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Innovation:Technique of creating new products

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By Arun Dahal Khatri

Opening a business is easy but getting success is not. Most business ventures came into the market and expire within a year. Numerous factors can affect the survival of a business with consistent profits. Innovation is one of the most important factors. Peter Thiel co-founder of Paypal stated in his book Zero to One “The most contrarian thing of all is not to oppose the crowd but to think for yourself.”Most successful business companies find out the world's greatest problems rather than going with the crowd. Innovation takes place at a specific moment where a founder analyzes the circumstances and figures out the greatest product that differs from the available one. Amazone one of the greatest online shopping destination is the greatest innovation done by Jeff Bozos with the knowledge of technology and its familiarity with people. He find out the greatest complication of shopping and came up with innovative ideas. Similarly, Facebook came up with the idea of solving social relationship mess innovatively. Every business organization needs to come up with transformative ideas to become successful in the market in the long term. Therefore, innovation in the business plays a significant role to bring positive and transformative outcomes in the products and services.

There are 4 types of innovation in a business organization, everyone needs to learn and the successful business person and entrepreneur have to understand.

1-Disruptive Innovation: It is the widely acceptable and most important form of innovation. Disruptive innovation involves transforming the highly advanced and expensive formation of products and services into easy and affordable forms for all the targeted groups. It's not the way of producing new products and services in the market. It is a way of uplifting and improving existing products and services and making them accessible to all groups. Clayton Christensen brought these ideas in his famous book “innovator solution “ in 1997. It is a simple way of dealing with complex ideas and making them easy to use for all groups. The most relevant example of disruptive innovation is Netflix. People are using Netflix instead of CDs and DVDs because of the disruptive innovation. Inventors transform the system into digital formation and make it easy for all the targeted and non-targeted groups.

A business organization can design ideas to solve problems through disruptive innovation. Jeff Bezos founder of Amazone used disruptive innovation to sell the products online instead of offline. He took help from the internet but he only changed the concept of shopping through disruptive innovation. The ultimate goal of this innovation is to create a creative concept by eradicating the complex.

2- Radical innovation: It is a new model of innovation where innovators are involved in creating completely new products and services in the market by eradicating the existing business model. In addition, it involves on focusing adding something new by replacing the present. Its pivot is on long-term impact and also involves altering the relationship between customers and suppliers by creating relatively new products in the market. Radical innovation takes new technology along with a high level of knowledge. Mostly, its focus is on the products and services with high performance that's why it can create a dramatic change and transforms the existing market trend. This type of innovation is relatively rare and it requires a high level of skills and ingenuity. Google is the best example of radical innovation where it changes the concept of searching for knowledge and information in the web browser instead of books and scripts.

3- Sustaining Innovation: This is a type of innovation when a company creates a better performing product by adding value and quality to generate higher profits and hoping to take over the market shares by maintaining the existing customers. Such types of innovation are generally found in the technological market where companies are involved to complete each other. It's also called the battle of product and quality. Every company is involved in making highly adorable products for their customers and wants to give high utility. We can take the example of mobile phone companies. Yearly iPhones come with innovative and attractive products to compete with competitors like Samsung, Vivo, and Hawaii.

In this type of innovation business organizations are involved in creating better value for existing products and services instead of inventing new products and services. It's a risky type of innovation as well

4-Incremental innovation: This innovation takes place by improving and upgrading existing products. The business organization used this model to upgrade the efficiency and productivity of products in the market. Using this model helps to gain a higher market position and also take advantage of the market. It is different from the other innovation model. It is just changing the small features of existing products to make the products more valuable. Most mobile phone companies and laptop companies take these models of innovation to compete in the market by adding particular features to the existing products.