Psychology Doctor Guidance Innovation : On the practical application of innovative ideas and value creation… and why the 21st century is the century of innovation
Innovation is not just creating something completely new, but creating a product that will be of value, especially commercial, economic, practical or social value. So creativity when associated with value and effort is innovation and innovative products that are “beneficial to others”.
Innovation can lead to enterprise and commercialization because innovative products are commercially viable. Invention is the creation of something new, while innovation is the creation of a product or service that is valuable and useful to consumers.
New and innovative products are sometimes radical and revolutionary, although there are additional innovations that improve existing systems or products. Innovation helps in the creation of commercial, practical or social value by implementing new ideas.
Innovation is an applied invention and helps to create new products to meet the unmet needs of users in the market. An invention is a new product but can be a valuable solution to a problem and it is only by being commercially, socially or practically valuable that an invention turns into an innovation.
This discussion is based on the psychological basis of innovation and although innovation will be associated with creativity, creativity is human nature and innovation is ‘what you do’. Thus, innovation is a form of action that requires creativity, effort and radical thinking.
So innovation that is focused on product creation is action-oriented while creativity is thought-oriented. Companies are needed to turn creative ideas into innovative products that will have significant value in the short or long term. The psychological process of turning an idea into an innovation goes beyond the creative process and involves practical planning in designing and marketing a product to make it commercially viable.
Innovation involves the stages of brainstorming creative ideas, problem solving, processing or development to come up with something radical and different and then developing a business model to help meet the needs of the market and users. Creativity as a thought process is the first step of innovation. Innovation usually involves new ideas, methods, or products and the art, technology, or business of introducing something new.
When ideas are translated into innovation, value is created and this shapes the potential of the business. Innovation is the creation of products with inherent value and this is done by considering what products will be of value to users or will succeed in the market.
It can be said that creativity is also responsible for the creation of products that have aesthetic or artistic value. It is true, but the value created by innovation may be more objective, because innovation creates economic, commercial, and social value.
The psychological process in innovation differs from creativity in that the action-oriented nature of innovation must be directed towards meeting user or market or product needs. In creativity, it seems that the only goal is the creation of a product, although creative products such as books can also be directed to the market. Innovation is specifically focused on meeting user needs, action-oriented, so that it is based on practical applications or goals.
Whereas thinking-oriented creativity primarily meets the needs of creative artists and is internally directed, innovation is about the world and meets the needs of users and markets and is thus externally directed. Creativity also does not involve a focus on commercialization whereas innovation is about developing the commercial value of a product.
Creativity is the basis of art, architecture, poetry and any artistic or scientific activity. Innovation is an invention with added value, based on action and thus more practical in its application and tangible in its use. Creativity and creative products are more abstract and less obvious or tangible as far as their application is concerned.
The only application of creativity seems to be aesthetic pleasure and creativity is the basis of the aesthetic value of any product, including innovative products. When creativity helps create a product that is significantly useful to the market, it evolves into an innovation.
So creativity is the basis of all innovation, but creativity is not based on innovation. Creativity is the first step towards innovation and innovation is focused on delivering an outstanding product or service to the value chain. In innovation, added value for users and developers.
The different components of innovation are creativity, radical thinking, business model, user needs, market, design, and practical application. Each new product must be well planned in terms of design and application and the business model guides innovation for market launch and profitability.
So the ultimate goal of creativity is to provide aesthetic pleasure to users or recipients and the ultimate goal of innovation is to meet user needs and gain profits through commercialization.
Innovation can be about radical new products or incremental improvements, so innovation is about improvement whereas creativity is focused on originality. But the most original products are also considered the most innovative. For example, Apple Inc.’s iPhone and iPad designs. including the most original and that’s why the most innovative.
So originality is a common factor in creativity and innovation and is the basis of self-expression in creativity and the basis of business models in innovation.
Innovation is often about drastically revolutionizing what already exists. The most innovative products bring about a paradigm shift in technology, or other markets and sometimes ‘create’ a market need, rather than simply following or meeting a need. Apple succeeded in creating a market need for new technologies and new designs by integrating user expectations.
Thus, innovation does not only meet market needs but can create new market needs and change market dynamics. Innovation is a commercial and business process, while creativity is more of a personal process and creativity itself cannot change the market, whereas innovation can change market dynamics significantly and can even change the world.
Innovation is about the evolution and progress of an industry, whereas creativity is more about the evolution and progress of the creator’s mind.
Innovation is needed in technology and in every industry to keep the pace of progress of human civilization. Innovation is usually preceded by discovery, whereas creativity is preceded by incubation and organization of thought processes. Innovation is capable of revolutionizing any market, any industry and setting the direction for future technologies and products.
Let’s talk about search engine technology by Google. It was an innovative technology that made a huge profit for Google and thus went from being a mere technological invention to an innovation. So the success of an invention defines an innovation.
Innovation is used not only in technology but in architecture, automotive industry, engineering and in all other fields and the main goal of innovation is progress as well as profitability by meeting or creating the needs of the market and users.
The most successful companies thrive on innovation and cannot survive in the market without innovation. Today’s market is an innovative market and the focus is on competition in innovation.
Whether Samsung and Apple compete for the most innovative products on the market or two lesser-known advertising companies compete for the most innovative advertising campaigns, innovation is the pulse of modern business. Even in the 20th century, innovation was not as important and the focus of business was on growth, strategy and advertising with an emphasis on product quality.
Quality management is what drives 20th century business. This has changed significantly as businesses have now realized that to reach the top and become a strong force in the market, quality and strategy alone are not enough. The 21st century will truly be the century of innovation.