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I NNOVATION  Innovation is the process and outcome of creating something new. ideation or invention to development. which is also of value.  Innovation involves the whole process from opportunity identification. prototyping. production. marketing and sales. .


It involves a series of sequential phases arranged in such a manner that the preceeding phase must be cleared with the permission of a gatekeeper before moving to next succeeding phase.1. L INEAR M ODEL   Also known as Traditional Phase Gate Model Under this model.   The gatekeeper examines whether the stated objectives for the preceeding phase has been properly met or not and whether desired development has taken place or not. product or service concept is frozen at an early stage so as to minimize risk. .


The model works only when :  Time required to innovate is shorter than rate of change in environment Quality. reliability and safety requirements sre critical It is safe and suitable for a first time beginner   .

delayed evaluation.Weakness/ Limitations  Low gatekeeper knowlegde may lead to poor judgements. or rejection of good projects Time consuming The concept is frozen too early. less on learning      . not on customer It has a long review preparation time There is more focus on attaining target/ maturity. hoever customer needs/ market requirements may undergo change at a later stage It is focused on control through gates. approach now adopted by almost all popular programmes  Eg: phones.S OME L INEAR M ODELS  Technology Push Model  Market Pull Model   First generation linear model It involves series of sequential steps i. concept / idea generation. Design. Manufacturing. refinig idea to meet consumer needs. engineering. Fundamental Research. Engineering. It includes and integrates user needs in the innovation process     Eg: Menu operated computer software which was rejected by IBM was later on used to define Apple computers. UPS. inverters . design.e. Marketing and Sales Consumer is treated as a passive recipient of output Thus ignores consumer needs and market requirements   Second generation linear model It involves a series of sequential steps i. assessing consumer needs/ market requirements.e. teast marketing and sales.

e. etc. In these models. R&D + Marketing. No design is locked down earlier than absolutely necessary so as not to miss a newly emerging technology.2. These models include Technology Push + Market Pull combination. phases are overlapped i. F LEXIBLE M ODEL  The combination of linear and non-linear approaches has led to the emergence of third generation models which reflect the complexity of the real innovation process. Cyclical Model. These models attempt to explain the radical innovation process in a rapidly changing business environment.    . development in more than one phase can continue at the same point of time.


This cycle often begins with customer needs. an enterprise may be working for new product development simultaneously. Also.   .E XAMPLE : Cyclical Model  According to this model. innovation is cyclical in the sense that it is driven by the product improvement cycle.


new vs old organisation .FACTORS  Government support and policies for technology and innovation Risk taking abilities of the organization Risk taking attitude of top management        Organisational goals and policies Degree of technological changes Degree of competition Availability of funds/ budgetary support Age of organisation viz.

Broadly speaking . which are:   Innovation Leader Innovation Follower . an organisation may follow two types of innovation strategies.Thus a combination of above factors directly influence innovation strategies of the organisation.

empting competition. I NNOVATION L EADER  Under this strategy. pre. early profits. etc. flexible non. open.1.linear innovation process   . a firm seeks to be the first to introduce innovations It aims at tapping first mover advantages like increased reputation. Such strategies focus on radical. new sales.

2. Such strategies focus on incremental. by bringing better products or services through improvement etc.   . It aims at learning from the experiences of innovation leader by low cost estimation. by which a firm chooses not to be first on innovations. I NNOVATION F OLLOWER  A conscious and active strategy. closed. linear innovation process.

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