Process of Innovation Model :
Idea Generation : The first step is choosing a concept to develop , taking into consideration the market needs or gaps . It must have a clear vision about the rationale of developing a product . The idea should not be limited to slight tweaking on the competitor ’ s successful product and trying to make a success of it . This is a sure short way of not only falling into Intellectual Property right litigations but also being trapped into a me-too product category . With this type of innovation your company would always be a follower never a leader and would only be able to have very limited market share .
Screening : is the next step which should be implemented to measure the benefits and potential risks of the ideas while determining the business viability of the idea . Good design does not necessarily equal the commercial viability of the product .
Experimentation : should be followed , after screening your idea , where you test market your customers reaction vis-à-vis its pricing , feasibility whether the idea is too complex for your customers . The success or failure of new products is based on the acceptance of customers and the motivation offered by a product that the customers are willing to let go of their existing preferences towards the new alternatives .
According to the prospect theory of Nobel prize winners Daniel Kahneman and Amos Tversky an individual ’ s objective gains and losses are very different from their psychological gains and losses .
What drives behaviour is these psychological gains , not the objective gains . This has significant implication for companies to get their new products accepted by the customer , because new products force the customer to give up the existing option . He would have to give up his comfort zone to learn and use the new product . Therefore , the trade must be attractive for him to adopt to the new product .
Kids India E-Magazine - September 2022 | Page 33