Innovation is best served by collaboration. Innovation is a process that involves multiple exercises in the attempt to develop and design new systems and products to better accomplish a given task.
Why is Innovation essential? Markets are primarily responsive to profitability and quality. Innovation is essential to one’s ability to remain on the multi dimensional cutting edge: in relation to cost containment (and profitability); in regards to quality (a better mouse trap must be designed to outperform the old one); in terms of productivity (responding to the need to increase production and decrease the time required without sacrificing quality); and enhancing durability (so as to maintain quality over time thereby reducing replacement, reducing down time, and reducing associated labor costs.)
OAV is committed to developing human and technological resources to do things differently in order to Increase productivity.
For a business or an organization to develop a competitive advantage, it must be able to adapt to changing trends and new technologies. One can develop an advantage through new technology, improving quality, enhancing durability or reducing costs. Ideally innovation fosters improvements in all dimensions.
What types of innovation are there? In general there are three different models for innovation and creative destruction: competency-destroying, architectural, and disruptive, Each creates major challenges for any organization.
What’s Competence Destroying vs Competence Innovation? Disruptive innovation refers to a concept, product, or a service that either disrupts an existing market or creates a completely new market segment.
- Competence Destroying Innovation: is one that requires new skills, abilities, and knowledge relative to those held by existing firms in an industry
- Creates new product classes
- Substitutes for existing products
- Competence Enhancing Innovation: is an order of magnitude improvement in price, performance, or efficiency that builds on existing know-how within a product or process class. Innovation substitutes older products but skills are not obsolete and companies can transition
What is the Creative Destruction?
- An incessant economic mechanism in which new product and process innovations (done by new firms) replace outdated production units
- At the core of economic growth in market economies – about 50% of productivity growth due to creative destruction (Foster et al. 2007)
- Key indicators include new organizations being formed and new jobs being created in new industries
- Established incumbent firms are particularly at risk
Example of Industries that using OAV Air bearings to Disruptive Innovation
- Automotive Industry
- Semiconductor Industry
- Aerospace Industry
- Energy Industry
- Medical Industry
- Audio Industry
With those explanations in hand, the theory of disruptive innovation went beyond simple correlation to a philosophy of causation as well. The critical components of that have been tested and validated through many industries.
We believe in promoting Innovation and entrepreneurial ideas both within OAV and in conjunction with our clients. We encourage collaboration and are willing to partner with our clients to promote new ideas, new processes, and new products.