Innovation is taking two things that exist and putting them together in a new way.In other words, Innovation is something different that creates value- Opines Hirav Shah, The Most Sought-After Business Strategist Of The Country.
When people hear the term “innovation,” they tend to think of new-to-the-world gadgets that fundamentally change how we live our lives. Yes, but it’s many other things, too.
Let’s break down the definition
“Something” includes products and technology. It also includes services, processes, revenue models and loads of other things. Consider this: Many would argue, quite convincingly, that the Toyota Production System was one of the biggest innovations of the 20th century.
“Different” often surprises people. After all, even Merriam Webster defines innovation as “something new.” But here’s the thing: One of the most commonly cited innovations, the iPhone, wasn’t new. Even Steve Jobs admitted it when he said in his keynote speech that Apple was introducing three products: a widescreen iPod with touch controls, a mobile phone and an internet-connected device. The iPhone was different, however, because it combined those three devices into one.
“Creates value” is probably the most important part of the definition. All innovations solve problems. Solving problems creates value. If you solve a big problem, either because it’s a problem lots of people have or it’s a very painful problem a few people have or something in-between, you create a lot of value for others and for yourself.
Radical innovation is the stuff that gets all the press. These innovations fundamentally change the business, like IBM moving from computers to business services. These innovations are high-risk and require a lot of time, money and patience to see to fruition. This type of innovation is also called “breakthrough” innovation. Basically, radical innovation is a transformative business model that seeks to completely demolish and replace an existing industry or create a whole new industry. It takes an existing system, design or invention and turns it into something brand new. It may change the parts of the system, the processes of the system or both.
Examples Of Radical Innovation and How It’s Different From Disruptive Innovation.
Netflix is an excellent distinguished example of the role radical innovation can play to disrupt an industry. In 1997, a simple mail service DVD rental company entered the market. Without knowing the future capabilities we would have, Netflix’s competition seemed all too calm about their existence. Their biggest competition, Blockbuster, saw them as a niche for “film nerds”, not the average individual looking to rent the newest thriller.
Blockbuster went broke and had to shut its doors. Why? They were not prepared for the disruptive innovation that Netflix would cause. While Netflix was building in the smaller markets, Blockbuster was too slow to change their game.
In 2012, a tractor company began equipping their tractors with sensors, so farmers could track and monitor their yields. John Deere, one of the biggest manufacturers of farming equipment knew the potential of big data for the future and decided to leverage the technology for their bottom line. Now that farmers were able to connect their equipment with software to examine their collected data, the farm industry was changed. This type of innovation, where technology comes first, is a great example of radical innovation.
Do you remember the first iPhone? It was released in 2007, only eleven short years ago. Even then, the iPhone was created to do more than just take calls. It was built with the future of technology in mind. At the time, it was radical to believe that a cell phone could be used for all aspects of life. Now, just over a decade later, smartphones are everywhere and the industry can thank the iPhone for that. (BTW, Microsoft’s CEO Steve Ballmer at the time said there was no chance the iPhone would get market share.)
As you can see, radical innovation impacts the industry, for the better, placing technology as the priority and focusing on long-term goals. Disruptive innovation starts when a small company begins in the smaller market, focusing on short term success, thriving on low-end market encroachment. It is only radical innovation that is truly the mark of success for a business.
So, why focus on what you can do now to invade your market, when you can think about changing the industry completely for everyone?
Embracing Radical Innovation
Radical Innovations are rare, they spawn new industries; and they have changed, and will continue to change, the course of history, Quotes Hirav Shah.
These Happen By
Businesses must encourage creativity within employees. The iPhone wasn’t created by a think tank of CEOs and stakeholders. Instead, it was created in the mind of one man. How many of your employees are conjuring thoughts of the next industry-changing product or service? How many of these employees feel comfortable sharing their ideas? You should encourage creativity within your business culture. Even if an idea is too far-fetched to be feasible, keeping this line of communication open will create an atmosphere of collaboration for the next big thing.
2. Allowing For Failure
Businesses must allow for failure. Listen, good businesses fail, and they may fail a lot. Even good ideas fail at times. Although a failure is disappointing, they must happen to drive business forward. New ideas can be born from failure and problem-solving and troubleshooting are also products of a project gone wrong. Businesses must shift their mindset from struggling to be right all the time to learning how to accept failure.
3. Experimenting With Technology
Businesses should experiment with technology. If you want to stay relevant, you may have to make your own way. Using the talent base that you have, you can begin to experiment with the technology you have at your disposal. You may just find the next big process that you can capitalize on and change the industry for all. Talk about a total game changer.
4. Opening Lines Of Communication
Companies should open the lines of communication. Collaboration within a business environment creates an atmosphere of teamwork. Communication should not be kept to the four walls of your monthly business meeting. Instead, imagine a giant thinktank of ideas that evolves daily, allowing your employees’ competencies to be used to further your innovation. It can happen when lines of communication are open.
5. Embracing Feedback
Businesses should embrace feedback from employees about products and services. Again, it is critical that your employees be given open lines of communication within your business. Companies that embrace feedback from employees are given a head start in front of companies that simply rely on the consumer. Embracing feedback is really very very important.
Radical Innovation happens due to breakthrough skills, teams and actions – everything centred to revolutionize and change the world, Quotes Shah.
Do your research and carefully craft your business plan while diving into “radical innovation“…Avers Shah.