Innovation and Its Application
One definition of innovation is the process by which solutions are created for complex problems. Another perspective sees innovation as creating something entirely new that takes situations and people down a path not previously conceived. Read this section, which discusses innovation and several practical aspects of bringing new ideas to fruition, and demonstrates case studies of successful applications.
Efficiency is often referred to as "doing things right". In this chapter, we define efficiency in general terms as the ratio of output to input. In other words, a firm is more efficient when it produces more with the same amount of resources, produces the same amount of output with a lesser investment of resource, or – even better – produces more output with less input. The firm achieves efficiency improvements by reducing resource waste while maximizing productivity.