invention, innovation, diffusion (assessment 1 of 2)

TABLE OF CONTENTS
TABLE OF CONTENTS.................................................................................i
INTRODUCTION...........................................................................................1
CASE 1:........................................................................................................2
Question 1:.............................................................................................2
Question 2:.............................................................................................4
Innovative ideas from many functional sources connected to the
Kodak digital camera product line........................................................4
Evaluation of how these sources of innovation help Kodak to generate
new-product innovations.......................................................................5
Question 3:.............................................................................................6
Demand-pull and Technological-push..................................................6
Kodak digital cameras' business performance and how technology
interacts.................................................................................................7
Question 4:.............................................................................................8
Impact of Canon's corporate culture, leadership, and vision on digital
cameras' improvement...........................................................................8
The innovation dilemma........................................................................9
CASE 2: BLACKBERRY MOBILE DEVICE AND IPHONE
PRODUCT-LINE......................................................................................10
Question 5:...........................................................................................10
S-curve showing the development of iPhones and BlackBerry mobile
devices.................................................................................................10
Iphone’s technology at the time T1.....................................................11
The performance of the iPhone by the time T1...................................12
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BlackBerry’s advantages.....................................................................12
The 4Ps of innovation and failure of BlackBerry...............................13
Question 6:...........................................................................................14

The success of Apple...........................................................................14
The reasons for Apple’s market leader...............................................14
4Ps of innovation of Apple..................................................................15
The role of frugal innovation in Apple................................................16
III. CONCLUSION.......................................................................................17
References......................................................................................................18

ii


INTRODUCTION
Kodak is a pioneer in the camera, digital, and film industries. In 1975,
the business created the digital camera. It was a significant player in the
visual and filmmaking sectors for many years (Stevens, 2007). By the late
1990s, the firm had virtually been forced out of the market. Despite being
revolutionary, Eastman Kodak has revealed intentions to discontinue the
production of pocket video and digital cameras. The firm will concentrate on
picture printing. After it exits the camera business, the firm will offer brand
certificates to companies that manufacture the gadgets.
This research will discuss the advancements achieved by the camera
business between 1975 and the present. The essay is structured into six topics
that concentrate on theories, S-curve graphs, and the 4Ps of innovation in
Kodak, BlackBerry, and iPhone situations.

1


CASE 1:
Question 1:
Developing, designing, or finding a previously unknown device,

technique, or process is called "innovation." In more technical words, it is a
new scientific notion realized via study and testing and becomes tangible
(Clayton, 2010). It might be a new way to make a product, an improvement to
an already existing product, or a whole new product. Patenting inventions
allows for the protection of the inventor's intellectual property rights and
establishes the innovation's legitimacy.
Innovation is defined as "the transformation of a notion into reality."
Innovation may be summed up in its most basic form as a change that
improves products or services while also catering to customer needs. It occurs
when something new and alluring enters the market and meets customer
demands for improved products and services. A new product, technique,
technology, or service that is introduced or created, as well as improvements
to or redesigns of current products that are made to fulfil market needs, are
examples of innovation. All methods used to generate fresh concepts and turn
them into products that consumers want are considered to be part of
innovation. As a consequence, Schuh's research in 2020 produced definitions
of disruptive and incremental innovations as well as product and process
innovations.
Product innovation is the process of changing a product. It might be
new features or a performance improvement for a product. Organizations
emphasize process innovation as the second kind of innovation in their
innovation initiatives.
An idea, product, or service that creates a new value network by
entering an existing market or creating a completely new market is referred to
as disruptive innovation. Disruptive innovations initially perform worse when
2


evaluated by conventional value assessments, but they have unique traits that
are valued by a small segment of the market. On the other hand, incremental

innovation is a little modular change that happens gradually over time and
enables the development of the product and its market. A market move that is
so substantial and distinctive that others around must imitate it or risk falling
behind is said to be disruptive. In contrast to disruptive innovation, which
creates new value networks by satisfying customer needs, incremental
innovation exists in the market and enhances and develops current ones. So,
the following categories may be used to group Kodak's products:
Years

Products

Categories

Characteristic

1975

Prototype digital camera by
Kodak
Invention

The first digital camera

1981

Fairchild All-Sky camera
by
Calgary
Canada
university

Invention

The first CCD camera was widely
sold

1984

The
Horizontal
Memorychip
Integral
storobo Camera
Invention

Still video camera recording to the
solid-state driver, which never went
on sale

1988

Fuji DS-1P

Invention

The first digital-handed camera
records images as computerized
files on a 16MB memory card.
The DS-1P was never actually
sold in stores.

1990

Dycam
Model
Logitech Fotoman

1/ Disruptive
Innovation

The first digital camera goes on
sale and can connect directly to
the computer.

1992

Kodak DCS 200

1994

The
100

Apple

Camera with a resolution of 1.54
Incremental million pixels, which had a builtInnovation in hard drive

QuickTake Disruptive
Innovation

The first digital cost less than
$1000 and has a 640x480 pixel
CCD sensor.
3


1994
1996

1995
1995
1995

The first digital camera that could
Incremental send photos with a resolution of
Olympus Deltis VC-1100 Innovation 768x576 pixels.
Kodak DC-25

Incremental
Innovation First camera using CompactFlash

Casio QV-10

The first camera has an additional
Incremental LCD screen on the back, which is
Innovation 1.8 inches.

Ricoh RDC-1

Incremental The first digital still camera capable of

Innovation recording movies and capturing sound.

Videoman

Disruptive
Innovation

Logitech's first webcam that can be
plugged into a personal computer.
The first consumer camera could

1996

record pictures on a hard drive and
Incremental
The Canon PowerShot 600
Innovation store up to 176MB of data.

Question 2:
Innovative ideas from many functional sources connected to the Kodak digital
camera product line
Von Hippel performed several investigations and produced numerous
essays, which were finally compiled into a book titled The Sources of
Innovation, which was published in 1988 (Von Hippel, 1988). Von Hippel
identified four sources of innovation, three of which were external to the
company: consumers, suppliers, and third parties.
 The prototype digital camera by Kodak
The machine is around the size of a printer and weighs close to 4 kg. It
captures photographs in black and white on digital tape. Steve Sasson and his
colleagues had to create a customized screen to see them. These setbacks

prevented his prototype camera from being commercialized. Manufacturers
4


have continued to develop since the creation of the first digital camera
prototype by fixing difficulties with camera products or investing in R&D
operations for new goods. Kodak dominated the wholesale market (Hodges &
Gill, 2015). Some argue that Kodak made a mistake by not investing in
Sasson's ideas and focusing on film cameras instead. Many firms have taken
advantage of the situation, developing increasingly high-quality, tiny digital
cameras. Supply firms might modify their methods to increase manufacturer
revenues and foster innovation.
 Kodak DCS 200 and Kodak DC-25
Users are interested in Kodak's constantly introducing goods that boost
convenience (Hodges & Gill, 2015). In 1992, the DCS 200, with its built-in
hard drive, improved the picture storage capacity of personal cameras, and in
1994, the first DC-25 employing CompactFlash memory cards arrived. These
two products have received enthusiastic support, and the CompactFlash card
is regarded as one of the most popular and famous memory card types
available today.
Introducing Kodak's DCS 200 with an inbuilt hard drive and 1.54 MP
picture resolution was a watershed moment in the media sector. However, as
other camera makers continue to innovate, the rivalry becomes more intense.
For example, Apple debuted the QuickTake 100, the first colour digital
camera, for under $1,000. Distributors imported enormous amounts of the two
goods mentioned above. Although these devices could not compete with
newer camera models, the DCS 200 and DC-25 raked much money for US
electronics vendors.
Evaluation of how these sources of innovation help Kodak to generate newproduct innovations
The changes the camera will provide to have a shared experience will

be crucial for the realignment of Kodak's profitability. Adopting the camera
5


will result in radical innovation and impact personnel who may be resistant to
change (Brown, 2017). Although most individuals in businesses are resistant
to change, effective change management strategies may be implemented. The
research and development team will oversee the camera's development. The
reaction of those the change will impact may be examined alongside the
actual change. Change is unavoidable for Kodak since insufficient technical
development threatens the company's survival. Despite having disclosed the
sale of its digital camera license, the corporation will still need to be
inventive. The company was unable to handle the disruptive problem. Mobile
communication is made possible by mobile phones. The mobile phone
replaced all forms of photography as technology advanced. The "Kodak
moment," which produced a unique and extraordinary moment captured in
Kodak photographs, started to be carried about by mobile phone users
constantly.
Question 3:
Demand-pull and Technological-push
In recent years, the balance of demand-pull and technology-push
policies has swung heavily toward demand-pull (Hoppmann et al., 2021).
Whereas technology-push policies promote innovations mainly in the country
that supports the policy, demand-pull policies promote patenting locally and
internationally. "Desire-pull" is most typically the demand for a fresh new
product or a significant upgrade on the market.
"Technological push" is a word that indicates that the brand-new
product that the corporation wants to offer may be totally driven by research
and development. At this time, market research would not affect this product.
The item has the potential to begin while the company has developed

sophisticated technology and released it to the market.
<Source: Clayton, 2010>
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Figure 1: Innovation dilemma in UbiComp: the imbalance between technology
push and demand pull

Kodak digital cameras' business performance and how technology interacts
In terms of the earliest digital camera prototype, Digital cameras were
first more costly and more extensive; however, they eventually became less
expensive, simpler, and smaller. Digital cameras altered more than just the
physical artefact; they changed the photography process; one now captured a
picture, and a photo was merely one method to show the image.
Consumers embraced digital cameras as they got smaller and simpler to
operate (Tanyel et al., 2013). It could be more apparent if they paid less for
photography or not, but the image service providers changed. Kodak initially
believed that the primary market for digital photography would be
professional photographers rather than amateur consumers. It did make
significant investments in digital goods but needed to be better managed ($5
billion by the time Fisher arrived).
The most successful businesses have well-developed mechanisms for
terminating concepts their consumers do not desire. Consequently, many
companies find it challenging to invest adequately in disruptive technologies
—lower-margin prospects that their consumers do not want—until their
customers do. Kodak misjudged the rate at which the consumer sector would
embrace digital photography at this stage. Kodak seemed to disregard
consumers, focusing on film since it was convenient and lucrative. The firm
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was stuck in an analogue chemical mentality and was unable to think digitally
(Tanyel et al., 2013).
Question 4:
Impact of Canon's corporate culture, leadership, and vision on digital
cameras' improvement
A leader's vision and strategic thinkings are vital characteristics and
judgments. Forming a vision and establishing a culture are two leadership
criteria for meeting the rising demands of company growth practice before the
needs of new tasks. Canon had 44.8 billion yen in revenue and over 5,000
workers by 1970 (Garrett, 2018). Canon has created unrivalled commercial
prospects and goods by developing unique technology and carefully nurturing
them.
The leadership style of Mr Fujio Mitarai, the founder's grandson, has
helped Canon achieve new heights. He is aware of the leadership style that
combines the most common aspects of Japanese and American culture, which
he acquired over his 23 years with Canon USA. Sales increased sixfold to $
2.6 billion in 10 years as the industry leader in the US, accounting for 35% of
worldwide revenue (Garrett, 2018). Canon altered its approach to overall
optimization and profit emphasis to enhance its financial foundation. The
corporation implements different business innovations, such as the selection
and consolidation of business sectors, as well as reform operations in areas
such as production and development.
Canon has created a highly distinct company and corporate culture by
fusing history and modernity while keeping the capacity to innovate and adapt
to

changing

times

and

environments

constantly.

Business

college

Development plans such as The Premium Company Plan and The Excellent
Global Corporation Plan represent the essence of both ideologies, are
8


significant milestones in the brand growth process, and are regarded as
contributions to the brand's development.
The innovation dilemma
A Kodak film picture was once worth storing and admiring as a work
of art. Today, the phrase is a caution to CEOs about the need for adaptability
in the face of market shifts (Horton, 2021). With film as Kodak's primary
commercial product, it is easy to understand why the firm has struggled over
the last several decades. The camera becomes digital and then connects to the
smartphone. Blindness was the root of Kodak's collapse. Kodak was so
focused on its earlier success that it missed the introduction of digital
technology. However, this is not the case in reality.
Another possibility is that Kodak developed the technology but did not
invest in it. Sasson himself said that the response of Kodak executives to his
idea was "impossible to tell," but actually, Kodak spent billions of dollars

developing a line of digital cameras (Harvey, 2012). The following theory is
that Kodak bungled its digital camera investment, quitting the market by
persistently pursuing conventional film photography rather than recognizing
digital simplicity. This criticism was levelled during the early Kodak digital
camera releases. Still, Kodak soon embraced simplicity, establishing a solid
market position with technologies that allow photos to be transferred swiftly
from camera to computer. These theories are irrelevant since the
technological breakthrough occurred when cameras combined with phones
and consumers shifted from printing photographs to sharing images on social
media.

9


CASE 2: BLACKBERRY MOBILE DEVICE AND IPHONE
PRODUCT-LINE
Question 5:
S-curve showing the development of iPhones and BlackBerry mobile devices.
The S-curve is a graph that depicts the connection between the
cumulative value of a quantity and the time component. The S-curve is so
named because the chart has the form of the letter S when written. In
construction project management, this amount may be expressed as a
percentage of completion volume, resources, or cost (Hancock, 1985).

<Data source: Ritchie, 2020>

The original BlackBerry was a two-way pager gadget produced in
1999, but the BlackBerry smartphones were published in 2003. It was a
groundbreaking technology that allowed users to surf the internet, email, and
fax in addition to text messages and phone conversations. While quick email

access is now ubiquitous, it was revolutionary in the early 2000s (Finkelstein
10


et al., 2017). The BlackBerry's popularity looked impregnable, thanks to
countless film and television appearances.
When it debuted in 2007, the iPhone had a more current UI. It offered
entertainment elements with work benefits, as well as a paradigm in which
third-party application development enabled customers to enhance and
personalize the feature set of their devices. Users could not personalize their
smartphones because of a local central server like BlackBerry's. Allowing
third-party software necessitates making it fundamentally easy for anybody to
create for the device.
Iphone’s technology at the time T1
The time T1 may be observed on the S-curve graph about 2009. Jim
Balsillie, former CEO of Research in Motion, delivered his first public
address since leaving the business. When he departed the firm in 2012, he
predicted that the company would be unable to compete with the iPhone when
the first iteration of Apple's product was released in 2007. Since 2007, Apple
has launched three different versions of the iPhone. Apple hosted an event in
March 2009 to announce the release of iPhone OS 3.0. With this latest
version, users have merged functions "common" in other phones but absent in
prior iPhone OS versions, such as cut, paste, copy, and MMS messaging.
Furthermore, it offers Spotlight search, a QWERTY keyboard that can be
oriented horizontally in all apps, Push Notification technology, and a unique
"Find my iPhone" capability to assist in the recovery of your phone if it is
stolen.
Finally, Apple released a new version, the iPhone 3GS, in mid-June
2009; they increased the amount of RAM in this latest edition, making it
substantially quicker in most operations, including graphics processing, 3D

gaming, and web browsing. Furthermore, the iPhone 3GS has several
additional enhancements, such as an updated camera, video recording and
11


editing functionality, an electronic compass, and improved battery life
(Senior, 2010).
The performance of the iPhone by the time T1
On January 1, 2007, Steve Jobs revealed a game-changing new gadget
that combines a "phone, MP3 player, and portable Internet access device." At
this critical juncture, Apple terminated BlackBerry. The iPhone was created
using OS X and the Purple multi-point tablet project. Meanwhile, BlackBerry
developed a pager to allow consumers to send and receive emails from any
place.
Additionally, successful firms have always been associated with
BlackBerry phones (Finkelstein et al., 2017). Former BlackBerry CEO Larry
Conlle said that "the iPhone is not a threat to the company's core business."
However, the iPhone with the virtual keyboard sold one million units in only
three months after being on sale in the summer of 2007. More and more
people were carrying their iPhones along with their BlackBerrys to work.
BlackBerry’s advantages
BlackBerry had several competitive advantages regarding technology
and efficiency when the iPhone was released. The first BlackBerry Storm had
a 3.25-inch widescreen and a more rounded look than the iPhone 3GS. While
the iPhone's camera is just 2.0 megapixels, the Storm has a camera with a
resolution of up to 3.2 megapixels. Storm is backed by a fast 7.2Mbps
network, which the iPhone does not support. BlackBerry users could open and
edit Word and Excel documents. However, iPhone users could only browse
the Google Docs app and could not edit documents. BlackBerry already offers
a "bedside" option that prevents users from being awakened by pals at 2 a.m.

The BlackBerry Storm features a changeable backup battery, but unlike the
iPod, the iPhone does not.
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The 4Ps of innovation and failure of BlackBerry
The research of BlackBerry from 2007 to 2009 was used to create an
approach to innovation styles (Mittal & Gupta, 2010). BlackBerry's 4P
innovation strategy is simplified into four factors:
 Product: BlackBerry's Smartphones are the company's most wellknown product. The smartphones were popular due to their exceptional 'email
on the go' capability, providing security unrivalled by rivals' offers.
 Price: BlackBerry Smartphones became popular because they
can access email while on the move. The firm planned to concentrate
primarily on enterprise sales and enable corporations to embed the brand
among its workers.
 Location: There are Blackberry shops throughout North
America, Mexico, Thailand, Indonesia, and the United Arab Emirates. A
Blackberry shop opened in Michigan, USA, in 2007.


Promotion: Blackberry was working hard to make up lost

ground. One way it was recycling much of its previous grandeur was by
focusing on its Smartphone segment. The company promoted Blackberry
Smartphones as the best phone for use in the healthcare, insurance, and
banking industries by capitalizing on its better security features.
Three blunders contributed to BlackBerry's market loss. The first error
was that BlackBerry needed to adjust to the touch screen promptly. When
Steve Jobs first held the iPhone in his hands in 2007, Blackberry still had the
bulk of the market share for high-end consumers with its distinctive

QWERTY keypad. Blackberry believes this to be their speciality and sees no
need to alter it. The second mistake is bad operating system development.
Blackberry was highly proud of its near-instant Push mail service at the time,
particularly among its premium subscribers who paid a lot for it. BlackBerry's
third blunder is that it has abandoned a particular client group. RIM has solely
13


concentrated on supplying high-end customers and corporations with pricey
Push email services while ignoring the individual customer group. Individual
Blackberry consumers are progressively being offered cheaper, more varied
choices from Android or iPhone smartphone makers.
Question 6:
The success of Apple
The key reasons for Apple's success are clear objectives, constant
product development, and excellent customer service. Apple's CEOs have
established a clear path for the firm from its inception. According to
marketing expert David Andrews, Apple's approach is to make digital
technology available to everyone and transform how customers think, do,
learn, and communicate. They still adhere to this philosophy today (Scaife,
2017).
iPhone is continually striving to offer better product lines than its
rivals. The iPhone was one of many to feature a touch screen or connect to a
wireless network. These technologies have been available for a long, but what
distinguishes Apple is its willingness to improve on a competitor's notion.
Apple's success is attributable to more than just product excellence.
They are specialists in comprehending and caring for consumers. This
design is ideal for customers who expect to use the phone for an extended
period. Apple also offers several incentives to younger clients.
The reasons for Apple’s market leader

Apple had a very successful 2021, highlighted by its performance in
early 2022 when it became the first firm to attain a market worth of $3
trillion.
Apple releases new goods with unique designs. Apple sets its products
apart from its competitors by giving them unique designs. Its technical
14


advancements for the iPod, iPhone, and iPad still need to have cutting-edge or
distinctive characteristics from the beginning but rather come from how the
device is designed.
Apple creates trends by using cutting-edge technologies. Apple does
not create new technology; rather, they improve current technology to provide
a more lifelike experience (Armstrong & Gangemi, 2020). For instance, the
iPhone has pioneered the use of a fingerprint sensor to quickly and
conveniently unlock the phone instead of requiring a sketch or a code. The
next version of Face ID is faster, more convenient, and more secure. Then
there is the notch screen, which makes better use of the additional screen real
estate. While the frame is constructed of metal, the back is made of glass.
4Ps of innovation of Apple
Process, Product, Paradigm, and Position are the

4P's of

innovation(Akgun et al., 2017). Apple has been successful in implementing
these 4Ps.
Concept: Innovation may be utilized to change or improve the way a
business operates. A business may launch new product lines to use more
resources and cater to customers' various desires while making a sizable profit
(Blythe,2014). For instance, Apple originally produced computers, but as the

market for mobile phones grew, Apple began to produce smart cell phones,
which represented a paradigm change for the company.
Product: The quality, look, durability, and utility of commonplace
objects are all improved via product innovation. For instance, Apple
introduces new iterations of the iPhone every year, such as the iPhone 5,
iPhone 6, and iPhone 7, all of which have new features, improved quality and
usability, and additional facilities.

15


Process: By incorporating innovation into several supply chain
processes, such as production, distribution, and marketing, profitability may
be increased. For instance, Apple sells its electronic devices in person at
American retail locations. Apple sells its electronic products online instead of
in person in nations like India, Indonesia, and the Philippines because opening
physical shops there would be prohibitively costly. After all, compared to
North America and Europe, those regions have far fewer clients for Apple.
Position: Virgin has consistently embraced innovation to launch a
variety of businesses, including those in banking, health care, the internet,
retail, and travel, in order to establish itself as an Apple provider of a range of
products and services.
The role of frugal innovation in Apple
Frugal is defined as "plain, simple, or modest." The purpose of frugal
innovation is to concentrate solely on essential components (Ratten, 2019). In
doing so, the emphasis is not on the invention's performance but on the
innovation's needs and users or target group. A low-cost solution is, therefore,
easy and dependable to use and better fits the consumer's demands. On the
one hand, manufacturing is more resource-efficient, while on the other, the
finished product may be sold at a lower price. Apple is also using frugal

thinking with several iPhone 12 models. Because the more significant the
client base and market share, the more target groups that may be addressed.

16


III. CONCLUSION
Finally, this research distinguished and contrasted invention and
innovation. The issue combines Von Hippel's theory, technical push, and
market pull to apply in the instance of the Kodak digital camera product line.
Question 4 study on Canon's vision, leadership, culture, and understanding of
the innovation issue resulted in a loss in Kodak's market share.
The S-curve graph of BlackBerry and iPhone in the second case study
demonstrates the association between the two businesses' market shares and
the length of time BlackBerry has been on the wrong road. In addition, via its
4Ps of innovation study, this research reveals the accomplishments and
reasons Apple is at the top of the market.
<3972w>

17


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