“Innovation is the multi-stage process whereby organizations transform ideas into new/improved products, service or processes, in order to advance, compete and differentiate themselves successfully in their marketplace”
In an industrial survey of how the software industry defined innovation, the following definition given by Crossan and Apaydin was considered to be the most complete, which builds on the Organisation for Economic Co-operation and Development (OECD) manual’s definition:
Innovation is the production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres; renewal and enlargement of products, services, and markets; development of new methods of production; and the establishment of new management systems. It is both a process and an outcome.

Innovation is not just represented by introducing or implementing new ideas or methods. The definition of innovation can be defined as a process that involves multiple activities to uncover new ways to do things. It should not be confused with creation since this can be defined as the act of making, inventing, or producing something. However, new innovations can be realized with creativity. People need to think outside the box in order to create incremental enhancements.

At this moment, we are positioned in a fast-paced environment where technology is advancing and globalization is increasing. This means that distances only get shorter, and as a result, competition is increasing, customer expectations are more demanding, and disruptions in the economy is more likely to occur. For a business or an organization to realize competitive advantages, it should be able to adapt and innovate to the changing trends and new generations. Innovations apply for management and organizations on all levels, sizes, and operating in all industries.

Innovations create bigger opportunities and are critical for the survival, economic growth, and success of a company. Innovating helps developing original concepts and is a driver of optimizing operations. Companies that innovate are able to set the organization in a different paradigm in order to identify new opportunities and best methods to solve current problems.