Innovation is the action or process involved in improving an existing product/service. It involves new techniques and ideas to create better products that add up value to the customers. Innovation enhances the brand value and is the key to the successful running of the organizations.
Example: Power banks – They are innovative reusable devices that replace conventional chargers in the absence of electricity. Power banks store the battery and give power through USB ports to the devices in need of charging.
LIFE CYCLE OF INNOVATION
The phases of innovation in an innovation life cycle can be the following
- Ideation – Ideation starts with the necessity of a solution for a problem or to satisfy the customer’s requirements. The problem statement is identified first and the feasible idea to solve it, is generated. Curiosity, Creativity, Involvement gives impetus for a new idea to spark. This may either increment an old one or open a new market. Innovation potentials are generally identified through
- Targeted search – This involves finding potentials through creativity workshops, idea contests, or LEAD user workshops.
- Random findings – This involves discovering the new idea randomly while coming across some new products, suggestions, and customer feedback.
- Research – This is one of the important steps as it involves identifying risks. After the idea is generated, research should be done to conceptualize and bring an idea into a form. Proof of Concept (POC) must be provided and it should prove that neither a similar product is available in the market nor POC is available and patented. This phase should ensure that the idea is possible by analyzing
- Customer’s requirements – Customer’s unheard problems and needs.
- Market potential – Market size and attractiveness for the generated idea.
- Growth potential – Expected opportunities, growth, and scalability.
- Risks and feasibility – Potential risks, technical barriers and laws, standards, and patterns.
- Offering – This phase involves offering the product as a complete one to the market. Before it is offered, the availability of resources and scope of the product in the market must be analysed. The feedback from the potential customers must be obtained and incorporated. Use these customers as an anchor to obtain new customers.
- Commercialization – This involves launching the product as a commercial one to gain profit from it. The following points should be considered for commercialization
- Sales plan and marketing strategy – How the product is delivered to the customers and attracting, convincing, and making the customers realize the need for the product.
- Contracts and license management – Regarding the terms and conditions for using the product
- Product management and engineering – Involves packaging, delivery, and installation. Striving continuously for future enhancements and updating the versions on a timely basis.
- Customer support – Customer helpdesks, feedback management, etc.
- Growth – This phase is to ensure leading the market. Continuous study on the competitors, new arrivals, and customer needs could help retain the market position. The product should be able to sustain the competitive market. Customer acceptance and support should be increased through the performance of the product. Eventually, revenue generation increases. The availability of the product must be expanded.
- Retirement – A product goes through this phase when there is a replacement of the product by an advanced one. The product tends to lose the market position thereby failing to generate expected revenue. This may happen due to a decrease in demand, the substitution of technology or the product may no longer provide a relevant solution to the customers.
These phases of innovation are considered indispensable in the product’s lifecycle. So, it becomes mandatory to take care of every detail in the life cycle to achieve success and sustain in the market.
Categories: Business, Education, Entrepreneurship, Tech