The Challenge of Breakthrough Innovations

In: Business and Management

Submitted By alisolo
Words 4396
Pages 18
The Challenge of Breakthrough Innovations

Table of Contents

“The Breakthrough”…………………………………………………………………………………2
Dilemma/ Struggle of Established Firms……………………………………………………………3
Rules for Innovation………………………………………………………………………………….4
Building An Ambidextrous Organization………………………..…………………………………6
Conclusion and Recommendations………………………………………………………………….8
Reference……………………………………………………………………………………………...9
Appendix…………………………………………………………………..………………………...12

“The Breakthrough”

One dictionary definition of breakthrough is: "a significant and dramatic overcoming of a perceived obstacle, allowing the completion of a process." But what really makes an innovation a breakthrough (radical, disruptive) one, rather than incremental, from a marketing point of view?

According to Boston Consulting Group report, breakthrough innovations are defined as “innovative products that offer consumers significant new benefits through advances in technology, formulations, or applications or through more convenient packaging (Boston Consulting Group (BCG): A Disciplined Approach to Breakthrough Innovations). Christensen (1997) argues that a necessary condition for an innovation to be disruptive is that it “captures new markets in an original and unexpected way.” Academics of marketing literature differ in their opinion about a relationship between a significant new technology and disruptive innovation. Some authors believe that radical innovation goes hand-in-hand with a significant new technology (Veryzer et al. 1998, O’Conner et al. 1998). Although the notion that significant new technology is an unavoidable condition of radical innovation can be infirmed by Sony Walkman example. Sony Walkman was revolutionary in its product concept but fundamentally new technology was not used in its creation (Mascitelli 2000). Mascitelli in line with other authors (Lynch 1998)…...

Similar Documents

Innovation

...Innovation And Organization Structure 1 Report on Innovation & Organization Structure With case study on Google Inc. Ltd. Prepared By:Akash Tripathy (MS12A005) Deepti Agrawal (MS12A031) Nanda KumarA(MS12A044) Ravinder Reddy(MS12A063) Shine Nagpal (MS12A083) Sunaek Sivadas Vishesh Kumar Agarwal(MS12A103) Innovation And Organization Structure 2 TABLE OF CONTENTS       Introduction…………………………………………………………………………………….3 Innovation a. What is Innovation? ……………………………………………………………..........4 b. What are the different types of innovation possible in the organization?....................5 Organization Structure a. What is Organization Structure?.................................................................................9 b. Role of Organizational structure in Innovation…………………………….….……..9 c. The nine common characteristics of innovative organization……………….….…...9 Innovation in Organization a. Examples of Organization promoting Innovation…………………………....…......10 b. Common practices found among organizations fostering innovation………………12 c. Ways to Find Innovation at an Organization………………………………….……..12 d. Processes at organization to drive Innovation ……………………………….……..13 Case study of an Organization- Google a. Organization structure of Google……………………………………………………14 b. Google’s organization chart…………………………………………………..….….19 c. Products of Google……………………………………………………………….….20 d. Advertising services of Google………………………………….…………….…….21 e. Communication and publishing tools of......

Words: 7225 - Pages: 29

Innovation

...MARKETING PROMOTIONS IN FMCG By: Martin Long – Head of Business Consulting IRI – UK ] EUROPEAN HEADQUARTERS: Eagle House, The Ring Bracknell, RG12 1HS Telephone: +44 (0)1344 746 000 [ PROMOTIONAL EFFECTIVENESS ] “It is clear that we are not in a traditional recession but actually are seeing a global economic realignment which will redefine our national economies after this downturn.” Thom Blishock – President of Consulting & Innovation – IRI In the current adverse economic climate, which is without precedent in recent history, manufacturers and retailers are being confronted with some painful realities around the current effectiveness of their promotional activities. As a result in the severe degradation of consumer confidence, marketers, category and brand managers are finding that the type of promotions that have served them well in the past, are no longer as effective. This traditional and rigorous analysis of “past events” limits its impact in a situation which is proving unique to most modern marketers and category managers. The fundamental challenge to be faced today revolves around recognising the need to use more focused and speedy methods of analysis to support brands, as part of a holistic organizational approach, rather than purely as a function Of marketing, sales or, in the context of retail, the buying department. Marketing mix modeling, forecasting, price driver reporting and various other econometric techniques have been used in the processing of......

Words: 4379 - Pages: 18

Breakthrough Products

...A systematic way for designing breakthrough products or services includes two main steps. These two lead to considering of meaning first and technology second. This innovative method of creating a step forward product is clearly different from the common ones. It is so because such companies look for the original approaches not by analyzing the habits of consumers but by interpreting other very meaningful sources. They are called the interpreters. This concept includes people who can help for the companies to perceive the situation from the different perspectives. For example, the interpreters could be designers, psychologists, architects and many other experts who have explored the field. These people are very valuable for the company in order to create the new meaning of the product which attracts the customers more than the old one. In that way, consumers get a product which is above their expectations. Especially this ability to astonish the customers ensures the success for the company in the huge rivalry. However, often it is a complicated task to find the right interpreters. It is so because the companies need to look at the problem from the different angles and perceive it unusually. So it is essential to analyze the whole user’s experience. It means that not only the product is important but also its presentation or environment around it. The companies have to understand that there are a lot of factors which impact the customers’ decision. After this analysis the......

Words: 295 - Pages: 2

It Innovation

...application Pg. 4 Three most important, generic innovation rules Pg. 7 Formal pathways for innovation that already exist Pg. 8 Opportunities to make processes and the business more innovation friendly Pg. 8 Systematic ways to track innovations and mesure their success Pg. 9 Processes that will help manage innovation Pg. 10 Conclusion Pg. 10 Works Cited Pg. 12 Executive Summary This report contains a current evaluation and analysis of applying strategic rules to innovate the entire Sea Ray organization. The 10 fundamental strategic rules will be discussed and I have chosen three of these rules as the most critical to Sea Ray’s success. Sea Ray must operate in fundamentally different ways when forming an innovation experiment to avoid organizational memory. The success of the experiments will hinge more on experimentation than the initial strategy used. Sea Ray then must not base success on financial performance, but on the ability to learn and adapt. Formal pathways which are currently being used for innovation will be assessed and characterized. Using this pathway data, new modern opportunities will be discussed in order to make Sea Ray more innovation friendly. Sea Ray will also use human resource data instead of research and development data to track and measure their success. Finally, an innovation committee will be formed to manage innovation across Sea Ray. INTRODUCTION Sea Ray Marine......

Words: 2767 - Pages: 12

Breakthrough

... 3. Build sustainable processes to support development. Managers should be expected to coach and develop their people. At a minimum, everyone knows what areas they need to improve, and for those with particularly high potential, career tracks are developed that give them a sense of where they can go inside the organization. 4. Reinforce shared values. Employees should be able to link their everyday tasks and responsibilities to the values in the organization. People need to understand why what they do is important. 5. Leverage problems as opportunities for real world learning and development. What’s an acceptable failure needs to be clarified and that way, by incorporating stretch assignments, employees can seek out challenges where they can develop without feeling like mistakes will set them back in their career or jeopardize their job. Learning organizations see problems as opportunities. References: http://www.forbes.com/sites/drewhansen/2011/12/02/5-keys-developing-talent-in-your-organization/ http://newretailweb.wordpress.com/2011/03/03/review-of-%E2%80%9Ctalent-management-for-the-twenty-first-century%E2%80%9D-by-peter-cappelli/ http://hbr.org/2005/12/the-cost-benefit-of-well-employees/ar/1...

Words: 938 - Pages: 4

Financial Breakthrough

...Financial Breakthrough Introduction Valuable employees on a daily basis contribute to the profitability of major corporations. T. Rowe Price Group (TROW or the group) is a global investment management organization with $482 billion in assets under management as of December 31, 2010 (Datamonitor, 2011). In the nearby future it is my intentions to explore employment opportunities as a business associate at T. Rowe Price Inc. Also, according to the Datamonitor T. Rowe Price provides a broad array of mutual funds, sub advisory services, and separate account management for individual and institutional investors, retirement plans, and financial intermediaries (2011). Moreover, The Wall Street Transcript 2006 had revealed that T. Rowe Price operates under the leadership of its President George A Roche. In addition, T. Rowe Price is a vast corporation that primarily operates in the US. and is headquartered in Baltimore, Maryland with 5,052 employees (Datamonitor, 2011). Variation in leadership style is often times an element that plays an important role in the financial breakthrough of a corporation. Introspecting Management Style Good sound business management can be applied in any forum. Whether in the corporate world, the military, or even households management plays a role. Every aspect of management is a result of a process or situation requiring attention. Many factors separate successful managers from the unsuccessful managers. Some of these factors or......

Words: 2113 - Pages: 9

Innovation

...------------------------------------------------- Innovation From Wikipedia, the free encyclopedia For other uses, see Innovation (disambiguation). Innovation is a new idea, device or process.[1] Innovation can be viewed as the application of better solutions that meet new requirements, inarticulated needs, or existing market needs.[2] This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. The term innovation can be defined as something original and, as a consequence, new, that "breaks into" the market or society.[3] While a novel device is often described as an innovation, in economics, management science, and other fields of practice and analysis innovation is generally considered to be a process that brings together various novel ideas in a way that they have an impact on society. Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself. Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better. Contents   [hide]  * 1 Inter-disciplinary views * 1.1 Business and economics * 1.2 Organizations * 1.3 Sources of innovation * 1.4 Goals/failures * 1.5 Diffusion of innovation * 2 Measures ......

Words: 5808 - Pages: 24

Innovation

...Introduction to Innovation Management Prof. Paul Collins UWB Learning Objectives • Understand the Language of Innovation • Distinguish between innovation as artifact and process • Be able to explain the three innovation imperatives • Be versed in how innovation affects firm growth and performance • Articulate why managing innovation matters Prof. Collins UWB 2 I. The Competitive Challenge Techno-economic Revolution •We are in the middle of an estimated 50 year technoeconomic revolution that creates new growth opportunities and disrupts the basis of competition in many established industries (Hiemtra,2000) •Global markets mean increased competitiveness in terms of cost, quality, and innovation •Affects consumer demand by providing more options that offer multiple performance advantages simultaneously. Prof. Collins UWB UWB 3 Moore’s Law – Powering the Techno-economic Revolution •According to Moore’s Law, the number of transistors on a chip roughly doubles every two years (at less cost per unit of performance). •As transistor counts climb so does the ability to increase device complexity and integrate many capabilities onto a chip. • How does this affect your industry? Company? Prof. Collins UWB 4 Evidence (Forbes Study) Drivers of Value Creation Drivers of Value Creation What Forbes' Research Established (rank order) 1. INNOVATION 2. ABILITY TO ATTRACT TALENTED EMPLOYEES 3. ALLIANCES What Forbes' Readers Said......

Words: 1217 - Pages: 5

Innovation

...zxcvbnmqwwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm What do you understand by innovation in a small business context? What factors contribute to successful innovation in small firms?[Author’s name][Name of the Institution][Subject and code][Date of fulfillment] | 1 Introduction The ideological approach of implementing innovation in a business can be noted as an organizational process, in terms of introducing novel ideas, systematic flow of work, methodological arrangements of products and services, in order to gain excessive developmental track (Gupta, 2007). The demands of using innovation in all kinds of businesses, especially the small firms is gaining excessive popularity as the level of competition in the international market is increasing and at the same time, IT is making the connectivity between the buyer and the seller much easier and comfortable. This paper is an attempt to understand the basic approach and the impact of innovation in small companies. In this approach, practical framework of Eliminate-Raise-Create-Reduce, as noted by Amazon.com and examples, as of Concur Technologies, Zardoya Otis and Ctrip.com will be used for a clearer comprehensiveness. Business Innovation As per the declaration of InnovationTools.com (2013), the term innovation, gets identified through those actions that are needed in order to create new kinds of ideas, added by proceedings or the products, in case......

Words: 1043 - Pages: 5

Innovation

...Accelerated Innovation: The New Challenge From China Magazine: Summer 2014Research Feature April 23, 2014  Reading Time: 23 min  Peter J. Williamson and Eden Yin Rather than focusing on technological breakthroughs, Chinese companies are finding new ways to innovate that reduce lead times and speed up problem solving. Companies elsewhere should take notice. Chinese companies are reengineering new product development in ways that reduce lead times. Chinese companies are opening up a new front in global competition. It centers on what we call accelerated innovation — that is, reengineering research and development and innovation processes to make new product development dramatically faster and less costly. The new emphasis is unlikely to generate stunning technological breakthroughs, but it allows Chinese competitors to reduce the time it takes to bring innovative products and services to mainstream markets. It also represents a different way of deploying Chinese cost and volume advantages in global competition. Silicon Valley and other technology hotbeds may be able to match the speed of Chinese innovation in particular sectors such as electronics and Internet-based services. However, what’s distinctive about the strongest Chinese competitors is their capability to combine accelerated innovation with rapid scale-up to high volume at low cost, and to apply these techniques across a wide variety of traditional industries. We saw accelerated innovation being deployed...

Words: 4843 - Pages: 20

Breakthroughs

...Cooperative robots don’t need a boss The title says that robots don’t need a boss. This science breakthrough will help humans to do things easily. The robots itself will do an action without human command but it has a certain disadvantages, people will lose jobs because the robot itself will occupied humans jobs. From my own perception robots created to help humans must not rely on technologies the humans itself have to take actions and decisions. The birth of birds After a long time of research about fossils of dinosaurs. We reach a new milestone about evolution. This evolutionary breakthrough will help us to farther understand the connection between dinosaurs and birds. The scientist can create a hybrid birds that came from genetics of dinosaurs. Once we created a hybrid birds we can create more and more hybrid animals. From my own perception we must keep on studying evolution until we find more answers about evolution of genetics. Youth serum for real? Youth serum is a fountain of youth that found within the body of a teenager, this breakthrough will help the old ones to be immune from certain diseases. After using this serum the old ones can do more things than they wanted to do and it is both beneficial for both teenagers and elders. I am happy that teenagers like me will help our old man to do some adventures with us. Cell that might cure diabetes This is an incredibly exciting time in diabetes research. In past, we only had one promising approach to......

Words: 518 - Pages: 3

Identify Five Disruptive/Radical (Ie Breakthrough) Innovations That Have Occurred in the Past 25 Years

...disruptive/radical (ie breakthrough) innovations that have occurred in the past 25 years. What has been the nature of each of these innovations? In what way were they radical as opposed to an incremental improvement to an existing product process category? Why are they significant in your opinion and why did you select each of the five particular examples? What value did each innovation create and how did it do so? Do you consider that there has been any down side or value destruction in adopting these innovations? Why/Why not? Radical Innovation # 1:SOCIAL MEDIA 1. What has been the nature of each of these innovations? With Internet on the rise, and being widely available and used by everyone, especially the new generations, there was a need to ‘stay connected' as more and more people were travelling, and moving away from their home towns. 2. In what way were they radical as opposed to an incremental improvement to an existing product process category? Social Media is a radical innovation rather than an incremental innovation as there was no existing product which provided similar benefits/uses. Because of Internet, Social Media was possible and became into existence. The only close competitor of Social Media, which provided similar benefits, was the telephone and the mobile phone later on. 3. Why are they significant in your opinion and why did you select each of the five particular examples? I believe Social Media is a significant radical innovation, as......

Words: 1920 - Pages: 8

Innovation

...The Innovation Pandemic: Society quest for real time solutions Parish M. Kaleiwahea Wayland Baptist University Abstract The Innovation Pandemic: Society quest for real time solutions When one thinks of a business with information technology (IT) flair, Wal-Mart is probably not on the top of anyone’s list of companies leading the way of innovation transformation. However, for 45 years this retail giant has reinvented IT retail model for an evolving digital economy. Today in order to survive a global economy companies must embrace and invest in latest information systems infrastructure in order to maintain a competitive advantage. Wal-Mart’s commitment to enhance their technology by integrating traditional and e-commerce retail innovation by using the most advanced technology to enhance the retail empire. As profits continued to reap into Wal-Mart, its commitment to improve data communication systems for their company remained a priority. While other companies contemplate spending money on new innovative technology, Wal-Mart continues to dedicate itself to implement many computerized solutions such as instituting a uniform product code (UPC) system as its electronic scanning barcode tool (Wang, 2006). Innovation is a tough concept for people to wholeheartedly to embrace because it comes with all types of unknowns. Companies like Wal-Mart took a huge financial risk, but eventually stuck to their strategic vision to embrace and forge ahead in the technology era.......

Words: 5598 - Pages: 23

Managing Crowds in Innovation Challenges

...Managing Crowds in Innovation Challenges Arvind Malhotra Ann Majchrzak Crowdsourcing for innovation is typically conducted as an “innovation challenge.” Despite the popularity of innovation challenges, there appears to be a growing consensus that innovation challenges do not succeed at generating solutions with competitive advantage potential. This article presents three ways in which managers can assure that their innovation challenges are fruitful: foster different crowd roles to encourage contribution diversity; offer knowledge integration instructions and dual incentives; and offer explicit instructions for sharing different types of knowledge. (Keywords: Creative Collaboration, Innovation, Creativity, Crowdsourcing, Open Innovation) I nnovation challenges, also known as innovation tournaments and idea contests, are a manifestation of crowdsourcing.1 When running an innovation challenge, a company posts an open call on the Web to solicit solutions from a diverse range of individuals. For example, GE’s Innovation Challenge solicited new technologies for its sustainability product line and a Lego Challenge asked the public to suggest unique Lego products as new revenue streams. By 2017, over half of consumer goods producers are projected to employ crowdsourcing for 75% of their consumer innovations.2 Despite the popularity of innovation challenges, there is a growing consensus that the current manner in which innovation challenges are implemented......

Words: 9539 - Pages: 39

Innovation: the Coca Cola Challenge

...INNOVATION: THE COCA-COLA CHALLENGE   Abstract The Coca-Cola Company fully understands the meaning of innovation as evidenced by their ever-growing brand portfolio and internal processes. In this paper, I discuss Coke's three cola strategy as both a product and service innovation. Such strategy was implemented to widen the market presence of Classic Coke, Diet Coke and Coke Zero. The three cola strategy was developed initially for the purpose of rekindling the growth of the sparkling beverages. The strategy is basically a campaign to boost public confidence wherein an array of marketing, advertising and promotion was implemented. The three cola strategy was backed by Research Council towards the development of consumer-centered innovation.   Introduction Overview of the Organization The Coca-Cola Company             Founded by Asa Griggs Candler in 1882 in Atlanta, Georgia, a company that fully understands the importance of innovation in business is the Coca-Cola Company. Coca-Cola, or simply Coke, chose to concentrate their operation on production of soft drink syrup while maintaining an intimate relationship with its bottlers and distributors at the retail level. Basically, the company is engaged into blending raw material ingredients (product planning), packaging in plastic canisters (market research) and shipping to bottlers (advertising). In 1886, John Stith Pemberton invented the company’s flagship product Coca-Cola. Today, Coca-Cola Company offers......

Words: 3270 - Pages: 14