Radical Innovation at Philips Lighting
Radical innovation at Philips Lighting
I. Introduction
Nowadays, radical innovation has increasing importance in competitive market. Also it is difficult to implement it in establishing firms because they have stable organization culture for many years and it is very risky to change strategy, product or services with radical innovation.
‘Radical innovations transform the relationship between customers and suppliers, restructure marketplace economics, displace current products, and create entirely new product categories.’ (Leifer R, O’Connor G. C. and Rice M. 2001: The role of hubs. Vol. 15, Issue 3.)
Leifer R, O’Connor G, C, and Rice M,(2001) state that large and establishing firms have many difficulties when they make radical innovation through their steady organizational models and culture. Despite their solid background to work out operations; they don’t want to take a leap into new technologies within chaotic and uncertain situations.
Innovation is very crucial for all the companies because they can survive and continue their operations through development which always needs innovation. Generally, firms cannot exist for a long time if they don’t make innovation. They should supply people’s needs as product or service and get new customers with new technologies and higher standards. Furthermore, companies should have a capability to reinvest themselves and they sometimes have to change their target market like Nokia which was founded as a timber and paper company at the beginning. Moreover, getting the old and the new together effectively is one of the most important things that companies should achieve in order to live longer. Also, adding new knowledge and processes into the old and strong organizational culture, companies can retain the new spirit in the establishing firms. For the purpose of this essay, I am going to refer briefly to the challenge facing Philips Lighting after 2000. I clarify how the build of a new vision and the take of risk
I. Introduction
Nowadays, radical innovation has increasing importance in competitive market. Also it is difficult to implement it in establishing firms because they have stable organization culture for many years and it is very risky to change strategy, product or services with radical innovation.
‘Radical innovations transform the relationship between customers and suppliers, restructure marketplace economics, displace current products, and create entirely new product categories.’ (Leifer R, O’Connor G. C. and Rice M. 2001: The role of hubs. Vol. 15, Issue 3.)
Leifer R, O’Connor G, C, and Rice M,(2001) state that large and establishing firms have many difficulties when they make radical innovation through their steady organizational models and culture. Despite their solid background to work out operations; they don’t want to take a leap into new technologies within chaotic and uncertain situations.
Innovation is very crucial for all the companies because they can survive and continue their operations through development which always needs innovation. Generally, firms cannot exist for a long time if they don’t make innovation. They should supply people’s needs as product or service and get new customers with new technologies and higher standards. Furthermore, companies should have a capability to reinvest themselves and they sometimes have to change their target market like Nokia which was founded as a timber and paper company at the beginning. Moreover, getting the old and the new together effectively is one of the most important things that companies should achieve in order to live longer. Also, adding new knowledge and processes into the old and strong organizational culture, companies can retain the new spirit in the establishing firms. For the purpose of this essay, I am going to refer briefly to the challenge facing Philips Lighting after 2000. I clarify how the build of a new vision and the take of risk
References: • Tidd, & Bessant J. (2009). Managing Innovation: Integrating technological, market & organizational change. Wiley, 4th edition. • Leifer R, O’Connor G. C. and Rice M. (2001). Implementing radical innovation in mature firms: The role of hubs. Vol. 15, Issue 3. • Seebode D., Harkin G. and Bessant J. (2009). Case Studies: ‘Radical Innovation at Philips Lighting’.