Breakthrough innovation is not something everyone can accomplish. You have to systematically develop the capability to execute it successfully, and that is something you do not accomplish overnight.
Innovation breakthroughs can really hit the spot because they are often the radical new approach that makes a leap of the business to the next level of the growth cycle and achieves the high return on investment. Breakthrough innovation has greater ROI but with a much bigger risk.
Respond to true human needs: The matter of fact is, the pace of change is significantly increasing, innovation is the only path and the core activity of human evolution to changing of the environment for unlocking business performance, for profit, for resource optimization, and for customer satisfaction, etc. With the unprecedented convenience that digital technologies bring to us, business leaders and professionals should ask themselves: Why is innovation so important or even more important when technology becomes more advanced? The breakthrough innovation has to respond to the true human need.
Leave competitions behind in some way: Breakthrough innovation is not something everyone can accomplish. It's a kind of “out of the box” thinking and leapfrog change. There is a consensus that the external environment is an important antecedent of spurring innovation. It is important to capture the rising trends and take advantage of changes in the external environment to spur breakthrough innovation and develop the capability to execute it systematically.
Continually revamp business models to achieve competitive advantages: Every corporate venture comes with a business model innovation. Taking an innovation spiral approach to do business model innovation suggests a loosely structured and circular process that allows companies to connect with the various points of the spiral in different ways and at different times, ultimately reach an innovative breakthrough.
To disrupt, you must hear the whispers of customers, contexts, inner worlds and outside worlds. Business model innovation is often breakthrough because if an established firm identifies a new business value proposition that requires a change in the business model or the creation of a new one, and then, it’s strategically important to develop the new venture for improving organizational growth and profitability depending on the company’s competitive environment, their impact perhaps increases over time.
Accelerates digital paradigm shift: Differentiation between incremental and breakthrough innovation relates to the degree to which a particular innovation changes the competitive landscape. Breakthrough innovation is disruptive and changes your organization in many fields, potentially making entire industries obsolete, as digital photography did to the film industry. As things change, the old paradigm becomes incompatible with the new reality and there occurs a digital paradigm shift.
Therefore, radical/breakthroughs/transformational innovation is not something everyone can accomplish. You have to systematically develop the unique business capability to execute it successfully, and it is something you cannot accomplish overnight. Every organization needs to develop tailored innovation principles, methodologies, and practices by leveraging effective technologies, tools or methodologies and apply them wisely with the expertise to really add value, drive innovation and develop the organizational level innovation competency.
People must be the center of innovation: The speed of change is expedited, so does the speed of innovation. Innovation is not an invention; it must prove its value in the market. Customers must be willing to pay for it, be it a product/process/service innovation. When managing the innovation life cycle, customer involvement at all stages often elicits highly valuable information. People must be the center of innovation. It is not a question of whether the customer is right or not, it is more of whether you are truly and proactively listening to their needs and gaining a deep understanding of customers through empathy. Here is the “magic formula” (if having the one):
Breakthrough/Disruptive innovation = New Users + New Products/Services.
Disruptive with high return and high risks: Innovation is both art and science. To manage innovation and control risks systematically, the scientific processes should be in place. You need new technologies, new processes, new customers, new knowledge, and may be new business models. All these make breakthrough innovation very risky but on the other hand, you will get very great chances and opportunities for new product lines or platforms, etc, to make breakthrough innovation happen.
From a marketing perspective, the management needs to check whether organizations are able to create entirely new industries or products capable of empowering an overwhelming number of those who were previously unserved and underserved; or expand to displace the dominant incumbents of existing industries that were only able to cost-effectively serve far smaller segment of the greater market. If shareholders valued innovation more, then, they would value companies that devote resources toward future innovation more than those that optimize short-term profits.
Change the competitive landscape: Differentiation between incremental and breakthrough innovation relates to the degree to which a particular innovation changes the competitive landscape. Breakthrough innovation is disruptive and changes your organization in many fields, potentially making entire industries obsolete, as digital photography did to the film industry. As things change, the old paradigm becomes incompatible with the new reality and there occurs a digital paradigm shift. Therefore, radical/breakthroughs/ transformational innovations are not something everyone can accomplish. You have to systematically develop the capability to execute it successfully, and it is something you cannot accomplish overnight.
Every organization needs to develop tailored innovation principles, methodologies, and practices by leveraging effective technologies, tools or methodologies and apply them wisely with the expertise to really add value, drive innovation and develop the organizational level innovation competency.
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