Business innovation: what it is and what it means

Business innovation is the introduction, by a company, of products, processes, organizational or business models that are significantly new or improved compared with those in use. An operational definition requires three conditions for a change to qualify as innovation: it must be significantly new or improved compared with what the company already uses; it must be introduced to the market or within the organization, that is, actually applied and not just designed; it must produce observable value — economic, organizational or in terms of positioning. The three conditions must be checked together: a project that has been developed but not released is not yet innovation; an activity that has been released but is not significantly different is an ordinary upgrade.

Distinctive: significantly new or improved
Distinctive: is not yet innovation
Essential: introduced to the market or within the organization
Essential: observable value
Essential: actually applied and not just designed
Constant: three conditions must be checked together
Constant: compared with those in use

Glossary

Business innovation

The introduction, by a company, of products, processes, organizational or business models that are significantly new or improved compared with those in use, applied and producing observable value.