Innovation is one of the most important issues in business research today. It has been studied in many independent research traditions. Our understanding and study of innovation can benefit from an integrative review of these research traditions. In so doing, various topics of consideration have been identified and studied. Consumer response to innovation, Organizations and innovation, which are increasingly important as product development becomes more complex and tools more effective but demanding; techniques for product development processes, which have been transformed through global pressures, increasingly accurate customer input.
Innovation is the core business competency of the 21st century. In order to not only compete and grow but to survive in a global economy, businesses must innovate. To date innovation has been approached in a piecemeal fashion often linked solely to the New Product Development (NPD) process.
There has been a remarkable increase in R&D investment by industries at global level over a number of years. The area of R&D in industry with the highest rate of growth over the past six years has been in directed basic research. Innovation and the effective management of technology have become a top priority for nations as well as companies, to stimulate economic development and strengthen their competitiveness. Allocation of R&D for the development of new businesses is seen as a key growth strategy by firms in most parts of the world.
New products are engines to growth and prosperity for all companies in the manufacturing sector or the service sector. In this article, an attempt has been made to explore the drivers of new product performance, with a particular focus on cosmetic industry. P&G is considered to be one of the companies dealing with cosmetics with the best innovation strategies, and hence it has been taken as an example for the study. The Innovation Diamond is introduced by P&G as an integrative and guiding framework to help management focus on what’s important to success: innovation strategy, a solid idea-to-launch process, portfolio management and the right climate and leadership. (Keywords : Innovation, R&D, Cosmetic industry, P&G, success, Product Development.)
Innovation, the process of bringing new products and services to market, is one of the most important issues in business research today. Innovation is responsible for raising the quality and lowering the prices of products and services that have dramatically improved consumers’ lives. By finding new solutions to problems, innovation destroys existing markets, transforms old ones, or creates new ones. It can bring down giant incumbents while propelling small outsiders into dominant positions. Without innovation, incumbents slowly lose both sales and profitability as competitors innovate past them. Innovation provides an important basis by which world economies compete in the global marketplace.
Innovation is a broad topic, and a variety of disciplines address various aspects of innovation, including marketing, quality management, operations management, technology management, organizational behaviour, product development, strategic management, and economics. Research on innovation has proceeded in many academic fields with incomplete links across those fields. For example, research on market pioneering typically does not connect with that on diffusion of innovations or the creative design of new products.
Overall, marketing is well positioned to participate in the understanding and management of innovation within firms and markets, because a primary goal of innovation is to develop new or modified products for enhanced profitability. A necessary component of profitability is revenue, and revenue depends on satisfying customer needs better (or more efficiently) than competitors can satisfy those needs. Research in marketing is intrinsically customer and competitor focused, and thus...
References: Robert G. Cooper, Michael S. Mills, Succeeding at New Products the P&G Way: Work the Innovation Diamond™,working paper no. 21, 2005
R.G. Cooper, Product Leadership: Pathways to Profitable Innovation, 2nd edition. Reading, MA: Perseus Books, 2005.
R.G. Cooper & E.J. Kleinschmidt, “Benchmarking firms’ new product performance and practices”, Engineering Management, 1995.
John Hauser, Gerard J. Tellis, Abbie Griffin, Research on Innovation: A Review and
Agenda for Marketing Science, 2006
R.G. Cooper, Winning at New Products: Accelerating the Process from Idea to Launch, 3rd edition. Reading, Mass: Perseus Books, 2001.
R. G. Cooper and S. J. Edgett, Product Innovation and Technology Strategy
(Hamilton, ON: Product Development Institute, 2009).
Please join StudyMode to read the full document