1. Introduction to Innovation

Question 1

Invention vs innovation

Answer 1

Invention is something new that have never existed before, whereas innovation is the process of translating and idea or invention into a product or service on the market. Invention is science whereas innovation is applied science.

Question 2

How can you classify innovations in a matrix?

Answer 2

You can have the degree of how close the tech/product/service is to existing ones on one axis. on the other axis you can have the closeness to business model and processes. This will end up in four boxes: incremental inn, breakthrough/radical *2 and disruptive at the upper right corner.

Question 3

Three distinctive phases of innovation processes:

Answer 3

1. idea generation
2. development
3. commercialization

Question 4

How has the innovation process changed over time?

Answer 4

First it was “muddling through” and no established process for it. Then it became very linear when the stage-gate model came. Today, we want to be more flexible and agile again so we are approaching the muddling-type of process again.

Question 5

Describe the stage-gate model:

Answer 5

It’s a linear process where each phase must be approved in order to move further.
1. Small budget, small team, act fast, fail fast, try out and experiment.
2. If the project passes the gate, the team and money grow.
3. Last stage - full commitment from the company.
This process is reducing risk by only allocating money to those projects proven to have high potential.

Question 6

Innovation funnel

Answer 6

Lot’s of ideas and projects going on where we spend little money on each project in the early phases, then selecting the most promising ones.

Question 7

Difference between innovation and classical development (R&D)

Answer 7

It is binomal. Must be able to manage two modes.

1. Predictable, improving and renovating in the well-understood areas.
2. Exploratory, experimenting to solve new problems.

Question 8

4 drivers of innovation

Answer 8

1. Source of competitive advantage.
2. Consumers demand increasingly customized products.
3. Tech progress lead to more business opportunities.
4. Network organizations call for new structures, roles, etc –> BMI.

Question 9

Definition of innovation management =

Answer 9

All strategic, mid-term and operative tasks to lead, plan, organize and control innovation processes in organizations.