The Seven Sources of Innovation
Unexpected Event – These innovative events can be the result of a success or of a failure. An example of a success is the development of the Sony Walkman. It came about after the CEO witnessed people carrying boom boxes on their shoulders while on a trip to New York.
Incongruities – Innovative events resulting from the disconnect between what is expected and actual results provides the chance for these types of innovations. One example is the growing market for the steel industry, coupled with declining profit margins lead to the creation of the minimill.
Process Needs -Process need innovations are those which are produced to support some other process or product. ATM s are a good example as well as online banking. Now people can conveniently do their banking after hours and do not need to rely on “human” services.
Industry and Market Structure – Current industry or market structures may offer opportunities for new types of services. Consumers still want convenient meals fast, but now the trends are to be more healthy, still quick and convenient and cheap. Many of the fast food chains now offer healthier options as well as the caloric details for the foods offered so that the consumer can make better food decisions.
Demographics – Changes in demographics include shifts in the composition of populations. Lifestyle drugs are a good example of this type of innovation. As the population gets older, they are still healthy an active, but made need some help in areas where the aging process cannot be reversed. Viagra can be considered a Lifestyle drug.
Changes in Perception –An example of this would be the changes in perception in regards to dating. The rules of courtship have definitely evolved and have resulted in the following innovative businesses; on-line dating services, group dating events and thirty second dating.
New Knowledge – One of the key forces for innovations. Everyday there are breakthroughs in science, examples include the development of new endpoint analysis kits, the discovery of new important disease pathways and accomplishments of the human genome project. With each newly acquired piece of knowledge, researchers in both academia as well as those in industry are able to develop cures for more and more diseases.
I like your examples in "industry and market structure". Who would imagine McDonalds would offer veggie menus (salad and other low calories diet). Wendy's now offer choices of side salad, soup or fries to complete a meal. I hope this trend continues and kids would learn to grow up in a much healthier environment.
ReplyDeleteThe human genome project is a great example for new knowledge that is and will continue to have a large impact on how diseases will be treated in the near future. One of news I heard over the radio was that someone (a doctor) was apparently healed of his cancer from some unconventional gene therapy. Should these innovations become widely available, human life span could make a big jump. Not sure everyone wants that though :-)
Great analysis and examples.
ReplyDeleteI like your example of innovation in dating. Innovation can be anything. You considered the question out of box. With people changing their thinking pattern and behaivors, they rely more on Internet. People's perception that we can do everything on Internet created a lot of opportunities. Innovations on dating format and dating website brought more real life experience to Internet.
I completely agree Mengting, that was a unique example for "perception" and a great representation of Carmin's initial comment about how there is innovation all around us. It brought many other ideas into my head as to what I perceive as innovation.
ReplyDeleteAnother example I thought of after reading about the change in fast food is also the idea that it has to be in the form of a storefront location. Over the past years, there have been a number of food trucks that entered the market and replaced the traditional storefront, providing quick service at convenient locations.
Good examples, from mini mills to online dating. Nice breadth!
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