...Group 16 Innovation in Product Submission #2 Anant Jain B15131 Ankit Goel B15132 Anshul Jain B15134 2015 1. Introduction Innovation is refinement in a product, process, method, or a part thereof. Innovation has become a buzz-word in recent years, with increasing relevance of ‘innovation-centred business models’, and ‘innovation-led-entrepreneurism’. In fact, the success stories of Industrial America, technological Silicon Valley, American financial market, etc., are tales of constant innovations. ‘Digitization’ has shifted access to knowledge and information from a privilege to convenience: anyone who is willing and able to pay, has an access. Also, sharing of information and flow of payments and tenders through internet has changes businesses like never before. 1.1 What is Product Innovation? Product Innovation can be defined as creating a new product, or making changes in the existing product, or creating a differentiation in terms of utility or features of the product. Light Bulb, telephone, microprocessors, digital displays were great innovation in terms of making of new products, i-pods, cell phone, integrated circuits were innovations in terms of modification in existing products. Not all product innovations are technological breakthroughs- take a safety pin for example. Even candle, fountain pen, and scissors are examples of path-breaking revolution, that didn’t require significant technology, or invention capabilities. On the other...
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...(2013), ‘Threats from competitors or innovation can threaten the status quo of an organization, hence an organization has to be innovative in order to gain competitive advantage over others.’ According to Thomas B et al (2011) Innovation is seen in terms of creativity and the generation of new ideas. Although research tells that a few of these ideas will be commercially viable. Most often a company gains superiority through innovation, innovative products, process or new business models to provide a strong competitive advantage due to first move advantage. Innovation is in different forms, it can be product process and service innovation. Khurana (2013) Process innovation is the implementation of a new or significantly improved production or delivery method. This is done by developing new ways of producing a product, using a newly developed machine. Process innovation can also be in the form of changes in physical movement of the product from the factory floor to the end user. This includes any system that is implemented in improving the delivery of the product to the customer. Cowdrey (2013) On the other hand product innovation involves changes in the specification in the product to be manufactured. This can be changes in the functions, attributes, weight, size, appearance, engineering or technical specifications, constituents or parts of final product. There are two forms of product innovation, these are: New product development New product development describes the complete...
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...4.1 Product innovation P&G can further develop and build the company to greater heights by product innovation which are creation of more unique products and improved on previous products. Product innovation can be achieved by product differentiation and diversification. Both product differentiation and diversification is a corporate marketing strategy to increase sales volume from new products and new markets. Example of differentiation is P&G has different brands of laundry detergent such as Tide, Downy and Ariel. Moreover, each brand produced different types of product with various functions to fulfill different needs of consumers. P&G also have several different ranges of products for sale, such as products in beauty and grooming, health and personal care, household care targeting different market and level of consumers. P&G has built an organization with an innovative culture and it already has diversified portfolio of products and customers. However, due to strong competition from rival firms such as Johnson & Johnson, Unilever, Colgate-Palmolive, this approach of product innovation need to be carried out more effectively to maintain their competitive edge. Some of P&G’s lower sales volume products will become slowly phased out from market due to lower market demands, technology innovation and development driving changes in the product or the products simply mature over time and are replaced by functionally richer technology. P&G can learn from Unilever as the company...
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...BANKING STRATEGIES Case Study: Product Innovation at Bank of America By Cindy Murray What financial institutions can learn from inventions and innovations in other industries. owhere is innovation more essential to survival than in the banking industry. In the payments domain, for example, nonbank competitors less constrained by bank regulations and therefore more agile are changing the banking industry’s grip on the public perception of banks as the only trusted brand for holding and moving money. However, innovation is challenging for banks. Many products, like payments, are a commodity. A vast number of products and a complex infrastructure require continual upgrades to keep apace with technology advancements and comply with evolving regulations and security requirements. This article describes how Bank of America fosters a culture of innovation. Pivotal to an innovative culture is the direct engagement of clients in the innovation process. We highlight some of the ways that Bank of America achieves this. But first we’ll look at the role of innovation process in building brand loyalty. N Build Brand Equity Through Progressive Transformation Change can occur by redefining a problem or redefining a solution. According to Robert Sternberg, a leading creativity expert,1 creativity is the ability to redefine a problem. Innovation can be viewed as the ability to redefine a solution. Successful innovation is a process over time—one that typically happens in increments rather...
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...Questions: (1) Evaluate product innovation at Gillette throughout its history. Has Gillette been a victim of its own success? Has product innovation in the wet-shaving market come to an end? Explain. Gillette had dominated the personal shaving market for quite a long time. They did not focus on product innovation very much, and when it did, it focused on acquiring existing product lines. In 1962, when Wilkinson Sword launched its stainless-steel blade, Gillette finally had competition. Wilkinson Sword could not exploit the niche it had created and Gillette was able to purchase much of their existing blade business. However, the damage was done and the competition dropped their market share to an all-time low. Gillette continued to diversify their product line, but was met with mixed success. It was at that time that Gillette gained even more dominance in its market by their product development. It began continuously attacking its own products. From the Trac II to Atra to Sensor to Mach3 to Fusion, Gillette kept on innovating and attacking it own products. It revolutionized the wet-shaving market throughout the world through continuous evolution in their product line since its inception. In many ways Gillette has been a victim of its own success - when they were being innovative, they were "cannibalizing" their own successful products. While their new inventions drove up their sales, it often took away from the sales of its previous products and did not increase their...
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...The Role of Product Lifecycle Management Systems in Organizational Innovation Hamzeh K. Bani Milhim, Xiaoguang Deng, Andrea Schiffauerova, and Yong Zeng* Concordia Institute for Information Systems Engineering, Faculty of Engineering and Computer Science, Concordia University, 1455 Maisonneuve West, Montreal, Quebec, Canada, H3G 1M8 yong.zeng@concordia.ca Abstract. Innovation is a critical ingredient of today’s organizations. Innovativeness helps organizations to maintain their success and position in the market. Numerous research studies examine the factors that impact successful organizational innovation, for example organizational learning capability, organizational structure, etc. Product Lifecycle Management (PLM) systems have been widely implemented to support organizational innovation as well. In this paper, we will discuss the role of PLM systems in fostering the organizational innovation success. Moreover, future trends based on the current PLM systems that would provide further support to the organizational innovativeness will be explained. Keywords: organizational innovation, PLM systems, fostering innovation. 1 Introduction Innovation is considered as the major engine of organizational success. Organizations need to adopt and develop new products and services, and to improve their processes in order to maintain their goals such as profit, growth and continuous development. In addition, they are constantly required to increase their effectiveness...
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...АFFЕCTING THE PRODUCT AND BUSINESS PROCESS INNOVATION UDC 001.895:658.62 Nebojša Zakić, Ana Jovanović, Milan Stamatović Faculty of Entrepreneurial Business, Union University, Belgrade Abstract. The competitive advantage of a company strongly depends on its possibility to benefit from innovational activities. Understanding the factors that affect product and process innovation and their effects is necessary for deciding on an innovation strategy that is one of the core factors of an innovation success. We research the influence of nine external and internal factors on product and business processes innovation. For the analysis of important relations and conclusions, beside theoretical literature, we use the results of several studies. Key Words: product innovations, business processes innovation, industry maturity, customer needs, demand, technological opportunity, investment attractiveness, company size, export orientation INTRODUCTION Innovations are one of the main sources of a competitive advantage and they are essential for a company growth. Fast technology development, combined with the globalisation and fast changes in customer demand, implies that a competitive advantage of a company can be only temporary. Companies put great effort in beating the competition and improvement in the market game by introducing innovations. On the macro level, innovations have a vital influence on economic development of a country. Thus, it is not a surprise that innovations are more and...
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...Contents PIC and target market summary 3 Chartering for Ideation 4 Top 5 Ideas 4 Concept Ideation process 7 Controlled Convergence 8 Positioning statement 10 Product concept 11 Competitive comparison 11 Perceptual map 12 Product design 13 Pricing Strategy 16 Costs 16 Sales Forecast 16 Sales Forecast 17 Profit and Loss Statement 17 Table: Profit and Loss Statement 18 Sensitivity Analysis 18 Margins 18 Break-even Analysis 19 Payback Period 19 Net Present Value of Future Cash Flows 19 Unique selling proposition 20 Launch 20 Fitbit advertisements 20 YouTube Viral video 20 Reebok: Crossfit Games 21 In store/ on ground- gym facilities and sporting events 21 Digital social media 21 Website traffic 21 Google Ad words 22 Feedback 22 Media schedule and messaging 22 Electronic direct mail 22 Stock sale and monitoring 22 Sales statistics 22 Gant media schedule 23 Potholes 24 Call to Action 24 Appendices 1 26 Brainstorming Method 26 The Worst Idea Method 26 Relationship Analysis Method - Multi-dimensional / morphological matrix 27 Problem based approach using Voice of Customer through product reviews 27 Highs 28 Lows 28 Highs 31 Lows 31 Market based ideation 32 Problem Analysis of workout market 32 Attribute ideation Method 33 Appendices 2 34 Appendices 3 36 Executive Summary PIC and target market summary Health is opening up a new revolutionary advances within the industry of wearable...
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...Innovation: Product innovation is the creation and subsequent introduction of a good or service that is either new, or improved on previous goods or services. Product innovation is defined as: the development of new products, changes in design of established products, or use of new materials or components in the manufacture of established products[1] Thus product innovation can be divided into two categories of innovation: development of new products, and improvement of existing products. Systemmatic Innovation of Products includes: * Technology strategy * Design thinking skills * Customer needs analysis * Systematic creativity methods * Market and pricing strategy * Design for environmental sustainability * Design of services * Capturing value from innovation * Development process design * Product and service leadership * R&D organization and teams * Managing complex technical projects * The future of design process and culture The development and market introduction of a new, redesigned or substantially improved good or service. might include a new product's invention; technical specification and quality improvements made to a product; or the inclusion of newcomponents, materials or desirable functions into an existing product. Meaning of New Product Development: Product development is a broad field of endeavor dealing with the design, creation, and marketing of new products. Sometimes referred to as new product...
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...The paper introduces the category of “architectural innovation” on the basis that seemingly minor changes to technology which may earlier be classified as an incremental innovation can have competitive consequences of a radical one. The key concept is the distinction between component knowledge and architectural knowledge. The paper argues that firms concentrate on refining components within a stable architecture established by a dominant design, and consequently, their “information-processing capabilities” are shaped by the existing architecture. While building upon component knowledge, their architectural knowledge is outmoded and made obsolete by architectural innovations. Their resulting inability to identify or understand new interactions between components has serious competitive consequences. The conceptual framework of the paper is clear and straightforward. The main argument is advanced in a logical manner, and supporting premises (such as the way organizations manage knowledge) are supported by prior literature. Within the boundaries of the paper’s assumptions, the argument is persuasive. Furthermore, the application to the photolithographic alignment (PA) equipment industry justifies the model. The trends in the industry suggest the conceptual framework is largely accurate. Nonetheless, the assumptions made limit the usefulness of the concept. Firstly, the analysis of firms’ information-processing is restricted to communication channels, information filtering...
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...the interactive use of management control systems on product innovation Josep Bisbe a a,* , David Otley b ESADE Business School, Universitat Ramon Llull. Avda, Pedralbes 60-62, 08034 Barcelona Spain b Department of Accounting and Finance, Lancaster University, Lancaster LA1 4YX, UK Abstract SimonsÕ Ôlevers of controlÕ framework indicates that an interactive use of management control systems (MCS) contributes to fostering successful product innovation. However, his work is ambiguous in not specifying whether the relationship between interactive controls and innovation is a mediating or a moderating relationship. This paper examines the relationships among variables embedded in SimonsÕ framework of levers of control, explicitly distinguishing the different types of effects involved and testing their significance. The results of the survey-based research do not support the postulate that an interactive use of MCS favours innovation. They suggest this may be the case only in low-innovating firms, while the effect is in the opposite direction in high-innovating firms. No evidence is found either in favour of an indirect effect of the interactive use of MCS on performance acting through innovation. In contrast, the proposition that the impact of innovation on performance is moderated by the style of use of MCS is supported, with results indicating that the explanatory power of a model that regresses performance on innovation is significantly enhanced by the inclusion of this moderating...
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...INTERNATIONAL CONFERENCE ON ENGINEERING DESIGN, ICED’07 28 - 31 AUGUST 2007, CITÉ DES SCIENCES ET DE L'INDUSTRIE, PARIS, FRANCE AN APPROACH TO INCREMENTAL INNOVATION THEORIES AND ITS METHODS IN INDUSTRIAL PRODUCT DEVELOPMENT Hannu Oja Tampere University of Technology ABSTRACT A quest for powerful tools to support creation of innovative solutions exists in industry. Majority of development efforts aims for incremental development of products, either by means of improved performance in use or during manufacturing process. New concepts or solutions on product’s functionality and behaviour (behaviour meaning how the functionality is delivered, response) are needed to bring benefits. Generic product development theories, models and methods are applicable for new product development, as their approach is linear and founded on functional requirements and means to execute them. However, in industry the product development activities preferably start from existing product or concept with pre-determined goals rather than from scratch. Creativity techniques and multidisciplinary workgroups have been referred in literature as means for creating innovations. However, these methods lack context of technical system and are general in nature and could be used for any problem with assistance of experienced moderator and a group of individuals. These techniques and methods are not included in this study. An approach from retrospective case study is presented. It was found that the mental process...
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...the biggest, its marginal profits and rates of growth are leading the industry. The purpose of this essay is to analyze what sort of innovation Zara used on its way to success and make comparisons of competing products or processes with its competitors. By analyzing and comparing, it is obvious that the company's success depends on conducting a series of innovations at each one of the parts in the business: fashion-forward design, unique branding strategies, in-house production processes and centralized distribution system. Basically, this essay has been divided into four parts: the first part focus on describing how Zara makes its designs more innovative compare with other appeal retailers. Then, what sort of innovation used in their branding strategies will be discussed. Next, it will consider Zara’s innovation of production process and show an apparent difference of this process among Zara, H&M and the Gap. Finally, it will look at how Zara promotes innovation on their distribution process in to become more fast. It is those innovations that set challenges for rivals since Zara’s business model is extremely difficult to imitate or equal and also it is this realization that makes Zara get reliable and sustainable competitiveness. According to Ghemawat (2006), a particular distinction in Zara manufacture is the most fashion-forward products compared with its key competitors. When customers enter Zara...
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...significant changes currently underway – a new business plan targeting significant growth over 3 years, new directors and ownership and a marketing strategy targeting increasingly large complex projects of a Design and Build nature. To achieve this, some form of change is required and much of this change may come through innovation. This assignment will distinguish between product, process and organisational innovation and discuss which is likely to be the most important for the growth of Read Construction Holdings over the next three years. In order to distinguish between the different types of innovation, the essay will begin by setting out a clear definition of innovation. The main discussion will go on to discuss limitations, barriers and enablers of innovation and how that might impact on the organisation, summarising which type is likely to be the most important for the business in support of its goals, the essay will also evaluate the potential for consecutive innovative approaches and what limitations and barriers / enablers may be encountered. What is Innovation? In defining innovation, it is important to clearly differentiate between innovation and invention. Fagerberg (2004) suggests that invention is the first occurrence of an idea...
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...I. Theoretical Background A holographic projector is a unique display system. The holographic projector system embodies a top of the range full High Definition Hologram Projector with an in-house computer system capable of feeding the projector with fully uncompressed video files. It consist of two technologies namely, the holography and the projector. Holography is a method which allows three-dimensional images to be made. It includes the use of a laser, interference, diffraction, light intensity recording, and suitable illumination of the recording. The image changes as the position and orientation of the viewing system changes in exactly the same way as if the object are still present, therefore making it three-dimensional. The projector that will be used in this project is a overhead projector. An overhead projector is a variation of the common slide projector that is used to display images to a group of people. II. Project Description Hologram Projector is a projector wherein it can reflect the full dimension of an image. It consists of a laser, interference, and diffraction, light intensity recording and suitable illumination of the recording. Hologram Projector is AC operated. It projects special white light or laser light. The light produces two- and three-dimensional images. Authentic 3-D images require laser-based holographic projectors. It can be presented from different angles and can be seen in true perspective. III. Process Description To come...
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