KFUPM
classifies its modes of innovation into two main categories as
follows:
Category 1: The Technological Related
Innovations
KFUPM identifies two separate types of innovation within this
category:
The Incremental Innovation:
This type
of innovation is characterized with utilizing existing technologies.
Their impact on growth is normally limited, and they involve low
level of venture. They represent a step forward along a technology
trajectory, or from the known to the unknown, with little
uncertainty about outcomes and success and is generally minor
improvements made by those working day to day with existing methods
and technology (both process and product), responding to short term
goals. Most innovations are incremental innovations. They transform
existing markets or industries gradually, in evolutional manner.
Most of innovations taking place are incremental in nature. Since
they are structured on existing state of the art, they normally
represent logical extension to existing technologies. This involves
making minor changes over time to sustain the growth of a company
without making sweeping changes to product lines, services, or
markets in which competition currently exists, they add value to
business processes
The
Breakthrough, far-reaching or Radical Innovation:
This type
of innovation involves an entirely novel product or service rather
than providing improved products & services along the same lines as
currently. This type of innovation is characterized with the
exploitation of new technologies. Some times described as radical
innovation, they aspire at unprecedented performance features.
Hence, they create a dramatic change in processes, products, or
services. Ethics, practicality, or cost of this type of proposed
ideas is always raised. Since, they represent new and costly
endeavors and they involve a higher degree of uncertainty, about
future outcomes from this type of innovation; they usually need a
proof of concept to be established.
Category 2: The Entrepreneurial
Business Concepts
This
category involves all other non-directly related to technology
developing types of innovation. They may include ideas related to:
business modeling, marketing, organizing, processing, product
developing, supply chain and financial innovation. This mode of
innovation mainly requires business planning and support of business
incubation programs for launching product and establishing start-up
companies.
In addition to this, the two types of
innovation included in the first category of innovation modes
(incremental and break-through technologically based) could become
potential business projects for knowledge-based or technology market
products and they as well have the chance to be supported by the
Business Incubation Program.
Based on the above understanding, KFUPM has established its wheel of
innovation, which allows all types of entrepreneurs and depending on
their followed mode of innovation and their capacity to engage the
innovation process in the University. The wheel of KFUPM innovation
includes the Innovation Center, the Business Development Unit and
the Business Incubation program.
