Innovation Planning And Design Process

Entrepreneurs use many tools to propel their endeavors. One of the tools that many entrepreneurs use is the innovation concept. The innovation concept is the development of new disciplines and practices within the frame work of the concept. Entrepreneurs bring about innovation through opportunities that are caused by change. Technology innovation, processes innovation, service innovation and product innovation are some of the ways that the opportunities within the innovation concept can be found. Each of these ways of finding opportunities happen in different ways.

If there is lot of competition in the market then you should try to constantly improve and invest (investment in new technology)

Innovations form the main sources of competitive advantages and are always of significance for the growth of a company. Companies or organizations put their greater efforts in improving their performance by finding new ideas and knowledge on the best way of beating their competitors and therefore give satisfaction to their customers. There are various factors involved in the innovation design system which can be either internal or external.

But Firstly, we will start this part by talking about the importance of a deep analysis of the industry’s structure. A deep knowledge of the industry the company is in, is extremely important. The industry structure is unique and varies from industry to industry of course. It will determine the level of competitiveness and attraction of the industry. With the Five Forces model (Porter) and PESTEL (Political, Economic, Social, Technological, Environmental, Legal) analysis, the organization will get a better understanding of the market will allow you to know the requirements for the possible creation of sustainable competitive advantages and take the right strategic decisions. According to Porter, to create an efficient competitive strategy, it is important to understand the rules of competition that determine market attractiveness.

Innovation is an idea that must be cost-effective and must gratify a precise need. Innovation includes careful application of information, imagination and creativity in stemming greater or different values from resources, and includes all processes by which new ideas are generated such as brainstorming and converted into useful products.

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

Innovation is a term that is so widely used and thought of as simple inventions, but it is truly so much more. Innovation is a complex thought process of new ideas that can be implemented for the betterment of many. Change and adaption within any environment is the foundation of innovation and identifying its sources make it easier to implement innovation. The easier it is to foster an innovative environment and inject innovation; a positive impact on a business is instantly seen

As number of firms in the industry keeps increasing, greater competition force firms to earn more market share, innovate substitutes, produce differentiate products and be cost leadership to keep or improve their position in the industry. For example, some of the products of Billabong and Quiksilver are similar, consumer will choose to buy the one with lower price if they have similar function, or buy the one with higher price if the product is different from others. Thus, a firm could run well if it has different products and lower cost compared with rivals.

Prior to each decision that has to be made, the management team has to set realistic goals. By setting realistic goals we will be able to strategically figure out which direction is most suitable for the direction that we are aiming towards. Realistically as we analyze the world and make comparisons on how businesses functioned 15 years ago to now we would see many differences. By figuring out ways to remove the middleman, that opens doors to create new opportunities. For example, enhancing technology within manufacturers in our various markets.

Technology can be a rich source of competitive advantage for fast moving firms or a major threat for slow adapters

Innovation is not a single activity; it is a process. For businesses, innovation means fresh ideas, developing new products or services and its effective processes. Innovation can be key to any business or company in the future. Bringing innovation into your business can help you save time and money and gives you the competitive advantage needed to grow your business.

There are three critical elements of disruption (these were first identified in the book, The Innovator’s Dilemma and are illustrated in the chart at right): ● A rate of improvement that customers can fully use or absorb. This is represented by the dotted line. ● A rate of improvement that goes beyond what customers can fully use or absorb. The pace of technological progress almost always outstrips the ability of customers in any given tier of the market to use it, in part because companies keep striving to make better products that they can sell for higher profit margins to their most demanding, high-end customers. This rate of improvement is shown by the two solid lines in the chart. ● A distinction between sustaining and disruptive innovation. A sustaining innovation targets those demanding, high-end customers with better performance than previously available, whether that performance is an incremental improvement or a breakFor Additional Information on how to know whether your idea has disruptive potential, go to: http://my.summary.com

Competitiveness does not just depend on the cost of factors of production, or on a specific technological advantage. Rather, it depends on continuous innovation, high-level skills and learning, an efficient communications and transport infrastructure, and a supportive enabling environment. Each of these aspects is discussed below in greater detail.

Innovation is normally used to denote the process that takes place when a product or a process is developed, from idea to market; the concept of invention only denotes the process that takes place when new ideas or solutions are generated. Baumol (2002) argues “is it possible to have lots of inventions and still lack innovations. Nevertheless, inventions are a necessary precondition for innovation”.

This is the first stage and it is easy and less expensive to generate, but the most expensive part of this is making it a reality. The activities involved are carrying out a research using SWOT analysis (Strength, Weakness, Opportunities and Threat), focus group and corporate spies to get an idea into developing a new product. Creating the idea and gathering information from customers by watching and listening to them is another activity involved in idea generation and determine if the offering is worth pursuing. The idea can come from anywhere; it could be from employee, customers, suppliers, competitors and distributors.