Innovation

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An innovation creates value for the customer in a new and unique way. As Peter Drucker said, a product that is different, but does not create new value for the customer, is merely a novelty. A novelty may temporarily capture a customer’s interest because it is different, but it will quickly be replaced by a new novelty. An innovation, on the other hand, provides new value to the customer and the customer is willing to pay to obtain that new value.