The primary functions of innovation are to solve problem and value creation. An innovation skill is the ability to do both of the functions – recognize when a problem require solutions and something potentially valuable is happening and then figuring out how to make it works. The first step is to have a good idea. Good ideas come from having a clear, concise and compelling “hunch” about what people want and need.

We have come to these conclusions that organizations should spend less on building the innovation’s capacity. To make success with innovation initiatives, corporations need to consider the innovation ability —the business model, customer experiences, and the service system— that become the value drivers.