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Radical Innovation
Bianca Backes Inga Janke
Innovation, change, and decision-making in international organizations Prof. Dr. J. Beneke SS04 11.05.2004
Overview
1. The notion of innovation (repetition) 2. The classification of Innovation 3. Incremental vs. Radical Innovation 4. Radical Innovations: historic examples
Innovation? 6. Conclusion
Definitions (1)
Innovation means a new combination of purpose and method. (Schumpeter)
Innovations are resulting in qualitatively new products or processes, which differ significantly from the former state however this is to be determined. (Hauschildt)
Definitions (2)
In contrast to a discovery - which is usually
made coincidently- innovation is characterized by a (preceded) systematic innovation process with a certain objective at the beginning. (Betz)
Innovation
Type
product process
Degree
combination
product/ process basic improved fake
innovation innovation
goods service
Innovation
Incremental/Sustaining
Radical/Disruptive
Incremental Innovation
newcomers
Companies need to come up with radical
innovations
practices
technological market
Main Differences
Incremental vs. Radical Innovation
low uncertainty exploits existing technology high uncertainty explores new technology key players are cross-functional individuals business plan evolves through discovery-based learning
process is formal
process is informal
Radical Innovations
historic examples
Telephone Light bulb Television Atomic bomb Computer (1st gen.) Floppy Disc Compact Disc WWW Cellphone SMS ? 1861 1883 1929 1945 1946 1950 1979 1991 Invention 1992 1994 Invention
Conclusion
The capacity to innovate and make life better
economic growth!
The End