Innovation And Managing Innovation

There will vary types of invention. Joseph Tidd and John Bessant describe in their literature four broad types of technology. (Tidd & Bessant, 2009) Following these categories are known as the 4Ps of invention

⢠'product development' - changes in the things (products/services) which a business offers

⢠'process invention' - changes in the ways that they are created and delivered

⢠'position advancement' - changes in the framework where the products/services are introduced

⢠'paradigm innovation' - changes in the actual mental models which structure what the organization does

For example, the new version of a car, a new bank account offer and a fresh home personnel computer are all examples of something innovation. In comparison to a product innovation a big change in the production process and machines used to produce the car or the house computer these examples are process improvements. Similar the example of the new bank-account offer if this came up up by changing procedures and sequencing in the lender office. Characteristic for services is the merge of an activity and product advancement. For example a fresh weekend trip package deal could be blend of both types of enhancements.

The third type is the 'position development'. In this particular context an innovation changes the perception of the customer through repositioning of the established product or process. For instance, to use shower gel also to clean and clean clothes is an excellent example of a 'position' invention.

Sometimes technology opportunities emerge when people begin to think beyond your box. A good example of a paradigm creativity is Henry Ford. He fundamentally altered just how of transportation people. He archived this neither by inventing the engine car (Invention of the electric motor car was 1999) nor because he altered just how of manufacture and produce a car (also the inventor of the conveyer production). His idea was to change the underlying model for the automobile production in this time around. He improved the point of view of producing automobiles from handmade specialist product to some wealthy customers to a mass product with a price a normal home could manage. The ensuing move from art to mass creation was nothing short of a revolution in the manner cars (and later countless other products and services) were created and supplied. This example shows that a paradigm innovation also requires intense product and process invention - for example, in aspect design, in equipment building, in the design of the stock and in the communal system around which work was arranged. (Edelhoff, 2009)

Not only Henry Ford changed an industry. Within the last decades the switch to low-cost airlines and the more and more goods bought from the internet are recent examples of 'paradigm' development - changes in mental models.

From Incremental to Radical Innovation

Every Creativity is new, but the question is how new. So we can divide inventions between incremental and radical. (doing the same, better & â. . ) For example, a new version of a car model is incremental while creating a new electric driven principle car which is made out of new light weight carbon fibre is radical. Similarly, further development of the accuracy and speed of the found mill is different then changing it with a computer-controlled laser beam chopping process. This example shows there are levels of new innovation, working from minor, incremental improvements to radical changes which changes just how things are done and we use them.

These changes tend to be present to a specific industry, but sometimes they are simply so radical and considerable they are able to change the main of population. The major steps in today's communication and information technology have affected almost every person on this planet and will continue to gain importance.

Figure : Dimension of invention - from incremental to radical & from element- to system level

Mapping Invention Space

In the number below each one of the 4Ps of development can take place along an axis. Hence the blue group indicates the actual innovation space within the business can operate, the advancement is able to run from incremental to radical change.

Whether the technology utilizes all the area is a question of the advancement strategy. The way day-to-day change is approached within an company differs from the approach how to handle a radical step change in products or functions. Here it is essential to keep in mind that the recognized stage of novelty is the key part and that this novelty is in the perspective of the observer. For example, in a huge, technologically advanced corporation like Volkswagen or Siemens the monitoring of goods from suppliers by RFID and Gps navigation is used and integrated in daily business while such an expensive process might be completely new and impressive for a little dealership or food processor chip. (Kern, 2006)

Figure : Invention space

Sustaining or Disruptive

Quite a great deal of innovations require a discontinuous move but very few bring something new which changes market conditions dramatically. Many of them tend to be incremental. In recent time 'slim" thinking came up up in the creation and service sector, which underlines the huge possibilities of continue advancements within a company. (Kohlstedde, 2007) However this proceeds improvement idea is hampered through the new procedure of the program concept or powerful design. This idea bases on the introduction of a future general design that will dominate the marketplace as well as utilized by the competitor. An example for such a sturdy design is the Walkman originally developed by Sony. This first design of a portable cassette and radio player system dominated the marketplace for your product lifetime of cassettes. Also car designers have a tendency to change their development process from each one model to a platform strategy. (Wallentowitz, Freialdenhove, & Olschewski, 2009) The Volkswagen AG unveiled platforms which are used for different brands of the business group. This not only will save costs but also helps those to dominate the market with faster model improvements and exchanges. The platform and powerful design strategy of firms is a robust way of recover the high preliminary ventures such as Research and Development as well as market analysis.

The Obstacle of Discontinues improvement

The common innovation process happens in a set frame, following certain rules and means of considering. This 'game played' by opponents is to innovate by doing what has been done before like product- or process inventions or even position- and paradigm enhancements, but doing it better. In such a competition of 'playing the same game' some firms manage to do better than others and can gain a competitive gain through these improvements, but the 'collection of the game' is accepted and do not change.

Very uncommon something happens that breaks up this platform and changes how the game is performed. This will not happen every day but when this arises the guidelines and restrictions of a market change rapidly. This will result in future new opportunities and struggle the existing players in their way of working, thinking and conducting business.

A discontinues improvement occurs out of any scientific and conditions secure market, where is a long period of continuous improvements and variations around a simple product or service. The strategy, prior to the discontinues improvement was, 'doing what we do, but better'. When this innovation happens a number of of the basic conditions like technology, market segments, social, regulatory etc. change swiftly. Now enough time of 'doing different' commences and the 'rules of the game' change so the opportunity space for new enhancements appears. Such an instant technology change is going on right now with the introduction of LED's in the light market. From the technology of the at first light bulb in the later nineteenth century by Edison and Swan the light market gets more and more restricted by the government. Furthermore the development of the LED light was a significant step for your market and will influence our daily life in the foreseeable future. With this approaching technology new corporations emerge in the market as well as the inventor Shuji Nakamura with the company Nichia Corporation. This discontinues improvement faces the market dominating companies very difficult. Either they adapt to the new light technology or they'll lose market show very swiftly.

In the process the underlying

'rules of the game' change and a fresh opportunity space for development starts up. 'Do

different' conditions of this kind take place, for example, when radical change can take place

along the technical frontier or when new market segments emerge.

An emerging

example of the may be the replacement unit of the incandescent light bulb originally

developed in the past due nineteenth century by Edison and Swan (amongst others). This can be changed by the solid state white led technology copyrighted by

Nichia Chemical substance. This technology is 85% more energy efficient, has 16 times the life

of a typical bulb, is brighter, is more versatile in program and will probably be

subject to the size economies associated with electric component production.

In their pioneering focus on this theme Abernathy and Utterback developed a model

describing the design in conditions of three particular phases. Initially, under discontinuous

conditions, there is certainly what they term a 'substance phase' where there is high uncertainty

along two sizes

⢠The mark - what will the new configuration be and who will want it?

⢠The technological - how will we harness new technological knowledge to generate and

deliver this?

No one understands what the 'right' settings of technological means and market

needs will be therefore there is comprehensive experimentation (associated with many

failures) and fast learning by a range of players including many new entrepreneurial


Gradually these tests commence to converge around what they call a 'dominant

design' - something begins to set up the rules of the overall game. This represents a

convergence around typically the most popular (importantly definitely not the most technologically

sophisticated or chic) answer to the emerging settings. As of this point

a 'bandwagon' starts to roll and advancement options become progressively more channeled

around a primary set of choices - what Dosi calling a 'scientific trajectory'. 38 It

becomes more and more difficult to explore outside this space because entrepreneurial

interest and the resources which that brings significantly focus on alternatives within

the dominating design corridor.

This can apply to products or operations; in both circumstances the main element characteristics

become stabilized and experimentation steps to getting the bugs out and refining the

dominant design. For example, the nineteenth-century chemical substance industry shifted from

making soda pop ash (an important ingredient to make soap, cup and a bunch of other products)

from the earliest days where it was produced by burning vegetable matter through

to a sophisticated chemical reaction that was carried out on a batch process (the

Leblanc process) which was one of the motorists of the Industrial Trend. This process

dominated for almost a hundred years but was in turn replaced by a fresh generation of continuous

processes that used electrolytic techniques and which started in Belgium

where they were developed by the Solvay brothers. Moving to the Leblanc process or

the Solvay process didn't happen over night; it took generations of work to refine and

improve each process, and fully understand the chemistry and executive required

to get steady high quality and output.

The same pattern can be seen in products. For example, the original design for

a camera is something which dates back to the first nineteenth century and - as a

visit to any knowledge museum will show - engaged a variety of ingenious solutions. The

dominant design slowly but surely surfaced with an structures which we would recognize -

shutter and zoom lens arrangement, focusing guidelines, back plate for film or plates, etc. But

this design was then customized even more - for example, with different lenses, motorized

drives, flash technology - and, regarding George Eastman's work, to creating

a simple and relatively 'idiot-proof' model camera (the Package Brownie) which exposed up

photography to a mass market. Newer development has seen a similar fluid phase

around digital imaging devices.

The period in which the dominating design emerges and emphasis shifts to imitation

and development around it is termed the 'transitional period' in the Abernathy and

Utterback model. Activities move from radical concept development to more focused

efforts geared around product differentiation and providing it reliably, cheaply, with

higher quality, expanded efficiency, etc.

As the concept matures still further so incremental innovation becomes more

significant and emphasis shifts to factors like cost - this means efforts within the

industries which increase up around these product areas have a tendency to focus progressively more on

rationalization, on level economies and on process creativity to drive out cost and

improve production. Product creativity is more and more about differentiation through

customization to meet up with the particular needs of specific users. Abernathy and Utterback

term this the 'specific stage'. *

Finally the stage is defined for change - the opportunity for invention becomes smaller and

smaller whilst outside - for example, in the laboratories and imaginations of research

scientists - new prospects are emerging. Eventually a fresh technology emerges which

has the to task all the by now well-established rules - and the overall game is

disrupted. Inside the camera case, for example, this is going on with the arrival of digital

photography which is having an impact on surveillance cameras and the overall service package

around how exactly we get, keep and talk about our photographs. Inside our chemical case this is happening

with biotechnology and the emergence of the opportunity of no longer needing

giant chemical plants but instead moving to small-scale procedures using live organisms

genetically engineered to produce what we are in need of.

Table 1. 2 places out the primary components of this model. Although actually developed

for manufactured products the model also works for services - for example the early

days of Internet bank were characterized by a typically liquid phase with many

options and models being offered. This gradually migrated to a transitional period, build- ing a dominant design consensus on the program of services offered, the levels and

nature of security and personal privacy support, the interactivity of website, etc. The field has

now become older with much of the competition moving to marginal issues like relative

interest rates.

The pattern is seen in many reports and its own implications for innovation

management are important. In particular it can help us realize why established

organizations often think it is hard to deal with discontinuous change. Organizations build

capabilities around a specific trajectory and the ones who may be strong in the later

(specific) phase of an established trajectory often think it is hard to move into the new one.

(The example of the organizations which efficiently exploited the transistor in the early 1950s

is a good case in point - many were new ventures, sometimes started out by fans in

their storage area, yet they rose to task major players in the electronics industry like

Raytheon. 39) This is partly a rsulting consequence sunk costs and commitments to existing

technologies and market segments and partly because of internal and institutional obstacles.

40 They may respond however in slow fashion - plus they could make the mistake of

giving responsibility for the new development to those whose current activities would

be threatened by a shift. 41

Importantly, the 'liquid' or 'ferment' period is seen as a co-existence of old and

new technology and by immediate improvements of both. 41, 42 (It really is here that the so-called


'sailing dispatch' effect can frequently be observed, when a adult technology accelerates in

its rate of improvement as a reply to a fighting new substitute - as was the case

with the introduction of sailing ships in competition with recently emerging steamship

technology. 43, 44

Whilst some research advises existing incumbents do terribly, we need to be careful

here. Not all existing players do badly - many of them have the ability to build on the new

trajectory and deploy/leverage their accumulated knowledge, networks, skills and

financial assets to enhance their competence through building on the new opportunity.

42â Similarly whilst it holds true that new entrants - often small entrepreneurial firms -

play a strong role in this early phase we should not forget that people see only the successful

players. We need to remember that there is a strong ecological pressure on new

entrants which means only the fittest or luckiest survive.

It is more beneficial to claim that there is something about the ways that innovation

is monitored under these conditions which poses problems. Good practice of the

'steady-state' kind detailed above is helpful in the adult stage but can actively

militate from the accessibility and success in the fluid phase of a fresh technology. 46 How do

enterprises pick up alerts about changes if indeed they take place in areas where they don't

normally do research? How do they understand the needs of market which doesn't

exist yet but that will shape the eventual package deal which becomes the dominant

design? If they speak to their existing customers the likelihood is that those customers

will have a tendency to ask for more of the same, so which new users as long as they talk to - and

how do they find them?

The challenge seems to be to develop ways of managing advancement not only under

'steady-state' but also under the highly uncertain, quickly developing and changing conditions

which result from a dislocation or discontinuity. The sorts of organizational

behaviour needed here includes things such as agility, flexibility, the ability to learn fast,

the insufficient preconceptions about the ways in which things might evolve, etc. - and

these tend to be associated with new small organizations. There are ways in which large and

established players can also exhibit this type of behavior but it can often conflict

with their normal ways of pondering and working.

Extensive studies have shown the energy of shifting technological restrictions in creating

and transforming industry buildings - for example, in the case of the typewriter,

the computer and the auto. Such transformations happen relatively often - no

industry is immune (see Box 1. 3 for an example).

Worryingly the foundation of the technology which destabilizes a business often comes

from outside that industry. So even those large incumbent organizations which devote some time and

resources to handle research to stay abreast of improvements in their field could find they are wrong-footed by the accessibility of something has been developed

in a different field. The considerable changes in insurance and financial services which

have characterized the move to online and phone provision were generally developed

by IT specialists often working outside the original industry. 6 In acute cases we

find what is often termed the 'not developed here' - NIH - effect, where a company finds

out about a technology but chooses against following it up because it will not fit

with their conception of the industry or the likely rate and path of its technological

development. Famous types of this include Kodak's rejection of the Polaroid

process or American Union's dismissal of Bell's mobile phone invention. Within a famous memo

dated 1876 the board commented, 'this 'phone" has too many shortcomings to be

seriously regarded as a way of communication. The device is inherently of no value

to us. '

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