Convenience

Chapter 7:
Organization Change and Innovation
2 0 9
Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
www.MyEbookNiche.eCrater.com

---

Innovation Application
Innovation application is the stage in which an organiza-
tion takes a developed idea and uses it in the design, manufacturing, or delivery of new
products, services, or processes. At this point, the innovation emerges from the labora-
tory and is transformed into tangible goods or services. Business incubators and similar
concepts are often used to facilitate innovation application.
Application Launch
Application launch is the stage at which an organization intro-
duces new products or services to the marketplace. The important question is not “Does
the innovation work?” but “Will customers want to purchase the innovative product and
service?” History is full of creative ideas that did not generate enough interest among
customers to be successful. Some notable innovation failures include a portable seat
warmer from Sony, “New” Coke, the revival of the Ford Thunderbird, and the Flip
video recorder. Thus, despite development and application, new products and services
can still fail at the launch phase.
Application Growth
Once an innovation has been successfully launched, it then
enters the stage of application growth. This is a period of high economic performance
for an organization because demand for the product or service is often greater than
supply. Organizations that fail to anticipate this stage may unintentionally limit their
growth, as Apple did by not anticipating demand for the first iPhones. At the same
time, overestimating demand for a new product can be just as detrimental to perfor-
mance. Unsold products can sit in warehouses for years.