Can you map the different kinds of innovation in the case study? Which were incremental and which radical/discontinuous? Why? Give examples to support your answer.
One of the innovations in this case study is e-tailing. E-tailing or Electronic retailing is a channel where business-to-business and business-to-consumer sale goods and services through the internet in which revenue can come from the sale of products and services, through subscriptions to website content, or through advertising (Investopedia). In this case study, the ‘e-tailing’ channel obtained the latest hard copy CD’s you can imagine. CD’s were one of the greatest technologies where one can listen to music and enjoy tunes. Although when CD’s were a big hit, most of the albums were purchased through online. As technology became more advances the music innovations increase and tailoring of the music purchasing service and demonstrate some of the ‘richness/reach’ economic shifts of the new Internet game (Tidd 46). It also changed the distribution of CD’s by converting music to an MP3 format in which files can easily be moved through the internet quickly and be shared amongst other users.
Another great thing about MP3’s, Motion Picture Experts Group (MPEG), used a powerful algorithm for managing one of the big problems in transmitting audio music files compression. Normal audio files cover a wide range of frequencies and are thus very large and not suitable for fast transfer across the Internet – especially with a population who may only be using relatively slow modems. With MP3 effective compression is achieved by cutting out those frequencies which the human ear cannot detect with the result that the files to be transferred are much smaller (Tidd 47). An incremental innovation is a series of small improvements to an existing product or product line that usually helps maintain or improve its competitive position over time (Business dictionary). Incremental innovation is regularly used within the high technology business by companies that need to continue to improve their products to include new features increasingly desired by consumers.
So in this case the incremental innovation describes how CD’S and other entertainment are being sold through e-tailing channels and are now being converted to MP3 formats. The tailoring shift of the music purchasing service demonstrates economic shifts of innovation and new format of music that enhances technology for users to easily download purchase music and great way to listen to music. The radical innovation in which a new product, service, or technology completely replaces an existing hard copy disc that would be compress to a MP3 format. Because records were replaced by CD’s, the radical innovation of the MP3 is used to replace any hard copy music disc. With this new innovation, the service of this new product is a much better technology and easy to use.
The goal of using MP3 is to compress a CD-quality song without noticeably affecting the CD-quality sound and this also lets you download songs much more quickly, and store hundreds of songs on your computer’s hard disk or on to your MP3 device. The discontinuous innovation causes a shift in technology or market structure by a completely new product or service concept in which its performances changes the way things are being used in an entirely new direction and by its previously existing performances. This discontinuous innovation is described in the way how music format has changed its performances and its replaced hard copy disc. CD’s are no longer in value in today’s market due to compress MP3. With compressed music it is a much easier way to purchase and download music in an instant rather than waiting seven days until your music CD’s arrived through the mail.