9.2a - Innovation

Question 1

Invention definition

Answer 1

The formulation of new ideas for products

Question 2

Innovation definition

Answer 2

The practical application of new inventions into marketable products

Question 3

What does innovation include?

Answer 3

• Improving processes to increase efficiency
• Extending the range or quality of existing products
• Developing new and improved products
• Adding value to existing products

Question 4

Product innovation definition

Answer 4

Launching new or improved products into the market or finding new uses for existing products

Question 5

Process innovation definition

Answer 5

Finding better or more efficient ways of producing existing products

Question 6

Advantages of focusing on product innovation:

Answer 6

• First mover advantage
• Added value
• Diversification
• Higher prices

Question 7

Advantages of focusing on process innovation:

Answer 7

• Reduce costs
• Improved quality
• More responsive customer service

Question 8

Advantages of innovation:

Answer 8

• Improved productivity
• Better quality
• Build a product range
• Charge higher prices until competitors bring similar products out
• Innovative reputation

Question 9

Disadvantages of innovation:

Answer 9

• Competition may copy your idea
• Uncertain returns
• R&D investment cant be high
• Time consuming

Question 10

How can innovation effect the functional areas?

Answer 10

• Finance need to raise extra working capital
• Operations need to set budget aside to spend on expensive new machinery
• Marketing need to spend more on market research
• HR need to hire more skilled staff

Question 11

Examples of opportunities innovation has created:

Answer 11

• Internet of Things
• Nanotech
• Mass customisation
• 3D printing

Question 12

Internet of Things definition

Answer 12

A scenario in which people are provided with unique identifiers and the ability to transfer data over a network without required human-to-human interaction

Question 13

Nanotech definition

Answer 13

The creation of materials, devices and systems by manipulating matter at a microscopic level

Question 14

Advantages of 3D printing:

Answer 14

• Leaner production

- New revenue streams (launch new products quicker)

Question 15

What are the stages of new product development from idea to launch?

Answer 15

1. Idea
2. Analysis and screening (seeing if it can be produced and sold at a profit)
3. Development (working prototype)
4. Value analysis (make product good value for money)
5. Test marketing
6. Launch