Definition and Principles of Innovation

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Definition and Principles of Innovation
Besides creativity, one of the most important entrepreneurial character is the ability to innovate. Without innovation, a company will not be able to long-lasting. This is caused by the need, desire, and customer demand changing.

Customers are not always going to consume the same product. Customers will find other products of other companies that can meet their needs. Because of that, it is required continuous innovation if the company will last more, and survive with its efforts.
The meaning of innovation is something related to the goods, services or new ideas perceived by someone. Although the idea has long been available, but it can be said to be an innovation for those who just look or feel (Kolter, 1996).

A company can make innovation in the fields of:
1. Product innovation (goods, services, ideas and places).
2. Management Innovation (work process, production process, finance, marketing, etc.).

Drucker (1985) said that in innovation it is necessary to observe the principles of innovation, among others:
1. Something that must be done
a. Analyzing opportunities
b. What should be done to satisfy opportunities
c. Simple and effective
d. Starting from a smallest one
e. Leadership
2. Something that should not be done
a. Trying to be clever
b. Trying to do many things
c. Trying innovation for the future
3. Condition
a. Requiring knowledge
b. Building own advantages
c. Innovation is the effect of economy and society

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