Recently, i read an article about the Software giant SAS and its successful journey since its inception in 1976. The article reconfirms my belief in innovation as a potent tool for any firm to have a sustainable competitive advantage. The SAS management considers innovation as the foundation of its success and continues to invest heavily on its R&D.
The firm must be able to read market needs and translate those needs and technology capability into products. If this is done with full efficacy, the firm will have an advantage over its peers.
Managing technology is often a challenge for any firm. The Great divide between R&D process and market need is a major concern. The reason for this divide is mainly due to culture, capital and skills involved.
The firm must introduce and propagate an innovation culture among its employees. Top management should introduce participative culture and consider people's ideas for any opportunity.
The capital induced in innovation is also a big factor for a firm to create a niche in the market. The proportionate allocation of the company's revenue into R&D work for any firm in its staedy growth.
The investment in R&D also helps the firm in developing necessary skill sets desired for continuous innovation and improve the absorptive capacity of the firm.
The continuous innovation is a must for any firm to be a leader among its peers, when the product life of any good is getting shorter competition is becoming stiffer.
The firm which gives a substantial importance to the innovation management and is able to bridge the divide between R&D and marketing needs will only be able to rule the market in the long run.
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