Management Essay Paper on What is Innovation

Management

  1. What is Innovation? State two Innovations that has revolutionized the current market in the last decade?

Innovation refers to the procedure of utilizing a new idea to create a fresh and unique method, product, or service. Thus, innovation can also refer to the course of action undertaken to translate new ideas into commercially valued products and services. The innovated product or service however should create value in order to ensure consumers pay and derive satisfaction. Consequently, they can analyze the economic costs and benefits in order to build and sustain consumer loyalty. For example, flat screen televisions with special effects such as diverse HD ranges were innovated from the first television set that was invented as shown below (CL, 2015).

In the last decades, various products and services have been innovated. The two most common innovations that have revolutionized the current market include the Apple technological devices and the Amazon site. Apple devices such as iPods and iPhones have facilitated visual communications and integrations among global persons. Conversely, Amazon has provided customers with diverse opportunities to choose products and services either directly or from outside providers through the site. For example, consumers can purchase clothes as well as food and technological products as it facilitates e-commerce (CL, 2015).

  • Explain the difference between Invention and Innovation? Which do you consider the most important and why?

Invention refers to introduction of first time creations in form of products or services. Conversely, innovation refers to the process of applying new ideas to improve and ensure another person’s invention is significantly enhanced. For example, the microprocessor was invented by Thomas Edison. However, the microprocessor has been improved through innovation by several people including Steve Jobs who relied on the invention to innovate the Apple technological products (CL, 2015).

Based on the two definitions, I think innovation is more important. This is because it allows people to utilize their unique skills and experiences to improve and enhance invented products and services. For example, Apple products could not be created without innovation. Innovators therefore encourage inventors to continue creating and introducing new commodities they can improve mainly to enhance quality of life and generate economic growth. It is therefore clear that, innovation ensures the newly created and introduced products achieve a competitive advantage to acquire a business or commercial value.

Steve Jobs introducing an invented Apple mobile device (Tom, 2012).

  • “Innovation: Invention – Commercialization – Diffusion “Explain.

Based on the answers provided to the previous questions, it is evident invention supports innovation. It is therefore crucial for inventors to create new products and services in order for innovators to utilize their skills and experiences to improve and enhance their socioeconomic qualities and values. These two processes are therefore the key to economic growth and development which leads to commercialization. For example, when a new product such as medicine is invented, it is introduced to the healthcare markets. This however does not attract consumers’ attention to improve its commercial value unless it undergoes innovation.

The process of commercialization therefore ensures invented and innovated products and services are valued within the market place as consumers are willing to buy and use them to derive satisfaction. This guarantees consumers with an identified need to own a product or service is fulfilled by diffusing invention and innovation coupled with commercialization or marketing. For example, smart phones are innovations are products that derive consumer satisfaction hence, generating socioeconomic growth (CL, 2015).

  • Explain with an example how “Business Models” in commercialization enable Innovation?

Business models are vital as they determine the level of success a company will achieve as it expresses and explains how it earns revenues. Through business models, the company should convince a customer to believe in the business plan laid out guaranteeing survival and growth. Thus, business models ought to address the type of services and products beings provided by the company. It should also explain how the business will earn revenues from the products and services. This involves determining the marketing processes to be undertaken. Lastly, it should provide a company with advantages and disadvantages in order for the firm to evaluate mechanisms to undertake to achieve and sustain a competitive advantage within the industry. The uses of a business model are therefore factors ensuring commercialization is achieved. However, they require the company owners to create ideas on how to attract and retain customers’ attention. Thus, business models are incentives enhancing the process of innovation. For example, a campaign market seeking to attract investors, consumer attention and loyalty is a business model as it seeks to discusses products and services on offer, procedures to undertake to earn revenues, and achieve a competitive advantage (CL, 2015).

  • What are the different forms of Innovation? Explain each form with an example.

The first type is known as the supply chain innovation. It mainly involves the process of applying the best quality practices and technological empowerments in order to create a supply chain. The supply chain innovation therefore seeks to reduce waiting periods and wastages of materials and resources (Dave, 2014).

Various supply chain innovations were identified in 2014. For example, Urban Fitters were identified as the leading supply chain innovators as they established warehousing automation processes creating a high quality cross-belt. The cross-belt is utilized to reduce the packaging time and costs (Jim, 2014).

The Urban Fitters Cross-Belts supply chain innovation (Dave, 2014).

Another type of supply chain innovation (WordPress, 2011).

The second type of innovation is known as service innovation. This refers to creation of new or slightly modified service concepts. The concepts however have to ensure they achieve customer interaction through the client association channels. The service delivery system should also be technologically developed ensuring individual and group customers access new and renewed services a firm is offering.

For example, the McKinsey & Company relies on service innovation to enhance the digital business models. This is because the company relies on the digital world to capitalize on technological and consumer changes in order to improve innovation and increase revenues (WordPress, 2011).

  • Distinguish between the different forms of Innovations and explain which form of Innovation tends to attract more customer attention.

There are other two major different forms of innovation. The first form of innovation is known as product innovation. It is based on the elementary form of innovation allied to the degree of novelty, originality, and freshness. For example, the product radical transistor is the most common sample allied to degree of novelty. It has provided innovators with numerous opportunities to create diverse electronic devices that have advanced humanity. The degree of novelty can therefore be described as systematic technique that focuses on the extent to achieve positive changes. The changes can be big or small as well as either scientific or technological. For example, the product radical transistor has facilitated creation of washing machines that have enhanced the quality of humanity (CL, 2015).

The second form is known as process innovation. It is based on the elementary form of application of innovation. It determines what the newly created product or service ought to be used for especially to benefit corporate sectors. Process innovation provides innovators with an opportunity to implement new significant improvements when producing a product or service. For example, new and improved production and packaging techniques, software and equipments account to process innovation as they increase and enhance production quality and quantities respectively (CL, 2015).

Based on the two definitions, I think degree of novelty form of innovation is likely to attract more customer attention. This is because it strives towards enhancing the quality of humanity. Thus, consumers are attracted to products and services simplifying their life while enhancing their standards of living (CL, 2015).

  • Mention the four types of Innovation. Explain each type with an example.

Radical innovation refers to exploration of new technologies by exploiting the existing technology. It creates and introduces dramatic changes through processes, services and products already existing in the market. An example of radical innovation is the process of exploiting existing technologies to manufacture a Jet Engine that can also be fit in a racing car.

A racing car fitted with a jet engine (CL, 2015).

Modular innovation refers to platforms and products facilitating people and products to develop relationships in order to control the experiences gathered from the associated while determining the ownership of contents (CL, 2015).

An example of modular innovation is the Facebook platform that relies on the relationship existing between people and people as well as people and products guaranteeing crowd sourcing at any place and time (CL, 2015).

The third is known as incremental innovation referring to series of small changes to improve an existing product or product line crucial in maintaining the competitive advantage. This type of innovation is common as it occurs frequently in order to make modest changes (CL, 2015).

An example of incremental innovation is the process of exploiting designs of an Mp3 player in order to produce an iPod (CL, 2015).

The different types of Mp3 players that have been innovated into iPod (CL, 2015)

The last type is known as architectural innovation. It refers to the process of reconfiguring established systems before linking them to components and associated designs that have not been changed (CL, 2015).

For example, when a mobile phone is fixed with a camera and a radio, the components and design does not change. However, it is reconfigured enabling it to take pictures and provide entertainment (CL, 2015).

  •  Analyze how each type of Innovation impact on human behavior, business activity and society as a whole?

The four types impact human behaviors, business activities and the society at large differently. For example, radical innovation provides members of the community with superior technical abilities. This enhances peoples’ creativity skills encouraging them to be bold and passionate. It can however hinder team work. Modular innovation has played a key role in the widespread of social media globally. It has enabled people across various global regions to connect and reconnect. It has provided people with job opportunities. For example, bloggers are now able to make a living. It has however led to increasing cyber bullying and spread of false rumors that are hurting humans’ and organizational reputations (Tony, David & Ewan, 2015).

Incremental innovation has attributed to economic changes. For example, companies are now keen in ensuring the mobile devices being produced are smaller in size. However, they have new and better applications that are educative and entertaining. Lastly, architectural innovation has impacted global commercial platforms. This is because it has led to development of new markets with diverse consumer needs. Although this has created difficulties for firms that are already developed, it provides an opportunity to meet and fulfill consumer needs that develop from incremental innovation (CL, 2015).

  • Using appropriate example, explain the value of Innovation typology in today’s world.

Innovations have elements of novelty as the products and services differ from those that were invented in the past. More so, all innovations differ diversely as scholars, engineers, biologists, and scientists also possess different skills required to innovate in each field. Innovation topologies are therefore ways of classifying innovations. This is vital as it provides innovators and consumers to differentiate the many typologies of innovation. Consequently, they can manage the new developments resulting from innovation without feeling overwhelmed or confused. More importantly, they can rely on the well managed innovation typologies to predict future innovations. As a result, they can determine how future innovation typologies are likely to impact their lives (CL, 2015).

For example, people are currently predicting that architectural innovation is likely to interfere with peoples’ social skills due to the growth and spread of social networking sites. This however is valuable as people will neither be ill prepared nor overwhelmed when the predictions transform into reality (CL, 2015).

References

Class Lectures (CL). (2015). Innovation Management. Ministry of Education, Imperial College of New Zealand.

Tony, D., David, D., & Ewan, D. (2015). Service Innovation in a Digital World. Retrieved on 27th May 2015 from: http://www.mckinsey.com/insights/operations/service_innovation_in_a_digital_world  

Jim, R. (2014). Supply Chain: How Many Supply Chain Innovations are Truly Revolutionary? Retrieved on 27th May 2015 from: http://www.supplychain247.com/article/how_many_supply_chain_innovations_are_truly_revolutionary

Dave, B. (2014). The Ten Most Innovative Supply Chains of 2014. Retrieved on 27th May 2015 from:  http://www.industryweek.com/supply-chain/ten-most-innovative-supply-chains-2014#slide-0-field_images-155531  

Tom, G. (2012). The Difference between Invention and Innovation. Retrieved on 27th May 2015 from: http://www.pbs.org/idealab/2012/03/the-difference-between-invention-and-innovation086/

WordPress (2011). 15 Types of Innovation. Retrieved on 27th May 2015 from: https://thegentleartofsmartstealing.wordpress.com/types-of-innovation/