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(1872-1930)
1780: Steam & Cotton
1850: Train & Steel
1900: Electricity & Chemistry
1930: Petrol & Car Technologies
1950: Automation & Information
1980: Health and Bio Technologies
Furthermore we can also say that first personal computers are quantum innovations.
As it can be understood that they make major changes in environment but they increase
uncertainty because organizations have to change the way they operate.
Incremental Technological Change :Technological change that represents a refinement of
some base technology.
Chips of computers and cars are being renewed rapidly. For instance Peugeot 207 has more
abilities than 206 because of some technological refinements. This is the result of several
incremental innovations. We can also state that car industry is one of the fast-improving
industries where several incremental innovations are applied rapidly such as introduction of
door airbags and electronic microcontrollers.
Quantum Innovations: New products or operating system that incorporate quantum
technological improvements.
Incremental Innovations: Products or operating system that incorporate refinements of some
base technology.
Why Do We Need Innovations?
Nowadays the competition between companies is getting faster and they have to defend
themselves against their competitors. In order to achieve that companies develop new
products and services. Some of them gain advantages while being capable of developing new
products rapidly and getting them to market quickly. Social trends do not remain static.For
instance, some people prefer online-shopping. Therefore organizations have to develop new
ideas in order to response demand.
When competitors introduce new products or services, government agencies enact new laws,
important sources of supply go out of business or similar environmental changes take place,
the organization needs to adopt. Therefore this adoption is provided by innovations.
Successful Innovations
Innovative organizations have very similar cultures. Their main aim is encouraging
experimentation. This does not happen only with rewarding the success. They also reward
failures. Since failures show wrong parts of projects, it is also important to know that before
the project continues. Innovative organizations let their employees suggest and try new ideas
without any penalties. Their support provides stimulating successful innovations.
Here we can see how stress effects performance(Figure 1).At the beginning, stress seems to
be minimum but this shows us that the person does not feel motivated about the project. When
employee feels more excited with project, stress level will increase. This balanced-stress
stimulates the body and increases its ability to react. If stress level goes beyond the balancedlevel,
performance of the person will decrease. This happens when people work under
pressure and makes them not able to handle a project the way they want.
Figure 1:Relationship between performance and stress
Why are Innovations Unsuccessful?
One of the considering things is: only between %12 and %20 research and development
projects are successful. There are many reasons which lead the projects to unsuccessful
events. If we divide the reasons into three groups as organizational, people and technology,
we can see the whole picture clearly. Here, people represent product users.
In order to achieve successful projects, organizations require flexible and responsive
structure which can adopt to rapidly changing conditions. Sometimes even well-designed
projects can be unsuccessful because of management decision. Some kind of events which
are out of control such as demand fluctuation can also affect the whole project. Furthermore
product life cycle length can not be so long which the organization planned. Since global
market effects every kind of organizations, it becomes more complicated to predict how long
products will stay at shelves. As it can be seen from the picture below, innovation projects can
be affected by several reasons (Figure 2).
Figure 2: Factors which affect Innovation Process
Technological Change and Length of the Product Life Cycle
Product Life Cycle shows all of the stages while the product is on shelves. It has three stages
but here we are going to look it as a whole.
According to industries, product life cycle gets shorter or longer. For instance in car industry
product life cycle lasts on average five years. This is the reason of continuous incremental
innovations.
Since Product Life Cycle is dependent on rapid technological change, products can lose their
attractiveness to customers very rapidly. For instance, cars are produced with lots of new
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