In the twenty-first century there has been much talk about innovation. Innovation is an overall term that encompasses many activities. Some of the most important ones are new product and services, new processes, new modes of distribution, new ways of using technology, new approaches to problem solving, and others. Within these broad categories innovation can be distinguished by types. Some types are:
Capture of Value. Capture of value refers to the process of getting something for nothing or recouping investment through some kind of fee. Examples include toll roads, intellectual property rights, water rights, patents, and others. ISO 2021 on innovation management proposes six classifications of capture of value: true innovation, de-risking, incubators, and hybrid systems, where the true innovation is risky, but may create value.
Capture and Value Chain. The value chain describes a process where the creation of innovation occurs and the realization of its benefits occurs. An organization can create new value chains via new innovation processes, new ways of innovating, or by recouping costs or expenses. These methods can be partial or total. ISO 2021 on innovation management suggests seven classifications of capturing value chain for innovation: creating value, disbursing value, transferring value, providing services or products, and providing the technology.
Technology Transfer and Technology Transfer-ability. This refers to the entire process of transformation of an entity to a new or altered form. In some cases, the process can include initiation of transformation, modification, operation, assessment and control. It is a critical area for senior management to identify the key drivers of innovation and the key forms of transformation for enterprise-wide value chains.
Define Innovation. A definition of innovation is important because it captures the essence of what innovations are, their definition, and how they can benefit society. The focus of this part of the strategy is to determine which new ideas can be developed, promoted, and scaled up, where they can be tested, and which of them will become true innovations. Defining innovation enables companies to set the vision, develop plans to achieve them, monitor progress and make changes as appropriate if any along the way.
Capture and Value Chain. The key to capturing innovation in a company lies in identifying the forms of innovation and their drivers and then developing plans to capture and transform them. The focus is on new ideas that create new value, on plans that create new value, on evaluation of those plans, and on control of that transformation. When companies correctly define innovation, they can create new opportunities and solve problems by appropriately capturing and transforming innovation in their organization.