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Radical innovation. perspective of a master in administrative engineering

Table of contents:

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Introduction.

And indeed, the first question that comes up is what is a MIA? Well, it is an acronym that could take on many meanings depending on the context in which a document or writing is developed, however, for use in this document, MIA will refer to a Master in Administrative Engineering. And it is that for a professional, it is of the utmost importance to be able to update and train to be able to face the problems that currently arise in any type of business or organization in which he wants to venture.

The master's degree in administrative engineering is a program that is taught at the National Technological Institute, which has a very strong combination between administrative and control concepts, in which the process by which administration needs are covered can be facilitated, a company or industry is organized and directed, with an engineering approach, in which it seeks to solve any type of problematic situation that affects an organization in its processes, systems, tools or strategies that are implemented, always taking into account the aspects innovative, technological and digital, trying to make use of all the resources that are available.

Due to this, the approach of radical innovations arises, which seeks to get out of the paradigms and break down the barriers that prevent growth and development full of innovation and good ideas, which unfortunately, in the vast majority of times, are They are hampered by factors such as budget, support, lack of cooperation, etc.

For this reason, it is necessary to implement in people, companies and organizations, a new and fresh mentality, in which different ideas can be put into practice that can favor the development of a process, or the implementation of complete systems that have as their purpose the improvement and increase of concepts as important as effectiveness, efficiency, sustainability, productivity, etc.

The basics.

It is necessary to take into consideration some of the key concepts and definitions that must be known, in order to address the issue, because from there a deeper analysis of the importance and scope that a radical innovation can generate in thought is derived. and actions of a person or company. The Dictionary of the Spanish Language (2014) mentions the following terms as a definition of innovation:

  1. F. Action and effect of innovating f. Creation or modification of a product, and its introduction in a market.

But in a more practical concept, innovation goes beyond a simple modification, it is a profound change, which deals with other means, but which seeks to improve in one or more aspects the use or characteristics that a product or service has. Seen from an economic growth point of view, innovation is a determining factor of growth and development, because with the emergence of new ideas, the innovation process is enriched and over time, these ideas evolve and are perfected, improving the combination of capital and labor (Romer, 1990) If mention is made of a classification of innovations, some can be highlighted, such as:

  • Product innovations (Dougherty, 1992) Process innovations (Davenport, 1994) Service innovations (Frambach & Barkema, 1998)

On this occasion, reference will be made to a more specific concept in terms of innovation, and that is that radical innovation implies a separation or rupture with things that are already established, new products or processes, which in one way or another, they manage to understand it as a natural evolution of what already exists. They are commonly achieved as a result of defined R&D processes in laboratories (inside or outside the company) and highly specialized institutes. They are totally explosive and break the status quo.

The vision that a student or a graduate of the Master in Administrative Engineering has, must be marked, or guided by critical and analytical thinking, that is, not conforming to what is already established, with the parameters that are currently handled in the business world, or in everyday life in general. It is intended that any action, any element has a Why? A What for? And a How can it be improved? And that is where the union between the thought and vision of an MIA and radical innovations is marked.

Mention can be made of the lines of generation and application of knowledge that are followed within the study plan of the Master in Administrative Engineering, such as:

  • Line of generation and application of knowledge in management of business development Line of generation and application of knowledge in innovation and administration of intellectual capital Line of generation and application of knowledge in administration of production systems.

In relation to these three lines, it is the importance in which the need to innovate and develop new and innovative ideas is related, which allow solving the problems that currently afflict organizations and society in general. In the same way, when observing the graduation profile of an MIA, the capacity it has and the potential it must develop in order to have analytical thinking, based on radical innovations, is seen:

The master's degree graduate will possess knowledge, attitudes, skills and values ​​that allow him to develop competencies in:

  • Formulate, evaluate and, where appropriate, implement projects that meet the needs of the region with a vision of sustainability and social responsibility Know and distinguish the processes of exchange of goods and services of organizations Integrate and lead work teams Identify and attend to areas of opportunity within organizations, which contribute to their improvement Propose relevant solutions in organizational processes Promote the implementation of quality management systems Promote the development and consolidation of productive organizations Promote continuous improvement and innovation Conduct ethically in their professional activities.

This type of attitudes and aptitudes, in general, should be reflected in any professional, however, it is necessary to have some training and education, in which they can be developed and perfected, in order, in this way, to be able to face the problems of organizations today.

The wide range of innovations.

An innovation must have the objective of creating or developing something new or significant, improved for the company or organization in which it will be implemented, and the result must be introduced to the market. A product has been introduced when it has been presented or launched on the market, on the other hand, when an innovation of a process, a marketing method or a new organizational method is considered, it has been introduced when it has been used effectively within the framework of operations of the company and in some way the market promotes its benefits, such as better costs, quality or shorter delivery time.

Incremental innovation.

It refers to changes that are aimed at increasing the functionality and benefits of the company, in addition, although they are presented in a cumulative way, it continues to be an important basis for promoting progress. They are flat type, which are responsible for reinforcing the status quo and normally occur continuously in companies and organizations. In general, it can be mentioned that they are the result of the experience gathered by the collaborators of the technical area, as well as the users of the technologies.

Radical innovation.

Radical innovations refer to the full application of new technologies or a process that can lead to entirely new products, systems, or processes. According to the study carried out in Spain, entitled: "Incremental innovation versus radical innovation: the case of the Spanish maritime port sector" In the period 2003-2008, some of the most frequent radical innovations were:

Competency management

  • Electronic Data Interchange (EDI) Strategy control systems Comprehensive Dashboard Creation of information exchange portals Navigation aids systems, AIS

Between these first two categories, some contrasting points can be highlighted, such as:

In incremental innovations:

  • Market demand is known and predictable Market recognition and acceptance is a rapid process Easily adaptable to existing market advantages and distribution policy Fits current market segmentation and product policies

While on radical innovations:

  • The potential demand is large but very unpredictable, leading to a high percentage of failure risk. A rapid imitative reaction from the competition is not predictable. Exclusive marketing, distribution and sales policies may be required to educate customers. Consumers Demand may not coincide with established market segments, distorting the control of various views of the company.

A product innovation is when a tangible good or service is introduced that is entirely new or significantly improved, compared to previous features and applications. This also includes significant improvements in technical specifications, components and materials, as well as embedded software, ease and use, and functional features. (Oslo Manual, 2005)

Process innovation .

A process innovation refers to the implementation of a production or delivery methodology, which is entirely new or significantly improved. These types of innovations include significant changes in processes, equipment and software (Oslo Manual, 2005)

Innovation in marketing.

This type of innovation refers to the implementation of a new marketing method, which develops significant changes in the design or packaging of the product, its location, its promotion and its valuation. (Oslo Manual, 2005)

Innovation of paradigms.

There is talk of a paradigm innovation when there are profound changes in the traditional beliefs of customers. Because of this, its application process takes a long period of time and has great feedback to achieve acceptance and penetration. However, once this process is completed, the innovative company develops certain specific competitive advantages that allow it to position itself above its competitors.

Innovation in position.

Gradually and without major substantial changes in the product or service, it seeks to introduce it in a positive way in a new market niche to cover the different needs to which the finished product was initially oriented.

Organizational Innovation.

It refers to an organizational innovation when implementing a new methodology within an organization, in the company's business practices, the organization of the workplace or external relations. This type of innovation occurs, for example, when new business units are developed, new units of administrative processes or with the reconfiguration of the management model that is followed.

C

Regularly in the organizations and companies that currently exist, incremental innovations are the ones that occur most frequently, and it is true, they are strategies or tools necessary in any industry, they are the best that are obtained, they are marginal and do not add advantages competitive within the business environment. To the extent that competition is homogeneous and poorly differentiated, the only way in which a separation can occur is by doing something totally and radically different or different.

Each one of the ideas or radical innovations presents a certain degree of risk, since it can present certain specific advantages or disadvantages, which would face the potential market of the company.

As can be seen in the table in Figure 1, the specifications and characteristics of radical innovation are the relatively high investment in R&D processes and the time it takes to be able to develop and implement it correctly. However, there are some cases, in which they are also the result of a new business model or an innovative solution to the needs of the market and end consumers.

Figure 1. Comparison between incremental and radical innovation. (Garcia, 2012)

The authors Gibson and Skarymky (2008) make mention of a proposal to define an initiative that is truly radical, making the following question:

The following questions must be answered clearly and specifically

  • Does it have the ability to modify consumer expectations and habits? Does it have the ability to change the basis of competitive advantages? Does it have the ability to alter the source of value generation in the business sector?

Conclusion.

In this way it is in which it seeks to create a new perspective in the vision that some companies and organizations have today, the incursion into new and innovative ideas, which seek to break with the paradigms or the barriers that exist, due to the different processes or systems that have been followed for many years.

The preparation of new professionals must have certain characteristics that increase the ability to develop more and better skills and attitudes, skills that the business world needs in its collaborators, and that can solve the major problems that afflict different organizations..

For this reason, radical innovations, great changes, can come to be generated from MIA graduates, since it is sought that each of these has the necessary knowledge to contribute positively to the development of a new system, process, tool or strategy, which can generate a certain competitive advantage in the potential market.

Bibliographic references.

  • FERNANDO GARCIA GONZÁLEZ. (2012). INNOVATION CONCEPTS. Colombia: COLOMBIAN ASSOCIATION OF ENGINEERING FACULTIES. Isabel Gutiérrez, Manuel Núñez-Nickel. (2006). The impact of radical innovation management on the replacement of the CEO: empirical evidence in the Spanish newspaper industry. Madrid, Spain: Carlos III University of Madrid Luis Carlos Castillo Téllez. (2013). Economics Program Working Documents. Bogotá, Colombia: University of Bogotá Jorge Tadeo Lozano, Lidia Sánchez Ruiz, Beatriz Blanco Rojo, Carlos Ángel Pérez Labajos, Ana María Serrano Bedia. (2010). INCREMENTAL INNOVATION VERSUS RADICAL INNOVATION: THE CASE OF THE SPANISH MARITIME PORT SECTOR. Spain: University of Cantabria.
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Radical innovation. perspective of a master in administrative engineering