Chapter 1 - Introduction

Question 1

How does having a strategy benefit innovation?

Answer 1

• clearly defined innovation strategies and management processes results in higher percentages of successful products and faster development
• innovation is most powerful and has a greater likelihood of success when it is planned and implemented strategically, not unstructured process

Question 2

What is the impact (benefits and disadvantages) of technological innovation on society?

Answer 2

• increases range of products and services available
• increases efficency in providing products
• Solow residual -> gross domestic product growth thanks to technology (empirical productivity growth). Steadily growing
• negative externalities (pollution, unanticipated consequences)

Question 3

What is the link between innovation and goods?

Answer 3

• driver of effectiveness and efficiency in production (processes)
• shorter development cycles, new product introduction faster and at better prices
• improvement of existing products -> better utility to customers

Question 4

Strategic management in firms (innovation projects, structures and processes and how to achieve that)

Answer 4

• innovation projects should:
  
  • align with firm resources and objectives
  • use its core competences (capabilities that define a business strategic advantages)
  • help achieve its strategic intent
• stuctures and organization should encourage innovation and efficiency
• development processes shoul maximize success of projects
• to achieve that a company:
  
  • understand innovation and its dynamics
  • have a well-enstablished innovation strategy
  • well-designed processes to implement innovation strategy

Question 5

Why is innovation important for competitive success?

Answer 5

• most important driver of competitive success
• companies profit from products developed 5 years prior (3 software fast-paced)
• large portion of their sales and profits

Question 6

What is the link between globalization and innovation?

Answer 6

• globalization adds more pressure, but also expand market, innovation is a competitive leverage (competitive differentiation)
• more product variant, out-focus competitors [Toyota, 21 vehicle lines; Samsung 52 smartphones] -> better market segmentation and penetration
• government funds for innovations have increased

Question 7

What is the innovation funnel?

Answer 7

• Innovation Funnel represents the development process of new products
  
  • most ideas do not become products [pharma 12+ years development]
  • technical uncertainty (will the project result in a technically feasible product or service?) and market uncertainty (what features will customer prefer and what will they be willing to pay for them?)

Question 8

How long does it takes to develop a new product?

Answer 8

• Depends on novelty of product

- incremental improvement > next-generation improv > new-to-the-world improv