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The Challenge of Breakthrough Innovations

In: Business and Management

Submitted By alisolo
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The Challenge of Breakthrough Innovations

Table of Contents

“The Breakthrough”…………………………………………………………………………………2
Dilemma/ Struggle of Established Firms……………………………………………………………3
Rules for Innovation………………………………………………………………………………….4
Building An Ambidextrous Organization………………………..…………………………………6
Conclusion and Recommendations………………………………………………………………….8
Reference……………………………………………………………………………………………...9
Appendix…………………………………………………………………..………………………...12

“The Breakthrough”

One dictionary definition of breakthrough is: "a significant and dramatic overcoming of a perceived obstacle, allowing the completion of a process." But what really makes an innovation a breakthrough (radical, disruptive) one, rather than incremental, from a marketing point of view?

According to Boston Consulting Group report, breakthrough innovations are defined as “innovative products that offer consumers significant new benefits through advances in technology, formulations, or applications or through more convenient packaging (Boston Consulting Group (BCG): A Disciplined Approach to Breakthrough Innovations). Christensen (1997) argues that a necessary condition for an innovation to be disruptive is that it “captures new markets in an original and unexpected way.” Academics of marketing literature differ in their opinion about a relationship between a significant new technology and disruptive innovation. Some authors believe that radical innovation goes hand-in-hand with a significant new technology (Veryzer et al. 1998, O’Conner et al. 1998). Although the notion that significant new technology is an unavoidable condition of radical innovation can be infirmed by Sony Walkman example. Sony Walkman was revolutionary in its product concept but fundamentally new technology was not used in its creation (Mascitelli 2000). Mascitelli in line with other authors (Lynch 1998)...

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