The management of innovation

The management of innovation of a new product on the market has no competitors in the course of its development

By Cristian Ramirez Gaston

The challenge of newspaper organizations has a goal and that is "innovation and creativity in products or services you provide?,. A bibliography is often written about this but not coldly analyzes competitive advantages of the company when implementing this idea in the market.

The management of innovation vary according to the degree of development and the market are organizations when considering implementing a new product or service.

There are 3 levels of innovation management that are directly related to a new product on the market.

The first to be analyzed is called:

New company with New product: This definition is in start-ups by a particular person or organization and was able to create a new idea as to what that refers to a release of a new product or service.

An example is the famous aphrodisiac food restaurant in Buenos Aires there called "I'll kill Ramirez? which innovated in terms of absolute creativity within the gastronomic field, innovations respond to dishes with names aphrodisiac sensual and exotic with a variety of meals and a soft compelling and exotic environment that makes great play with the dishes you have.

There are plenty of restaurants but very few differ as to the quality of their dishes and original ideas presented through their dishes.

This case study has no direct powers in the innovations of his dishes, and there are many restaurants that cook aphrodisiac dishes but not with the same original name has "Ramirez will kill you?. This shows that when innovation is high, over the short term, medium or long the company has gained the advantage that no competitors and imposed at the same time barriers to entry for new competitors who want to innovate to remain competitive or copy your product.

The direct competition does not exist at the time of product innovations, otherwise it would not be innovations, of course each organization with its new product in the market will substitute or secondary competitors but not the same product and that this innovation is which keeps a temporary barrier until your competitor or another player copy your product and make certain modifications or make a new innovation that can compete with your product in terms of attributes they possess.

Company in the market with New Product: This new classification is different from the previous in that the organization has direct competitors and substitutes, but remember that each unit has its own strategic competitors, customers, suppliers, therefore we give an example so you can understand better.

The Nestle company has clear competitors in terms of developing their chocolates, and various products of its various segments, but that would assume if the company is launching an innovative product to market as it did during the winter of 2006, creating a chocolate that no company to.

Put it this way to better understand the management of innovation in this product, Nestle will have its own competitors, but with the caveat that this recent development will have no competitor, and happen to have a competitive advantage not only enjoyed but to position themselves in their consumers in a unique and unrepeatable on other players.

Innovations allow companies to create a new positioning of your product and own the minds of consumers as the positioning achieved in each customer who purchases the product will continue to be original and new.

Barriers to entry in the market for innovation:

Barriers to entry of each competitor will be low or high depending on the type of industry concerned, the following variables may determine the complexity of the income of each competitor and build a matrix that allows us to study the entry of the competitor.

Suppose to rate the variables of innovation management with a value that can range from 1 to 5 points.

Technology

Product

Advertising

Location

Creativity

Investment

Demand

The named variables have an impact that will allow or deny access to those markets, suppose then that a clothing company decides to promote a new style of clothing that does not exist in the market today.

Z The company has enough technology to manufacture clothing such models with an economy of scale that allows the lowering of costs, so this score is 5 points.

The product is excellent, the most innovative of the last 5 years in relation to Sportswear and excellent quality that allows a magnificent position.

Advertising is not a variable to be considered by this company and decided to invest in certain magazines and limited promotions to make your product know what the company calls herself Z a 3.

The location refers to what kind and how many points of view has as it will be a major factor in the proximity of the segments has decided to tackle.

The company says it has excellent Z outlets focused on major shopping centers but can not supply all the points you want, for what it calls a 4.

Creativity, at this point is completely new company Z in the invention of a new product, so you get the highest score with a 5.

The investment is not very high compared to usual business investment, but a significant investment that not every player can do it regularly, so it is considered that the rating is 3 points.

The lawsuit is one of the strengths of this new fashion of clothes, was a boom in sales of its new product, for its style, innovation and representing the people who buy the product, its attributes are quite differentiated and very profitable for the company that manufactures it.

Let us see how to perform the following matrix of product innovation, market and customers to determine the positioning of Innovation: Management, marketing, customer and product.

This matrix allows us to analyze the importance of each variable to determine whether or not to enter the market and be a new competitor and fight for a share of the market where it operates.

In determining the score for each variable and placed in the corresponding quadrant will determine the positioning of the desired innovation.

The competitive advantage then the company will have achieved something innovative in the market and that achieving this will not have direct competitors in a given time and thus achieve a position in their clients.

Last words:

Innovations have always been and will be continued efforts of organizations do of course is a few to do and take this as a new market segment and to obtain a competitive advantage outstanding.

The most important highlight of this article is not innovation in itself, but the advantage that achieves innovation by competitors not having a definite or indefinite time while the imposition of entry barriers to new market

The innovations have often been a result of important advances in science and in the ancient world and contemporary so it's no less vital importance of analyzing their impact on the business world where the world and the environment is increasingly complex, chaotic, highly competitive and aggressive in the fight of the innovations to seize new market and highlight a new positioning.

If you wish to contact the author to exchange ideas, opinions, comments on this and other work outlined above I can do by writing to:

e-mail: cristianprpich@yahoo.com.ar