Inovation

1.       Why Malaysia has to be innovative in facing stiff competition from other developing countries?

Innovation is about people creating good value by developing and implementing new ideas or methods. Invention is the product from innovation. On the other meaning, it is a process of creating new invention for others and themselves. To be called an innovation, an idea should be real and economical thus satisfy the need. Innovation involves deliberate application of information, imagination, and initiative in deriving greater or different value from resources, and encompasses all processes by which new ideas are generated and converted into useful products. In social context, innovation might be implemented on the other way around. It is more on the method of gaining something instead of producing a product. For examples, creating collaboration, joint venturing, flexi hours, and others that make consumers easy on daily life.

On the others hands, innovation also improve the development of new customer through solutions that meet new needs, unarticulated needs, or old customer and market needs in new ways. It is from lots of ways such as creating effecting products, processes, services, technologies, and ideas that already in the market, government and society. The innovation can help an organization or a country can be more successfully because when an organization has made an innovation that is more creative and more interesting. Many people will use that product that is made in by a country to make the products to make it globally.

Malaysia has to be innovative in facing stiff competition from other developing countries because of many reasons. The National Innovation strategy or Innovating Malaysia is one of the ways to promote innovation itself. This program will provide foundation for a thriving knowledge economy and help Malaysia achieve the Vision 2020. Through this program Malaysia will be the lead in innovation compared to others developing country. When Malaysia became innovative, it will keep the people or citizens on the right tracks towards better future. With the drastic development through innovation, people will constantly grow up with better idea and more intelligence. Thus it will help the country back and Malaysia can gain lots of respect from the countries which is at the same time competing with Malaysia. This is because; we produce high quality skills and products that can be used by others globally.

Another reason why Malaysia has to be innovative because through innovation, we can find new ways to improve people’s standard of living. In Malaysia itself, we still have crisis in term of poverty. That is why to make Malaysia become fully developed, poverty is the number one matters that should be solved. Through innovation, poverty can be settle with lots of ways. For example, IKS is being applied to help people outside the town to improve their income. If the people become better, Malaysia also will gain better place in the world. Lots of outsiders will come and invest to Malaysia. This will make Malaysia more well-known.

2.       What is genovasi?

Genovasi is a new Malaysia government initiative to develop innovation skills for local youths which will lead to wealth and improve standard of living. This program is an initiative is in line with the interests of innovation skills as an effective strategy to achieve success in the world which is termed VUCA the unstable, uncertain, complex and ambiguous.‘Genovasi’ is a combination of the words innovation and generation. Participants from this program would channel their creativity in three areas, namely, community-centric activities; focus on economic matters and government enhancement projects. The Core Track is allows candidates to understand innovation methodology and collaborate in cross-disciplinary teams. The Advanced Track provides candidates with the opportunity to work on hands-on challenges which involves solving real world problems.

Genovasi is to aims to progressively train the ambassadors over a five-year period so they can eventually take the lead in spurring progress, a better quality of life and solutions for the nation. Prime Minister of Malaysia, who announced the new unit yesterday, said Genovasi would partner with global innovation leaders to impart innovation, skills, expertise and methodologies to the new generation of Malaysian innovation ambassadors. Genovasi would be set up as an innovation organization where bright young minds would have tangible opportunities to receive induction into innovation. Genovasi will have three tracks would be offered for the participants to apply their new innovation skills. The tracks are community-centric projects to benefit the masses and that are economic-focused projects that generate new waves of wealth, and government enhancement projects to help improve the delivery.

3.       What is Creative Destruction?

‘Creative Destruction’ is a paradoxical term introduced to economic theory in 1942 by the Austrian economist Joseph Schumpeter (1883–1950). He used the term to describe the special form of economic growth that entrepreneurs particularly bring to the capitalist system. Schumpeter argued that it was the entrepreneur’s introduction of radical innovation into the capitalist system that was the real force that sustained long-term economic growth, even as it destroyed the economic value of established enterprises who may have previously enjoyed a degree of monopolistic power.

The net economic benefit from the radical innovation, in spite of the destruction of existing economic value, was greater than if the radical innovation had never been introduced. So, in the term creative destruction describes a process of creating net economic growth in the capitalist system where entrepreneurs create more economic value from their radical innovations than is destroyed as their innovation replaces and supplants the established way of doing things.

Schumpeter believed that in the capitalism would ultimately be destroyed by its successes and that this ‘creative destruction’ was just part of the prediction of capitalism’s future. While he is not happy with his visional outcome His great defense of capitalism however, was built on the grounds that capitalism sparks entrepreneurship. He was one of the first economists to truly provide us with a clear concept of this term. His theory described the more expanded role of entrepreneurs as innovators not just inventors. He saw that entrepreneurs did far more than just invent as they introduced new means of production, new products, and new forms of organization. These innovations, he argued, take just as much skill and daring as did the process of invention. 

Moreover, Creative Destruction is a concept which leads that in a healthy capitalist system, new things are constantly overtaking the old, tearing down previous economic and technological systems to make way for progress. In a simple example of this concept, the advent of affordable cars caused the use of horses to go into decline. Some people believe that the process of creative destruction is vital to the maintenance of a healthy economy, and that if an economy is to thrive, this process must be allowed happen. Others feel that, unchecked, it can damage an economy or the welfare of a population.

Numerous writers have brought up the concept, under various names. Joseph Schumpeter is generally credited with raising awareness about creative destruction, in his 1942 book Capitalism, Socialism and Democracy. In fact, he brought up the concept as part of a larger discussion about how capitalist systems eventually turn into socialist ones, but many economists leave this part of the discussion out, focusing entirely on creative destruction.

In a healthy economic system, entrepreneurs and innovators are rewarded for their work, and businesses which are unable to change or adapt find themselves penalized. People who are able to think outside the box and predict future market trends can use creative destruction to their advantage, developing the products which will replace the products currently on the market. In addition to dealing with products, this concept also covers supply lines, management techniques, advertising, and many other aspects of the business world.

Famous example of creative destruction n related to products would be the Apple’s iPod.  A few years ago, the main way for people to individually listen to music would be CDs and CD players but however, in 2001, the iPod was released.  With various product lines including different colors and sizes, the iPod is the best selling digital audio player in history that is Kahney .

CEO of Apple, Steve Jobs, realized the opportunity in the industry to create a more streamlined digital music player, and he assigned a team of engineers to develop such a product in Murry.   Apple has utilized new technology through iPods perfectly by making music into digital downloadable media, which is much more convenient then CDs.  iPods make listening to music more convenient in various other ways; users no longer have to carry around replacement batteries for their CD players or their portable collection of CDs.  The iPod is also linked to other new technologies such as a mass of new accessories and the creation of the iTunes store, which helped the success of the new product.

iPods are an innovative new product and nevertheless, their emergence has spurred the decline of CDs.  The engineers at Apple continue to use new technology to create different, improved versions of the iPod such as the iTouch.  While Apple has experienced great growth and success from the creation of the iPod, other companies manufacturing music players have not been able to compete as well with the newer technology.  The emergence of this new product has caused an enormous disruption in the business world