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Product innovation is a key
factor in achieving competitive advantage over market rivals. It is extremely important
for the survival and growth of modern businesses, especially
the technology-oriented ones. As such, one could say that it is the lifeline
of businesses in the twenty-first century.
Product strategy forms one of the 4Ps of marketing. It is felt
that sustainable competitive advantage is achieved through three
routes: innovation of products, manufac-turing process, and marketing.
Of these, it has been felt that product innovation is more imitable
as compared with the manufacturing process and also the other
elements of marketing like price, promotion and distribution channels.
This could be true of FMCG products; but once you look at organizations
in technology-oriented businesses like electronic products
including cellphones, automobiles, washing machines and industrial
equipment, it can be easily discerned that product innovation plays the
key role.
In their book, Principles of Operations
Management, Jay Heizer and Barry Render state that
the success rate for innovation in the industry is one in 250. How
does one get to that successful alternative? - To the people in
the industry, there is really no clue. Discuss with any top brass of
a technology company and they will tell you that it is technology, or
gut feeling or some such mumbo-jumbo. Talk to the same guys in private
and they will let you know how frustrated they feel. |
