Radical innovation

Radical innovation disregarding key principles, creating new methods and starting a new cycle of the company. Radical innovation aims to bring a company to the transformation and change of its existing products and services. That happens in order to make them more attractive, innovative and to create a new market for those new products or services.

The company has to be predisposed to leave its comfort zone and to be willing to risk standing out for the change and the non-follow-up of the "status quo". This change will have a major impact throughout the organization, culture and strategy of the company, redefining its objectives and focus on which it operates.

This suggests that a greater support of top managers in the innovation process is necessary to initiate and sustain radical departures from the past for that organization This type of innovation is a long-term goal, 5 to 10 years that aims, for example, to lead the company to the role of pioneer in a given market and increase its profit.

Example of Radical Innovation

The Apple brand, which today has great power in the market, is known by all of us and considered one of the most sophisticated brands of electronic and technological products.

One of its most marketed products is a great example of radical innovation, the iPhone. "The iPhone was not new technology - its software and interface were derived from the iPod, an existing Apple technology. It was the iPhone’s computer capacity that was the real radical innovation." The idea of Steve jobs ( an American inventor and entrepreneur who had quite prominence in the computer area ) founded in 2007 (release date of the first iPhone ) revolutionized the way consumers dealt with a simple mobile phone, making the iPhone a laptop computer species, allowing full access to real-time communication by consumers.

Another good example of radical innovation mentioned by Forbes, In 2012 , a tractor company began equipping their tractors with sensors, so farmers, could track and monitor their yields. Innovating by technology, John Deere, "one of the biggest manufacturers of farming equipment" managed to bring the technology to this area in order to give farmers a new vision of farm industry. Changing the farm industry and the way it is seen.

Specifically, radical processes, (…) are significantly promoted by an aggressive technology policy and the concentration of technical specialists.

Nowadays , it is increasingly fundamental for companies to keep up with market developments as if these companies become outdated they will not be able to meet the needs of their consumers. Thus, in order to maintain their place in the market and to achieve more and more impact, companies constantly need to innovate. In most cases technology is part of this innovation, having an increasing impact on changes in a company and on the habits of consumers, since nowadays technological development is a factor of distinction and competitiveness in the market.

A company that uses this type of "innovation" demonstrates to its consumers a capacity to adapt and to risk and does not engage with existing products, thus having more loyal consumers.

Advantages of Radical innovation

Radical innovation disregards key principles and creates new methods, leading to a new cycle of the company. It has several advantages:

• It allows you to think outside of the box and consider ideas and solutions that might have been overlooked. This allows you to explore new possibilities and potentially find better ways of doing things.
• It encourages creativity and innovation, leading to the development of fresh products and services that can give your company a competitive edge.
• It helps to foster a culture of experimentation, allowing for rapid iteration and learning that can help you stay ahead of the competition.
• It can open up new markets and expand existing ones, allowing you to reach new customers and build a larger customer base.
• It can provide an opportunity to differentiate your company from competitors, offering customers something that they cannot get from anyone else.

Limitations of Radical innovation

Radical innovation can be a powerful tool for companies to gain a competitive edge, but there are several limitations to consider before applying it to your business. These include:

• Risk of failure: Radical innovation often requires making large investments in new technologies and strategies, with no guarantee of success. This may lead to financial losses and damage to the company’s reputation.
• Uncertainty: Many radical innovations are untested and unknown, so there is a high degree of uncertainty about the results. This means that businesses must be prepared to adapt and respond to changing market conditions.
• Difficulty in implementation: Radical innovation often involves significant changes to existing systems, processes and infrastructure. This means that there may be a long and difficult implementation process, which can be extremely costly and time consuming.
• Lack of resources: The resources needed to develop and implement radical innovations may not be readily available. Companies may need to invest in new technologies and personnel, as well as dedicate time and money to research and development.
• Conflict with existing strategies: Radical innovations may conflict with existing strategies and objectives, making it difficult to integrate them into the company’s operations. This could cause delays and increased costs.

Other approaches related to Radical innovation

One approach to Radical Innovation is to disregard key principles, create new methods and start a new cycle of the company. Other approaches include:

• Developing a culture of innovation within the organization: This involves fostering creativity, rewarding innovative ideas and encouraging employees to think outside the box.
• Implementing a structured process to identify and prioritize opportunities: This involves analyzing customer needs, researching industry trends and developing innovative solutions.
• Investing in research and development: This involves dedicating resources to exploring new ideas and technologies that could benefit the company or its customers.
• Testing and measuring ideas: This involves running pilot programs, collecting customer feedback and measuring the impact of new products or services before launching them.
• Developing partnerships: This involves collaborating with outside organizations or individuals to develop and test new ideas.

In summary, Radical Innovation involves disregarding key principles, creating new methods, and starting a new cycle of the company. It also requires developing a culture of innovation, implementing a structured process to identify and prioritize opportunities, investing in research and development, testing and measuring ideas, and developing partnerships.

Radical innovation — recommended articles

Business model innovation — Benefits of innovation — Management of innovation — Development and growth — Retail innovation — Chief innovation officer — Value innovation — Process of innovation — Innovation in organizations

References

• Ettlie J.E., Bridges W.P., O'Keefe D.D. (1984), Organization Strategy and Structural Differences for Radical Versus Incremental Innovation, Management Science 1984 30:6, 682-695
• McDermott, C.M. and O'Connor, G.C. (2002), Managing radical innovation: an overview of emergent strategy issues. Journal of Product Innovation Management, 19: 424-438.
• Stringer, R. (2000). How to Manage Radical Innovation. California Management Review, 42(4), 70-88.
• Hill, C. W. L.; Rotharmel, F.T.(2003) The performance of incumbent firms in face of radical technological innovation. Academy of Management Review, v. 28, n. 2, p.257-274, 2003
• Hengsberger A. (2018) Definition Innovation Management.
• Newman D. (2018), Preparing For The Future By Embracing Radical Innovation, Forbes, 8th of May, 2018
• Gosnar, A. (2012), The Classification of Innovations: The Case of Apple Inc, 60 f. Tese (Doutorado) - Curse of Economics, University Of Ljubljana, Ljubljana
• Welliton O. (2019), Inovação incremental e radical: conceito e exemplos.
• O'Connor G.C., Ayers A.D. (2005) Building a Radical Innovation Competency, Research-Technology Management, 48:1, 23-31

Author: Maria Luís