Innovation is a multiple-stage process in which both profit and nonprofit making organizations changes ideas into new or improved products, services, or even processes with a view/aim to advance, compete and differentiate them successfully in the business world. Innovation takes one of these two categories; evolutionary which don’t need user learning and do not change in their habit or revolutionary that necessitate some user learning and do interrupt their usage habit (Baregheh, 2009). As a result of globalization, organizations are facing profound pressure to reform and improve stakeholder-related practices but in a profitable manner, thus this calls for innovation as a solution.
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How innovation concepts differ when crossing borders
Despite the fact that innovation programs in organizations are linked to organizational goals, objectives, business plans, and market competitive positioning, the concepts differ due to; origin of pressure which would either be primary, secondary stakeholders, or general social trends and institutional expectations. Turnover (budget) generated all these and is the driving factor to innovation (Moore, 2005). The main factors which support it are; improvement of quality of goods or services, an increase of product range, reduce operational costs and improve processes which are used for productions of goods or delivery of services.
Main concepts of technology
The main concept of innovation is the technology curve which describes revenue generation against time. The curve has low growth at its initial stage as new products establish themselves, with an increase in demand. Growth increases rapidly and continues with new incremental innovations/changes in products. Towards the end of the curve’s life cycle, expansion/growth is slow and most likely will fall. It is assumed that new products will rapidly increase revenue, but this is not always the case.
Diffusion of innovation is how innovation spread through social systems. This is most cases differs on the origin of that person who makes up inhabitants in given social settings. For instance, we may have no laggards or early adopters.
Better performance of interference
The impression of disturbance occurs when novelty/new ideas surface providing better and bigger performance. Those individuals in office have tendencies of looking down upon the significance of the fresh novelty regardless of the fact that it has the potential of generating a new marketplace that may take over from the existing market (Dundon, 2002). Interruption is comparative in that it can be disrupting to one organization but on the other hand sustainable while crossing the border. In what came to be known as Moore’s law the assumption held is that the least amount constituent of cost always rises by two factors in one year. This may not hold in every organization, other concepts of innovation that change differently in respect to organizations are; dominant design, the ‘chasm’, and value capture.
Entry of Foreign Market with Innovation
My company of choice is Anheuser-Busch which offers beer and other beverages considered to be a normal product in the United States but can be a new product elsewhere. A new and foreign market for this instance is South Africa. I will use licensing as a mode of innovation whereby, the licensing agreement gives breweries firm in South Africa the rights to produce and or sell Anheuser-Busch products (beer and other beverages) to South Africans and part of Africa. This is advantageous because, it’s cost-effective, one need not struggle in setting up a new firm and generally minimize difficulties of expanding into new foreign markets.
- Baregheh A,. Rowley, J,. & Sambrook, S. (2009). Towards A Multidisciplinary Definition of Innovation. Management Decision, 47(8), 1323-1339
- Dundon, E,. (2002). Seeds of Innovation – Cultivating the Synergy That Fosters New Ideas. New York: Amacm
- Moore, A,. (2005). Dealing with Darwin: How Great Companies Innovate At Every Phase of Their Business. Oxford: Capstone publisher