Utterback-Abernathy Dynamic Model Of Innovation For Both Product And Process

Section 01- Innovation Management

1. The concept of innovation

Innovation is a process of creating something new good or service which can be commercialized in the market. This must be satisfied a specific need of a customer at an economical cost. The innovation focus on two main types. They are product innovation and process innovation. The product innovation is introducing something new to the market that can enhance the quality and the range of a product that use by consumers as well as organizations. Eg : computers, mobile phones. The process innovation is a new method of creating and providing good and services. Eg: fast food and assembly lines. There are two models of innovations. They are radical and incremental.

Radical innovation

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2. Model of innovation. Describe two dynamic models of innovation.

Utterback-Abernathy Dynamic Model

This model explain the dynamic innovation for both product and process. This model follows 3 dynamic phases over the time period.

Fluid phase

In this period the product innovation in industry and product class is quite high from the beginning time. During this stage research and development, experimentations and design are done.

• Organizations do not have an exact idea when and where to invest for R & D because in this stage technology and market is fluctuating.

• Competition is based in product feathers

• The technology of the new product is expensive unrefined and the performance is not in good quality.

Transitional phase

In this stage the rate of product innovation is decreased and the process of innovations increased.

• The customer need and the interaction to the product are mostly concerned by the producer.

• The market needs and product features are identified and emerge the dominant design

• Competition is based on differentiated product and competition moves to meet the special needs of the

internal value chain functions – the ideas can be come from research and development, internal value chain functions like design, manufacturing, marketing and finance and spill overs from the competitor.

2. external value added chain –

• Suppliers - Invent new products that use their components as input and Develop other products that are complementary to their components

• Customers – the special requirement of the customer can be the new product of the market

• Complimentary innovators –for an example Microsoft is a complimentary innovator for Compaq

3. university government and private laboratories – the firms may need related research and development for both basic and applied.

4. other nations and regions – affect the ideas of other countries and some nations are specialized of some kind of innovations. Eg : Italy – shoes and leather

5. competitors and related industries - This concerns indirectly what we can get from the competitors and related industries. For an example another firms high cost of R & D and scientific knowledge can be a benefit for another related industry.

Circumstantial sources are can be divided in to three categories.

• Planned firm activities functional sources are planned by the