Success Is Based On Innovation Through Creativity


All organizations are chasing for forceful environmental factors, categorized by rapid changes. They are trying to change the product life cycles and globalization. It is perceptible that the organisations, those are technology based (mobile phones, cameras, laptops etc) are in the market environment need to be more innovative, more creative to endure in the high competition market. Today success is based on innovation through creativity. In return it will give the advantages to the organisation and the same way to the 21st century's economies. Consequently, Mumford and Gustafson (1988) quoted that the creativity and innovation are increasing significantly in today's world.

2.2 Defining Product Life Cycle:

After developing a product it is introduced to the market. Then it gains more customers as it grows. Gradually the market becomes stable and the product move to the mature stage. At the next stage product is replaced the competitor's product and then it declines form the market, in due course it has to withdraw from the market place.

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According to Kotler and Armstrong (2005), product life cycle is sales and growth of a product over its lifetime. Product life cycle involves five stages as follows:

Figure 1: Product life cycle stages

However Kotler (2003) said that the most of the product life cycles are divided into major four parts. Those are introduction, growth, maturity and decline. The curves of the product life cycles are represented as bell shaped which is also known by 'sales and profit life cycles'. The figure shown below:

Figure 2: Sales and profit life cycles Source: Kotler (2003)

Introduction: In the product development stage, the producer or company finds a new product idea and began to think about all other related matters with marketing. In this stage sales of the company remain zero and only investment occurs.

In the introduction stage, new product is introduced in the market and starts slow sales and growth for the product.

Growth: In this stage product comes to a growth step. Then it gets rapid market recognition and increase the profit of the producer.

Maturity: A product comes to maturity stage when most of the potential buyers purchase the product as a result of sales and growth. Profits start to go down in this stage. Many competitors also arise in some cases and it drives the products towards the decline stage.

Decline: In this last stage of product life cycle sales fall and profit of the marketers also decline dramatically.

This product life cycle is generalized because some products introduce and then just decline. Some has long maturity stage, so all the products do not fall in this cycle.' Product life cycle (PLC) is one of the most controversial and enduring concepts of marketing however this model has been working as important marketing planning and strategy tools for over 30 years.

2.3 Defining Innovation:

Innovation is defined as the successful execution of inventive ideas within an organisation (Amabile, 1998). Product innovation based on idea which ultimately focuses on a product innovation increases consumer utility. Though, Jauhari (2001) specified that there are some definitions which have not been expansively accepted yet, the term innovation is among them. On the other hand, the Commission of European Communities (2003) presented that the innovation is the process of successful adaptation, invention and development of uniqueness in the context of social and economic status.

Today innovation does not only stand for new products or services, but also focus on new business plan. The model of business innovation is all about how the product or services is formed or how they are paid for. Such as Google, all the advertisement finances the service as a result the users or the customers do not have to pay them. The fashion chain ZARA, they have different business innovation by having the clothing lines in the shop for some weeks, afterword they modify their clothing line for the following some weeks. This company is able to improvise with the new ideas to attract the customers.

According to Mcfadzean et al (2005) where the customers and the suppliers both go through the process of new product developments, services and as well as new methods of commercialisation is define as innovation process. This process adds value and degree of novelty to the organisation. Weller et al. (2004) said that innovation and invention are one and the same. However, Allen (2003) argued that the innovation is different form invention, this innovation process which renovates the invention into something of use. Though Allen (2003) agreed that through the innovation process it can create the new ways of doing things.

2.4 Defining customer perceptions:

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In current economic situation it is very difficult to compete with one company to another. That means this rivalry situation is getting more and more furious. According to Boyle and Lathrop (2008), in some cases the relationship between retail price and customer perceptions of product durability has been ignored. However Farries et al. (2010) added, customer agreement has significant effects within organisations. The employees' priority is to fulfilling the customers demand. Farries et al.(2010) also cited if these ratings drop then the whole scenario will change and it will affect the sales and profitability of the company.

Customer satisfaction is an abstract thought of customer perception. John (2003) uttered, the success of the organisation depends on how the organisation appraise the customer satisfaction with their products or services. Moreover the organisations also need to target non customers in the same side of the existing customers.

Now customer satisfaction and perception becomes one of the most common performance measures. Understanding customer perception gives a business a competitive advantage and research and development as well as innovation activities fosters with the perception of having a close eye on the customers rather than competitors. Kano et al. (1984) who introduced a two dimensional model of a product or service where it was shown how to assure customer needs in the term of customers' perception.

Figure 3: Kano's customer satisfaction model Source: Kano et al. (1984)

On the other hand the American Customer Satisfaction Index (ACSI) has better validity than any other customers' measurement. Fornell et al. (1996) first introduced the American Customer Satisfactory model for ACSI. This is very common and cross industry model which can measures the oraganisations based on market performance.

Figrure 4: The ACSI model Source: Fornell et al. (1996)

According to Chang and Chen (2011) the service providers need to categorize detailed elements in more specific way within the services and this is how the customers' perception will increse in the aspect of the experience.

2.5 The nature of the product life cycle for component products:

The shape of the product life cycle is concern about the level of innovative products. Calantone et al. (2003) said that the industry evolution can be changed based on the relationship between the market concentration and the firm's supply chain relationship. This can be done by focusing different product strategies which have direct interaction with customer attitudes and needs.

However, Stig (2009) disputed that the development strategy of the product, as each phase of product life cycle and these diverse features affect the organisation's operation. Giachetti and Marchi (2010) added the technology based industry such as mobile phone and personal computer focus on competitive advantage via process innovation (for example, Dell), on the other hand some company may preferred to choose a different approach and go on with design innovation (for example, Nokia, Apple)

2.6 New Product Developments:

Annacchino (2003), indicated that, a product plan consist with time periods, probability and resource requirements through the New Product Development (NPD). Creativity brings the success of a new product and it is only achievable by the best practice of an innovation. However, Annacchino (2003) also argued that organisation's recent new product development movement is more effective by assisting the organisation. Intangible innovation can be ignored at this stage. It is assuming that, the active frame of Research and Development and product process requires purifying. On the other hand, these are absence in the internal innovation of the common organisation who desires to understand innovation. As per Sen and Haq (2011), a large number of small-medium sized firms are collaborated with external core and non core activities and this collaboration is involved with new product development.

Cooper (2005) stated that the new product is the result of systematic approach which is based on the success of the best practice. The framework of new product development consists of five stages, which was identified by Cooper and Edgett (2001). The stages are: scoping, building the case, development, testing and validation launch. The decisions are made whether an innovation process goes to the next stage or not that depends on how the framework works within organisation.

2.7 Types of innovation:

Innovation can be two types. It can be tangible such as new product development or intangible as new services and new work exercises. According to Ben and Radford (2002), innovation focuses on whether new or improved products, management, processes and organisational development. Hamel and Getz (2004) referred another two forms of innovation such as services and business model innovations. In addition, Hesselbein et al., (2002), proposed another two: technology and organisational innovation.

2.8 The expedition of innovation:

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An innovation process passes through an organisation to achieve a goal. It is important to realise the value of innovation it passes through the business. Innovation is important to business and it has support from several sources. According to Bean and Radford (2002), it is a fact that innovation holds the life force of a living adaption for an organisation.

Develop a new business were inspected as perhaps sharing similarities in process. Though, the distinctions of an industrialist establishing a new project and the innovation expedition were apparently fundamental and restricting importance. Sharma (1999) distinguished that, there is absence of bureaucratic and risk adverse nature of an existing business in a new business. In the same way, large companies may not have flexibility whether this situation is accessible in small enterprising business. Bhat (2010) stated that the mechanism of innovation is to make new and improved products and services, it is required to adapt with the changes of markets, technologies and methods of competition.

2.9 Innovation and organisations:

Over the last few years, innovation and accomplishing an innovative organisation have been increased widely. Innovation in a business may be restrained. Willams (1999) have demonstrated that, continuous innovation practices are often cause one dimensional innovations. Although, McAdam et al. (2000) argued that by exercising continuous improvement help to develop innovative organisations.

Sharma et al. (2010) analysed the ten types of innovation process. These ten types of innovation are segregated into main four parts which are finance, process, offering and delivery. It has been argued that when a company can comply with any 3-4 types of innovation out of ten then the company can do the break through. The results clearly showed that there was support about the findings in this article. Such as TATA Consultancy Service (TSC), Gyan Shala, Dainik Bhaskar and another five well have known companies from India which are successful innovator by practicing 3-4 or even more from out of ten types of innovation.

On the other hand Martinez-ros and Labeaga (2009) offered persuasive proposal of innovation activity correlated with sustain competitive advantages. However this is crucial for any organisation to success and to satisfy the customers just to by new product launch. Furthermore the authors added, the company can gain sustain competitive advantages by generating the knowledge from the company environment itself. The persistence is the key issue to obtain the knowledge. The findings of this article clearly support the results of the survey from the Spanish database, which was conducted by the authors from the manufacturing companies from the period of 1990 to 1999. The results supported author's persistence value. Present of persistence can lead the business to successful innovator alternatively absence of this can cause bias results.

2.10 'Innovation Decision Process' by Rogers:

Rogers (2003) clarified a suitable model which helps to identify the process of innovation. There are five steps in this theoretical model. During an innovation this five steps outline the individual's progress. The five steps are followed by the next page:

Figure 5: Roger's five steps Source: Rogers (2003)

2.10.1 Knowledge: This is the first step of this model. Rogers (2003) explained that knowledge is introduction of an innovation and it is important to realise it. This only happen when an organisation or an individual conscious of disappointment or frustration. Zaltman et al. (1973) added that an organisation who wants to implement innovation process need to aware of its allegations and benefits.

2.10.2 Persuasion: This step focus on the positive and negative forms of innovation. It indicates the attitude of the innovation rather than just to have knowledge about this. Persuasion involves with implication of the innovation and wishes for more information to evaluate.

2.10.3 Decision: The third step is decision, which is engage to foresee the future of an innovation. Rogers (2003) in his model indicated two clear choices- adopt the innovation or reject the innovation. If the organisation decides to reject it then this process terminate here. Other than, if it is adopted by the company then move to the next level. Decision level can be more difficult for the organisation rather than an individual. As in organisation, the problem may arise due to unwillingness to change and unsupportive framework.

2.10.4 Implementation: The change or modifications, adjustment, re invention of the innovation are engage in this step. These types of changes are essential to implement the innovation process. This will give the company some great benefits to overcome the conflict.

2.10.5 Confirmation: This fifth step may be needed if any decision requires revising or emphasizing the innovation's value and validity. If there is any dissatisfaction with the result or if there is any conflict of information then the innovation process can be terminated. Rogers (2003) suggested that, an innovation can be abandoned at any time when an organisation passes though these five steps.

This innovation decision process model helps the organisation to seek the proper way to implement the innovation process within the company rather than going through the unplanned innovation. Nutley et al. (2002) stated that, this innovation decision process model is one of the most used quoted models. These five steps are ideal to restructure the organisation's innovation process. Although not contesting the significance of this point, it may hamper the original business when operating the innovation process.

Even though, Rogers (2003) innovation decision process model gives very significant structure for the purpose of this study. This model lends the elasticity to implement the process all the way through. As per Woodside and Biemans (2005), they used this innovation decision process model in an organisational perspective.

2.11 Innovation process management:

Innovation process will only be succeeding when this process will work out with the organisation's culture, environment and structure. Therefore, Senge (2006) evaluated that, organisational learning concept helps to put together the organisational add individual skills so that enormous change can flourish the competitive business environment. Kotter (1996) recommend that, adaptability, flexibility, accessibility combination will appear in 21st century's company to do the team development. According to Williams (1999) spotted that, the demand of innovation generation and rewarding enterprises for example admire, chance to work out further innovation or financial benefit.

2.12 Potential stages for innovation to effect expedition:

Project definition.

There are some steps which potentially helps to outcome the excellent result throughout the innovation expedition. Hamel (2000) suggested that, exchanging the concept to the line managers, building a business concept, looking for a guarantor and structure support to functional occurrences in the structured process. Pinchot and Pellman (1999) distinguished that, to find out the best mix of innovation and to achieve the long term objective it is very important to make sure all the resources are distributed for structural process. Potential steps for innovation expedition are also recommended by Pinchot and Pellman (1999) below:

Distributing idea to the managers

Set up a Business plan.

Find out a sponsor

Gather support


Figure 6: Potential stages for innovation expedition

2.13 Barriers and Support for innovation expedition:

The total success of innovation depends on the practices during the innovation expedition. Lack of directions and testing the literature on developing innovative organisations lend a hand to diagnose the barriers that may be lead to the innovation expedition. In the same way supports to the innovative organisation might be performed as facility. Christensen and Raynor (2003) proposed the influences on the innovation expedition can be summarised as:

Tangible resources to succeed such as assets, people, things.

Processes that assist interaction, coordination, communication,

Values that understand the difference between the new and old requirements such as the culture and criteria for decision making.

Resistance to change, challenges to existing procedures are the main barriers to innovation process. Christensen and Raynor (2003) stated that, if the innovation process does not succeed, the main reason is managers and the organisations are incompetent or they do not understand the value of innovation. It is not possible without being compromised the efficiency to fit innovative activities into daily routines.

2.14 Overview:

The purpose of the literature review validates that if a business wants to survive and growth then the product life cycle and innovation are most important to them. However the internal innovation outcome process results the unlocking of innovation value. Existing literature focuses on the innovative organisation or offers theoretical concepts rather than pursue the realistic points to process the product life cycle and innovation within the company. Essentially innovation transforms the business and this crucial process need to manage in proper way. When this change comes to the organisation then the resistance began. Only by studying the proper innovation strategy could sustain the business and can overcome all the limitations. This is how innovation can be more effective into the business. The prospect of innovation and product life cycle strategy will provide the great effectiveness of understanding the customer perceptions in the aspect of innovation value.