Innovation and Information Technology

Innovation in the domain of information technology (IT) refers to innovation within a set of objects that facilitate the acquisition, storage, processing, and delivery of information. There are three main categories of IT innovations: service, base, and process. Innovation takes place in an ecosystem. When innovation in one type spurs innovation in another, the phenomenon is known as order effects. Specific to the adopting actor, IT innovation can be classified on a continuum from incremental to radical. Two characteristics identify the degree of radicalness of innovation: novelty and uniqueness. Where there is a high barrier to learning in order to innovate, the innovation is more radical and less incremental. Uniqueness of an innovation is the extent to which the innovation can be substituted by a previously understood innovation. If no earlier innovation can act as an effective substitute for new innovation, that innovation is relatively radical. Keywords: Innovation; information technology; order effects; radical; incremental; process; service; base