9 - Assessing Innovation Flashcards
What Is Product Innovation?
Changing a product that already exists or developing an invention into a brand new product.
What Is Process Innovation?
Finding better or more efficient ways of producing existing products, or delivering existing services.
What Are The Benefits Of Innovation?
(7 Points)
~ Creates a USP.
~ Less competition due to patent.
~ More efficient and cost effective production process.
~ Likely to be a premium product with high prices.
~ Improved productivity and reduced costs.
~ Builds a strong organisational culture, which should attract more talent.
~ Higher sales and profits.
What Are The Drawbacks Of Innovation?
(4 Points)
~ Can be very costly in the r&d stage and therefore a drain on resources.
~ For all innovations there is an opportunity cost.
~ Costs from protecting the innovation.
~ Time consuming.
What Are The Ways In Which A Firm Can Become Innovative?
(4 Points)
~ Kaizen.
~ R&D.
~ Intrapreneurship.
~ Benchmarking.
Describe Kaizen
(2 Points)
~ Small, but frequent improvements in every aspect of the production process.
~ Leads to less wastage.
Describe R&D
(2 Points)
~ Through R&D a business can differentiate its product and process, reduce wastage.
~ Increases market power.
What Is Intrapreneurship?
When employees within a business, are encouraged to solve a problem by coming up with new innovative ideas.
What Is Benchmarking?
(3 Points)
~ Studying other businesses, to aim to innovate by adopting their methods.
~ Businesses can benchmark internally and externally.
~ Management can then use this, to create new strategies.
How Can Businesses Protect Innovation?
(3 Points)
~ Copyright.
~ Patent.
~ Trademarks.
What Is A Copyright?
Legal protection, for anyone that has produced work in a range of areas.
What Is A Patent?
Legal protection of a unique feature of a product or process.
What Is A Trademark?
Protecting logos and names.
