Innovation is a very diverse term. In general, innovation means exploiting new ideas or change existing ones for the betterment. Innovation focuses on being creative at work. It can be technological, which includes product innovation or process innovation. Also, it can be related to changing business model, exploiting new markets, and developing new processes. The main aim of innovation it so make the business more successful. This can be done by increasing market share of an existing product or introducing a new product or reducing the cost of production.
Innovation is important for both employees and the owner of the business. For the owner of the business, innovation helps to keep up with the competition. With the fast growing pace of competition, the organizations have to be on toes to keep an eye on the work of their competitors. The new processes or technologies developed by the competitors can be benefitted from only if the organization introduces innovation in the company. For example, retail stores have faced tough competition from other brands that are available online. This could be coped by introducing online selling in the business (Nation, 2016).
Similarly, for the employees of any organization innovation holds great importance. Due to technological advancement the older generation of employees feels incapable to give their best. Hence, innovating their style of working will help employees to keep pace with any changes in the working style of the organization. This helps the employees stay confident and give their hundred percent in their work.
|
Type of Innovation |
Definition |
Relevant Examples |
|
1. Product Innovation |
Product innovation includes improving existing products in order to increase their potential uses or introducing new products. |
Apple incorporates product innovation in its organization by upgrading the exsisting iPhones in a way to increase its usefulness. |
|
2. Process Innovation |
Process innovation can be defined as using a new or improved method of doing things in order to increase production and reduce cost. It involves introducing new equipments, technology or processes. |
Ford, one of the most recognized automobile companies. The company innovated their manufacturing process using the first moving assembly line. This innovation not only simplified vehicle assembly process, but also reduced the time to of production to 90 minutes which earlier was 12 hours. |
|
3. Paradigm Innovation |
This innovation is related to the mental models that construct the nature of the organization. |
An example of this kind of innovation can be found in the international humanitarian sector. The innovation included emphasizing more on local ownership instead of internationally dominated responses (Kowalik, 2012). |
|
4. Position Innovation |
Position innovation can be defined as changing the way in which a product is perceived by the customers. |
Levi-Strauss jeans were originally developed as a clothing line for manual workers, but using position innovation the product line was transformed into one of the biggest fashion clothing range. |
|
5. Business Model Innovation |
Business model innovation change is the basic foundational decisions on which the organization works. |
IBM transformed itself from mainframes to personal computers and finally to technology services. This involved changing the core foundation of the business model (Innovation, 2017). |
|
6. Structural Innovation |
Structural innovation involves changing the structure of the business organization. It might include changes like more centralization or decentralization. |
H&M launched in India with a centralized structure of decision making, but eventually the organization decided to decentralize the structure in order to provide quick remedies and fast decision making. |
|
7. Application Innovation |
Application innovation is similar to product innovation. It involves discovering new uses of existing products or finding new audiences or re-combining existing functionalities to improve the overall quality of the product. |
Macintosh computers started using fault resistant computer systems to run ATM networks is an example of application innovation. |
|
8. Disruptive Innovation |
Disruptive innovation can be defined as an innovation which creates a new market and network that will eventually disrupt an existing market. |
Ultrasound technology was disruptive to X-ray imaging technology. It was a new market innovation. Eventually all the X-ray companies acquired major ultrasound equipment companies (Hong, 2015). |
|
9. Experiential Innovation |
Experiential innovation is mostly witnessed in offering new services or by adding a new service to an existing product. This involves providing one to one attention, giving a personal touch and increasing the level of value add. |
In the 2012 Olympics, Samsung introduced brand experiences at various locations in London that focused on demonstrating the newly launched Galaxy S3 and Galaxy Note. The visitors could get their pictures clicked and could play on the Olympic games app of the gadget. |
|
10. Marketing Innovation |
Marketing innovation involves being creative in designing the marketing campaign of the organization. The changes are made to an existing market plan or an altogether new market plan is introduced. Market innovation is a very common phenomenon as the opportunities are increasing everyday and the business wants to make the most of it by using their marketing technique to fetch maximum customers. |
In 2013, IKEA launched a marketing catalogue application that not only provided customers with the access to the companies’ products, but also through augmented reality, enabled them to see how good or bad a produce, would look their house (Moth, 2014). |
Radical innovation is characterized by a major effect on a market or on the economic operations of organizations in that market. This innovation includes changing the structure of the market, establishing new markets or disrupting existing products. Incremental innovation on the other hand, involves making changes in an existing product, process or service to enhance its usefulness (Kishore, 2013). This can be done in two ways: either by improving a simple product which usually includes increasing the usefulness of the product or decreasing the cost of production; or by improving a complex product by innovating one of the integrated subsystems.
Radical innovation is usually a complex process. This kind of innovation is based on smaller incremental improvements, development of complementary technologies and organizational changes. Incremental innovation is in fact a simpler process that involves small changes in the business. It paves way for big radical changes by introducing smaller changes in the organization. These changes have a low degree of risk involved (Globerman & Lybecker, 2014).
Radical innovation is prevalent in industries that are fast moving and involve rapid change. The industries which are characterized by high technology tend to have radical innovation. On the contrary, incremental innovation is practiced more in smaller firms with medium or low level of technology. The organizations dealing in services introduce more incremental changes as they involve a continuous process comprising of a number of small changes. Radical innovations are carried in the organizations that have a huge potential to create new products or increase efficiency of their existing product on a very high magnitude (Team, 2017).
Radical innovation involves looking at the bigger picture. It is a large scale approach that tends to change the basic fundamentals and the purpose of the business. It includes making bigger changes in the organization itself, in order to bring major changes in the market. A great example of radical innovation is Pebble Smart-watch. The company introduced a whole new category of watches way before Apple introduced its Apple-watch. Incremental innovation on the other hand, focuses on finding new ideas in an already existing market. This innovation finds the scope of improvement in the usefulness of the product or in the way a product is perceived. Joseph Joseph Elevate collection has used incremental innovation to create a huge empire by starting from simply designed kitchen products and then slowly adapting to every kitchen utensils, building a whole family of products.
In this section, the role of incremental innovation in the pharmaceutical industry is stated. Advancement in medicines can be made by introducing incremental changes which involve expansion of therapeutic classes, incline in the number of existing dosing options, inventing new physiological interactions of known medicines, and enhancing the properties of medicines that are already in use. It varies from creating complex molecular structures and making changes in formulations. The ultimate goal of incremental innovation in the pharmaceutical industry is to increase the number of treatment choices available to the patients (Muckersie, 2016).
Expanding therapeutic classes, is a method of introducing incremental change in the industry. This involves recognizing and interpreting human physiological pathways. These pathways can be metabolic, biological and disease mechanisms. It increases the quantity of drugs in therapeutic classes and helps researchers to gain better understanding of the physiological pathways. Exploration of these pathways enables the researchers to compare molecular variations during different stages of the disease and ultimately helps them to identify best medicinal interventions. This forms 30% of the incremental innovations (Hult, 2014).
Active Pharmaceutical Ingredient (API) is the therapeutic component of any medicine. It is the basic molecular structure that induces a medicinal effect by interacting with a physiological pathway. The API can get degraded because of the metabolic process in the human body that could break it down into an ineffective compound. Also the way a person reacts to a medicine is dependent on the patients’ compliance with treatment regimens. The efficiency of the API can be improved by devising a new mechanism to deliver it or simplify treatment regimens by introducing alternative dosing options. This incremental change can improve the overall effectiveness of the medicine (Santella & Santella, 2005).
Incremental change in pharmaceutical industry also includes using existing medicines and compounds to address conditions beyond their actual initial indicated uses. While treating one particular category of conditions, doctors might find therapeutic advantages for another set of conditions which initially has been unrecognized. To gain surety about alternative usage of an existing compound, clinical trials are conducted. This ensures whether the medicine is safe and effective for alternative use or not. Once the doubt is cleared, regulatory approval is seeked. This is also known as New Indication and roughly forms 6% of the incremental changes in the pharmacy industry.
Another incremental innovation in this industry is New Active Ingredient innovation. This includes drugs that possess same percentage of active moiety but have different race, salt, complex, etc. These ingredients have the same effect, but using innovation, these can be used to treat diseases. They form 4% of the incremental innovations.
Incremental innovation in the pharmaceutical industry has helped the economy by reducing the cost of treatments. Irrespective of the cost of a new drug, research shows that the creation of new drugs has reduced cost of treatment by minimizing the number of visits to hospitals and clinics and increasing compliance. Contributions to cardiovascular therapy and the addition of newer ACE inhibitors provide clear examples of reduced overall costs resulting from incremental innovation. Incremental innovation not only improves the quality of care and treatment, but also increases competition among different manufacturers. This competition results in the availability of medicines at a lower price. Advancement within a class of drugs reduces side effects and consequently contribute towards a quicker recovery period. This improves the overall health, work capacity and quality of life of individuals. For instance, in the U.S. the main reason for not showing up at work was seasonal hay fever. The medication involved consumption of antihistamines that had a side effect of sedation. This highly affected the overall productivity of the country. The improved version of antihistamines contained non-sedating elements which helped the workers to take fewer leaves and increased the productivity of the country.
References
Globerman, S. & Lybecker, K., 2014. The Benefits of Incremental Innovation, Available at: https://www.fraserinstitute.org/sites/default/files/benefits-of-incremental-innovation.pdf
Hong, P., 2015. 5 Examples Of Innovative Marketing Strategies, Available at: https://www.linkdex.com/en-gb/inked/innovative-marketing-strategies-examples/
Hult, K., 2014. Incremental Innovation and Pharmaceutical Productivity, Available at: https://home.uchicago.edu/khult/jmp_draft.pdf
Innovation, D., 2017. Using business model innovation to create new paths to growth, Available at: https://www.innovation-management.org/business-model-innovation.html
Kishore, S., 2013. The Power of Incremental Innovation, Available at: https://www.wired.com/insights/2013/11/the-power-of-incremental-innovation/
Kowalik, O., 2012. Types of innovations, Available at: https://www.productbookshelf.com/2012/01/types-of-innovation/
Moth, D., 2014. 10 very cool examples of experiential marketing, Available at: https://econsultancy.com/blog/65230-10-very-cool-examples-of-experiential-marketing/
Muckersie, E., 2016. 4 examples of increment innovation in action, Available at: https://www.freshminds.net/2016/08/4-examples-of-incremental-innovation-in-action/
Nation, I., 2016. 8 reasons why innovation is important to businesses today, Available at: https://www.imaginenation.com.au/innovation-blog/8-reasons-innovation-important-businesses-today/
Santella, A. & Santella, T., 2005. Pharmocoevolution: the benefits of incremental innovation. pp. 1-18, Available at: https://www.who.int/intellectualproperty/submissions/Pharmacoevolution.pdf
Team, I., 2017. Incremental Innovation Vs. Radical Innovation, Available at: https://www.incrementalinnovation.com/incremental-innovation/incremental-innovation-vs-radical-innovation
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download