â¢ 'product development' - changes in the things (products/services) which a business offers
â¢ 'process invention' - changes in the ways that they are created and delivered
â¢ 'position advancement' - changes in the framework where the products/services are introduced
â¢ '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.
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
â¢ The mark - what will the new configuration be and who will want it?
â¢ The technological - how will we harness new technological knowledge to generate and
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
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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