BASIS FOR

INVENTION INNOVATION
COMPARISON

Meaning Invention refers to the occurrence of an Innovation implies the implementation

idea for a product or process that has of idea for product or process for the
never been made before. very first time.

What is it? Creation of a new product. Adding value to something already

existing.

Concept An original idea and its working in Practical implementation of new idea.
theory.

Skills required Scientific skills Set of marketing, technical and

strategic skills.

Occurs when New idea strikes a scientist. A need is felt for a product or
improvement in existing product.

Concerned with Single product or process. Combination of various products and

process.

Activities Limited to R & D department. Spread across the organization.

Innovation is the practical implementation of ideas that result in the introduction of new goods or
services or improvement in offering goods or services.
Innovation is a process by which a domain, a product, or a service is renewed and brought up to date
by applying new processes, introducing new techniques, or establishing successful ideas to create new
value.
Innovation is often necessary for companies to adapt
and overcome the challenges of change. It fosters
growth: Stagnation can be extremely detrimental to
your business. Achieving organizational and
economic growth through innovation is key to
staying afloat in today's highly competitive world.

The 4 different types of

innovation are

 Incremental Innovation
 Architectural Innovation
 Disruptive Innovation
 Radical Innovation

1. Incremental Innovation
Existing Technology, Existing Market

One of the most common forms of innovation that we can observe.

It uses existing technologies within an existing market. The goal is
to improve an existing offering by adding new features, changes in
the design, etc.

Example

The best Example for incremental innovation can be seen in the

Smartphone market where the most innovation is only updating the
hardware, improving the design, or adding some additional
features/cameras/sensors, etc.

2. Disruptive Innovation
New Technology, Existing Market

Disruptive innovation is mostly associated with applying new

technologies, processes, or disruptive business models to existing
industries. Sometimes new technologies and business models seem,
especially in the beginning, inferior to the existing solutions but
after some iterations, they surpass the existing models and take
over the market due to efficiency and/or efficacy advantages.
Examples

Amazon used Internet-Technologies to disrupt the existing industry

for book-shops. They had the existing market for books but changed
the way it was sold, delivered and experienced due to the use of
disruptive technologies. Another example was the iPhone, where
existing technologies in the market (Phones with buttons, keypads,
etc.) were replaced with touch-interface-centered devices combined
with intuitive user interfaces.

3. Architectural Innovation
Existing Technology, New Market

Architectural innovation is something we see with tech giants like

Amazon, Google, and many more at the moment. They take their
domain expertise, technology, and skills and apply them to a
different market. This way they can open up new markets and
expand their customer base.

Examples

Especially digital ecosystem orchestrators like Amazon and Alibaba

use this innovation strategy to enter new markets. They use
existing expertise in building apps, platforms, and their existing
customer base to offer new services and products for different
markets. A recent example for this: Amazon recently entered the
medical care field.

4. Radical Innovation
New Technology, New Market

Even it is the stereotypical way most people see innovation; it is the

rarest form of them all. Radical innovation involves the creation of
technologies, services, and business models that open up entirely
new markets.

Example

The best example of radical innovation was the invention of the

airplane. This radical new technology opened up a new form of
travel, invented an industry, and a whole new market.
Entrepreneurship is not just about making money and
creating a name for you – it is about helping the society by
putting out such an idea into the work that it leaves behind
an impression on everyone. It is not easy to start your own
venture.

It does come with challenges. But sometimes, it is more

than worth it. Here are a few things you should know if you
are thinking of entering the world of entrepreneurship.

The question that arises is despite so many challenges

entrepreneurs don't quit. This is because the joys of
entrepreneurship surpass the challenges for them.

Stages of Entrepreneurship

Stage 1: The Birth of Your Start-Up: This is the beginning of the

entrepreneurship cycle of an entrepreneur. It is filled with

mixed emotions of excitement, thrill and fear all at the same
time. It is time you are seeking independence in the
business world and ready to create your own name in the
market. You have had a million dollar idea for your startup,
but you are not quite sure how to execute it at this stage.
But you have a clear vision and a clear mission.

Stage 2: Surviving and Growing Your Business: This is the stage

where you have successfully launched your new company,

and now you are looking for strategies to survive in the
industry. Some entrepreneurs look for investors who could
fund their start-ups while some others chose to stay
independent. Both have their pros and cons. While choosing
to stay independent will give you more power and control
over your start-up, it will put you in a tricky financial
situation. The main aim of this stage is survival. You have to
select what is best for you.

Stage 3: The Hyper Stage: When your company is seeing hyper

growth suddenly, you will not be in control of the outcomes.

At this stage, many start-ups go into trouble because
entrepreneurs start getting over confident having seen
success. They feel that there is nothing they could do
wrong. Those who get cocky at this stage end up being
blindsided. Some entrepreneurs start celebrating and
enjoying in this stage and completely forget about their
desired goals and missions. To survive this stage, you have
to be stable. Your start-up has to be stable.

Stage 4: The Prime Stage: When your company has crossed

the point of survival and stability that is when real success

is reached. This is the more predictable growth phase. It is
best to stay in his phase as long as you can. You realize that
other businesses and companies can make you stronger
because they themselves are strong enough. You start to
explore partnerships with other companies. You form inter
depended relations with other successful companies. This
keeps your company in its prime and enhances your growth
opportunities.

Stage 5: Aging and Early Decline: A situation might come up

where one of the most significant faces of your company

moves out or your partnerships with others don't work out.
Someone else might have come up with a better idea in the
market, and your idea might have become useless. This
leads to your business and company being disrupted. At this
stage, you can do one of two things: You can either restart
your journey to unwind what you began, or you can disrupt
your company.

Stage 6: Illness and Rapid Decline: This phase should be

expected if you are too late in figuring out the early signs of
decline. This happens when your team is no longer sure
what they are supposed to do, or it is unable to fix the
problems that come up. If you don't take action immediately,
it will lead to fears, uncertainties and doubts setting in. The
company is sure to fail and decline if no action is taken.

Stage 7: Death: There are times when no matter how hard we

work to make a start-up work, it just fails. Sometimes you

are so deep into the hole that has been created due to
bankruptcy or restrained cash flow, that there is no way to
dig yourself out. At times like these, the best option is to
shut your business down because it is leading nowhere.
Take it down before it takes you down with it.
It is better to be well-informed and well-researched before
entering the world of entrepreneurship and start-ups. Know
what you're doing and stay focused on your goals.
5 Stages of the Entrepreneurial Process
No startup becomes successful overnight. Every entrepreneur, whether
new or established, must go through a series of steps that involve
producing an idea, evaluating it, turning the idea into a plan, finding
resources, launching the business, and growing it. This is known as the
“Entrepreneurial Process.”
Seeing products and services on Facebook and Instagram makes us believe
that the entrepreneurial process must be thrilling and that we can all
succeed. What we see as a finished product, however, is only the tip of the
iceberg. The entrepreneurial process is lengthy and demands great
attention to detail at each phase.
1. Discover ideas
One of the first steps in the process is coming up with a business idea. This
step is called idea generation. When you consider the possibilities and
opportunities around you, you may come up with a concept that has never
been seen before, or it may be an improvement on an existing concept. To
be able to develop and offer value to your clients, your idea must consider
all of the possibilities and opportunities available.
The first step in beginning a business is “self-discovery.” This will assist
you in determining your hobbies and the problem you will be solving. If
you have to work at all hours of the day and night, be sure your dream
project is something you care about. That one thought you had will one
day be the ultimate solution to your customer’s problems.
Conduct thorough market research and identify your customer’s needs and
wants.
Ways to identify opportunities
 1. Solve a problem by figuring out what people’s “pain
points” are. Provide them with a solution that allows them
to shift from pain to pleasure. Survey your circle of friends
or join groups in the field of your choice.
2. Find gaps in the market by combining niches. For
example, the ice cream and health care markets could be
combined to create a product that appeals to health-
conscious ice cream lovers.
2. Develop a business plan
Through the help of creative thinking, you evaluate those ideas and put
them into perspective. Do forecasting as well as evaluate some pros and
cons. Your strategy should include all of the milestones and objectives, as
well as who your target audience will be. You must undertake all
necessary market research to identify your target audience. Determine
whether or not your product or service is in high demand. Predict all of the
obstacles you’ll encounter along the route.
A business plan is a comprehensive proposal that defines a business’s idea.
The executive summary, company overview, product and market,
competitors, capital requirement, risk/opportunity, and conclusion are all
included. Without a map, an entrepreneur will get lost.
Choose your business location and determine whether your product or
service requires a patent, trademark, or copyright. Have a clear financial
plan in place. This should be defined over the next three years at the very
least.
3. Finding resources
You must now determine your capital, human, and financial resources.
Hire the best personnel for your company based on your requirements. It is
best to start at the top. If you take the position of CEO, then you need a
chief operating officer (COO), a product manager, a chief marketing
officer (CMO), a chief technology officer (CTO), a sales manager, chief
financial officer (CFO), and a customer service representative.
Tip: When hiring, look for employees with a diverse set of skills. When
your business expands, you can hire more people for specific roles.
Identify potential investors, apply for loans, borrow money from friends
and family, or use credit cards to get funds for your startup.
4. Implementation of business
At this point, you’re in charge of running your firm on a day-to-day
basis to meet your customer’s needs and requirements. All of the chosen
personnel are assigned responsibilities based on their roles. It’s all about
action at this point.
Building a prototype would be a good idea if you have a physical product.
Ask for feedback from people around you so that you know your product
is ready to be launched in the market. In the case of digital product/service,
build a website and see if you get adapters to test your product/service.
5. Growth/Harvesting
One of the most rewarding stages is the growth and harvesting stage. At
this stage, you’re looking at the prospects for growth and development.
Here, you compare current growth to predicted growth and make crucial
decisions based on the results.
You can ask yourself questions like:
 What other products/services can I bring in?
 Should I expand my company to new locations?
 What are my short and long-term objectives?
 Should I invest more in research and development?
Your business’s initial growth might be slow, however, hang in there as
your initial goal is survival.
Harvesting happen when you enjoy the financial rewards of your hard
work. This could be by taking dividends, selling the business or taking the
business public.
Conclusion
All the above-mentioned information shows that entrepreneurship is much
more than just launching a business. All the steps need to be visited every
time you launch a startup. Taking the entrepreneurial route will teach you
a range of abilities as you progress through these levels. Remember that
launching a successful startup is a marathon, not a sprint!