1 Flashcards
Definition of Innovation
1
2
1 Oxford:
- a new method, idea, product, etc.
- the action or process of innovating
2 Merriam-Webster:
- a new idea, device or method
- the act/process of introducing new ideas, devices or methods
PIEM Definition of Innovation
An Innovation is the creation (invention), introduction (launch), and successful diffusion (adoption) of products, services, systems, processes, or even business models which are new from the perspective of the particular organization and/or user.
Innovation = process of
- creation (invention), introduction (launch), successful diffusion of
- product, services, systems, processes, business models
- new from the perspective of the particular organization/user
1 Broader understanding of Innovation
2 More Narrow understanding of Innovation
1 invention: creation of new technological knowledge
2
- innovation: first usage
- diffusion: repeated usage
Key Characteristics of Innovation
1-4
- new
- a social process
- risky & complex
- conflicts & opportunities
Definition Innovation Management
Innovation management is the systematic management of innovation processes. It refers both to product, process and organizational innovation.
Innovation management includes a set of tools that allow managers and engineers to cooperate with a common understanding of processes and goals.
- systematic management of innovation processes
- set of tools for managers/engineers
- cooperate with a common understanding of processes/goals
Kinds of Innovations
1-3
1 Product innovation
- tangible output
- a new product offering or variant
2 Service innovation
- intangible output
- a new service offering
- user focus: very seamless & simple solution
- Company: very complex backlog
- service innovations go hand in hand with process innovations
3 Process innovation
- conducting business/production/marketing
Definition of Degree of Innovativeness
The innovativeness of an innovation process is characterized by the number of elements in a system affected by the innovation and the resulting uncertainty in performing the innovation project and diffusing its outcome.
It can be seen as the RESULT of an innovation process (output), but also as an OBJECTIVE when planning an innovation project (input)
- How new is the innovation?
- Result <-> Objective
2 Degrees of Innovativeness
1-2
1 Radical new innovation:
- Output: Autonomous Driving
- Input: Technology, demand, regulations
2 incremental innovation:
- new VW GOLF
Kinds of innovation
1-3
1 performance-improving innovation
- replace old products by new generation (improvements of merits: new VW Golf)
2 efficiency-improving innovation
- same solution at lower price (low-end disruptions: JIT Manufacturing Tool)
3 market-creating innovation
- transforming existing solutions to create new market (disruptive BM: Uber)
Consumers Response to new product
Newness + Meaningfulness = Favorable perception of innovations
Levels of Newsness and consumer coping potential
BILD
Autonomous Driving
+/-
+ time saving
+ flexibility
+ safety
losses are always conceived more than gains
- reduced control over vehicle
- lack of driving experience
- loss of driving skills
Congruity Effects to new Products
BILD
Importance of Innovation to companies
1-5
1 demand (basic needs, individualization)
2 competition (need for differentiation)
3 input efficiency (supply scarcity, price relation, employee values)
4 tech. progress (nano, laser, additive)
5 societal demands (environment, social, consumer safety)
Importance of innovation to Society
- increase economic growth (quantitative growth)
- fit products better to customer needs (qualitative growth, - enhancing consumer welfare)
- increase productivity of downstream industries
- support ecological/social sustainability
- distribution of knowledge
