38th International Conference on Computers and Industrial Engineering, Beijing, China, 31 October - 02 November 2008, pp.139-144
Innovation is the process of devising ways to do things in new and creative ways. This may involve the development of unique products and services, or entry into unique markets or market niches. Innovation is a very important concept in the supply chain management. While if both the upstream and downstream firms in one supply chain, under certain coordination mechanism, jointly improve their products quality and innovation ability, this supply chain would finally get better results than another supply chains. It may also involve making radical changes to the business processes for producing or distributing products and services that are different from the way a business has been conducted that they alter the fundamental structure of an industry. Competition can stimulate innovation. Competition among firms can spur the invention of new or better products or more efficient processes. Finns may race to be the first to market an innovative technology. Companies may invent lower cost manufacturing processes, thereby increasing their profits and enhancing their ability to compete.