INNOVATION
Market Innovation Capability
By Joe Nyutu
Remember traits and characteristics of firms , especially service firms , are defined by rapid change , globalization , hyper innovative competition , etc ., and recent research shows that one of the most dynamic capabilities that lead to the strongest competitive advantage in the organizations is the innovation capability .
The innovation capability is associated with other organizational capabilities . So , many organizations have focused on the need to identify innovation capabilities and resources or strengths in relation to external opportunities and threats according to inside-out view because market innovation capability has consistently been defined as a new service , a new product , a new technology , or a new administrative practice and process .
Developing the market innovation capability as an important aspect of dynamic capabilities of a firm is an important research project and it can help to achieve competitive advantage in this rapidly changing world .
To maintain the survival of organizations in the competitive marketing context of the world today , organizations have no way out except attaining a market innovation as a mantra . The market innovation capability can be either a new product , a new service , a new technology , or a new administrative practice . This approach defines a capability for innovative organization as one that is intelligent and creative , capable of learning effectively and creating new products , services , ideas and offerings .
Notice market Innovation represents today ’ s competitive advantage , supported by strong mainstream capabilities in quality , efficiency , speed and flexibility . Innovation can help marketing managers play a dominant role in shaping the future of their portfolios and industries .
High performing innovators are able to maintain a giant juggling act of capabilities , and consistently bring new high quality products to the market faster , more frequently and at a lower cost than competitors .
“ Developing the market innovation capability as an important aspect of dynamic capabilities of a firm is an important research project and it can help to achieve competitive advantage in this rapidly changing world . “
May I remind you that leading market innovator firms encourage , expect and reward innovation from everywhere within the organization - not just research and development units . They make a point of linking organizational learning and knowledge to products , processes , technologies and mainstream capabilities .
These companies do not see innovation as just a user of scarce resources for uncertain outcomes , but rather as a mechanism for creating new knowledge and competitive advantage . They recognize that marketing and brand managers producing profits today may not represent the best opportunities for business tomorrow . Mainstream factors and innovation are therefore managed interactively so that the two work in harmony .
The co-founder of Hewlett-Packard , Bill Hewlett , is quoted as saying that “ the creative process works well when it ’ s not too structured . But , in the long run , it must be tamed , harnessed , and hitched to the wagon of mankind ’ s needs ”. It ’ s the need to produce real innovative products , on time and on budget that ultimately drives success of a business .
The survival of the business remains critical . The mainstream is the company ’ s interface with customers and the market . It ’ s not enough for a company to be highly innovative . There must be controls and management practices in place that allow it to manage the tensions of growth and innovation versus control .
A widely held example of the problems faced by these companies is Apple Computer in the 1980s . A highly innovative start-up company , Apple Computers , produced the Macintosh to great acclaim . However , it lacked the mainstream expertise for controlled growth .
John Sculley , a former Pepsi executive , was installed with the charter of instilling strong management practices , yet retaining the highly innovative nature of Apple . This transformation nearly tore the company apart with significant problems in new product development and manufacturing processes . Remember the company ’ s
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