The Interactive Generation of Social Innovations and Business System Innovations

Abstract

This paper deals with the interactive generation of social innovations and business system innovations. Social innovations are defined as evolutionary processes from an existing established socio-economic system to an emerging more convenient socio-economic system. These evolutionary processes are occurring everywhere due to the various problems within the current social and economic system. Only a few entrepreneurs have been able to come up with excellent solutions to these problems and they were able to initiate new business system innovations. Such business system innovations make it possible to reorganize the flow of materials, information, and people in a fundamentally new way. As a result, many people seem to appreciate the merits of these business innovations. Therefore, these business system innovations will eventually bring forth society-wide innovations called "social innovations." Social innovations can be widely recognized through service industries such as finance, transportation, and information businesses. Within the service industries, the service delivery modes have been kept intact due to the various constraints enforced by laws and regulations. There has also been a lack of severe competition. However, these situations are beginning to change due to the introduction of deregulations and aggressive applications of various technological innovations such as the Internet. In addition to these changes, entrepreneurial ambition and creativity has triggered the interactive generation of business system innovations and social innovations.