Going back to the LEGO Education innovation video (Kragh). The idea that innovation takes place on different levels was made. This is a useful concept that can be used to help identify innovation through major and minor points of view.
This idea of ‘innovation on different levels’ links into different theoretical approaches strongly. Different approaches are:
- Continuous innovation (concerned with smaller changes, ongoing improvements on existing products or concepts to build and better ideas)
- Disruptive innovation (bigger changes, which come with bigger risk to a company)
A company like apple does represent continuous innovation, because they are always bringing out new versions of the iPod, making small changes. With this wider range of products they are able to attract a bigger audience. For example, small changes in colour of the iPod Nano proved popular leading to increased sales.
The reason for Apple taking this less risk prone approach will be because they are such a successful brand, with a product that sells itself, they will not want to take a ‘disruptive innovation’ approach on their products because they put themselves at risk of loosing business. Companies that are more likely to implement a ‘disruptive innovation’ are those which are failing and who need something original to change the face of their company.
A prime example of ‘disruptive innovation’ is seen in businesses who are failing or loosing money and need a ‘turnaround’ to change the outlook of their company, in order to succeed. This was apparent in 2006 where ‘Kraft Foods’ CEO Irene Rosenfeld said, “at that time, Kraft was suffering from stagnant growth, poor organization and little product innovation”.
To revitalise Kraft, Rosenfeld’s strategy strived to invest in new ideas and take a more innovative approach on business. Months down the line, with introduction of more ‘customer focused products’ and reduced operating costs, Rosenfeld reported, “many of its products are rating more highly with consumers, and the company has enjoyed substantial growth in developing countries.” (Tozzi, 2008)
Reference List
Image available from:
http://keep3.sjfc.edu/students/clw04536/e-port/MSTI%20260/defintions.html
Accessed: 17/12/2011
Jacob Kragh. 2011. ‘What is innovation?’ Available from:
http://www.youtube.com/watch?v=iEG8i7kgPb4
Accessed: 17/12/2011
Image available from:
http://www.ipodreviews.org.uk/ipod-nano/apple-ipod-nano-16gb-review/
Accessed: 17/12/2011
Christopher Tozzi. 2007. ‘Chronicle Online – Irene Rosenfeld’. Available from:
http://www.news.cornell.edu/stories/Oct07/Rosenfeld.cover.ct.html
Accessed 17/12/2011
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