Chapter 13 - Innovation, entrepreneurship, and creativity Flashcards
Innovation
The process by which organisation use their skills and resources to develop new goods and services or to develop new production and operating systems so that they can better response to the needs of their customers
Two types of innovation
Quantum change
Incremental change
Quantum technological change
A fundamental shift in technology that revolutionises products or the way they are produced
Quantum innovations
New products or operating systems that incorporate quantum technological improvements.
Incremental technological change
Technological change that represents a refinement of some base technology.
Incremental innovations
Products or operating systems that incorporate refinements of some base technology.
Intrapreneurs
Entrepreneurs inside an organization who are responsible for the success or failure of a project.
Knowledge-creating organization
An organisation where innovation is going on all the levels in all areas.
Product life cycle
The changes in demand for a product that occur over time
Product life cycle stages
Embryonic
Growth
Mature
Decline:
Project management
The process of leading and controlling a project so it results in the creation of effective new or improved products
Project:
A subunit whose goal centres on developing the products or service on time, within budget, and in conformance with predetermined performance specifications
The purpose of a stage-gate funnel
To establish a structured and coherent innovation process that both improves control over the product development effort and forces managers to make choices among competing new product development projects so resources are not spread too thinly over too many projects
Cross-functional teams
A critical element in any structured new product development effort.
Successful innovation depends on the coordination of the activities of the research and development with the activities of other departments
Lightweight team
Mid-level functional manager who has lower status than the head of a functional department.
The lightweight team leader is not given control over human, financial and functional resources.am leader
Heavyweight team leader
A true project manager who has higher status within the organisation.
The heavyweight team leader is given primary control over key human, technological and financial resources for the duration of the project.
Skunk work
Is a task force, a temporary team that is created to expedite new product design and to promote innovation by coordinating the activities of functional groups
Joint ventures
Joint ventures between two or more organisations are another important means of managing high-tech innovation.
A joint venture allows organisations to combine their skills and technologies and pool their resources to embark on risky R&D projects
Three factors that shape organizational culture and the degree to which its values and
norms emphasize innovation are
Organisational structure
People
Property rights
Information efficiencies
The cost and time savings that occur when IT allows individual employees to perform their current tasks at higher level, assume additional tasks, and expand their roles in the organisation due to advances in the ability to gather and analyse data.
Information synergies
The knowledge building created when two ore more individuals or subunits pool their resources and cooperate and collaborate across role or subunit boundaries.
Boundary-spanning activity
The interaction of people and groups across the organisational boundary to obtain valuable information and knowledge form the environment to help promote innovation.
How does IT help organisational structure and culture?
IT gives lower-level employees more detailed and current knowledge of
consumer and market trends and opportunities
IT can produce information synergies because it facilitates increased
communication and coordination between decentralised makers and top
managers.
IT means that fewer levels of managers are needed to handle problem solving
and decision making, which results in a flatter organisation
IT can also promote innovation through its effects on organizational culture. IT
facilitates the sharing of beliefs, values and norms because it allows for the quick
transmission of rich, detailed information between people and subunits.
