[Innovation Creates Business Opportunities. (course work )]

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Innovation Management

Introduction 

This report is an attempt to examine the innovation process leading to the development of first Dyson vacuum cleaner (DC01) and Dyson's ongoing approach to innovation in vacuum cleaners and other household products. It examines the innovation process of Dyson using the academic theories and models relating to innovation and marketing.

Dyson is a multinational company, but the report will be mainly focused on the UK market. The UK retail vacuum cleaners market refers to appliances that are largely mains-powered and designed for the purpose of cleaning floors within the home, including carpets, rugs and hard floors. The market therefore includes the following categories of vacuum cleaner:1) upright  2)cylinder 3) three-in-one  4) wet and dry  5) hand-held rechargeable/stickThe total vacuum cleaners market is dominated by Dyson, taking a 26% share by volume in 2001 and accounting for around 50% of the market value. The larger value share is because Dyson only operates at the premium end of the market and does not sell budget-priced models. To understand the innovation process and market position of Dyson, the model of innovation, the adoption process, market research involved, role of marketing and the source of competitive advantage have been discussed in this report in length. 

Innovation is the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product or manufacturing process or equipment.” (Trott, et al)

Innovation is the management of all the activities involved in the process of idea generation, technology development, manufacturing and marketing of a new (or improved) product or manufacturing process or equipment. (Trott P, 2005 :15)In the organizational context, innovation may be linked to performance and growth through improvements in efficiency, productivity, quality, competitive positioning, market shares, etc. (University of South Africa, 2009)Models of InnovationSince the 1950s, there has been a proliferation of innovation models, each purporting to explain and/or guide the process of innovation within industrial firms. (Hobday, 2005 : 122).

The process of innovation starts from the conception of an idea or invention and goes on till the commercial utilization of that idea.

“Invention is a new product; an innovation is a new benefit. Customers do not buy products but buy solutions which offer new and superior benefits.”(Doyle, et al)(Source: Marketing Management and strategies, Peter Doyle, Page 215)

To be a successful innovation, a new product must meet four benefit criteria:

Importance: the new product should be able to give some benefit to the customers. It should be relevant to the customers needs.

Unique: the benefits offered by the new product has to be unique, i.e. it should be able to offer something different than what the existing products offer.

Sustainable: a new product may offer benefits which are unique and important, but if it can be quickly imitated by competitors, it will not offer much of the market opportunity..

Marketable: the company must have the capabilities to market the product. This includes designing a reliable and effective version of the ...