The Enterprise Innovation Revolution: Part I

by Borys Stokalski

The 21st-century shift from an industrial to a knowledge-based economy envisioned by such thought leaders as Alvin and Heidi Toffler, Peter Drucker, and others is quickly materializing. The shift is clearly marked by the rising importance of the terms "innovation" and "innovation management" in many modern enterprises as well as the extension of the notion of innovation beyond the traditional area of invention. This is not to say that invention -- the result of traditional R&D processes -- is losing importance. On the contrary, in an economy of intangibles, there are not many things more valuable than the ownership of an intellectual asset such as a successful technical standard, a breakthrough technology, or a new drug formula. But the invention advantage is complemented by three other forms of innovative activities: value innovation, management innovation, and business model (strategic) innovation. These three categories form the pillars of business by using the capability to change as the competitive weapon -- a business innovation chain.