Pull Or Push Innovation – Which is right for your industry?
To pull or push innovation, that is the question here. Large corporations usually set up large product development centers and R&D centers. Start-ups, on the other hand, are often push innovators, discovering new technologies on their own and commercializing them. Companies that engage in pull-based innovation are often highly customer-centric and close to the customer. As the digital age progresses, more entrepreneurs have emerged, bringing new technology solutions to market quickly. Many times, these innovators are customers who are frustrated with current offerings and are looking for a solution.
Market pull innovation is when a new product is developed to meet a need in a market. It starts with market research to determine what customers are looking for. Then, the product is developed to meet that need. Market pull innovation can even start with a potential customer asking for improvements on an existing product. The process often includes focus groups. For example, the digital camera emerged as a market pull innovation because customers wanted a digital camera that had a large memory capacity and was small, lightweight, and instant.
While market pull innovation sounds like a superior way to go, it also carries with it the risk of focusing on a niche or need that already exists. It also puts startup founders at risk of failing to be a true believer or champion. It’s important to balance the two.
Innovation projects are typically a combination of both market pull and push approaches. The latter is necessary for major breakthroughs and establishment in highly technical niche markets. Technology push projects must be developed with users’ needs in mind to reduce risks and maximize benefits. For technology push projects, internal politics may impede the project and make it less likely to succeed.
While market pull innovation involves the creation of a new product or service that solves a need in a market, technology push is a more complex process. It involves a producer developing a new type of product or technology and creating a demand for it. Technology push innovation is the result of a producer identifying a need in the market before a market needs it. The most common example of a technology push product is touch screen technology. It was initially developed by the Royal Radar Establishment, but Hewlett Packard and other companies picked it up and used it in the 1980s. It later found its way into Apple’s PDA and Palm Pilot.
Whether a solution is a market pull or a push innovation depends on the company’s strategy. Typically, large corporations will develop technology, while start-ups may develop it themselves. Typically, companies that use a push innovation strategy are customer-centric and close to the customer. In addition to large corporations, the digital world is full of entrepreneurs. Entrepreneurs use the power of technology to quickly create solutions to customer problems.
Technology Push innovation, as the name suggests, involves the introduction of new technologies or business models to a market. This kind of innovation has many advantages, but it should be undertaken with enthusiasm and motivation. Its main objective is to accelerate technical development and create new business opportunities. However, it comes with certain risks, which can hamper the success of such projects.
The first risk is creating a new product when there is no acute demand in the market. In contrast, technology pull innovation occurs when a new technology meets an acute need in the market. This innovation occurs when a customer expresses a need for the product or service. When a demand is there, the producer can then create the product or service.
Technological progress can also shift labor demand away from production work and toward non-production tasks. This is another concern, which requires policy makers to consider the effects of technological evolution. This original paper was updated on 21 December 2021. Today, policy makers must think about the impact of technological evolution on the economic environment.
The profitability of basic research is a key question that has yet to be answered. While each research activity involves risk, an optimized portfolio of research projects can reduce overall risk and maximize returns. Moreover, TSOs should be encouraged to undertake research activities as part of their core business. Such a move would encourage increased innovation flow for nuclear safety enhancements and broaden the scope of the company’s core business.
Innovators should focus on the intersection between market needs and technological capabilities. This way, they can create new products or services that meet unmet needs. The goal is to create competitive advantage by adopting new technologies and improving existing ones. It is important to remember that there are no ‘pure’ technologies or services.
Market pull vs technology push
Technology push and market pull innovation have distinct characteristics. For a technology push project, the company will invest in research and development and will seek to make a big leap in the development of the new technology. These projects will often have long-term focus and have high expectations, but the project will often lack pilot customers or concrete applications. The enthusiasm for technology push projects is usually high, fueled by peer pressure. The lack of concrete applications and pilot customers can be viewed as doubting the project’s likelihood of success in the market.
In many cases, the technology push approach is required for major innovations, or for establishing new products in highly technical niche markets. The risks associated with a technology push project can be high, but they are vital for technological progress. For example, the risk of failing in a technology push project is greater because the market potential is unclear, and internal political influences can be harmful.
While technology push innovation often occurs when the market already has an acute need for the product, it can also occur when technology is available and the market does not. A technology push scenario occurs when the product provider identifies a new technology and a need in the market, and then uses that technology to meet the consumer’s needs. One example of technology push is touch screen technology. The Royal Radar Establishment (RRE) developed touch screen technology in the 80s and eventually Hewlett-Packard stepped in to capitalize on it. This technology eventually became the basis for Apple’s PDA and Palm Pilot.
While traditional innovation management theories have examined the profitability of technology-push innovation, the profitability of basic research is still a question. Whether research activities are profitable depends on whether a marketed product has a higher revenue than the original investment. Typically, technology-push innovation requires collaboration between many TSOs.
Purpose of each strategy
An innovation strategy should specify the types of innovation to be achieved and the resources necessary to achieve these goals. In the business world, disruptive, architectural, and radical innovations are often considered key to the company’s growth. By contrast, routine innovation is viewed as myopic and suicidal. Despite these contrasting perspectives, each type of innovation should be addressed in an innovation strategy.
The most successful innovations are those that meet the needs of customers. To discover these needs, it’s essential to understand your customer base. Employees are often the closest to the customer base, so gathering their input can be an effective strategy. By crowdsourcing employee input, you can gain a deeper understanding of customer needs and prioritize which innovations should be developed in order to fulfill them.
In order to achieve success, an innovation strategy should be implemented in a structured and systematic manner. Once the strategy has been adopted, it must be implemented, reviewed annually, and maintained. It’s also important to adjust the strategy if the situation changes significantly. To help employees stay focused, you can hold regular, short consultations and encourage exemplary behavior. Brands with a proven innovation track record often have excellent innovation strategies. Check them out if you want to find out what makes them so innovative.
When developing your innovation strategy, you should answer the questions: How will my company create value? How will it benefit consumers and society? In other words, will it be better than competitors? This will be the basis of your innovation strategy. If you want to create value, you must understand your core competencies and how you can improve on these. If you can offer value that customers can’t find elsewhere, that will likely create an advantage.
Routine innovation builds on a company’s current technological competences and fits into the company’s current business model and customer base. In this example, the company may focus on developing new software and hardware products that improve existing capabilities. Such products can increase its profitability and satisfy existing customers.
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