Why Innovation Matters Even More Today - Transforming Your STEM Career Through Leadership and Innovation - page 24

we shouldn't be applying these same principles to our STEM careers. While
we may not have the marketing budget that these entertainment icons have to
support our personal innovation there are considerable resources available via
electronic communication, social networking, organizational membership, and
relationship development to support and promote our personal innovation.
Organizational Innovation
Organizational innovation can be applied in many forms to produce the cre-
ative, value-added, and profitable outcomes expected in the business environ-
ment. Generally, there are three different types of organizational innovation:
product and service innovation, operational innovation, and business model
innovation [9] .
Product and Service Innovation
Product and service innovation aims to improve a company's (you guessed it!)
products and services. Innovation often begins with ideas about market oppor-
tunities made possible by new technologies. Product and service innovation
focuses on bringing new capabilities to life that benefit both customers and
the companies who provide for them. Organizations engaged in product or ser-
vice innovation preoccupy themselves with listening to customers and differ-
entiating their offerings and speed of execution. Some current examples are
Nintendo's Wii gaming system (product innovation) and Virgin Atlantic and
Southwest Airlines (service innovation). In a study performed in Australia [10] ,
the test to evaluate a new product or service for innovation value is defined by
assessing key factors (see Table 2.2 ).
Operational Innovation
Operational, or process, innovation, focuses on making an internal business pro-
cess a core strength, as Toyota has done through its lean automotive production
process. Operational innovations can increase bottom-line profitability, improve
efficiency and productivity, and increase employee job satisfaction. They also
deliver enhanced product or service value to the customer. Operational innova-
tions usually involve the implementation of a new or significantly improved
production or delivery method. For example, Dell revolutionized the way com-
puters were ordered and delivered through its direct order fulfillment model.
Business Model Innovation
Business model innovation involves changing the way business is done in terms
of capturing value. These innovators devise new formulas for the enterprise to
make money. Google, for example, has reinvented the way companies make