Innovation Placement Of A Good Or Service Into The Market That Patrons Can Buy

1523 WordsJun 28, 20157 Pages
Innovation placement of a good or service into the market that patrons can buy (Pearce & Robinson, 2011, p. 371). There are 2 types of innovation that a firm can experience which include incremental and breakthrough. It’s important of organizations and leaders to aware of the associated differences and risks involved as one fuels the other. The following essay will discuss the aforementioned characteristics. There are a few difference between the innovation types. First, incremental innovation is the act of making small, simple changes to products, services or processes, whereas, breakthrough innovation is an out of the ordinary development that create a new product or market (Pearce & Robinson, 2011, p. 371). Typically, incremental…show more content…
Another difference is that incremental innovation is discovered on the demand side of the value chain, whereas, breakthrough is created on the supply side (Marshall, 2013). This is because incremental innovation is a response to customer needs or wants as they are already familiar with the product, hence, the demand sparks the supply side of the value chain. There are a few risks associated with both incremental and breakthrough innovation. With incremental innovation, lack of coordination and time, lack of trained employees, not choosing the correct ideas, not enough customer insight, poor planning, and incentives are not tied to innovation, and support not given to employees by management could cause the innovation process to be unsuccessful (Kadareja, 2013). In my opinion, these risk could be minimized because the company has the most control over these risks. For instance, a company can train/ hire knowledgeable individuals, as well as, support and incentivizes employees. On the other hand, breakthrough innovation are not as manageable in my opinion. These risks include: availability of and high development cost, unknown demand in the market, economic risk, long development times, competitive pressure or market is dominated by an existing business, copy right issues, and ability to meet regulatory statutes (Kadareja, 2013). For
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