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Innovation became the buzzword of the industry in the 21st century. From business to the various corners of daily life, everywhere innovation is being talked of. Several emerging businesses have proved that innovation can be the way to the top. From Amazon to Google and Facebook, all have proved it. Many times people use the terms innovation and improvement interchangeably. However, the two terms vary in their meaning. The difference between improvement and innovation is the same as that between evolution and revolution. Improvement is like making improvements to an existing product or service to help it better respond to market demand.
However, such improvements are not always revolutionary. Improvement is just a small part of innovation. Innovation is the larger story. It is a much bigger term encompassing several more things. Innovation includes differentiation, value creation and many more things. It also means superior returns and improbability of imitation. While improvements can provide a competitive advantage in the short term, the danger of their being imitated looms large. Innovation is a far deeper process than simple improvement and the change it brings is far long lasting and full of impact. However, several times the question has been asked that where does innovation emerge from. There can be several answers to the question since there can be several sources of innovation. Peter F Drucker has provided seven sources which are discussed .. Read more…