Innovation can be defined as the process of implementing new ideas to create value for an organization. This could mean creating a new service, system or process, or improving existing ones. Innovation can also take the form of stopping an inefficient or obsolete service, system or process. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayInnovation 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 likely to be presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs must deliberately look 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. This helps provide resources with a new capacity to create wealth. 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 within the company or industry. And the last three are sources outside the industry. These are: The Unexpected Source This could be an unexpected success or failure of a product/service that leads to innovation. The Source of Incongruity This comes from a difference between what a product/service actually is and what everyone assumes it is. Innovation based on process needs. comes from rethinking the pain points in a company's process. Changes in industry structure or market structure. Innovation can also come from changes in the industry that push a company to find a new way to succeed. Demographic Change A change in the demographics of the business. 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 within the customer groupNew knowledgeAny new knowledge, scientific or non-scientific, can lead to an oath of innovationTypes of innovationDepending on the type of technology and market – existing and new, we can classify four types of innovations. Incremental innovationThis is the most common form of innovation. When innovation takes place in an existing market with existing technology, the innovation is called incremental innovation. It uses existing technologies to improve a product/service offered to customers in an existing market. Today, all businesses use incremental innovation to improve their businesses. It may be a small change in the way the product is perceived by the customer. For example, it could be introducing a new feature to an existing website. Disruptive Innovation Also known as stealth innovation, disruptive innovation occurs when a company uses new technology to offer the customer something new in an existing market. It takes time for disruptive innovation to be recognized by the market because new technology is often difficult to understand. Typically, disruptive innovation starts at the bottom of the market and slowly captures customers in the market. The Apple iPhone is.