It is a type of Innovation that focuses on creating a new-to-the-world product (e.g. radio, car, mobile phones, and personal computers). Radical Product Innovations are disruptive to consumers because disturbed prevailing consumer habits with new products and value propositions. Also, are disruptive to producers, because punched competences and assets where they built their success. This type of Innovation is not driven by demand, but for a supply-push process boosted by the new technology developers (Markides and Geroski, 2005).
Characteristics
New-to-the-world founders are rarely the ones who scale the business from their little niches. Usually, new followers take off their lead in the market.
Radical Product Innovation leaders, time their entry to markets and undertakes hard work such as making heavy investments for scale economies, building strong brands and controlling channels distribution (Markides, 2006).
The Radical Product Innovation has the same scaling-up process made by the Disruptive Innovation, shared by Christensen (1997). Indeed different examples (Honda motorcycles, canon copiers, and Seiko watches) referred (Christensen & Raynor, 2003) are Radical Product Innovations.
How to compete?
Although mentioned above, if incumbents companies want to achieve Radical Product Innovation's advantage, might not follow up the strategy that described Christensen et al. Unlike, they can do what they are good at - consolidating young markets into big, mass markets (Markides & Geroski, 2005).
Other option, business incumbents can change quality and price, while improving the quality of the product to make it acceptable to the average consumer; or can create a network of feeder young entrepreneurial firms: or can invest in equity stakes to later support them at the moment of consolidate a mass market (Markides, 2006).
Other option, business incumbents can change quality and price, while improving the quality of the product to make it acceptable to the average consumer; or can create a network of feeder young entrepreneurial firms: or can invest in equity stakes to later support them at the moment of consolidate a mass market (Markides, 2006).
The Radical Product Innovation has a different product performance as Business-Model Innovation, although both types have a scaling-up process, therefore, the strategy to compete must be different for managers.
What type of Product Innovations am I talking about?
Here I share an interview where I'm talking about different products made by different scientific to reduce the effects of frost and cold in high Andean areas. Are these products Radical Product Innovation type? Are they Disruptive Innovation?
Markides, C. (2006; 23:19-25). Disruptive Innovation: In need of Better theory? The Journal of Product Innovation Management.
Markides, C. and Geroski, P. (2005). Fast Second: How Smart Companies Bypass Radical Innovation to Enter and Dominate New Markets. San Francisco: Jossey-Bass.
Christensen, C. & Raynor, M. (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth. Boston: Harvard Business School Press.
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