Definitions

What is Innovation? (ISO)

4.1.1

Innovation - new or changed entity (4.2.1); realizing or redistributing value (4.2.6)

Note 1 to entry: Novelty and value are relative to, and determined by the perception of, the organization (4.2.2)

and interested parties (4.2.4).

Note 2 to entry: An innovation can be a product, service, process, model, method, etc.

Note 3 to entry: Innovation is an outcome. The word “innovation” sometimes refers to activities (4.1.4) or

processes (4.1.5) resulting in, or aiming for, innovation. When “innovation” is used in this sense, it should always be used with some form of qualifier, e.g. “innovation

Definition of Innovation (from an ISO standard to be published in Q1-2019)

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Type of Innovations:

Source: IAOIP Foundation Level Certification Study Guide, 2014

Business model innovation: Changes the method by which an organization creates and delivers value to its customers and how, in turn, it will generate revenue (capture value).

Co-creation innovation: A way to introduce external catalysts, unfamiliar partners, and disruptive thinking into an organization in order to ignite innovation. The term co- creation innovation can be used in two ways: co-development and the delivery of products and services by two or more enterprises; and co-creation of products and services with customers.

Design innovation: Focuses on the functional dimension of the job-to-be-done, as well as the social and emotional dimensions, which are sometimes more important than functional aspects.

Functional innovation: Identifying the functional components of a problem or challenge and then addressing the processes underlying those functions which are in need of improvement. Through this process, overlaps, gaps, discontinuities, and other inefficiencies can be identified.

Open innovation: Using external ideas and technologies to enhance the enterprise’s internal technology base, reduce the cost of R&D and time to market, and achieve superior product, service, or process innovations. At the same time, unused intellectual property and technology—latent internal intellectual capital--is made available for other firms to license and use.

Process innovation: The innovation of internal processes. New or improved delivery methods may occur in all aspects of the supply chain in an organization.

Product innovation: A multidisciplinary process usually involving many different functions within an organization and, in large organizations, often in coordination across continents.

Service innovation: Not substantially different than product innovation in that the goal is to satisfy customers’ jobs-to-be-done, wow and retain customers, and ultimately optimize profit.

Copyrighted by the International Association of Innovation Professionals 2014, 2018. It is prohibited to copy, distribute, sell, email, or transfer this document without the express written approval of IAOIP.