Evaluating The Implications Of A Transformation Innovation

1240 WordsFeb 20, 20165 Pages
Evaluating and Assessing the Implications of a Transformation Innovation In today’s dynamic business world, it is not enough for businesses to respond to the current customers and internal organizational issues. In order for businesses to survive, they must be able to anticipate and evaluate existing and emerging trends and develop ideas, products and services that respond to those trends. However, failing to identify and respond to trends can put the business at the risk of losing the existing customer base because innovation often determines who will be the market leader and who will be living on the margin of the market. Further, Innovation can be divided in to three main types, that are incremental, substantial and transformational. Incremental innovation is known for making the offering more profitable or attractive, but does not change the value proposition and the functional strategies. For example, every car manufacturer introduces a new model of the car every 5 to 8 years. Introduction of the new car model did not change the value proposition, but made the car more attractive. In addition, substantial innovation is usually involved when a new generation of the product is introduced, and the value proposition. For instance, in 2002, Nissan introduced the reverse camera in its Infinity Q45 model. The reverse camera enhanced the value proposition and gave advantage to the Q45 model among competition. Transformational innovation is the type of innovation that change
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