On Innovation: What it is, what it is not? Terminology and Classification

The more I teach about innovation in different classes and the more I talk about it in professional settings; the more I feel that there might be confusion about what Innovation is and what it is not. Also lots of confusion around forms, types, scales, phases of Innovation. So I prepared the following quick summary based on theoretical perspective. Of course things are evolving very fast and some things might intervene and change; but that is the beauty of Innovation, isn’t it? 

Creativity is not equal to invention which is not equal to innovation

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Is it an Innovation? If the answer to any of these questions is “no”; then the idea cannot be considered a business innovation, regardless how novel the idea is.

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8 Forms of Innovation

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4 Types of Innovation

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3 Scales of Innovation

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3 Phases of Innovation

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3 Horizons of Innovation

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The purpose of any business is to create value. The higher net value is what businesses can monetize in the marketplace. Remember what Peter Drucker had said: "Marketing and innovation produce results; all the rest are costs." It is innovation which creates the value proposition that markets wish to buy. So whether at individual level or organizational level, we need to innovate. I hope the summary above clarifies some of the confusion with what it is and what it is not and what the types are.