In modern conditions, innovation is an integral condition for increasing the efficiency of enterprises. External factors are characterized by uncertainty and dynamism, and the development of companies is always accompanied by high risk. Meanwhile, the rejection of innovation can lead to quite serious negative consequences.
Relevance of the issue
The largest corporations in the world in their work place particular emphasis on innovative products and technologies. Moreover, they are based on the fact that innovation is an inevitable phenomenon. Their management is a key condition for maintaining a high level of performance. The inability to use the products of the innovation process reflects the company's inability to adapt to external factors and often leads to bankruptcy.
Industry specifics
The creation of an innovative product is a set of measures related to bringing the scientific and technical concept to a result suitable for use in practice. This work includes design operations, research, experimental procedures, development. The final stage is the introduction of the results of the work on the markets of innovative products.
Historical reference
Science, in the framework of which the study of the impact of innovation on the life of society and economic development is carried out, appeared at the beginning of the 20th century. The first works on these issues were published by Kondratiev and Schumpeter. Innovative products and services became most in demand in the 40s of the last century. At that time, there was a need to explain the factors of intensive economic growth of a number of countries without the use of significant amounts of capital and labor. Within the framework of the discipline, the provision that scientific and technological shifts and the creation of innovations constantly accompany the development of the national economic complex has been confirmed.
Management specifics
Issues related to product promotion are addressed by innovation management. It represents a complex of principles, forms and methods of managing the work of enterprises and their personnel employed in this field. The scope of management is constantly expanding. This is due to the ever-growing demand for innovative products, which, in turn, stimulates the work on their creation.
Characteristic
The product of innovation can be used in a specific area or be universal. It can also be intended for internal use (within the organization) or act as a subject of turnover. An innovative product is considered primarily as the result of creative work. It is expressed in a certain subject, technology, method, etc. Innovation is also called the process of introducing elements, products, principles, methods, approaches in place of existing ones.
Key features
Any innovative product acts as an object. For it, its own consumer value is established, determined on the basis of scientific and technological achievements. The development of an innovative product is aimed at meeting public needs with a high level of beneficial effect. Here, the key feature is not technical, but consumer characteristics. New innovative products are the results of human mental work. Accordingly, the share of the intellectual component in them is quite large. In practice, often the problem arises of assessing the significance of the result of mental work, as well as its protection from unscrupulous users.
Nuance
An innovative product must be distinguished from the invention. The latter also acts as the result of creative and mental work. However, in many cases it may remain unrealized. An invention will be considered as an innovative product only when it is claimed by consumers. The results of mental work should bring a real beneficial effect. Innovation is specifically geared towards generating benefits through certain changes in a product, technology, socio-economic or managerial approach.
Classification
In practice, experts identify the following innovation groups:
- Technical They represent new products and production methods.
- Organizational and managerial. These include new approaches to organizing activities and administration.
- Social. They are forms of incentive, training, educational work.
The technology is a complex of means, operations, methods by which the conversion of incoming production elements to output. It applies to tools, machines, equipment, knowledge, skills.
Levels
The novelty of the product is a set of properties that reflect the radical nature of changes in the object. It can exist at the level of:
- Enterprises.
- Specific market.
- On a global scale.
From the point of view of the manufacturer, an innovative product is distinguished by a certain degree of novelty, which affects the readiness of the enterprise for its release. This level can be expressed in reducing costs, the use of other materials, tools, methods of organizing production and sales. Efficiency criteria in this case can be increased profits, increased sales, and leadership in trade. From the point of view of the buyer / user, the degree of novelty and effectiveness of using an innovative product is expressed in the ability to satisfy new needs or previous needs in a new way. For consumers, the product may not carry any previously unknown technical solutions. However, it will be new.
Determining factors
The degree of novelty is directly related to the level of risk and the importance of managerial issues that are resolved when performing a set of measures to create innovative products. Scientists distinguish the following factors that influence it:
- Originality of ideas and the amount of R&D appropriations.
- Marketing expenses.
- OS update rate.
- Rate of return.
- Volume of sales.
Impact on consumer behavior
Innovative products can not only satisfy existing needs, but also create new needs. The least destructive effect on prevailing patterns of behavior is exerted by imitating goods. They are modified models of preexisting products. In some classifications, such products are defined as continuous innovation. They bring good enough profit, because they do not require significant costs and efforts to clarify the beneficial properties to consumers. There are also dynamically continuous innovations. As a rule, they do not change the established patterns of behavior of people who acquire and use them. However, they can radically differ from existing products.
Discontinuous innovations are also highlighted - completely new products that fundamentally change existing patterns of behavior. They are considered as basic, fundamental technologies. The result of their application is the formation of new industries, generations, activities. The American researcher Mensch found that technologies with such a significant impact on society appear during a period of economic depression. This thesis is also confirmed by the emergence of major innovations in 1935-1945, as well as in 1970.
In the depressive phase, the conditions of survival and the structure of needs undergo significant changes. In such a period, previously existing technologies are useless. This, in turn, forces us to seek new solutions. In the depressive phase, the introduction of fundamental innovations becomes the only opportunity to make a profitable investment and overcome the recession.
High Tech Criteria
Modern society is formed on the basis of the fifth wave. Its base was advanced achievements in the field of telecommunications and computer science. High technologies are distinguished by accuracy of production, universal character, great knowledge-intensiveness. In addition, they:
- Based on major inventions and scientific discoveries.
- Reduce product losses in the intermediate stages of the process cycle.
- They have maximum component consistency.
- Associated with related technologies.
- They require a minimum amount of resources, materials, labor, energy.
- They are environmentally friendly.
Modern technology is focused primarily on personal needs. In this regard, the emphasis is on the social and economic side of innovative products.
Conclusion
An innovative product, the right to which is offered in the framework of market exchange, has common signs of consumer value that are characteristic of traditional products. Along with this, it has significant differences from previous and existing product groups. First of all, they appear to a certain degree of novelty. Its presence allows the consumer to derive additional benefits from the application. Outdated goods for one market can go to other trading floors and remain new there for a certain period of time.
Today there are corporations whose main work is aimed at the development of previously unknown technologies and production methods. Their activity is accompanied by a thorough analysis of the consumer market, forecasting the development of demand.