Strategies Associated with Incremental Change and Radical Change
Whenever an individual or company plans to set up an innovation strategy, it is always important to make a decision on whether to choose incremental or radical change. Both choices have different strategies that serve different goals. For instance, incremental change often focuses on creating new products and services, which is always used by already established companies. The first strategy while using the incremental change approach is growing sales and profits for existing products and services within a particular company helping it to remain competitive. The second strategy involves protecting the current business models, which helps customers to understand and buy new improvements. Importantly, Apple, a Smartphone company utilizes this kind of innovation to create a new huge market, especially when it designed its first iPhone that increased the company’s profits.
On the other hand, radical change as an innovative approach is a much more complicated endeavor, which involves a company creating a new market to step aside from the crowd (Norman & Verganti, 2014). The first strategy associated with this type of innovation involves getting an opportunity to get a huge win since there will be no competitors. The second strategy involves owning an entire market and setting up rules to increase profit, which implies that new markets will lead to further development and innovations. Metromile, a US insurance company acts as a clear example for this kind of innovation because it harnesses a new technology where one can plug-in telematics device in the vehicle for the provision of a new entrepreneurial paradigm.
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Attributes of Push and Pull Innovation
First, push and pull innovation is characterized by the idea of promoting products and establishing a loyal following, which in turn draws consumers to purchase the products. Second, it is characterized by creating the demand or need and offering a way for users that satisfy consumer needs (Dawson & Henley, 2012). For instance, pull innovation can be used during the marketing of children’s toys, which begins with a company advertising the products, then customers see the advertisement, which makes them purchase the products. The outcome for this will create an increase in demand where retailers will try to stock the product in their stores. On the other hand, the companies, which produce the toys, would have successfully pulled the customers close to them.
Why Entrepreneurs should follow an Innovation Strategy
First, entrepreneurs should follow innovation strategy to provide direction on how to go about things, especially when they are presented with a new opportunity that cannot be approached loosely. Secondly, they need to follow an innovation strategy that to get a better chance of making a particular opportunity a success because lack of a strategy often exposes them to risks and a chance of failure skyrockets. Lastly, using the strategy, entrepreneurs will be able to meet customer needs since they are constantly changing. Importantly, innovative entrepreneurs should always be ready to predict any form of change in the market and further provide solutions before it causes harm to the employees and the customers. Across the world, almost all entrepreneurs fail to meet customer’s needs, especially on a long-term basis unless they become willing to innovate by coming up with a new idea that excites customers and further meets their needs. In order to find a long-lasting solution, it is always important to differentiate the customers and know them on an individual level. It is always important to picture the operating space between the company and the customers, which can be achieved by asking the right question and listening to the customer’s views. Overall, it is important to give customers solutions, different strategies, emotional connections and relevant information, which in turn generates profit for the company.
- Dawson, C., & Henley, A. (2012). “Push” versus “pull” entrepreneurship: an ambiguous distinction?. International Journal of Entrepreneurial Behavior & Research, 18(6), 697-719.
- Norman, D. A., & Verganti, R. (2014). Incremental and radical innovation: Design research vs. technology and meaning change. Design issues, 30(1), 78-96.
