The article you are about to read was originally by Megan Doyle, published by. The World We Create, on July 20, 2020 and has the original title: Four Types of Innovation in Business . The translation of the content aims to provide a privileged view of the new economy, innovation and how different countries perceive the terms and concepts presented. Enjoy reading!
Addressing the risk of disruption with innovative techniques
The business landscape is evolving in telegram number list ways as a direct result of emerging technologies. However, these new technologies often require large capital investments and take a long time to develop – often more than 30 years.
Traditional approaches to innovation are no longer fit for purpose. New approaches are being conceptualized and realized by startups and corporations alike. Companies across all industries are beginning to realize the scale and opportunity presented by disruptive technologies, and many are claiming the gains of being early adopters.
Conversely, when companies ignore these emerging technologies, the risk of disruption from new market entrants becomes inevitable, which Clayton Christensen calls the Innovator’s Dilemma.
Four types of business innovation
Whether a company is in the early stages of exploring innovation or has already gained some experience with it, new invest in communication tools exist throughout the growth cycle. By classifying innovation into four distinct categories, companies can assess the opportunities that exist and how different approaches can enable them to create and capture value.
Incremental innovation is the continuous improvement of existing products or services to provide more value to an existing market. It focuses on reducing defects and incrementally improving performance with features such as product line expansions, cost reductions, and next-generation products. This type of innovation occurs in the short term and has low technological advancement and low market impact.
Examples: Latest generation 3 Series for BMW, Gillette
Architectural innovation is the modification of existing solutions for an entirely new market and refers to changing the overall design of a product by putting existing components together in new ways. This innovation occurs in the short to medium term.
Examples: Sony Walkman, desktop photocopiers
Disruptive innovation is when new technologies and products are created to serve an existing market. This type of innovation is cnb directory by a new technology that offers a more efficient and affordable alternative to what is already on the market. Companies apply disruptive innovation to meet the evolving needs of their customer base, creating entirely new value streams and service offerings that did not exist before. It primarily originates at the bottom of the market segment, however, as the technology matures, it eventually replaces established market leaders. This innovation occurs in the medium to long term.
Examples: open source software, peer-to-peer platforms (Airbnb), video streaming
Radical innovation is when an organization applies a new technology to a new market. This type of innovation occurs when a new product, process or service with high technological advancement has a high impact on the market and completely replaces an existing offering. This innovation occurs over the long term.