S/B/86. The changing role of innovation

The paper highlights the role innovation plays in achieving a sustainable competitive advantage in the business world. On the basis of practical examples, the essay examines various forms/generations of innovation: product/service/process innovation; solutions innovation; and experience innovation. Porters ideas on competitiveness, the Delta model and Prahalads locus of competence/locus of innovation paradigm are used in the paper as theoretical tools. The essay concludes with a discussion on a completely new role and purpose of innovation in the present day world where customers are playing an increasingly important role.