Innovation systems are frameworks which help exploit and utilize the potential of a business in order to put creative ideas into innovations such as new products and services. The innovation system is basically a platform which is conducive for business to progress in an innovative manner such as solving problems innovatively as well as putting new and innovative products into the market.
One major purpose of innovation systems is to ensure that the business develops progressively and is able to stay relevant in the industry even during tough times and when there are limited resources. These systems cover products and employees of the business. A good innovative system would give employees a chance to come up with innovative ideas that can be realized and benefit both the business and the customers.
In business, there is no single or specific model of doing business and so the same applies to innovation systems. There is no specified innovation system for a particular business model but each different type of business would have different systems to help it prosper in the market. Nonetheless, there are some generally established innovation systems that are most common in various different business models.
Types of Innovation Systems
Office assisted innovation – This is where the leadership of the business provides a conducive environment to the employees to come up and actualize innovative ideas. The office or management facilitates the implementation of the idea into a working product or service. The leadership also provides support in any way possible to make the ideas work.
Continuous improvement – This is one of the most common innovation systems used by big businesses and multinational companies. In this case, the business aims at continuously improving its products and services by use of new technology and better methods of doing things. This way, the business stays innovative by having products and services that meet the current and expected demands of the customers.
Targeted innovation – This is an innovation system where innovation is used to solve a specific problem. The specific problem is first of all identified and then analysis made so as to find a solution to that problem. Ideas are then generated specifically targeting that problem and eventually the problem is solved by using innovative means.
New Ventures – Though not very common, new ventures is also a type of innovation system. In this case, the business ventures into a different type of business that are not in line with the business model. This way the business is able to diversify and discover other ways of doing business and not necessary sticking to the old usual business style.
Strategic transfers – This type of innovation system aims at shifting specific technology from a certain point to another, with the main aim being shifting leverage and exploiting new capabilities.
Different businesses use different innovation systems to prosper. However, there is no single specific innovation system that works in all situations. In fact, the most successful businesses use a number of innovation systems altogether in order to be successful.
A good business leader should be able to identify the innovation systems that work for the business and galvanize them together.