Innovation has become such a buzzword it can be hard to remember what it actually means. When people think of innovation, often, they’re thinking of product innovation. Product innovation can come in three different forms.

1. The development of a new product, such as the Fitbit or Amazon’s Kindle
2. An improvement of the performance of the existing product, such as an increase in the digital camera resolution of the iPhone 11
3. A new feature to an existing product, such as power windows to a car. Drivers of product innovation might be technological advancements, changes in customer requirements, or outdated product design

Innovation in services organization is the combination of skills, tools and technologies used to provide a service and processes (way of working) which impacts the business value delivered by the organization significantly. Within these broad categories, the services organization can innovate in countless ways. While product innovation is often visible to your customers, innovation in services is typically seen and valued internally.

Innovation need not always be a high-tech gadget or app. Any idea that makes things either better, faster or cheaper is an idea for business. To put it in its simplest form:
Innovation for business means keeping “value” at the core of the idea and executing such innovation only after validating the value with right stakeholders.



The tangible value could be in terms of Time, Effort and Cost while the intangible values are Innovation Culture, Knowledge and Team bonding.

Once it’s decided to execute the idea, it is necessary to act on it quickly so that value can be realized sooner, and hence the need for adopting “agile” principles for such innovation. Being Agile means multiple loops with the stakeholders to be sure that the idea is being executed in the right way, instead of waiting for perfect readiness to show the demo at the end. Being Agile is more a mindset than a process!