Innovation Types: Component and System Levels
To reach organizational goals, it is vital to determine innovative designs beforehand. Our organization can benefit from enforcing either discontinuous or incremental advancements. To be more exact, the first type of development is based on the launch of radically new products every several years. The incremental innovations should be introduced faster and contribute to the advancement of current products yearly. Nevertheless, combining both types and reaching strategic goals is possible even faster since discontinuous innovations are not impediments to incremental ones.
Potential Incremental Innovations
Incremental innovations are directly focused on the stable advancement of already existing models. In other words, companies introduce such upgrades by adding a new aspect to their product every year. However, incremental designs do not yield profitable opportunities for achieving strategic and organizational goals as they are not influential to the operational system. Still, they tend to serve as an advantage to the company because they enable customers to smoothly transition to the improved product model (Shigeta & Hosseini, 2021). Overall, our organization might focus on introducing modern sensors, computers, and IoT technology to the products to advance their operation.
Potential Discontinuous Innovations
To begin with, radical innovations require more funding and are more dangerous to enforce in operational processes. In other words, if the discontinuous improvement does not prove to be successful, the company may lose everything and go bankrupt (Shigeta & Hosseini, 2021). However, if customers welcome the innovative design on the market, it becomes a competitive advantage among rival manufacturers (Shigeta & Hosseini, 2021). In addition, having reached success with the launch of the new model, the company can dominate the automobile industry and be protected from competitors. Another critical point is that radical innovations, when combined with incremental ones, can still yield fruitful benefits to the organization. Our company might start working on producing autonomous driving vehicles to outshine other automobile manufacturers on the market.
Organization’s Potential Path
To sum up, the most effective path to follow for the company when introducing innovations is the one based on matching customers’ needs. Considering that the products are produced for people to buy, the organization must optimize its operations to meet users’ expectations and requirements. However, it is essential first to research the market, identify the clients’ needs, and then focus on introducing innovative designs that cater to them. As a result, customers’ experience and satisfaction levels are bound to be considerably enhanced, creating a company-customer relationship. Such a strategy is based on increasing people’s loyalty to the brand, which further benefits the organization and contributes to reaching strategic goals.
Reference
Shigeta, N., & Hosseini, S. E. (2021). Sustainable development of the automobile industry in the United States, Europe, and Japan with special focus on the vehicles’ power sources. Energies, 14(1), 78. doi:10.3390/en14010078