Understanding the what – What can be changed in innovation.
Innovation can take many forms but it can be reduced to four dimensions of change ( the 4Ps of innovation)
Product innovation – changes in what the organisation offers ( products or services)
e.g. design of a car
Process innovation – changes in the way things are created and delivered.
e.g. manufacturing methods for that car.
Position innovation – changes in the context in which products/services are introduced
e.g. Lucozade. Originally developed as glucose based drink to help children and invalids in convalescence. These associations with sickness were abandoned by the brand owners Beechams (now part of Glaxo Smith Kline, the relaunched the product as a health drink aimed at the growing fitness marker where it is now presented as a performance – enhancing aid to healthy exercise.
Paradigm innovation – changes in the underlying mental models which frame what the organisation does. Can be triggered by new technologies, the emergence of new markets with different value expectations , new legal rules of the game, and new environmental conditions. e.g. shift to low cost airlines, provision of online insurance and other financial services, and the repositioning of drinks like coffee and fruit juice as premium ‘designer’ products.
Below is a model showing the changes
|Isaksen S and Tidd J (2006) Page 56|
When is it time for change?
The innovation life cycle/ diffusion curve
A product will always as a rule have its growth in sales then a decline! However, don't take this decline as the end! See this as an opportunity to innovate!
The Inovation life cycle allows us to see what stage a product is at and where innovation should take place after it's decline! As you can see when the product reaches the decline stage, innovation takes place! The innovation allows for the product to keep running, to keep fresh in peoples minds all of the time and never run out! The process will then repeat itself until the product reaches its end then the innovators will focus on something new!
I hope this gives you a good overall view on the different things that you are able to change within innovation to invent a product or even make a product succeed by changing it's position etc. But all in all I feel it is clear to see the changes and opportunities available to innovator or companies when searching for ways to innovate with their existing products or new ones in the pipe line!
Bessant J and Tidd J, (2011) Innovation and entrepreneurship, second edition, Chichester, West Sussex, UK: John Wiley & Sons.
Bessant J and Tidd J, (2007) Innovation and entrepreneurship, Chichester, West Sussex, UK: John Wiley & Sons