ABSTRACT

Radical innovation is critical to the long-term success of a company. It can dramatically change the company's competitive position, weaken or even destroy large corporations, encourage new entries and create new market leaders. The typewriter, the abacus, the slide rule, the traditional camera have all been dominant products, and all of them are now virtually extinct. They have been replaced by radical innovations: word processors, electronic calculators, digital photographic machines. Radical innovation has the potential to destroy the value of expertise and specialization. For a company, the value of investments is strongly linked to a particular product technology. Companies that innovate are companies that disobey, that choose to push innovation even if doing so means challenging the dominant design and cannibalizing specialization. Innovation takes place when a change is successful. In the context of economy and management, this change can involve a number of different aspects: products, services, production processes, organizational routines, and business models.