How could you measure innovation at the industry level of anlaysis? By your measure, what are the most innovative industries today? What industries do you think will continue to be innovative in our life-times? Why?
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In our lifetime, I think one of the most innovative industries is and will continue to be energy. This is an industry that is forced in to change because we are running out of the resources we have used in the past. Additionally, with a greater emphasis on pollution and global warming, the public pressure on the energy industry will continue to rise. However, no matter how much this industry innovates, I think it will be the hardest for the global population to adopt. Because different parts of the country are at different points in economic growth, there will be different rates of adoption. Additionally, new energy means require new infrastructure, which may slow implementation.
ReplyDeleteAnother industry that will continue to be innovative is the food/agriculture industry. The world’s population is growing at a faster rate than we are able to provide food for it. In order to conquer hunger and pull countries out of poverty, food and agriculture will need to innovate to ensure sustainable practices are being used world-wide.
The one industry that is actually going through an innovative transition is the movie and entertainment sector, in regards to movie theaters/movie production and television. Most theaters are installing 3-D based viewing capabilities. I think this industry is changing to meet consumer demands and generate higher profits at all points of production. For example, the movie Avatar was originally scheduled to release on May 22, 2009. This date was pushed back six months to give theaters enough time to install 3-D projectors. Avatar was released in approximately 3,450 US theaters of which 2,000 were running in 3-D. To give an idea of how important 3-D technology is to viewers, who still had the choice to view the movie with or without 3-D technology, 90% of the $2.2 billion in revenues have come from 3-D technology. Also, another example is ESPN who recently announced that the network will create ESPN 3-D to showcase a minimum of 85 live sports events during the first year. I think the timing of this new dimension and Avatar truly setting such a high benchmark and really exceeding all expectations will make 3-D movies and entertainment the future. 18 more 3-dimensional are expected to release throughout this year.
ReplyDeleteOne good measure of innovation at an industry is the impact that a company’s product or service has on society. I mean, it is not quantity but rather quality. Innovative companies make several or a few original products that are well accepted by society because if fulfilled a need. I mean several companies make a lot of products that are not quite original or that don’t solve people’s needs in a better way than other products do. Many of them just resemble older products. I think the IT industry is a good example in many ways. It is constantly bringing to the market products that are just a combination of cell phone, computer, music player, etc. I can think of two industries that don’t come up with many products as often but when they do they have a big impact on society and therefore I consider them innovative: alternative fuels and biotechnology. Their products bring life saving medicines and technologies to produce energy in a cleaner way. I think they will continue to be innovative because both are young and there are so many areas where research could be done. We still need to find medicines to cure so many diseases and we still need to find ways to move this planet without polluting it further!
ReplyDeleteAt the industry level, I would measure innovation mostly by how much that innovation causes people to change the behaviors. Changing behaviors, as we mentioned at the start of this course (individual constraint) is hard to do for just about everyone. If an innovation causes an industry to change the way it does business (meaningfully) or causes the consumers in that industry to change the way they consume and buy that product/service, then I would consider that to be a meaningful innovation.
ReplyDeleteUsing these metrics, we can see how the advent of the Mp3 format did just this for the music industry. It forced major record labels to rethink the entire music distribution chain and revenue model. Music could now be transferred and shared in a universally accepted medium that did not require the involvement of the record company.
Other industries that cause major changes in the way business is done includes Advertising (social networking taking over) and Publishing (internet and digital publishing).
Measuring innovation at the industry level could be done by looking at the fundamental changes that the industry has gone through. Looking at the technology industry, we have moved from physical punch cards, to software, to web services in the clouds. These are all major fundamental shifts in how users engage with the products and services of the industry.
ReplyDeleteThe food industry has consistently innovated over the past several centuries, and will continue to do so in the future. With shifts in how people view diet and nutrition, environmental concerns, costs, the food industry has reacted with innovations in production efficiency, chemistry, and more. With food as a basic human need and the world population growing, the food industry will continue to innovate well in to the future.
An innovative industry is one that continues to reinvent itself and respond to the changing world around them. As supply and demand changes, an innovative industry remains competitive and relevant. The most innovative industries today are technology and pharmaceuticals/healthcare. The technology industry is innovative because they continue to push the limits and create products that we as consumers didn’t even know that we needed. The pharmaceuticals/healthcare industry is innovative because they continue to discover new solutions and treatments to very serious, life-threatening problems.
ReplyDeleteIn our lifetime, I think these two industries will continue to be innovative because there will always be a need for them. I also think the government has the opportunity to be increasingly more innovative as there is such a demand for a complete overhaul and change in Washington. This sets up a unique opportunity for the government to break free of the chains of tradition and take some risks in innovation.
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ReplyDeleteThe technology industry is one of the most innovative industries because of the strong consumer demand, the fierce competitive landscape, and the mobility of resources. Now that the internet has provided us with vast amounts information as well as platforms for user-generated content, consumers are demanding that tech industry bring them this information and connectivity in ways that are quicker, easier, and more mobile. The pace of new product launches is fueled by the exponential growth of key inputs such as hard-drive space. For tech companies, many of the resources used to create new products are digital, which makes these resources very mobile. Finally, the rapid invention of new technologies allows for companies to quickly create new products by combining and integrating various existing technologies.
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ReplyDeleteI would measure innovation at the industry level partially from R&D spending and mostly from growth rates in emerging markets. By this measure, the most innovative industry by far is the telecommunications industry which includes voice, video, and Internet communications services. Companies such as Cisco and Google have given consumers innovative products which has evolved faster than those from other industries. Telecommunications industry would more likely one day create a "virtual net" or 3-d internet for the masses before the auto industry offers the masses flying cars that we can take to work. Since childhood, I am still waiting for that flying Delorian from "Back to the Future." I won't hold my breath. Moreoever, all the advances in telecommunications has created new sectors in lagging industries industries. For example, information technology sprung up The Healthcare IT sector which will help Healthcare industry move beyond 1970s technology.
ReplyDeleteSocial enterprise is an emerging category that focuses on addressing "market failures" in areas such as micro-finance. As the boundaries that divide our globe continue to fade to gray, at least in an economic sense, I believe that we will see more entrepreneurs and businesses look to deliver goods and services to the world's poorest individuals, markets, and nations. The term "double bottom-line" will become a ubiquitous aspirational goal for companies, an innovative new way to look at how we as business people conceive the notion of "shareholder wealth." Whether this is born out of a sense of pure-hearted altruism or instead some degree of market-driven self interest, the fact remains that an opportunity exists for those that can deliver industrialized goods and services to under-served markets in new and innovative ways.
ReplyDeleteInnovation at an industry level should be measured by the amount of changes they make to the existing lineup of product or current way of doing business. Just repackaging a product and selling it does not count as innovation. Note that Innovative changes may not always be seen by the customer, as new production processes or new business models also count as innovation.
ReplyDeleteIn my opinion, tech companies are usually the innovative industries out there today. Technology is continuously progressing, and these companies rely on change to survive and maintain cash flows. Whether it’s coming out with a new product, or just simply changing a competitor’s product to give a better user experience, tech companies have to constantly be at the tip of innovation. Some companies as Google and Apple have gone so far in making innovation as one of their main selling points. As technology advances further, we can expect tech companies to continue to innovate in order to survive.
Measuring innovation at the industry level is a difficult task indeed! The factors to consider are broad within each industry and additionally they vary across industries. For instance. However, I think that there are two necessary components to innovation, and that is human capital (i.e. skilled, creative labor) and intellectual property. Any company that perceives value in innovation is going to require individuals that can stimulate innovation, so investing heavily in a labor force to drive innovation is one metric. Secondly, and arguably more importantly, is the value of innovation going forward, which is represented by intellectual property and intangible assets, usually incurred as R&D expenses. These expenses are often incurred to create and protect future streams of cash flow from innovative ideas.
ReplyDeleteOne industry we see in constant change is the entertainment and media. From music to video to books, products and services often reach obsolesence within 18-24 months of being introduced. Some elements move slower than others, but often you see a breakthrough product, such as the Kindle or iTunes, which has created fundamental shift in the entire industry, from pricing dynamics to distribution to the consumer experience. Such changes represent industry innovation because they require the entire industry to change.
I tend to agree with earlier posts that energy will continue to be an innovative industry in our life-times and beyond. This is primarily out of necessity, as energy is derived from "scarce" resources with limited supply, and the notion that we could eventually deplete that supply is driving innovators within the industry to discover methods to create sustainability. Some technologies I believe have more viability than others, such as wind and solar, but the ideas that are being put forth to create sustainability in energy supply aren't solely on the energy production side. You are also seeing, although to a lesser degree, companies that are seeking to create more efficient "users" of energy, which leads to a mitigated need for production. I believe that ultimately this is the direction the industry will head, and once the "production" of sustainable energies matches the more efficient "users" of energy sources, then we will have a convergence that will lead to a much more sustainable equilibrium.
Measuring innovation in any industry is difficult task. Some companies like to brag about the amount of patents they file per year (regardless of whether the patent is useful or not). Some like to measure innovation through efficiency metrics or Cost per item. Toyota and many industrial manufacturers are leaders in this field. While innovation might be slow, and not as sexy as technology companies, these gains have made everything cheaper, from steel to the vegetables we eat.
ReplyDeleteThe most innovative industries today, I believe, are still technology and computing. These industries, by the nature of the products and market environment, are forced to evolve to stay competitive at a much faster rate than a mature business. I'm still intrigued by our internet business, which is still in its first 20 years of widespread consumer use (think about what cars looked like 20 years after the model-t!). Google just announced that it is starting a project to stream 1 gigabite per second of broadband service to residential users. Think of the opportunities-- no need for a phone line, cable, or even products like DVD players, video game consoles, and radios. Very cool. As internet service grows, websites and content providers become smoother and less prone to error. I think that when we look back on this era 20 years from now, the internet will seem just as aged as a ham radio.
At the industry level, I think innovation can be measured by the number of new products or ideas that come out of the system. For some industries the sheer number may not be as appropriate as how drastic the change is. It could be a more dramatic sign of innovation to produce the one product that changes everyone lives forever (for example, a vaccine against cancer) than to produce dozens of products that have a less dramatic effect on everyones life (for example, dozens of various cancer drugs).
ReplyDeleteI think the most innovative industries today are those related to technology, especially computers and consumer electronics. I also think that biotechnology is an incredible innovative field and the one that has the most potential to change our lives most dramatically but literally changing how long we stay alive for and our quality of life while we are alive. I think these industries will continue to be innovative during our lifetime because Americans seem to have an insatiable desire for health care, as shown by the exploding costs of medical care. The demand fuels growth and innovation in this industry.
I think another industry that must continue to innovate is the auto industry which has really been considered to be in crisis in recent years. We have talked some in class about the death of the electric car and how years later, we may be circling back around that direction. It is clear that there is a new emphasis on alternative fuels and alternative transportation by various companies, this combined with consumers interest and desire to save both money and the environment means that the moment is right for innovation in this area, so it will be interesting to see what happens.
At the industrial level, I would measure innovation by the level of change it brings to the product or service. This can be a physical change, ie updating a product for new advanced usage, or a marketing change, ie finding a new use for an existing product. Cell phones are a great example of an innovation industry. Look at cell phones over time. 25 years ago they were heavy bricks that rich executives would lug around. 15 years ago they were more portable, but would take up your entire pocket. They were considered a luxury, and all they could do was make calls. In the last few years, cell phones have gone from luxurious calling devices progressively getting smaller to 'smartphones' that take pictures and surf the net. In all seriousness, one should view cell phones these days as pocket computers that happen to have the ability to transfer voice... it is only a matter of time until this is the paradigm.
ReplyDeleteAs far as industries that will always innovate, healthcare is among the top. People will always get sick and grow older, and until we find a potion to turn us all into Wolverine, we will always need newer and better things to improve our health. Even when a cure is found, there can always be a better way to administer it (ie from a long process to a shot to a pill to an immunity). Cell regrowth and nanotechnologies are replacing older practices like replacements and transplants. It is even possible in the future that we can add to our existing human capabilities - like putting cell phones in our ears and cameras in our eyes.
The industries that continously hire a balance of creatives and strategic analysts- and keep a continously open mind towards the larger picture and unlimited possibiliteis - will survive challenges in innovation. Energy & healthcare require the most persistent innovators, meaning those that can communicate the need for change/innovation alongside the R&D/science/regulatory/financial support to implement their goals. It's tough to do in this economy, but with government and private support, energy and healthcare can be two of the world's most innovative systems to make daily life better for the global market.
ReplyDeleteIn this way, I think you'll see companies like 3M and Ideo/Monitor Group/Jump continously diversify their organizational structure to affect a larger span of industries. Ideo has played a large role in the SmartGrid, while 3M has become a major player in R&D for medical supplies. Instead of industries stealing people to emerge inthe marketplace, we will see companiess known for successful innovation processes expand to meet the needs of innovation-hungry industries.
Innovation at an industry level would be measured by counting the new product development and increased production speed and efficiency of those industries. Obviously some industries dont have typical commodities or goods, but "product" and "speed" could be interpreted somewhat loosely.
ReplyDeleteThe most innovative industry that will continue to evolve in my opinion is the medical industry. Medicine has come so far, so quickly due to rapid advances in technology implementation due to the basic necessity of health care. There is usually ample funding for new medical en-devours (even if they may not be for lifesaving activities)which leads to drastic innovation due to improved R&D. We have increased our lifespan by almost 50 years in the past 150 years. Is that not innovation??
I think the technology industry is one of the most innovative. This industry is one that has changed at a very rapid pace and it continues to change. At the industry level those that are most innovate are those that are changing in terms of products and human behavior. An industry such as energy has been attempting to change and innovate for some time but it has not yet changed behavior. However, over our lifetimes I think this industry will continue to innovate.
ReplyDeleteTechnology will continue to innovate and it helps to drive many other industries to innovate as well. Medicine and healthcare have been able to change and grow the most due to technology innovation. Many times innovation comes from the need to improve upon existing behavior or the need for a new resource.
Innovation at the industry level can be measured by a variety of metrics including adoption of new technology, integration of new process, horizontal and vertical integration. In more extreme cases innovation can be measured if there is a fundamental shift in the way an industry operates.
ReplyDeleteThe most innovative industries today exist in environments where buyer preferences are constantly change, competition is fierce, and substitute products are constantly being introduced. Generally speaking, this environment exists in both technology and consumer products.
I believe that in the rapidly changing competitive environment that exists today all industries will have to be innovative to sustain. This environment will include the creation of new technology, new processes, and new value chains. If industries don’t adopt an innovative approach to their business other industries will find a way to outperform them. A prime example of this is the music industry which fought the digital music movement. Instead of seizing the opportunity to dictate the terms of music distribution they fought to protect the CD. As a result, Apple moved into the music space and changed the way music is purchased around the world.
I think one way in which you could measure innovation us by the number of people in a given company who are brought in (and retained for some time) from other industries. That would seem to indicate a desire towards thinking about industry problems differently.
ReplyDeleteI think retailing is one of the most innovative fields out there because they must constantly adapt to consumers' whims. There's no buffer between the retailer and the consumer, and in this age of a multitude of choices, the consumer has every freedom to take their business elsewhere. The retailers that don't continually differentiate ultimately disappear (Montgomery Ward, Woolworths, Circuit City, etc.)
I think you will continue to see the technology sector innovate, but I also think that the entertainment, travel, and healthcare industries will be forced into innovation over the course of the next fifty years. I think the latter three will not innovate of their own volition. However, they will do so because the system is nearly or already broken and the resources needed to continue in their current state will run out.
We can measure innovation at the industry level by how much it meets a consumer’s need. Some innovation address the consumers present need while some go beyond by anticipating future consumer needs and preferences. I would say on an industry level,such innovations are the one to look for.
ReplyDeleteThe most innovative industry is the technology. This industry is highly competitive and it’s hard t stay ahead, thus forcing continuous innovation in the industry. Also, with so many options in this industry consumers are very choosy, this puts pressure on the companies in this industry to continuously innovate
You can measure innovation on rate (frequency) of new products, speed of adoption of new products, lifecycle of new products, or frequency of the change in consumer taste
ReplyDeleteThe most innovative industries today are telecom (cell phones), media (internet), and packaging.
The packaging industry will continue to be innovative throughout our lifetime. Packaging continuously changes whether we are talking about portable Kleenex boxes or beer cans; packaging needs to change in order to meet customer and product demands.
I think one way measure an innovation at the industry level is by how many number of people appreciate and need it, just like the steel plant examples. It initially creates a hype, involves people, and ultimately causes dependencies. The last part is when people are depending so much to it and they have to live with it. This are things that will create major milestone in the history. It has to take into account also how many product developments that they make in order to stay "innovative," or else it is just another important industry.
ReplyDeleteMy heart immediately says internet technology is the most innovative industry today. However, when I think again, the most innovative industry today is back to basic, which is food/farming industry. The world population id growing larger and larger and even in a faster pace. 40 years ago, 50% of crops use to have 40-50% failure rate and half-of-the amount of nutritient that current crops have. With a continuous innovation, now the success rate of crops has reached high percentage with more varieties and nutrtient and keep growing in term of sizes. We do not realize it since most of us take it for granted, but it is the thing that keeps us alive.
The industry that has been continuously improving and will keep improving is transportation industry. A century ago, the transportation was just ship, train, and bike. Then, motorized car and bike were created, along with plane and sub-marine. Now, the train is elevated using magnetic levitation, and also we can even go to the moon and travel in-style using sub-marine if we want to pay $$$. So, looking at these innovations, with world has become flat and one, transportation will be one industry that will keep improving to connect the world. - Michael Hadipoespito
You could measure innovation at the industry level by looking at the number of new product introductions, and then assessing how many of these launches are successful. For example, one industry might have a ton of new product launches, but these products fail to maintain distribution and ultimately are taken off the market because they failed to add value to consumers. On the other hand, another industry might have fewer new product launches, but the ones that are launched, end up staying on the market and have a significant impact on consumer behavior. That being said, some truly innovative industries have quick product life cycles as there is always something better coming out, so it might be difficult to use sustainability of new product success as a measure for innovation. Given this measure, I think the high-tech industry has been one of the most innovative and will continue to be innovative in our lifetime. The pace of new tech products has been extremely fast and has had a significant impact on consumers and business worldwide.
ReplyDeleteI think one of the most innovative industries and one that will continue to be innovative out of necessity is the entertainment industry. It has reinvented itself dozens of times over the course of my lifetime and I would imagine it will continue to do so since consumers will demand it.
ReplyDeleteInnovation at this level is hard to measure since it's different for every industry-they all have their quirks. However, a few metrics that might provide a good gauge would be successful new product launches, the speed of adoption for the products, and the level of departure from tradtionally accepted practices and procedures. The entertainment industry has had some high profile successes and flops, but is definitely an industry that pushes the envelope.