Innovation management

Innovation management means targeted planning and implementation of innovations on the product and process level based on economic principles. In the service sector, however, a systematic approach to innovation is largely unknown. While in the manufacturing industry even medium-sized companies have research and development departments, new service offerings in the service sector tend to arise by chance in the area of tension between the planning department, marketing experts and line managers in operational business.
The underestimation of the innovation potential in services is based on a widespread misunderstanding. New inventions and the economically viable offers derived from them are by no means the exclusive domain of the research-intensive high-tech industry. The really revolutionary innovations of recent economic history had little to do with the genius of technical inventors, but were based rather on the improved organization of processes in the relationship between business partners. New solutions to problems in return for payment, especially services in the finance and transport sectors, have tended to have a greater impact on people's everyday lives than advances in industrial technology (Drucker 1985).

Example: The modern world, shaped by trade and industry, is unthinkable without the emergence of the then new type of service "insurance" in the 18th century. Around 1700 shipowners and merchants in the London coffee house Lloyd's agreed on mutual insurance against the then serious risks of shipwreck and piracy on a premium basis. Equipping a merchant ship to India or South America, for example, was previously a vabanque game that could end with the acquisition of fabulous wealth or with complete ruin. The smoothing of this risk by spreading it over many shoulders and thus the greater predictability of such a company made it easier to raise the necessary capital, the emergence of larger fleets and thus the stabilization of trade flows.
Today the Internet is considered to be the most important and far-reaching innovation. For the success of the World Wide Web, the capacity of modern computer technology on the hardware side is an essential prerequisite, but the real growth drivers of the medium are Internet services such as information services, portals and search engines. An interesting aspect is that, for the first time, fully automated services are taking on a leading role on a large scale.

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Further explanations for the first letter I.