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And every company will tell you that it's not easy coming out with innovative products. First, they have to envision change. They have to see if the proposed innovation is really adding any value to the product and then have a long term plan to achieve that change. But the pressure of short-term results, anticipatory failure of the products,
and the subsequent effects can be bewildering for the executives.

Companies have spent years developing capabilities and resources and then only they could get a glimpse of success through product innovation. Especially, the Japanese companies took a long time to reach where they are today. Sony did not achieve leadership in a single day. It took years for Sony to develop the right kind of resources for innovation. It takes years to build the strategic intent and lot of passion. Sometimes, the strategic intent to get on the road to innovation is absent and, hence, companies invariably fail.

But here we look at the companies and products that have changed the market and level of competition. Which companies stuck to their task and brought innovations that added the maximum value to the products.

The Past

The Wheel is an old but path-breaking innovation in the history of mankind. Not only did it carry generations on it, but it also helped us fast-forward to the future. Yesterday was different. And so were the consumers and their needs. The pace of change was also different in the past. Yesterday, it was walk-man, and today, it is i-Pod. In today's turbulent business environment, it is essential that companies learn the art or science of product innovation. However, let us first look at some examples and then discuss the underlying issues.

Before Apple, the personal computing industry did not really exist. Commercializing the computer was considered to be one of the most powerful innovative ideas in the field of IT. Not only did Apple break the rules but it created a new game altogether. Same was the case with i-Pods. Apple found out a new way for people to listen to music. By the time competitors copied the product, Apple quickly added photo and video storing capability to the gadget. It kept adding incremental features to keep the competitors at bay. Besides, Apple seems to have found ways to succeed despite being second or third mover in the market. Before Apple's Notebook, NEC was already there. Rio and Eiger Labs had MP3 Players before i-Pod came to the market. Sony's ACID, Cakewalk's Pyro and others offered desktop music editing software before GarageBand was launched. Yet Apple emerged as a winner due to its successful product innovation.

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* Contributed by: -
Prof. A. K. Mitra is Faculty at ICFAI Business School, Gurgaon, and also serving as Associate Dean & Coordinator, Strategic Management & Chairman of Information Resource at the institute.
Saikat Dey is currently pursuing MBA from ICFAI Business School, Gurgaon.