Innovation refers to the process of translating an idea or invention into a good or service that creates value or for which customers will pay.
To be called an innovation, an idea must be replicable at an economical cost and must satisfy a specific need.
Key aspects of innovation include:
1. Product innovation - new or improved products
2. Process innovation - new production or delivery methods
3. Business model innovation - new ways of doing business
4. Disruptive innovation - innovations that create new markets