CH 12 Flashcards
The use of new knowledge to transform organizational processes or create commercially viable products and services
Innovation
Q. Whereas ____ are often associated with the low-cost leader strategy, ____ are frequently an important aspect of the differentiation strategy
Process innovations; product innovations
Efforts to create product designs and applications of technology to develop new products for end-users
Productive innovation
Efforts to improve the efficiency of organizational processes
Process innovation
An innovation that fundamentally changes existing practices
Radical innovation
An innovation that enhances existing practices or makes small improvements in products and processes
Incremental innovation
Are those that extend sales in existing markets
Sustaining innovations
Those that overturn markets by providing an altogether new approach to meeting customer needs
Disruptive innovations
Reflects the fact that most companies have an abundance of innovative ideas
Seeds vs weeds
Reflects the fact that companies must decide who will lead an innovation project
Experience vs initiative
Reflects the fact that innovation projects need competent staff to succeed
Internal versus external staffing
Implies that innovation projects often require new sets of skills
Building capabilities vs collaborating
Managing the timing and scale of new innovation projects
Incremental vs preemptive launch
Allows leaders to see the potential in innovations
Discovery skills
The key attribute that firms need to develop in their managers in order to improve their innovative potential
Creative intelligence
A firm-specific view of innovation that defines how a firm can create new knowledge and learn from a innovation initiative even if the project fails
Strategic envelope
The creation of new value for a corporation, through investments that create either new sources of competitive advantages or renewal of the value proposition
Corporate entrepreneurship
A group of individuals, or a division within a corporation that cultivates venture opportunities
New venture group
A corporate new venture group that supports and nurtures fledgling ventures until they can thrive on their own
Business Incubator
Corporate entrepreneurship in which a dedication to the principles and policies spread throughout the organization
Dispersed approaches to corporate entrepreneurship
Corporate culture in which change and renewal are a constant focus of attention
Entrepreneurial culture
Firm’s willingness to invest in the generation and execution of innovative ideas
Resource allotments
Individual working within a corporation who brings entrepreneurial ideas forward
Product champion
Implies that an opportunity has to be justified in terms of its attractiveness in the marketplace and how well it fits with objectives
Project definition
An options analysis tool that looks at an investment or activity as a series of sequential steps
Real options analysis
Problem with investment decisions in which managers scheme to have a project meet criteria
Back-solver dilemma
Biases, blind spots, and other human frailties that lead to poor managerial decisions
Managerial conceit
The tendency for managers to irrationally stick with an investment, even one that is broken
Escalation of commitment
Strategy making practices that businesses use in identifying and launching corporate ventures
Entrepreneurial orientation
Independent action by an individual or team aimed at bringing forth a business concept and carrying it through to completion
Autonomy
A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes
Innovativeness
A forward looking perspective characteristics of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand
Proactiveness
An intense effort to outperform industry rivals characterized by a competitive posture or an aggressive response aimed at improving position
Competitive aggressiveness
