1. Defining And Understanding Innovation

Question 1

Definition of innovation:

Answer 1

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 (not necessarily to the world).

Question 2

Difference of innovation to invention:

Answer 2

An innovation is an invention that is successfully adopted by the market
Key characteristics of innovation: new, social process → risky & complex → conflicts & opportunities

Question 3

Definition of innovation management:

Answer 3

Innovation management is the systematic management of innovation processes. It refers 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.

Question 4

Innovation outcomes:

Answer 4

-Product innovation: tangible output (a new product offering or variant)
-Service innovation: intangible output (a new service offering)
-Process innovation: way a company conducts business (production, marketing)

Question 5

Degree of Change:

Answer 5

-Performance-improving (“sustaining”) innovation: Replacement of obsolescent products by a new
generation (“improvements of merit”)
-Efficiency-improving innovation: Offering the same solution for the same customers at a lower price (“low-
end disruptions”)
-Market-creating innovation: Transformation of existing solutions in such a radical manner that a new market
is created (“disruptive business model innovation”)

Question 6

Definition of innovativeness:

Answer 6

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. → Can be seen as result or objective of an innovation process

Question 7

Companies innovate because of changes in:

Answer 7

-Demand: Saturation of basic needs, Increasing individualization
-Competition: Increasing liberalization, Increasing globalization, Need for differentiation
-Input efficiency: Increasing supply scarcity, Shifting price relation, Changing values of employees
-Technical progress: Nanotechnology, Laser technologies, Additive manufacturing
-Social demands: Environment, Social needs, Consumer safety

Question 8

Innovation as the result of:

Answer 8

->A frustrated user: nonsystematic process, company needs to be able to capture external input, user
innovators profit from using their innovation
-Gathering Concepts from the periphery, Customer Co-Creation (others inside or outside the
organization)
->A dedicated firm activity: systematic process of different stages, managing the risk (uncertainty), internal
creativity and problem solving, manufacturer innovators profit from selling the innovation
-Create concepts internally, managed process run by innovation team (Market research → Voice of the
customer, Creativity techniques)

Question 9

Innovation Process:

Answer 9

1. Ideation
2. Concept development
3. Development and realization
4. Nurture and launch

Question 10

Innovation as disciplined problem solving based on:

Answer 10

knowledge and creativity