Completed notes of the course

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1 What is innovation? Innovation is the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations. It is important to underline the difference between innovation and invention, while innovations is an improvement in tools or service, invention is the act of process of inventing, which means producing for the first time through the use of the imagination or of ingenious thinking and experiment. The invention process is a process within an overall engineering and product development process. Innovation has three basic characteristics: 1) Novelty: This concept is subjective because it depends on the observer (there can be something new to the market or new to the producer). An example of subjectivisms can be in Coca-Cola: In 1958 a small company launched the first cola diet in the world (name of the brand was diet rite), it was something new to the market but it was not able to maintain its business. Another firm launched the diet-co (by Pepsi-Co) and was launched againfew years later by Coca-Cola with the name of Coca-Cola light. The first firm had a tragic end but the cola light was the best product for the third company. Another element of novelty is the intensity: there can be different degrees of intensity. The degree of novelty does not determine the value of innovation, because it is not correlated to the value. 2) Value: There are two kinds of value: -> Value for the user: It comes from an improvement in performance. There is a useful part that is the extent to which a good or service is perceived by its customer to meet his or her needs or wants, measured by customer’s willingness to pay for it. It commonly…