In business theory, a disruptive innovation is an innovation that creates a new market and value network and eventually displaces established market-leading firms, products, and alliances. The term was defined and first analyzed by Clayton M. Christensen and his collaborators beginning in 1995, and has been called the most influential business idea of the early 21st century. Lingfei Wu, Dashun Wang, and James A. Evans generalized this term to identify disruptive science and technological advances from more than 65 million papers, patents and software products that span the period 1954–2014. Their work was featured as the cover of the February 2019 issue of Nature and was selected as the Altmetric 100 most-discussed work in 2019.
A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. The process of business model construction and modification is also called business model innovation and forms a part of business strategy.
Innovation is the practical implementation of ideas that result in the introduction of new goods or services or improvement in offering goods or services. ISO TC 279 on innovation management proposes in the standards, ISO 56000:2020 to define innovation as "a new or changed entity creating or redistributing value". However, many scholars and governmental organizations have given their own definition of the concept. Some common element in the different definitions is a focus on newness, improvement and spread. It is also often viewed as taking place through the provision of more-effective products, processes, services, technologies, art works or business models that innovators make available to markets, governments and society. Innovation is related to, but not the same as, invention: innovation is more apt to involve the practical implementation of an invention to make a meaningful impact in a market or society, and not all innovations require a new invention.
In business and engineering, new product development (NPD) covers the complete process of bringing a new product to market, renewing an existing product or introducing a product in a new market. A central aspect of NPD is product design, along with various business considerations. New product development is described broadly as the transformation of a market opportunity into a product available for sale. The products developed by an organisation provide the means for it to generate income. For many technology-intensive firms their approach is based on exploiting technological innovation in a rapidly changing market.
Research and development, known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products and improving existing ones. Research and development constitutes the first stage of development of a potential new service or the production process.
A science park is defined as being a property-based development that accommodates and fosters the growth of tenant firms and that is affiliated with a university based on proximity, ownership, and/or governance. This is so that knowledge can be shared, innovation promoted, and research outcomes progressed to viable commercial products. Science parks are also often perceived as contributing to national economic development, stimulating the formation of new high-technology firms, attracting foreign investment and promoting exports.
A prosumer is an individual who both consumes and produces. The term is a portmanteau of the words producer and consumer. Research has identified six types of prosumers: DIY prosumers, self-service prosumers, customizing prosumers, collaborative prosumers, monetised prosumers, and economic prosumers.
User innovation refers to innovation by intermediate users or consumer users, rather than by suppliers. This is a concept closely aligned to co-design and co-creation, and has been proven to result in more innovative solutions than traditional consultation methodologies.
Open innovation is a term used to promote an information age mindset toward innovation that runs counter to the secrecy and silo mentality of traditional corporate research labs. The benefits and driving forces behind increased openness have been noted and discussed as far back as the 1960s, especially as it pertains to interfirm cooperation in R&D. Use of the term 'open innovation' in reference to the increasing embrace of external cooperation in a complex world has been promoted in particular by Henry Chesbrough, adjunct professor and faculty director of the Center for Open Innovation of the Haas School of Business at the University of California, and Maire Tecnimont Chair of Open Innovation at Luiss.
Henry William Chesbrough is an American organizational theorist, adjunct professor and the faculty director of the Garwood Center for Corporate Innovation at the Haas School of Business at the University of California, Berkeley and Maire Tecnimont Chair of Open Innovation at Luiss. He is known for coining the term open innovation.
A service network is a structure that brings together several entities to deliver a particular service. For instance, one organisation may sub-contract another organisation to deliver after-sales services to a third party. The buyer may use more than one supplier. Likewise, the supplier may participate in other networks. The rationale for a service network is that each organisation is focusing on what they do best.
Innovation management is a combination of the management of innovation processes, and change management. It refers to product, business process, marketing and organizational innovation. Innovation management is the subject of ISO 56000 series standards being developed by ISO TC 279.
The InnovationXchange, also known as IXC UK, is a Birmingham, UK-based open innovation services provider, whose purpose is to identify and create collaborative business, research and policy opportunities.
The idea of technology brokering is to span multiple, otherwise disconnected industries, to see how existing technologies could be used to create breakthrough innovations in other markets. Technology brokering requires companies to be strong in two areas. As Andrew Hargadon, technology brokering's founder, summarized: "Firstly, the company must have the ability to bridge distant communities, usually when a company can move easily across a range of different markets they have a better view of how technologies can be used in new ways. Secondly, technology brokering involves creating new markets and industries from innovative combinations of existing technology. These two strengths are difficult to have simultaneously because the strong ties the companies have with customers and supplies in one industry prevent the company from moving easily into other markets and experimenting with new ideas." Yet, when a company is able to combine these two strengths it can result in being the first to experience technological advances.
An innovation competition is a method or process of the industrial process, product or business development. It is a form of social engineering, which focuses to the creation and elaboration of the best and sustainable ideas, coming from the best innovators.
Lean startup is a methodology for developing businesses and products that aims to shorten product development cycles and rapidly discover if a proposed business model is viable; this is achieved by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and validated learning. Lean startup emphasizes customer feedback over intuition and flexibility over planning. This methodology enables recovery from failures more often than traditional ways of product development.
A living lab, or living laboratory, is a research concept, which may be defined as a user-centered, iterative, open-innovation ecosystem, often operating in a territorial context, integrating concurrent research and innovation processes within a public-private-people partnership.
Innovation Intermediaries is a concept in innovation studies to help understand the role of firms, agencies and individuals that facilitate innovation by providing the bridging, brokering, knowledge transfer necessary to bring together the range of different organisations and knowledge needed to create successful innovation. The term open innovation intermediaries was used for this concept by Henry Chesbrough in his 2006 book as "companies that help other companies implement various facets of open innovation".
Communities that support innovation have been referred to as communities of innovation (CoI), communities for innovation, innovation communities, open innovation communities, and communities of creation.
Vertical innovation is an innovation on the quality of the goods; it consists to improve the quality of items by innovation permitting to those items to access to the highest quality available on the economy. In the literature of growth it is opposed to "horizontal innovation" which in turn refers to product innovation mean the introduction of new items in the economy. 'vertical integration' and 'open innovation'. The term vertical integration describes a style of business management control, and is typified by one firm engaged in different multiple parts of a production process. Open innovation is a term promoted by Henry Chesbrough, a professor and executive director at the Center for Open Innovation at the University of California, Berkeley. "Open innovation is a paradigm that assumes that firms can and should use external ideas as well as internal ideas, and internal and external paths to market, as the firms look to advance their technology."
