Ever since the globalization of markets, specifically in scientific and technical niches, it has forced technology firms the need to keep readjusting their R&D and Radical organizations.
R&D and Radical Innovation can get highly complex, especially if the two structures are merged.
In this article, we will go through both of them and then look further into why innovation in an organization should encompass both R&D and Radical Innovation.
What Is R&D Innovation?
R&D stands for Research and Development, and it is a critical factor for technology firms to have a competitive edge in their markets.
Example Of Organization Who Uses R&D
There are many ways to implement R&D, and Intel is one example. Since 2006, they’ve been using an alternating system, which uses microarchitecture – a process that continually puts them ahead of their competition. Every year their microprocessors get modified, in particular for its power and speed.
The Five Trends Of R&D Innovation
- The establishment of co-ordinated tight listening posts.
- Reinforcement and strengthening of foreign R&D sites.
- Stronger R&D techniques towards knowledge centers and international markets.
- Further integration of decentralized R&D units.
- Tighter re-centralization of R&D behaviors in fewer know-how centers.
Analysis of R&D
An organization that specializes in technology like computers, cell phones, etc. will need R&D specifically, so their products stay ahead of the times, and most crucially their competitors. If you look at how quick both Apple and Android release their latest smartphones annually, you can see how fast the Smartphone market is evolving.
What Is Radical Innovation?
Hence the word ‘Radical,’ this type of innovation technique is the most extreme out of all – it means completely changing any of these factors from its original form:
- The process
- The business model
- The product design
Usually, such changes will give necessary improvements to how those components work together, how they interact and puts them together in a different way to make a unique alternative.
Examples Of Radical Innovation
Radical Innovation occurs when a fresh new entry comes into the market, which usually disrupts an industry or business.
First launched in 1997, Netflix’s original business model was DVD rentals through mail order – they formerly competed with Lovefilm who offered an alternative service. However, later on, they evolved into providing online streaming! Customers were no longer waiting for films to arrive via post, and all films/tv programs were instantly available.
It impacted the industry hugely – especially if you look at the ex-DVD/video rental firm Blockbusters, who eventually went out of business.
They are another example of Radical Innovation, as competitors were leveraged into a completely different new business model, or fall behind and go bust. As buying online became a more preferred method than going to the shopping mall – you can see this happening by large companies like Toys R US and other famous high street names struggling and going bust.
The Bottom Line
After going through both Radical Innovation and R&D, it’s very apparent that a technology firm should employ both techniques if they want to stay in business. Research and Development keep the company forward-thinking, and Radical Innovation is the ability to completely adapt and change the business model/products, in line to where the market is going.