Radical and Incremental Innovation and Their Application

ASSESSED SUMMATIVE ESSAY
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Summative Assessment
Radical and Incremental Innovation
Innovation is a major factor that determines the success and longevity of modern enterprises. Organizations use innovation theories in order to stay in the competition. There are different types of innovation models and theories that are used according to the business structure, and products nature. Most of the firms tried to invent a new product but they failed due to the lack of resources and capital. However, many companies developed unique products such as Google, and Apple. These firms conduct extensive market research and develop a product according to customers’ needs and expectations.
The cumulative assessment report contains an explanation of two innovation theories that are used by multinational organizations. The selected theories are the bottom of the pyramid and incremental & radical innovation. Both theories have been used by different organizations especially Google. Organizations alter strategies according to the business structure and needs. Companies encourage an innovative culture in the workplace and motivate employees to achieve their professional goals.
Features
The core features of the incremental innovation are following.
* The innovation improves features and competitiveness of existing products and services in order to increase sales and revenue.
* The innovation introduces something new without affecting the current business model (Teece and Pisano, 1997).
* A new business model can be produced while the existing model remains the same (Berson and Linton, 2005).
* The innovation assists organizations to remain competitive and develop the next generation of the product (Rerup and Feldman, 2011).
* Customers prefer to use an improved product that comes with upgraded features (Becker, 2005).
* The approach is used commonly by different companies and received positive results (Teece and Pisano, 1994).
* The theory is used for continuous improvement and development according to changing trends (Pearson, 1990).
The following are features of radical innovation.
* The main concern of the radical innovation is to explore technology for exploiting existing products and services (Ehrhart and Klein, 2001).
* The innovation gives a huge chance to win the industry becoming a pioneer in the field (Feldman and Pentland, 2003).
* During the starting stages, the pioneer company can own the whole market share (Pentland and Hærem, 2010).
* Radical innovation has a significant impact on the company and market (Nelson, 1982).
* Companies identify totally new methods of producing products and services for the benefits of the society (Hales and Tidd, 2009).
* Gives a new business model and blows up the existing one (Li and Zhang, 2007).
* The innovation alters components, the interaction components, and unites them to develop a new and unique solution (Becker and Zirpoli, 2008).
Importance
Both radical and incremental innovations have a significant importance in industry (Abernathy and William, 1978). The innovations are important because they ...