Differences between Innovation and Invention in Toyota Company

PROJECT

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Explantation of innovation and how it is different from invention.............................................3
Importance and value of innovation to companies and CEO turn company into innovative firm
......................................................................................................................................................3
Different sources of innovation and discussion of incremental and disruptive innovations.......4
4Ps of innovation supports management and abilities of innovation..........................................6
New product development processes and innovation funnel.......................................................6
Frugal innovation used by company............................................................................................8
CONCLUSION ...............................................................................................................................9
REFERENCES .............................................................................................................................10

INTRODUCTION
The current report is based on Toyota company, operating their business all around the
world. This study explains the differences between innovation and invention, its value and
importance for companies. Furthermore, this report clarified 4Ps of innovation that supports
management and capabilities of innovation. Different source of innovation and pros & cons of
disruptive as well as incremental innovation. This study clarify benefits gain by company
through frugal innovation and drive new innovation by using NPD and innovation funnel.
PART A
Explantation of innovation and how it is different from invention
Innovation means turning a new idea into solution that adds value from consumers
perspectives. In modern term, it is a new imaginations and creative thoughts in form of method
or device. Innovation considered as the utilization of better solutions that meet unarticulated
need, new requirements and existing market needs effectively (Sembada, 2018). It includes
deliberate app of data, initiative in deriving different or greater values from resources and
includes all procedures by which new ideas are developed and converted into useful and cost
effective products. In simple terms innovation is something real and much better than other
things as consequence, new that break into society or market. Innovation is quite different from
invention, it is the procedure of development, creation and implementation of process, services
or products, with goal of gaining competitive advantages, increasing effectiveness and improving
efficiency.
Invention defined as creation of products and services or introduction of procedures for
the first time. On the other hand, innovation defined as improvement on existing goods or
process to make it much better than before (Goel and Göktepe-Hultén, 2019). Invention creates
something new in current marketplace while innovation creates something that sells. Invention
means, that something has never been made or produced before. It is creation of new process or
things, invention is the practical outcome or manifestation of ideation. Meanwhile, to innovate
means to use a new method or new idea, it is all about to introduce something new to market and
turn them into goods that is of use in actual world.
Importance and value of innovation to companies and CEO turn company into innovative firm
Innovation is valuable method for organizations, it is considered as process in which a
firm introduces new upgrades and technologies that are specially designed to achieved low costs