UNDERSTANDING INNOVATION
exploitation of ideas that meet unmet needs (Bacon & Butler, 1998). This
definition fits in very well with many high-profile examples of innovation,
such as the invention of the transistor used in computers or radiofrequency
identity (RFID) tags used on ID cards. However, it also masks
the millions of innovations that are often much smaller in scale, do not
involve an invention, or are not necessarily exploited in the same commercial
sense. Not included in this definition are innovations such as
changing customer expectations regarding the purchase of airline tickets
or dramatically improving waiting times at accident and emergency
departments through improvements in patient screening. This alternative
definition also has a strong technology focus because many inventions are
technology based. Replacing the term invention with creativity makes the
definition more applicable to organizations not actively engaged in product
innovation. Therefore, a more encompassing restating of this alternative
definition might be this one:
Innovation = Creativity + Exploitation
EXAMPLE: In 1923, John Logie Baird invented the television. Before its
existence there had been no desire for it, but once the invention happened
it established something new that never existed before. The exploitation of
this invention was not instantaneous; it took decades for the TV to invade
the domestic market. Broadcasting and production companies had to be set
up to provide the necessary content for viewing. In hindsight, although the
television did take time to exploit, it became an innovation that not only
changed how we entertain ourselves but also influenced the way we live.
The new flat-screen television, on the other hand, is an innovation that has
been more direct in its exploitation. It meets existing customer demand
for slimmer large-screen television sets. This came about because smallapartment
living could not accommodate the traditional cathode ray tube
(CRT) TVs. The desire for large-screen TVs led to the development of
plasma and liquid crystal display televisions. The innovation has been so
successful that it has resulted in a disruption in the industry, with CRTbased
TVs becoming obsolete. When Philips invented the interactive TV in
the 1980s, some analysts viewed it as another innovation by a company
renowned for its innovation processes. They argued that it could destroy
the traditional CRT television market. However, customers found the
interactive TV too expensive and too cumbersome to use, and it failed to
make the transition from being an invention to an innovation.
INNOVATION AND CHANGE
Although we view innovation as resulting in change, it is incorrect to
equate innovation with all forms of change. In order for change to qualify