Architectural innovation is a type of product or service improvement that focuses on how components are configured in a design - such as building materials, the technologies within them, or an urban environment. Ultimately, it's a tool to help companies remain competitive while providing products and services that meet customer demands at an acceptable cost level.
This process involves analyzing the design, structure, layout, and how various parts in a system combine - then using this to make improvements. An example of an architectural innovation is the networked computer system, which improved the function of an isolated computer by allowing it to share resources with other machines and therefore carry out more complex tasks.
However, architectural innovation can take various forms depending on the industry and goals in question.
For example, if a manufacturing business reconfigures assembly lines by introducing robotics or automation technologies, it helps it to streamline production and increase efficiency. Meanwhile, a software development firm may use modular design to improve flexibility when updating applications, or a retail business may rearrange store layouts to provide customers with a better shopping experience.
Benefits of architectural innovation
Architectural innovation has various advantages - it can help to streamline processes, reduce costs, improve customer satisfaction, and create competitive advantage for a company.
Yet organizations must carefully assess both current and potential future needs when making changes to existing architectures to ensure successful outcomes - otherwise, they could end up doing more harm than good with architectural innovation.
Related Keywords: Design Structure, Layout Configuration, Automation Technologies, Modular Design