Eight Innovation Ideas
to Help Drive Automation Companies
By : Jim Pinto,
By : Jim Pinto,
Everyone recognizes that innovation can generate successful growth, but it seems elusive and unpredictable. How does one find innovation? Here are eight innovation ideas specifically for automation companies.
Strategies that worked well in the past are no longer effective. Everyone recognizes that innovation can generate successful growth, but it seems elusive and unpredictable. How does one find innovation?
You remember the story of the drunk who was looking for lost keys under the lamppost, with the explanation, “Because there’s more light over here.” For too many companies, this describes their search for new ideas. They look to improve what they’re already doing, but cannot come up with any new ideas to break through to really new business. New ideas are typically beyond core markets. To be truly innovative, companies must change their frames of reference and extend their search space. New thinking is required—looking away from the lamppost.
Innovation involves more than just a research and development (R&D) budget. It’s a committed plan to create something different. To succeed, companies must look away from their mainstream business to recognize the next big opportunities before their competitors do. This is especially true today, when rapidly accelerating technologies and global competitors have the propensity to upset the status quo.
Industrial automation products, for example, typically have higher gross margins, stuck in the mold of low volume, slow-growth business, with a mindset that inhibits change. Higher-priced products inhibit a broader range of applications. It’s the self-fulfilling prophecy that inhibits innovation and limits growth.
Automation is ripe for “disruptive innovation,” the term coined by Clayton Christensen to describe the process whereby products initially take root in simple applications at the low end, and then relentlessly move up to eventually displace established competitors. The disruption gives a whole new population of customers access to products that were only available for high-end applications.
Disruptive marketsIndustrial wireless is a good example of a market that is ripe for disruption at the low end. With all the preaching about rapid investment break-even, wireless products are still being marketed with the bulky, industrial, stainless steel look and feel, catering only to high-end applications with traditional price margins.
Characteristics of disruptive businesses include: lower gross margins, smaller target markets and simpler products that may not appear as “industrial” when compared against traditional instrumentation and field-transmitters. In 2010 and beyond, prizes await those who can find growth applications that demand something other than the price/volume mold of traditional “industrial” markets.
Here are eight innovation ideas specifically for automation companies:
How to win in the
Go shopping - books, electronics, CD/DVD
Selected advertising coming here.
Contact Jim Pinto
Return to Index of all JimPinto Writings
Return to JimPinto.com HomePage
If you have ideas or suggestions to improve this site, contact: firstname.lastname@example.org