Renovation vs. Innovation - Know the Difference?

Renovation and innovation are often used in various contexts, from business to home improvement, yet they represent fundamentally different processes and outcomes. Understanding the distinctions between the two can provide clarity, particularly in strategic planning, project management, and endeavors such as Healthcare of

the current / future that keep many of us up at night.

What is the difference?

Renovation refers to the process of renewing, restoring, or updating something that already exists. It is typically applied to physical structures, but can also pertain to processes, systems, or products like health and wellness efforts. The goal is to improve functionality, aesthetics, or both, while maintaining the essence of the original.

For instance, home renovation might involve updating a kitchen with new appliances and flooring, while preserving the layout and structure. In a Healthcare context, renovating a process like hospital discharge or throughput efforts might involve streamlining procedures & SOPs without fundamentally altering the overall workflow.

Innovation

Innovation, on the other hand, involves the creation of something new that adds significant value. It is often associated with introducing new ideas, products, services, or methods that transform existing paradigms. Innovation can lead to groundbreaking changes and can disrupt markets or industries. An example of innovation in healthcare would be the development of remote patient monitoring efforts, which not

only improved upon existing mobile phone technology but also created a new category of devices with extensive functionality and capability for a sub-set of venerable patients.

Examples in Different Contexts

Business and Technology:

In the business world, renovating a product line might involve upgrading features and improving performance to meet current market demands. Innovation, however, could entail developing a completely new product that addresses an unrecognized need or solves a problem in an unprecedented way.

Healthcare:

In healthcare, renovation might involve enhancing existing medical equipment or procedures to improve patient care. Innovation could involve the invention of new medical devices, treatments, or technologies that cure diseases or significantly alter the way healthcare is delivered.

Above are just a few examples of renovation workflow enhancements / development vs innovation models / efforts in the Healthcare sector we have seen over the last few years.

Processes and Challenges

Renovation Challenges

Renovation can be challenging due to:

• Resource Allocation: Balancing budget constraints and the need for quality improvements.

• Logistical Constraints: Working within the limitations of existing structures or systems.

• Stakeholder Management: Ensuring all parties are satisfied with the updates and changes.

Despite these challenges, renovation is generally seen as a lower-risk endeavor compared to innovation, as it builds on known entities. And the results are generally less impactful from a % change than true innovation results

in.

Innovation Challenges

Innovation entails its own set of challenges, such as:

• Uncertainty: Navigating the unknown and unproven aspects of new ideas.

• Investment: Securing funding and resources for research and development.

• Market Acceptance: Convincing stakeholders and consumers to adopt new innovations.

Innovation is inherently riskier but can yield higher rewards, positioning organizations and individuals as leaders and pioneers in their fields.

What is interesting in many cases is the larger the institution / Health System the more they typically lean towards renovation efforts and not true innovation, and the opposite is true in the start-up world where we see that the ability to work in and accept risk is generally higher. Both innovation and renovation come with their own challenges and rewards as listed above.

If you have any further questions or would like to begin a conversation around your own challenges and rewards, we can help. Feel free to contact us.

MGreen@PhoenixHealthcareInnovation.com