The main key to the success in any business today is dependent on the ability to develop new ideas to keep the products, services as well as operations of the business organization fresh. Innovation is, therefore, the whole process of coming up with
New ideas aimed at improving the way things are run in business as well as the services and products offered. Research conducted by Accenture found out that about ninety percent of the executives of various companies believed that the ability to develop new ideas is what determined the achievement of their long-term successes. Great innovations within a business organization can be achieved by the use of any of the innovation processes discussed below.
This is a type of innovation that was coined by Professor Christensen. It occurs when fresh new services or products introduced in the market start at the bottom but eventually end up displacing the already existing competitors. Companies can exploit this avenue by introducing products or services which are accessible, simple, affordable and convenient as compared to the status quo of expensive goods. These products finally shape up the market.
This is another great type of innovation that an organization can utilize. It is also known as radical innovation. Unlike in many other forms of innovations, radical innovation focuses on coming up with completely fresh and new concepts and ideas that do not build on the already existing services and products. This is mainly achieved by the use of research teams which often take advantage of technology.
This type of innovation was originated by Professor Chesbrough from the University of California. In this type of innovation, a company advances its operations by the use of external and internal ideas. It involves the use of existing knowledge to expand markets externally and also accelerate innovation internally. According to Professor Chesbrough, this is the most profitable way through which business can innovate. This is because, if it is carried out correctly, it will create new streams of revenue, reduce cost, increase differentiation as well as accelerate time to market the products.
This is another way through which a business can achieve great innovation to improve its success. When a company adopts this type of innovation, it makes minor changes to their already existing services or products to maintain their dominance in the marketplace. It involves building upon what you already have rather than changing the whole service or product. This can be achieved by introducing new features to the products that a company is offering.
This type of innovation has been applied by the bigger and more successful companies to enlarge their market coverage. It involves developing products that are first used in the developing countries. These products subsequently and slowly get into the markets of the more developed and richer nations. This may take some time, but when it succeeds, it dramatically improves the market coverage of the respective company.