What is innovation?

Innovation can be seen as the process of realizing new products, processes, propositions, or business models that add value for customers and/or employees. It is not limited to groundbreaking products, but rather can be applied in all fields and organizations. The definition of innovation stresses the importance of the new idea adding value for customers and/or employees. Innovations are made for the end users and including them from the start of the process ensures satisfaction. Innovation is an investment that should provide added value for an organization, but proper performance of the innovation process is essential. Three types of renewal are introduced within the domain of renewal, and the three horizons model provides a stepping stone to the three types of renewal model. Both models provide insight into the definition of innovation and offer an opportunity to position a company better. Innovation provides a company with the chance to remain competitive in the market, decrease costs, increase revenue, and provide opportunities in new markets.