Background
Innovations have sometimes been considered as routine parts of organisational operations. In this regard, new product developments or shifts in company functions are often done systematically and will result in better performance of what the company has been doing before.
However, once in a while, a company may make a revolutionary discovery that could dramatically alter the core function of the firm or even create a new industry in its place. These kinds of innovations are known as discontinuous innovations.
The major challenge with discontinuous innovations is that their benefits cannot be easily detected. In fact, most organisations that have commissioned market researchers and consultants to investigate the degree of acceptance of their product have often found that those radical innovations posses very little public support (Christensen, 1997).
A case in point was the fax machine invented by Xerox. When this firm commissioned market research on acceptability of their new product, they actually got negative ratings for it. If the administrators of this firm solely relied on the market sentiments at that time, then they would not have revolutionised the document imaging industry as we know it today.
Not only do discontinuous innovations pose the latter challenge, it is likely that they may result in radical cannibalism. This term refers to the eventual elimination of old product and service offerings following the invention of a new form of technology.
One such example is the discovery and growth of digital photography thus leading to the decline of chemical photography. Kodak Company has had to embrace digital photography which competed with its older product category i.e. chemical photography.
It was a risk that had to be taken and eventually shrunk the market size of its former products. Furthermore, a discontinuous innovation may fulfil most of the functions that the previous technology could but may not always have the qualities that the previous invention had (Anthony, et. al., 2008). Given all these challenges, it is difficult to ascertain whether discontinuous innovations can translate into long term income growth.
Research questions
- An analysis of a discontinuous innovation’s perceptions by the public is essential in assessing its financial impact. How do firms deal with market research in order to understand consumer needs with regard to their new innovation?
- Waiting for discontinuous innovation to occur may minimise their likelihood of its occurrence hence its ability to generate revenue (Brentani, 2000). In what ways do managers make deliberate efforts to inculcate a culture of discontinuous innovation that would cause new revenue streams.
- Organisational stakeholders are almost always likely to resist development of a disruptive technology. Which kinds of strategies can be utilised in minimising or avoiding resistance to these innovations so as to foster long term changes?
Methodology
In response to research question one, a case study analysis of previous discontinuous inventers will be done. Inventions such as Hewlett Placard’s inkjet printer, Xerox’s fax machine and Chrysler’s minivan will be analysed and each firm’s approach and dealings with market research will be done.
Question number two will require an analysis of literature on change culture so as to curve out a pattern of discontinuous change innovation. Consequently, common approaches will be identified and expounded.
For question number three interviews of managers from these three firms during the time of the innovations will be done so as to identity the various methods that individuals from these organisations used in order to foster disruptive change.
References
Christensen, C. (1997). The innovator’s dilemma: when disruptive technologies cause great firms to fail. Boston: Harvard business school press
Brentani, U. (2000). Innovative versus incremental new business services: different keys for achieving success. Production innovation management, 3(18), 169-187
Anthony, S.. Sinfield, J., Johnson, M. & Altman, E. (2008). Innovator’s guide to growth-putting disruptive innovation to work. Boston: Harvard business school press