Most organizations in the modern society have become innovative to be able to compete in the dynamic market. Innovation within certain firms has given them a competitive advantage over others. Business entities that embrace innovation develop products and services that appeal to the desires of consumers. Noble ideas that emanate from innovation aid business firms to penetrate unexploited markets. Ideas can be combined with other opinions to come up with solutions that incumbent companies in the existing market are unable to provide. Some gaps that exist in the production of goods and services by existing firms can be exploited to come up with innovative ideas which form part of the solutions to existing problems. The essay identifies sources of innovation, assesses trends and forecasts that are affecting the industry and evaluates possible disruptive innovation.
First, there are several sources of innovation which can be utilized by firms to fill the gaps that exist in the market. Some of the sources of innovation listed by Peter Drucker in his book Innovation and Entrepreneurship include; the unexpected, the incongruity, process need, industry and market structure, demographics, changes in perception, and new knowledge. Lots of opportunities exist in the market, and thus a good manager should try to exploit the unexpected success. The unanticipated success can be converted into opportunities if organizations provide people with resources and time that are needed to take advantage of new opportunities. The incongruity is another source of innovation; customers unsatisfied needs are the best sources of innovation (Incremental innovation 2017). Customers give a hint of what they are lacking and thus you can use them to come up with innovative solutions.
Process needs, gaps that exist in an industry can be used to come up with innovative ideas. The source of innovative ideas comes from your existing capabilities of doing business rather than the existing market. Industry and market change, firms should be on the look on the changes that occur in the market because they can lead to new ideas which may act as solutions to problems that result from the changes. Innovative firms also pay attention to demographics in the market. Changes in perception and mood and new knowledge in the ever-changing world are the last source of innovation. To have a competitive advantage over others, a firm must develop unique products that are of high quality through the process of innovation (Kahn, Barczak, Nicholas, Ledwith, & Perks, 2012).
I interviewed Linda Boff, the chief marketing officer of general electric to understand trends and forecast that are affected the industry and possible disruptive innovation. One of the questions that I inquired from her were the trends and forecast that are affecting the industry. The marketer said that the industry had put in place strategies that are aimed at ensuring that they remain the best in the market. She said that the industry has great machines that help to power the world by helping in the creation of renewable energy. The current market trends are some of the things that are affecting the industry as it is evident from the responses of the chief marketing officer of the industry. Different stakeholders within the industry have tried to come up with different strategies that are aimed at ensuring that they remain one of the best industries in the world.
The changing preferences among internet users who are consumers of products of the company are another market trend that affects the industry. The need for applications to solve the current problems provides an avenue for more innovation in the industry. Innovation is needed to provide solutions to the existing problems. Gaps that exist in services that are provided by the industry can only be filled with innovative ideas.
The contemporary society has been characterized by disruptive innovation which aims at providing solutions to existing problems. Many firms across the globe have been either positively or negatively affected by disruptive innovation. Disruptive innovation creates a new market thus disrupting the existing market. The activities of industries that operate in the existing market are adversely affected by disruptive innovation. Firms that aim at withstanding disruptive innovation should make mid-course modifications. Disruptive innovations are made possible because actors within existing markets overlook some things. Existing industries pay attention to demanding customers and give less attention to those customers who are considered to be less profitable. Assuming customers that are less demanding provides an avenue for a disruptor to come with a product that is affordable to those customers that are considered to be less profitable to the incumbent industries. Some of the attributes of possible disruptors in any existing market include: experiment and innovate, take informed risks, take bold changes, invest strategically, foster open innovation, are adaptive and set clear goals (Roland, 2016).
Lastly, possible disruptors within the market experiment and encourage innovation, unlike incumbent firms. Disruptors provide solutions to existing problems in the market through their experimentation and innovation. Disruptors also take risks through investing in ventures which are aimed at providing solutions and filling the gaps that exist in markets. Most incumbents hesitate to make bold changes that can enable them to adapt to the dynamic business environments, and thus disruptors take advantage of such opportunities. Disruptors foster innovation and set clear goals that make it possible for them to exploit opportunities in existing markets. Clear goals make firms withstand disruption either from new companies or incumbents in the existing market.
Incremental innovation (2017), The 7 Sources of Innovative Opportunity, innovation management community for practitioners, http://www.incrementalinnovation.com/innovation-management-development/7-sources-innovative-opportunityKahn, K. B., Barczak, G., Nicholas, J., Ledwith, A., & Perks, H. (2012). An examination of new product development best practice. Journal of product innovation management, 29(2), 180-192.
Roland, (2016), The 7 habits of highly effective disruptors, https://insights.hpe.com/articles/the-7-habits-of-highly-effective-disruptors-1612.html
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