Innovation, often misunderstood as merely ideation, requires a more structured approach for meaningful implementation.
The Oslo Manual provides a comprehensive framework that emphasizes measurability and practical application.
The Core Definition
Innovation is defined as a new or improved product or process that significantly differs from its predecessors and has been made available to users. This definition carries two crucial elements:
- Novelty or Improvement: A meaningful departure from previous iterations
- Availability: Actually reaching potential users
The Innovation Equation
Innovation = Idea + Implementation
This simple yet powerful equation underscores that innovation isn’t complete without both components:
- Ideas: The conceptual foundation
- Implementation: The practical execution
Business Innovation Framework
In the business context, innovation takes two primary forms:
- Product Innovation: New or improved goods and services made available to potential users
- Process Innovation: New or improved business processes implemented within the organization
Key Takeaway
The critical distinction of the Oslo Manual’s approach is its emphasis on measurable outcomes. An idea, no matter how brilliant, only becomes an innovation when it’s successfully implemented and creates value for its intended users.