and beverage go to wages, training, and social betterment programs for
the staff-beneficiaries, for example (Edgar and Joe’s café) in London.
Innovation process:
The five steps in this process are as follows:
 Imagining : thinking about new possibilities.
 Designing :building initial models, prototypes, or samples.
 Experimenting :examining practicality and financial value through experiments
and feasibility studies.
 Assessing : identifying strengths and weaknesses, potential costs and benefits,
and potential markets or applications.
 Scaling : implementing what has been learned and commercializing new
products or services.
One of the newer developments in the innovation process is Reverse
innovation, which recognizes the potential for valuable innovations to
be launched from lower organizational levels and diverse locations,
including emerging (coming into being) markets.

For example :Tata Nano, a low budget car introduced in India ,costing
2000$ is all set to lunch it’s new version in the European markets, the
car has sold in Europe and has modified according to the taste and
preference of the users in Europe and has been sold at a higher price
Disruptive innovation : creates products/services that become so
widely used that they largely replace prior practices and
competitors.
For example : type Machine, land telefon Line, pocket calculater.

Pocket calculater :
traditional pereformance : worse computing performance.
New performance : portable
over time the, the computing performance of these smaller simpler
calculators was improved, as the became cheaper and cheaper and
were sold in larger volumes, sales offices lost their value, and
calculators started to be sold in bookstores and larg stors.
Thank you .