Invention describes the creation of unique or novel devices, methods, processes, or compositions. It predominantly occurs as part of product development or engineering. Innovation is the act of improving an existing product, service, process, or business model by introducing new concepts or ideas. The key point to remember about innovation is that these concepts or ideas increase value, deliver better products, and fulfill customer needs.
Aspect
Innovation
Invention
Definition
Innovation refers to the process of introducing new ideas, methods, products, or services that create value or improve existing ones. It encompasses the practical application and commercialization of novel concepts.
Invention is the act or process of coming up with a new idea, discovery, or creation, often resulting in the development of a new product, technology, or method. It is the initial stage of bringing something new into existence.
Focus
Innovation focuses on the implementation and practical use of new ideas or inventions to address real-world problems or meet market demands. It emphasizes the application of creativity and the delivery of value.
Invention primarily focuses on conceiving and generating novel concepts, ideas, or prototypes. It is centered on the creation of something entirely new or a breakthrough in thinking.
Outcomes
The outcomes of innovation include new products, services, processes, business models, or improvements to existing ones. Innovations are driven by the desire to meet specific needs or solve particular problems.
The outcomes of invention are new concepts, ideas, designs, or prototypes. Inventions may not necessarily lead to practical applications or marketable products until they are further developed and implemented.
Process
The innovation process involves identifying opportunities, generating ideas, prototyping, testing, refining, and ultimately implementing new solutions. It often requires collaboration and market validation.
The invention process centers on the conceptualization and creation of something new. It may involve research, experimentation, and creative thinking to generate breakthrough ideas.
Iterative vs. Singular
Innovation is often an iterative and ongoing process that involves continuous improvement and adaptation. It can involve incremental changes or radical breakthroughs.
Invention is a singular act or moment when a new idea or creation is born. It represents the initial spark of creativity that leads to the generation of something entirely new.
Examples
– The development of the iPhone by Apple, which combined existing technologies into a revolutionary product. – The introduction of ride-sharing services like Uber, which transformed the transportation industry. – The implementation of lean manufacturing principles by Toyota to improve production efficiency.
– The invention of the light bulb by Thomas Edison, which revolutionized lighting. – The creation of the World Wide Web by Tim Berners-Lee, enabling global information sharing. – The discovery of penicillin by Alexander Fleming, revolutionizing medicine.
Timing and Impact
Innovations can have immediate or delayed impact, depending on factors like market readiness, adoption rates, and the nature of the innovation. They are often assessed based on their impact on society, industries, or businesses.
Inventions are significant primarily when they are first conceived or created. Their impact may not be realized until they are further developed, refined, and integrated into practical applications.
Market Orientation
Innovations are typically driven by market needs, customer feedback, and the identification of opportunities to create value. They aim to solve real problems or fulfill specific demands.
Inventions are often motivated by intellectual curiosity, scientific exploration, or the desire to explore the unknown. They may not initially consider market feasibility or practical applications.
Risk and Uncertainty
The innovation process involves managing risks and uncertainties related to market acceptance, competition, and changing customer preferences. It often requires adaptability and responsiveness.
The invention process is characterized by uncertainties related to the feasibility, viability, and market potential of the newly created concept. There may be less emphasis on immediate commercialization.
Collaboration and Teams
Innovations often require collaboration among cross-functional teams, including designers, engineers, marketers, and business strategists, to bring ideas to fruition.
Inventions may involve individual inventors or small research teams focused on groundbreaking discoveries. Collaboration can still be important in refining inventions for practical use.
Commercialization
Innovation is closely associated with the commercialization of ideas, resulting in products or services that are brought to the market to create economic value.
Invention may not necessarily lead to immediate commercialization. Additional development, refinement, or investment is often required to bring inventions to market.
Sustainability and Adaptation
Innovations often require ongoing efforts to sustain their relevance and adapt to changing market conditions. They may evolve over time to meet new customer demands or market dynamics.
Inventions may require adaptation and development to become sustainable innovations. They may need to undergo further refinement and market-oriented transformations.
Examples of Benefits
– The introduction of smartphones, which combined multiple functions, such as communication, computing, and entertainment, into a single device. – The development of renewable energy technologies to address environmental challenges. – The implementation of data analytics in healthcare to improve patient outcomes.
– The invention of the telephone by Alexander Graham Bell, a transformative communication device. – The discovery of the polio vaccine by Jonas Salk, revolutionizing public health. – The creation of the internet, which transformed communication and information sharing globally.
Understanding the difference between innovation and invention
Inventions are scientific ideas that are transformed into tangible objects via research and experimentation. Note that inventions may be new products or improvements to existing products.
Provided it is novel, non-obvious, and has value, the invention can also be patented to provide security to the inventor.
Like invention, innovation can also encompass the introduction or development of a new product, service, process, or business model.
But in any case, the focus of innovation is the delivery of an in-demand product that also satisfies market requirements.
The terms “invention” and “innovation” are used interchangeably, but as can be deduced from the above, there do exist some subtle differences between the two terms:
Invention involves idea formulation and in some cases, how it works from a theoretical perspective. Innovation is about the practical implementation of an idea.
Invention requires a scientific skillset, while innovation requires a much broader mix of technical, marketing, and strategic experience.
Inventions occur when a scientist is struck by a new idea. Innovations occur when a company recognizes a customer or market need for a new or improved product.
In organizations, invention is usually restricted to the research and development unit. Innovation is more pervasive, forming part of the organization’s culture, mission, vision, and even values.
Invention is more concerned with product creation, while innovation is more concerned with how the product will be something that sells. In other words, it focuses on the benefits of the product to consumers.
Examples of innovation vs. invention
Microprocessors
The microprocessor was invented by Italian engineer Federico Faggin and a team of colleagues. When it was invented in 1974, however, it was just another component on a circuit board.
How the microprocessor has been used and adapted in the last half century can be described as innovation.
Products include the earliest desktop calculators and word processors, but today, microprocessors are present in cell phones, kitchen appliances, security systems, and automobile emission control, among many others.
Transistors
John Bardeen, Walter Brattain, and William Shockley invented the first working transistor whilst at Bell Labs in 1947.
Six years later, a small Japanese company known as Sony obtained a license to manufacture the first transistor radio.
Years after that, IBM used the same technology to develop small but powerful computers.
This innovation signaled the end of computer systems based on relays or electron tubes and paved the way for the computers we recognize today.
Key takeaways
Invention describes the creation of unique or novel devices, methods, processes, or compositions. It predominantly occurs as part of product development or engineering.
Innovation is the act of improving an existing product, service, process, or business model by introducing new concepts or ideas. However, in some cases, it can also involve new products or services to cater to consumer needs.
Two examples of inventions are the microprocessor and transistor. The numerous products they have spawned since they were invented are otherwise known as innovations.
Similarities between Innovation and Invention:
Creation of Something New: Both innovation and invention involve the creation of something new, whether it’s a product, service, process, or business model.
Improvement: They both aim to improve and advance existing solutions or create novel ones to address specific needs or challenges.
Value Creation: Both innovation and invention focus on delivering value to customers or users, either through new offerings or enhancements to existing ones.
Ideation: Both processes require creative thinking and ideation to come up with new ideas and concepts.
Differences between Innovation and Invention:
Nature of Output:
Invention results in the creation of unique devices, methods, processes, or compositions, which may or may not be novel.
Innovation focuses on improving existing products, services, processes, or business models, introducing new concepts or ideas to enhance their value and fulfill customer needs.
Theoretical vs. Practical:
Invention involves the formulation of ideas and concepts, often in a theoretical or scientific context.
Innovation is about the practical implementation of ideas to create tangible solutions that meet market requirements.
Skillset:
Invention requires a scientific skillset, often driven by researchers and scientists who come up with new ideas and theories.
Innovation requires a broader mix of technical, marketing, and strategic experience to develop and bring new ideas to the market successfully.
Origin of Ideas:
Inventions often arise when a scientist or researcher is struck by a new idea or discovery.
Innovations, on the other hand, occur when a company identifies a customer or market need for a new or improved product and develops a solution to address it.
Scope and Culture:
In organizations, invention is usually confined to the research and development unit, with a narrower scope.
Innovation is more pervasive, forming part of the organization’s culture, mission, vision, and values, and can involve various departments and functions.
Focus:
Invention is more concerned with the technical aspects of product creation and formulation.
Innovation focuses on the practical benefits and how the product or solution can fulfill customer needs and create value.
Examples:
Examples of inventions include the microprocessor and transistor, which were groundbreaking technologies created by specific inventors.
The numerous products and advancements that have evolved from these inventions over time are considered innovations as they cater to diverse market needs and applications.
Invention Examples:
Light Bulb: While the concept of a light source from electricity had been around, Thomas Edison is credited with inventing a commercially viable version in the late 19th century.
Telephone: Alexander Graham Bell invented the first practical telephone, which transformed communication.
Airplane: The Wright brothers, Orville and Wilbur, invented and flew the first airplane, marking the dawn of aviation.
Penicillin: Discovered by Alexander Fleming, it was the first true antibiotic and revolutionized medicine.
Printing Press: Invented by Johannes Gutenberg in the 15th century, it revolutionized the distribution of information.
Integrated Circuit: Jack Kilby and Robert Noyce are credited with the invention of the integrated circuit, a foundation of modern electronics.
DNA Double Helix Structure: James Watson and Francis Crick unveiled the structure of DNA, leading to massive advancements in genetics.
Innovation Examples:
Smartphones: While mobile phones (an invention) had been around for a while, smartphones integrated multiple features (internet browsing, cameras, apps) into a single device.
Streaming Services: Netflix began as a DVD rental service but innovated to offer streaming, changing how we consume media.
E-commerce: Companies like Amazon took the concept of a marketplace and brought it online, offering a new way to shop.
Ride-Sharing: Uber and Lyft didn’t invent car transportation but innovated the model using technology to connect drivers with riders.
Digital Cameras in Phones: While cameras and phones existed separately, integrating a camera into a mobile phone was an innovation.
Online Learning Platforms: While education is ancient, platforms like Coursera and Khan Academy have innovated the delivery of education through online means.
Electric Cars: While automobiles have been around for over a century, companies like Tesla have innovated by pushing the boundaries of electric vehicles, making them more mainstream.
Contactless Payments: Credit cards were an existing mode of payment, but innovations like Apple Pay and Google Wallet introduced the concept of contactless payments using smartphones.
Key Highlights:
Core Concepts:
Invention: The act of creating novel devices, methods, or processes. It’s more about the idea or concept.
Innovation: The enhancement or improvement of existing products, services, or processes, focusing on practical application and market needs.
Nature & Focus:
Invention: More theoretical, often resulting from scientific research and discovery.
Innovation: More practical, aiming at fulfilling specific market or customer needs.
Examples:
Microprocessors: Invented as a component on a circuit board, but its adaptation in various products over decades represents innovation.
Transistors: First working transistor was an invention by scientists at Bell Labs. Its later applications in radios by Sony and in computing by IBM are instances of innovation.
Origins:
Invention: Often arises from scientific research.
Innovation: Emerges from identifying market or customer needs and developing solutions.
Skillset:
Invention: Requires a scientific or research-oriented skillset.
Innovation: Involves a mix of technical, marketing, and strategic skills.
Organizational Role:
Invention: Typically restricted to the research and development units in organizations.
Innovation: Embedded in an organization’s culture, involving various departments.
Similarities:
Both involve the creation or improvement of products or processes.
Both aim to deliver value.
Both require ideation and creative thinking.
Differences:
Scope: Invention is often narrower, while innovation has a broader scope in an organizational context.
Origin: Inventions come from new discoveries, while innovations come from identifying needs.
Focus: Invention is about creating, while innovation is about improving and delivering.
Business model innovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.
In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.
Technological modeling is a discipline to provide the basis for companies to sustain innovation, thus developing incremental products. While also looking at breakthrough innovative products that can pave the way for long-term success. In a sort of Barbell Strategy, technological modeling suggests having a two-sided approach, on the one hand, to keep sustaining continuous innovation as a core part of the business model. On the other hand, it places bets on future developments that have the potential to break through and take a leap forward.
Sociologist E.M Rogers developed the Diffusion of Innovation Theory in 1962 with the premise that with enough time, tech products are adopted by wider society as a whole. People adopting those technologies are divided according to their psychologic profiles in five groups: innovators, early adopters, early majority, late majority, and laggards.
In the TED talk entitled “creative problem-solving in the face of extreme limits” Navi Radjou defined frugal innovation as “the ability to create more economic and social value using fewer resources. Frugal innovation is not about making do; it’s about making things better.” Indian people call it Jugaad, a Hindi word that means finding inexpensive solutions based on existing scarce resources to solve problems smartly.
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.
In the FourWeekMBA growth matrix, you can apply growth for existing customers by tackling the same problems (gain mode). Or by tackling existing problems, for new customers (expand mode). Or by tackling new problems for existing customers (extend mode). Or perhaps by tackling whole new problems for new customers (reinvent mode).
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
