Innovation is defined as the act of introducing something new. ^[1] Innovation for a business enterprise is the introduction of new products, services, or practices that yield commercial success in the marketplace. The criteria that determine whether an innovation is successful depend upon the organization. Success may be growth in a specific market, acquisition of market share, preventing entry of competitors into the market, increased revenue, a better return to the stakeholders, or recognition as a global leader. In this context, success is the achievement of the objective that the innovation enabled. (Note that we confine our discussion of innovation to the corporate world. We are not speaking of innovation in academia or a pure research environment.)

Innovation is hot because it allows a company to differentiate and disrupt the marketplace. The stronger the impact on the marketplace, the more sustainable the resulting competitive advantage. The U.K. company NaturalMotion introduced its PC-based 3-D animation software endorphin, which integrates artificial intelligence and biomechanics to simulate human figures without the need for expensive motion capture equipment and the human labor to perform stunts and actions. The simulation of realistic human movement removes major obstacles for special effects in movies, computer games, and film animation. ^[2] Animators using endorphin save time and money in the construction of animated sequences while also improving realism and believability. This gives NaturalMotion a strong competitive advantage. The company is changing the approach to how moviemakers design, build, and reuse...