Examples For Managing Innovation: This Week's Discussion

Examples For Managing Innovationthis Weeks Discussion See Attachment

Examples for Managing Innovation This week’s discussion "see attachment" focus is technology innovation, through the use of examples that we research and share. Before we begin this discussion, please review an example of a company who used strategies to exploit a new era of digitalization and benefited from it, "Lowering the Cost of Ultrasound Equipment through Digitalization.†This example shows how a company reached a previously untapped market niche by digitalizing a product, which also allows the firm to reduce expenses. Thus, digitalizing can support a firm that is pursuing a simultaneous advantage in differentiation and cost leadership. No plagiarism 500 words Managing Innovation Example The ultrasound unit is an important diagnostic tool, producing images of organs. The technology is very valuable, but the equipment is bulky, heavy, and expensive, so it is used primarily in dedicated hospital facilities. ATL, a leading ultrasound company, decided to reduce the size of an ultrasound set-up to about the size and weight of a laptop computer. This would be accomplished by replacing many of the machine’s solid circuits with software (in a process called “digitalizingâ€), reducing size and costs. The researchers reasoned that a portable and inexpensive ultrasound unit would find market opportunities in totally new niches. Smaller size and lower cost would allow the units to be placed on ambulances or into physician’s offices - market niches that were impossible to reach with the technology of the day. The researchers later became part of a project team within ATL, and thereafter became an entirely new company, SonoSite. Late in 1999, SonoSite introduced its first unit, which weighed just 6 pounds and cost about $25,000. SonoSite targeted niches that full-sized ultrasound products could not reach: ambulatory care and foreign markets that could not afford the more expensive equipment. In 2010, the company sold over $275 million of product. Now it's your turn, research a company that has managed an innovation and provide the story. Include, The company, the technology, the impact made with the innovation and short history of the industry and need for the innovation. Along with providing your example, please answer the following question: How are companies coming up with strategies to exploit and benefit from the new era of digitalization?

Paper For Above instruction

In the rapidly evolving landscape of technology, digitalization has emerged as a pivotal force driving innovation across various industries. Companies that effectively harness digital tools and strategies not only enhance their operational efficiencies but also unlock new market opportunities and redefine competitive advantages. A compelling example of managing innovation through digitalization is the transformation undertaken by Philips with their development of digital healthcare imaging devices, particularly in mammography technology.

Philips, a global leader in health technology, recognized the need to innovate amidst rising demand for more accurate, accessible, and cost-effective diagnostic tools. The industry context was characterized by the limitations of traditional analog mammography systems, which were bulky, expensive, and had limited image clarity and diagnostic accuracy. To address these challenges, Philips invested heavily in developing digital mammography systems that leverage advancements in digital imaging, software integration, and data management. Their innovation centered around replacing film-based images with digital ones, enabling enhanced image processing, storage, and sharing capabilities.

The impact of Philips’ digitalization efforts has been substantial. Digital mammography systems have significantly improved diagnostic accuracy due to higher image resolution and better detection of abnormalities. Moreover, the digital format allows for easier image storage, retrieval, and sharing among healthcare professionals, facilitating collaboration and second opinions. This has led to earlier detection of breast cancer, improved patient outcomes, and expanded access to screening programs, especially in remote or under-resourced regions via telemedicine integrations. Economically, digital systems have reduced the costs associated with film processing, physical storage, and repeated imaging, thereby lowering overall healthcare expenditure. These innovations also fostered the growth of personalized medicine and data-driven diagnostics, aligning with broader industry shifts towards precision healthcare.

The industry's need for digital innovation stems from several factors: increasing demand for accurate diagnostic tools, rising healthcare costs, and technological advancements making digital solutions more feasible and attractive. Historically, the medical imaging industry evolved from simple X-ray films to complex digital systems, reflecting a steady trend towards digitization that enhances both capabilities and accessibility. As healthcare organizations strive for better patient outcomes and operational efficiency, digital innovation remains central to meeting these goals.

Regarding strategies to exploit and benefit from digitalization, companies like Philips employ a combination of research and development investment, strategic partnerships, and customer-centric approaches. Philips collaborates with hospitals, research institutions, and technology providers to co-develop new digital diagnostic tools and software solutions. They also focus on expanding their digital ecosystem, integrating AI and machine learning to enhance image analysis and diagnostic accuracy further. Additionally, Philips invests in training and education to ensure healthcare professionals can fully leverage digital tools, promoting widespread adoption and integration into clinical workflows.

Furthermore, firms explore new business models driven by digital platforms—such as remote diagnostic services, cloud-based image storage, and AI-powered decision support systems—that create recurring revenue streams and strengthen customer relationships. By continuously innovating and aligning their strategies with technological trends, companies like Philips harness digitalization to sustain competitive advantage and lead industry transformation.

In conclusion, the case of Philips exemplifies how traditional industries like medical imaging can evolve through digital innovation. By digitalizing mammography technology, they have improved diagnostic capabilities, increased accessibility, and reduced costs. Strategic collaborations, technological investments, and new business models enable companies to capitalize on the digital era’s opportunities, ensuring ongoing growth and industry leadership.

References

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• Dhar, V., & Boparai, S. (2020). Digitalization of Medical Imaging: Trends and Future Directions. IEEE Reviews in Biomedical Engineering, 13, 174–185.
• Gartner. (2021). Digital Transformation in Healthcare: Strategies and Trends. Gartner Reports.
• Philips. (2022). Digital Mammography Solutions. Philips Healthcare Website. https://www.philips.com/healthcare
• Rahman, M., & Islam, M. T. (2021). Impact of Digital Innovation on Healthcare Industry. International Journal of Healthcare Management, 14(2), 105–114.
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