Innovation projects

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1. Why do you think innovation projects fail to generate an economic return?

In Innovation projects it's always a process of finding out a new thing or new outcome. In that point throughout the project only the costs and expenses are associated with the project. For example research and development, material cost and etc. as we can see only the expenses are generated up to the final point of the project where the final outcome appears. For example if a company runs a project on an innovation project which is about new fairness cream until final product, the fairness cream only the expenses and costs are associated for the areas such as research and development, materials for the cream, wages and etc. The generating of revenue or economic return begins when the fairness cream reach the market place and when there is the start of sales and marketing process of the company. Therefore to reach the breakeven point it takes some time after the project. Therefore only project itself does not generate any economic return as it only generates a final outcome which is a product or a service. In that point economic return generation is a process which I s always after the innovation process, that's the main reason why all the innovation projects fail in economic return generation.

2. What are some of the advantages and disadvantages of

· Individuals as Innovators,

· Firms as Innovators,

· Universities as Innovators,

· Government Institutions as Innovators,

· Nonprofit Organizations as Innovators?

Individuals as Innovators

Advantages

- Many creative and innovative ideas can be derived from an individual.

- People will obviously understand their own uncounted needs

- Users may have good motivation to solve their problem

Disadvantages

- Limitations may be there when investing the capital.

- Permission to resources is liable to limitations

- Innovations demand, greater knowledge than what the individual knows.

Firms as Innovators

Advantages

- The firm is in possession of a huge capital for investment.

- If complementary products are developed there are better opportunities.

- To encourage motivation especial organization is essential.

Disadvantages

- Higher focus is given on projects that bring rapid economic returns rather than projects which are beneficial to the society.

Universities as Innovators

Advantages

- Wide range of knowledge and resources may available on universities.

- It is possible to invest on long term projects which focus on scientific advances rather than projects on economic returns.

- There is always a connection between government and non profitable organizations.

Disadvantages

- May focus on doubtful projects rather than ones with instant applications.

- Innovations may not always reach the market.

- Undisciplined financial management may cause less efficiency in development process.

Government Institutions as Innovators

Advantages

- Wide range of knowledge and resources may available on government.

- It is possible to invest on long term projects which focus on scientific advances rather than projects on economic returns

- Has an influence on other innovators such as universities, firms and non-profit organizations

Disadvantages

- If there are no complementary products, innovations in the market may be hard.

- Undisciplined financial management may cause less efficiency in development process.

Nonprofit Organizations as Innovators

Advantages

- They have links with other parties such as government, universities and nonprofit organizations.

- Obtaining the support of external parties is a near possibility.

- Mission based focus may allow the organization to go for long term risky projects.

Disadvantages

- Relying on donations and funds may bring about limitations in capital resources.

- If there are no complementary products, innovations in the market may be difficult.

3. What are some of the ways a firm can try to increase the overall value of its technology, and its likelihood of becoming the dominant design?

The overall value of the firm's technology can be incremented by implementing needed strategies. More the technology is consumed, the more revenue it returns to the organization. To increase the overall value of their technology and to become the dominant design the idea was provided below.

To survive in the innovative business world and to get the superior product standardization and to dominate the market, the firm's technology should have a huge installed base. The Main focus of the organization should be to attract the consumers by increasing their installed base. Developing complementary products or by encouraging other developers to create products for their technology will enhance the performance of the firm. Complementary products will enhance the technology more efficient and attract the consumer base. As the incremental growth occurs on complementary products, the technology will catch the market and will be the dominant design.

The firm has to penetrate the market by heavily increasing the awareness among consumers. They must conduct eye catching advertisements by promoting their product to the exiting market using various kinds of medias and marketing channels. And make revolutionary awareness that their products have a great place in the market and the technology behind that has a high demand and the firm has a huge installed base. Therefore when market penetration takes place more consumers will adopt the new technology and this will help the technology to be the dominant.

It's important to the firm to mainly focus on the technology which will be much compatible with the complementary products which will be developed by other competitive firms. Incompatibility of the complementary products will discourage the consumers from consuming or adapting to technology. So the organization should always force and encourage the expansion of the compatible complementary products to make their technology dominant.

By providing enhanced functioning products for the consumers with a reasonable price who is highly adapting the technology the organization can increase the customer base. As there are high range of competitors firms has to market their product with a price which the consumers can afford easily. Therefore the technology deliverable should be ensured by the firm as to the customer expectations.

By implementing the above strategies the installed base can be increased therefore the overall value and likelihood of their technology will be the dominant design.

References

· Melissa Schilling, 2008, ‘Strategic Management of Technological Innovation', The McGraw-Hills companies, India.

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