Creativity is about thinking new things. Innovation is about doing new things – Theodore Levitt.
Innovation is combining new and existing ideas to create something new that adds value to the marketplace. It could emerge as a new product or selling the existing products new ways.
Most people associate Innovation with Invention. While the two are related, you don’t have to invent something to be innovative. This association paralyzes many individuals and companies, who never set foot on the road to become innovative. People are often looking for that “aha moment”, the “genius idea”, or that “clever product” that will captivate the market. In the process, they ignore the importance of adding value to existing products and service. Take Toyota for example. Toyota is recognized among the top most innovative companies, but Toyota did not invent the car. Similarly, Netflix did not invent the DVD rental business, but changed the way we rent and watch movies. Starbucks did not invent the café, but revived the coffee industry. All of these companies changed their respective industries without inventing the core product.