Commercialising Discontinuous (Radical) Innovations

Abstract

Asian firms and industries posed a serious threat to the US industries during the 1980’s; as a result the competency level of the firms in jeopardy had to engage in incremental innovation in the prevalent products, processes. This emphasis on the cost competitiveness enabled them to catch up with the market expectations and re-establish their superiority in the business environment. But this was a dangerous move, as the entrepreneurs engaged in a battle for survival sidelined the importance of truly radical innovations. Utterback (1994) and Christensen (1997) have acknowledged the negative consequences on extended emphasis on incremental innovation. Leaders of well-known companies have accredited that discontinuous innovation is critical to their long-term growth and renewal. The innovation process has been the accelerating vector towards the growth of the economy as a whole. It has been readily established that business growth and innovation has a positive relationship. These discontinuous innovations are transforming the relationship between the customers and suppliers. It also attempts to change the market place structure, the economy, and the present products and engages in a battle for business leadership.