chapter 5

Question 1

What is innovation

Answer 1

the translation of creative ideas into remarkable solutions.

Question 2

Sources of Innovative Ideas:

Answer 2

• Trends
• Unexpected occurrences
• Incongruities(the gap between expectations and reality)
• Process needs
• Industry and market changes
• Demographic changes
• Perceptual changes
• Knowledge-based concepts

Question 3

four commonly agreed-on phases of the creative process

Answer 3

Phase 1: Background or knowledge accumulation
Phase 2: The incubation process
Phase 3: The idea experience
Phase 4: Evaluation and implementation

Question 4

The innovation process

Answer 4

• Begins with the analysis of the sources of new
  opportunities.
• Use both right and left sides of their brains.
• They look at figures – they look at people.
• Simple and focused.
• Work out what the innovation has to be to satisfy the
  opportunity
• Create new consumers and markets.

Question 5

4 basic types of innovation:

Answer 5

1. Invention: the creation of a new product, service or
   process
   FX: telephones
2. Extension: the expansion of a product, service or
   process already in existence. New use or different
   application of an existing product
   FX: Facebook, McDonalds
3. Duplication: the replication of an already existing
   product, service or process. The duplication effort,
   however is not simply copying but adding the
   entrepreneur’s own creative touch to enhance or
   improve the concept and beat the competition
   FX: Walmart
4. Synthesis: the combination of existing concepts and
   factors into a new formulation.
   FX: Starbucks

Question 6

The major misconceptions of innovation

Answer 6

1. innovation is planned and predictable
2. technical specifications must be throughly prepared
3. innovation relies on dreams and blue-sky ideas
4. big projects will develop better innovations than
   smaller ones
5. Technology is the driving force of innovation success

Question 7

Principles of innovation

Answer 7

1. be action oriented
2. make the product, process, or service simple and
   understandable
3. make the product, process or service customer-based
4. start small
5. aim high
6. try/test/revise
7. learn from failures
8. follow a milestone schedule
9. reward heroic activity
10. work, work, work