Just as energy is the basis of life itself and ideas the source of innovation, so is innovation the vital spark of all human change, improvement and progress – Ted Levitt
The quote above by Theodore (Ted) Levitt, American economist who popularized the so oft used term – Globalization and also author of “Marketing Myopia”, the book which changed the way businesses were seen and done in the corporate world, quite clearly defines the inherent potential in the word “ Innovation”.
The standard of quality of life, led by people at large, has always been defined by groundbreaking innovations, be it the computer, microprocessor, radio, telegraph, fax and so on leading to Human change and improvement and ultimately leading to not just ephemeral, but a more stable, and gradual progress of the human race.
The study of Management of Innovation as a subject gives us an opportunity to delve further into the concepts and theories of Innovation and help us to notice and learn from organizations that have applied Innovation in practicality and have attained global fame for their innovative practices. The organizations that have believed in the power of Innovation have truly been benefited by it and this has been a major learning from the study of this subject.
The organization of interest has been chosen as Nokia Corporation. The company that was initially started from being a paper mill in Southwestern Finland, to go on to become a global telecommunications giant, that also is the market leader has is a real example of how Innovation is done and then redone and again redone over and over again so that a sustainable momentum is achieved that also translates into measureable profits and remunerations, while also producing products of high quality for customers the world over.
In particular, the Disruptive theory of Innovation by Clayton Christensen finds resonance in Nokia’s story. The concepts of the Disruptive theory of Innovation by Christensen have been explained below, in text as well as with a graphical illustration.