Look at the characteristics of disruptive innovation. In what way is a disruptive innovation similar to a radical innovation? How is a disruptive innovation different than a radical innovation. As a manager, what are the strategic implications of the similarities and differences?
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Innovation is about new products and services, which brings value to the changing customer needs, and prevents market saturation (Grewal & Levy, 2013, p. 229). Innovation includes the product design and application or the processes used to make these changes. Disruptive Innovation is the start of a new product at the bottom of the market, which over time, replaces the competitor’s product. Radical Innovations is identifying and making major changes in an existing product.
Disruptive Innovation similar to radical innovation.
Disruptive innovation and radical innovation are similar in, they both use research and development to change a product. Technology advancements are the most common reason for innovations to exploit emerging trends. Both offer products or services that are new to the market and new to a company. Disruptive and radical innovation both serve a market segment that didn’t exist before. They are also similar in knowing that a new product will be in demand in the future, and plan ahead to reach that niche market. The risk of success or failure is similar in both types of innovation.
Disruptive innovation different than radical innovations
Radical innovation is changing the core business practices, and disruptive innovation may destroy the business that they replace the product with. Radical is a major breakthrough and many or may not be disruptive. In most incidents radical is not disruptive and is not ignored, based on performance in the market. On the other hand, disruptive innovations can be radical. A minor change can cause a disruptive innovation. The changes can be ignored until it’s too late for the existing product in the market. Radical is compared to incremental innovation since it is to improve performance or to make a change in technology. The focus is to sustain the product for radical innovation and disruptive innovation focus is on producing a new product.
As a manager, what are the strategic implications of the similarities and differences?
The innovator’s dilemma is a challenge that a manager faces to do what is right for the current product but also work on the disruptive innovation that will lead to the products decline. A successful manager will balance both to sustain and grow the core business while investing in the disruptive innovation (Bateman & Snell, 2013. P. 354). Radical innovation is changing the existing product, and disruptive innovation is making it cheaper. Investing in research and development, may force other firms to do likewise. Managers need to determine the demand for new technology and be able to produce it. Having the funding and other resources to develop innovations, is securing the business in the marketplace. Developing countries may break into the markets and start selling into the cheap segments and move up to the expensive segments (Vertakova, Rudakova, Shadrina, Kobersy & Belova, 2016). Managers need to be mindful of international products and the threat they represent to their own business. Being aware of the similarities and differences for disruptive and radical innovations, should be considered in all strategic business plans.