Innovation can be defined as the process of implementing new ideas to create value for an organization. This may mean creating a new service, system or process or improving existing ones. Innovation can also take the form of discontinuing an inefficient or obsolete service, system or process. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service. It is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs must specifically search for sources of innovation, changes and their symptoms that indicate opportunities for successful innovation. And they must know and apply the principles of successful innovation. (Drucker, 1986) Innovation is an important tool in entrepreneurship. It helps provide resources with a new ability to create wealth. The seven sources of innovation When we talk about innovation systematically, we need to monitor the areas where we can innovate. These areas are known as sources of innovation. The first four sources are found within the company or industry. And the last three are sources outside the industry. These are: The unexpected source Could be an unexpected success or failure of a product/service that leads to innovation The source of inconsistency Arises from a difference between what a product/service actually is and what everyone else assumes it is is. Innovation based on process needsThis happens by redesigning the weak points within the business process. Changes in industry structure or market structure Innovation can also result from changes in the industry that push a company to find a new way to succeed. Demographic Changes A change in the demographics of the target customer can lead a company to innovate new products/services for the customer. Changing perceptions, mood or meaning Over time, people and populations change and so do their perceptions. Innovations can arise from these changing ideas in the customer groupNew knowledgeAny new knowledge, scientific or non-scientific, can lead to an innovation oathTypes of InnovationDepending on the type of technology and market – existing and new, we can classify four types of innovations. Incremental Innovation This is the most common form of innovation. When innovation occurs in an existing market with an existing technology, the innovation is called incremental innovation. Use existing technologies to improve a product/service offered to customers in an existing market. Today, all companies use incremental innovation to improve their business. It can be a small change in how the product is seen by the customer. For example, it can introduce a new feature to an existing website. Disruptive Innovation Also known as stealth innovation, disruptive innovation occurs when the company uses a new technology to provide the customer with something new in an existing market. It takes time for disruptive innovation to be recognized by the market as new technology is often difficult to understand. In general, disruptive innovation starts from the bottom of the market and slowly captures customers in the market. A great example of disruptive innovation is Apple's iPhone. Architectural Innovation Taking existing technological knowledge and incorporating it into new markets is called architectural innovation. The.