Using a three-folded framework of introducing innovation into an organization can contribute greatly to increasing customers’ satisfaction and rise of new way of production. Based on the theory of innovation proposed by Suh (2010), it will be possible to trace the changes that should be implemented into the identified companies to spur their business growth and development.
Regarding the fact that innovation strategies aim to convert deep researches, concepts, and ideas into successful and profitable products, they provide companies with huge potential for further develop, as well as a change to restore their respectable image.
At this point, the starting point of innovation introduction implies the identification of final application fulfilling the customers’ demands and needs for a service, product, or process in a way that has never been practiced. Innovators, therefore, should outline the goals to achieve, as well as strategies that goals can be reached in the most effective way – functional requirements (Suh, 2010).
The proposed model is based on three principles. The first one requires the presence all prerequisites of an innovation process is obligatory. Second, the innovation hub and its nucleation should not exceed its critical side. In other words, the initial costs spent on the innovation should not surpass the further costs for supporting the development of an innovated idea (Suh, 2010).
Finally, the third principle is confined to the idea that innovation should be introduced much quicker than it can be diffused by other innovators in the field. Applying to the proposed scheme can create a number of benefits for enhancing the competitive advantage of the investigated firm.
Introducing a new product or service, analysis of consumer behavior comes to the forth because this is the main underpinning of building innovative predictions and concepts (Trott, 2008). Using such an assumption also implies considering the relationship between the innovation process and the consumer impact on the production and service industry in terms of their profitability (Ken & Tsai n. d.).
Therefore, analysis of diverse environment of the target population is an initial step fostering the outline of future innovative ideas. The starting point offers new perspectives, trends, and direction of development and, therefore, this stage should be carefully planned before a specific idea is introduced.
Overall innovation performance is largely dependent on the type of technological advances being presented at the early stage of product or service development (Pullen et al, 2010). Apart from the actual process of converting ideas into successful products and services, the technological level identifies the degree of the company’s readiness to compete with other organizations and gain a competitive advantages (Golovatchev, Budde, & Kellmereit, 2010; Rouse et al., n. d.).
Hence, there should be a solid technological basis to build substantial materials for research and development processes. The intensity of activities is closely associated with the readiness of the technological department to confront difficult innovative problems.
Judging from the above-presented theories, and analyzing the case of failure of cereal production company – Kellogg’s Cereal Mates – the following strategies could be implementing to improve the situation. To begin with, the company managers and researchers should outline the strict idea of the introduced concepts.
This is of particular concern to the product constituents, packaging and logo. Previous experience shows that all these aspects were not carefully identified. In order to accomplish this goal a careful survey should be conducted to define the preferences and needs of a specific target audience. In case the main concept of production is to encourage a healthy lifestyle, the company should persuade their customers that the products they buy are both tasty and healthy. Warm milk, therefore, is not within this conception.
Second, in order to introduce the firmly established goals, the company should change its policy toward team management. At this point, each member of the company’s staff should posses the necessary skills so as to be able to face changes and cope with the constantly shifting environment (Goffin & Mitchell, 2009). Therefore, acquiring the innovation management skills will allow to quickly react to environmental changes, which is an obligatory condition for the second stage of an innovation strategies mentioned at the beginning.
A multi-faceted approach to innovation is also another important condition that should be considered within the established framework. In particular, the main goal of a company is to attract as many resources within the shortest possible time. This will help to capture the largest consumer market and promote a new product (Pearson, 2002). As a result, advertising is among those dimensions contributing to restoration of the brand name of the company.
In conclusion, the proposed three-folded framework of an innovation strategy introduction creates a number of advantages for the company to advance their sales and react to the challenging environment.
In this respect, strict and quick identification of goals, effective research of customers’ preferences, and accurate prediction of consumer demands are on the agenda of successful implementation of innovative techniques. In addition, effective advertising and readiness to stand competition is also indispensible to sustaining a competitive advantage.
Reference List
Goffin, K & Mitchell, R 2009, Innovation management: strategy and implementation using the pentathlon framework, 2nd edn, Palgrave Macmillan, Basingstoke.
Golovatchev, J, Budde, O & Kellmereit, D 2010, Technology and Innovation Radars Effective Instruments for the Development of a Sustainable Innovation Strategy and Successful Product Launches. International Journal of Innovation and Technology Management, vol. 7, no. 3, pp. 229-236.
Ken, Y & Tsai, T-Y n. d., ‘From Successful Innovation to Market Profitability’, International Journal of Organizational Innovation, pp. 293-308.
Pearson, A 2002, ‘Tough-minded ways to get innovative’ Harvard Business Review, vol. 80, no. 8, pp. 117–25.
Pullen A, de Weerd-Nederhof, P, Groen, A, Song, M & Fisscher, O 2009, Successful Patterns of Internal SME Characteristics Leading to High Overall Innovation Performance. Creativity and Innovation Management. vol. 18, no. 3, pp. 209-223.
Rouse , A, Pridham, R & Orr, S n. d., Innovation and Strategy. Deakin University, Australia
Suh, NP 2010, ‘A Theory of Innovation and Case Study’, International Journal of Innovation Management, vol. 14, no. 5, pp. 893-913.
Trott, P 2008, Innovation Management and New Product Development. Pearson Education, New York.