It could be argued that Nintento brought a disruptive innovation to the market.For instance: There are “five disciplines” for creating what customers want: Identify important customer needsCreate solutions that fill those needsBuild innovation teamsEmpower "innovation champions" who keep the effort on track Align the entire enterprise around creating value for customers
If applying the above as a check-list to Nintendo, every single item would have a check mark! It’s especially interesting to see the global high regard awarded Nintendo’s “innovation champion” Shigeru Miyamoto. Before proceeding, firms must first define the scope of the innovationefforts, and must ensure that their innovation efforts are not wasted on projects that are outside the firm’s domain of interest. In defining the innovation scope, a firm should answer several questions: How much will the innovation cost?How likely is it to actually become commercially viable?How much value will it add; that is, what will it be worth if it works?What will be learned if it does not pan out?Nintendo showed considerable ability to limit the scope of innovation efforts to those projects that fit the firm’s “domain of interest”. The focus on the family meant that gamesneeded to be appropriate for all, and needed to encourage groups of players to interact in the same physical space. This was quite different from the first-person-shooter types of games produced in high definition graphics for the Play Station and Xbox. The focus on fun, family-friendly entertainment (see Miyamoto’s “wife-o-meter” video in the web link above) meant that the games could be elegant but simple, which added value not only in customer acceptance and adoption, but also in profit margins.The challenges of innovation involve: Choosing when and how to continue to innovateThe pace of future innovationWhether or not to collaborate with innovation partners Requires resources such as financial, human and social capitalRequires the leadership team to have adequate vision, dedication and driveAlthough the leadership team appeared to have the vision, dedication and drive to create a culture that supported innovation, planning for production did not appear to be a strength, which limited access to production materials and finished product. Planning for supply chain challenges is also necessary when pursuing innovation.When managing the pace of innovation, leaders must make the decision whether to engage in incremental innovation– where a firm uses a milestone approach driven by goals or deadlines that takes six months to two years to see results – or engages in radical innovation which often involves open-ended experimentation and time-consuming mistakes, and can mean a long-term commitment of 10 years or more. In this case, a culture of entrepreneurshipmeans asearch for venture opportunities permeates every part of the organization. Strategic leaders and the culture generate a strong impetus to continually innovate, take risks and seek out new venture opportunities. From the mid-1980s to the mid-2000s, the gaming industry made incremental innovations
You've reached the end of your free preview.
Want to read all 14 pages?
- Summer '14
- Wii, Video game console, Nintendo