1. Think about some innovations with which you are familiar and try to classify them in terms of the key dimensions mentioned in the module. Key dimensions which are important include:
Product, process or service
An example of product and process innovation is the green marketing technique of selling Method, a home and body–care product that seeks to safely remove all harmful chemicals from people’s lives. Method was founded by two former school mates and friends namely Adam Lowry and Eric Ryan back in the year 2000 (Sanjiv 2012). The founders successfully came up with green philosophy together with an emphasis on edgy marketing techniques aimed at promoting their product. Green marketing refers to the method of selling products or services based on the environmental benefits of the product itself, its production process and the packaging techniques. Unlike all other marketers and producers of green products, Adam and Eric ensured that every level of production, packaging and marketing was done the green way.
Incremental or radical
The pentium processor has gone through several incremental innovations over the years. Pentium processors are produced by Intel, based on a series of x86-compatible processors that were invented as Intel’s 5th generation microarchitecture (Sanjiv 2012). Intel has produced Pentium-branded processors from Pentium pro, Pentium II, Pentium III, Pentium 4, Pentium D, Pentium M and Pentium dual core. This shows that Intel has implemented innovation for its micro processors, with significant increase in the amount of CPU cache, power efficiency and integration of cores in a single chip.
Components or systems
An example of component innovation is the introduction of Android operating system for smart phones. Smart phones have been using various operating systems such as Windows, Symbian and Palm OS until recently when Google purchased Android Inc., and implemented their operating system in smart phones (Gobble 2012). Android is a better package when it comes to flexibility, and therefore it has continued to be implemented in various sophisticated smart phones. This is an example of component innovation because it does not involve the innovation of the whole phone system.
New to the world or new to a particular extent
In the beginning, scientists used vacuum tubes in computing, whereby the tube/valve would control electric current in a sealed vacuum container. However, the vacuum tubes were too unreliable and bulky, and they were therefore replaced by a new innovation of transistors (Gobble 2012). The new transistors were seen to use minimal power and space because it was small and it was acting as both a transmitter and resistor. The transistors were invented by John Bardeen, William Shockley and Walter Brattain, researchers at Bell Telephone Lab in New Jersey. This was the first device to ever consist of both transistor and resistor, and it led to the creation of integrated circuits.
Embodied in a physical system-a machine or a product-or intangible-for example, a new working method or a different philosophy of control
Automatic transmissions can be said to be a new innovation in the world of motor vehicles whereby the driver does not have to manually shift gears. Continuous variable transmissions and semi-automatic transmissions usually use a torque converter instead of a clutch to administer operations of the gear and the engine (Sanjiv 2012). Automatic transmissions are easier to operate as compared to manual transmissions and gear boxes. This is because a manual transmission vehicle has to use a driver-operated clutch through foot peddling. Therefore, automatic transmissions can be said to be an innovation embodied in a physical system.
2. Does Innovation make a difference? How could it be used to create some form of strategic competitive advantage within a business with which you are familiar?
Yes, innovation is vital in making a difference to a particular business. Innovation refers to the application of new ideas to an organization’s production and processes in order to increase the value of the business (Jay & Felix 2009). In most cases, there is usually product innovation (creating a new product or implementing more quality products) and process innovation (creation of new processes of production, packaging and delivering of goods). Innovation is important now more than ever due to the growing global competition among companies and organizations around the world. In essence, innovation needs to be implemented by all businesses regardless of the size of the company or organization. In the earlier years, innovation was left for the big businesses and multinational corporations, but now things have changed and firms of different sizes are finding a way of implementing innovation in products and processes. 'There is deep interest in innovation, at least in some of the SMEs, and a sort of recognition that innovation is going to be very important to them in future,' said Harry West, chief executive officer of Continuum, an innovative business solutions firm (Jay & Felix 2009, p.1222). Such a statement coming from a highly experienced innovation expert (having worked with American Express and BMW) shows just how important innovation is to businesses. Innovation is therefore a vital aspect of what businesses should consider in their strategic plans for enhanced growth and development.
Innovation can be used to create some form of strategic competitive advantage within a business. Currently, businesses are implementing technological advancements within their business processes to ensure that they remain at a competitive edge against other similar businesses (Jay & Felix 2009). Technology has evolved over the years and it has become so unpredictable such that you never know what a competitor has up his sleeve when it comes to innovative technologies. This aspect of the rapid pace of technology unpredictability has led to serious competitive challenges among many organizations and companies. This is the reason why businesses should enhance creativity when it comes to product and process management to ensure that they can translate innovations to profitable ventures.
It is possible to use innovation in creating competitive advantage as it happened with Toyota Corporation against the other competitors such as GM. The best way to implement innovation in the company is to reduce imitability of the innovation. This is because the source of competitive advantage is usually durable and significant if the innovation strategy or practice cannot be imitated easily by the competitors. Strategic configurations describe broad, natural bundles of various elements that compose a firm's strategy such that distinct archetypes or attribute constellations are produced (Jay & Felix 2009). For the first time in the history of motor companies, in the year 1997, Toyota introduced Prius, a Japanese mass-produced car that was operated by both electricity and gasoline. Toyota’s innovation was based on a strategy to dominate the industry for green automobiles. Other automobile companies found great interest in the success of Prius, considering that those competitors such as GM and Volkswagen had tried that innovation long before the success of Toyota, but they had not succeeded. Toyota’s success can be said to have come from competitive advantage brought about by the unique product. Toyota had taken advantage of the impending natural resource scarcity to come up with a green automobile, after government intervened in corporate businesses. Toyota therefore, had worked closely with the government thus enjoying various benefits in the process of innovation. Therefore, innovation can spur competition (like in the case of Toyota and its competitors GM and Volkswagen) while increasing productive growth of the business.
3. Outline (with examples) the differences between invention and innovation. Why is invention not enough for successful innovation?
According to (Jones et al. 2012), “Invention refers to new concepts or products derived from an individual’s ideas or from scientific research. Innovation, on the other hand, is the commercialization of the invention itself”
Innovation is the same as technological advances as innovations mean technological improvement. Invention, on the other hand, refers to the introduction of a product for the first time ever. Innovation refers to any improvements that can be made on the already invented product. Without innovation, invention can be rendered useless because innovation is the practical application of the new invention. Innovation leads to the creation of marketable processes, services or products within a business or organization. In essence, innovation is the aspect that really counts when it comes to business growth, stability and profitability.
In the year 1875, Alexander Graham Bell invented the very first telephone that was able to transmit the human voice electrically. This telephone was a gadget that would convert voice signal into electrical impulses from one point to another. This is an example of a product invention. Over the years, many companies have been innovating phones based on this first invention. The design of the phone has significantly changed, while more and more multipurpose features have been introduced (Jones et al. 2012). From the Bell phone, companies have come up with other phones, with the latest being the smart phones such as the Samsung Galaxy and iPhones.
The invention of the light bulb, for example linked people of different areas who worked together to develop a much refined light bulb. The different engineers found themselves interested in developing a common object. This innovation led to generation other ideas about electricity that resulted in new communication technologies. People learnt how more than one communication signal could be combined onto a single line for transmission. This was a big breakthrough in technology that changed the people’s way of communication (Jones et al. 2012). Were it for invention only without innovation, the invention of the light bulb would have been the end of that invention. Fortunately, people made innovations based on the light bulb, creating a whole new range of product and process innovations.
According to (Jones et al. 2012), invention is not enough for a successful innovation because invention without innovation is a pastime. It is also true that a great technological advancement does not necessarily lead to more successful; innovations. This is because an individual or business may be having a great invention of a product, but that invention cannot guarantee the individual of a breakthrough in the market. This is because innovation requires both the technology and the necessary know-how in commerce and leadership. This can be shown by the fact that not all invented (and patented) technologies have been able to be implemented as successful innovations. These inventions usually fail because the innovators may not have the necessary skills in creative thinking, marketing strategies and investment management. Innovation requires a complex interaction of people’s creativity, technology advancements, marketing and typical iteration.
4. The purpose of innovating is rarely to create innovations for their own sake but rather to capture some kind of value from them. How could you utilize the value of innovation process from an unsuccessful innovation product or process?
Innovations are based on the fact that they usually come up in order to capture some kind of value from them. Value innovation can be termed as a new marketing and executing strategy that forms the cornerstone for Blue Ocean strategy, defying most of competition based- strategies (Aron & Phyra 2009). People believe that a company or organization may create higher values to customers at high costs or they may create reasonable values at reduced costs. Therefore, the company uses this strategy to choose an option between reduced costs and differentiation. Companies and organizations that seek to use blue oceans strategies benefit in terms of low cost and differentiation at the same.
It is important to note that companies have relied heavily on technological advances, such that technological innovation may be said to have been shaping the way organizations and companies operate (Aron & Phyra 2009). Companies have been striving to satisfy buyers’ needs through increased value of products and services at low costs. The last ten years have been characterized by intense competition among different companies as they try to reach their targets and achieve profitable growth rates. Some companies have been fortunate enough to realize profits and revenues at high growth rates, while others have failed to succeed against the global competition. When companies do not use value innovation, they attempt to strive to stay ahead of the global competition by concentrating with their rivals and competitors. However, those who use value innovation do not pay much attention to beating their competitors in the market; rather, they make such issues irrelevant and concentrate with value innovation.
It is vital for individuals and companies to look back after any unsuccessful innovation in order to establish the reason as to why it failed in the first place. At this point, the value concept of innovation can be used to ensure that the company has the best strategies of carrying out the innovation again. This can only be possible if all stakeholders and team members understand that the purpose of innovating is rarely to create innovations for their own sake but rather to capture some kind of value from them (Aron & Phyra 2009). From there, it is important to understand the value of restarting a project with renewed zeal and creativity. This can be done by selecting a project team that must do thorough research about the project before implementing the innovations. All top managers should be involved in the creation of a new project so that the team members can feel moralized to carry out their respective tasks. All stakeholders should also be encouraged to come up with ideas that can be used to realize some value in the unsuccessful innovation. All organizations and companies usually strive to be recognized in the market as fast growers, an aspect that makes them have security in their business. This is the reason why innovation value has become a part of companies and organizations. In case the company realizes that an innovation has been successful, it would be vital to ensure that none of the team players gets demoralized due to such failure. The management must acknowledge successes and failures alike so that they can find a firm foundation of starting all over again.
References
Aron, O, & Phyra, S 2009 'Exploring innovation driven value creation in B2B service firms: The roles of the manager, employees, and customers in value creation', Journal Of Business Research, ScienceDirect, EBSCOhost, viewed 27 June 2012
Gobble, M, Petrick, I, & Wright, H 2012, 'Innovation and Strategy', Research Technology Management, 55, 3, pp. 63-67, Business Source Complete, EBSCOhost, viewed 27 June 2012.
Jay, W, & Felix T., M 2009 'Capabilities, innovation and competitive advantage', Industrial Marketing Management, 40, Capabilities, Innovation and Competitive Advantage, pp. 1220-1223, ScienceDirect, EBSCOhost, viewed 27 June 2012.
Jones, S, Knotts, T, & Udell, G 2011, 'Inventions and Innovations: Does Stage Of Development Matter in Assessments of Market Attractiveness?' Academy Of Entrepreneurship Journal, 17, 1, pp. 37-46, Business Source Complete, EBSCOhost, viewed 27 June 2012.
Sanjiv S., 2012. 'International Conference on Asia Pacific Business Innovation & Technology Management: Innovation Management: Reaping the benefits of Open Platforms by assimilating internal and external innovations', Procedia - Social And Behavioral Sciences, 25, International Conference on Asia Pacific Business Innovation and Technology Management (APBITM), pp. 46-53, ScienceDirect, EBSCOhost, viewed 27 June 2012.
