Innovation: Tushman Rosenkoynamic Model Of Innovation

1) The concept of Innovation: Innovation generally refers to changing or creating more effective processes, products and ideas, and can increase the likelihood of a business succeeding. Businesses that innovate create more efficient work processes and have better productivity and performance (Innovation, 2015)

Invention can be defined as the creation of anything for the first time whereas innovation is adding something new or changing the existing idea, product or service.

2) Models of Innovation: There two dynamic models of innovation & they are

• Utter back-Abernathy Model: In the process of the innovation this model explains the different design regarding the rate of innovation as the time passes. This model identifies three different phases

Competition is highly based on the product performance & cost. Here, materials & equipment are highly specialized & minimizing the cost of the product becomes more important.

• Tushman Rosenkopf Technology Life Cycle Model: This model states that technology is uncertain. People can come up with new idea anytime which can shut down the previous product forever. Though the technology is launched in the market there will be competition with the old technology as people can see it as only incremental changes in the product but later it may or may not be a radical change. If the new innovation will bring the radical change then a dominant design will emerge & attention will be shifted to the product improvement & incremental innovation.

3) Analyse Innovation & Profits in Terms of Assets, Competencies & Knowledge: Firm needs assets or resources & the ability to use them to attain profit which is known as competence. Assets & competence together form the firm’s capabilities. The source of these capabilities determines the profits that the firm can expect to make. In terms of knowledge if a person have enough knowledge in a specific area then a new idea can emerge which can bring the radical or incremental change in innovation & business can make

People can come up with new idea & do research on that idea & can start to develop the idea. After completing the development phase manufacturing process begins & organization can take patent & copyrights of the product.

• Circumstantial Source: Circumstantial source of innovation means people come up with a new technology thinking of one consequences but that technology fulfils the other needs of the customer. E.g. Minoxidil was tested for efficacy in treating high blood pressure, its side effect of hair growth created an opportunities to market Rogaine for baldness (Sources & transfer of innovation, 2006)

2) Different methods of generating new ideas: The different methods of generating new ideas are;

• Focus Groups: This is a group of individuals who discuss with each other on an idea by asking questions & answering it. This group is best for initial screening of the ideas & that can result in market success (Pierce, 2005).

• Brainstorming: Brainstorming is a session where a group of people holds a group discussion to produce new ideas.

• Problem Inventory Analysis: This is a method where employee can make a list of questions about the product & discuss it with the customers & can come up with totally new product idea (Pierce,