Chapter1 Flashcards
What is the definition of innovation?
The process of creating value from ideas
The term ‘innovation’ comes from the Latin word ‘innovare’, which means change.
Who does innovation matter to?
- Entrepreneurs starting up a venture
- Established enterprises trying to grow
- Governments (local and national)
- Trade and sector bodies
- Supply chain ‘owners’
These stakeholders are directly impacted by innovation in various ways.
What are the stages in the life cycle of innovation?
- Start-up
- Growth
- Sustain/scale
- Renew
Each stage reflects a different focus on creating wealth or social value.
What are some barriers to innovation?
- Seeing innovation as ideas, not managing the whole journey
- Not recognizing the need for change
- Mindset and complacency
- Closed information networks
These barriers can hinder the innovation process and prevent organizations from adapting.
True or False: Innovation can be managed as a series of experiments.
True
Managing innovation effectively involves building routines and creating a culture that supports experimentation.
What does the term ‘dynamic capability’ refer to?
The ability to rest and adapt approaches in the face of a changing environment
This capability is crucial for organizations to stay competitive.
What are some indicative examples of context change affecting innovation?
- Acceleration of knowledge production
- Global distribution of knowledge
- Market expansion
- Market fragmentation
- Market virtualization
- Rise of active users
- Growing concern with sustainability issues
- Development of technological and social infrastructure
These examples illustrate how external factors can influence innovation strategies.
What are the four dimensions of innovation?
- Product
- Process
- Position
- Paradigm
Each dimension represents a different aspect of how innovations can manifest within an organization.
Fill in the blank: The ‘Product’ dimension of innovation focuses on changes in the _______.
[things (products/services) which an organization offers]
This includes new products or improvements to existing services.
What is an example of ‘Process’ innovation?
Improved factory operations efficiency through upgraded equipment
This type of innovation enhances the way products or services are created and delivered.
What is an example of ‘Position’ innovation?
HaagenDazs changing the target market for ice cream from children to consenting adults
Position innovation involves targeting and marketing to different customer segments.
What is an example of ‘Paradigm’ innovation?
IBM moving from being a machine maker to a service and solution company
This represents a fundamental change in how an organization defines its business model.
What are the 4 key steps in the innovation process?
- Recognizing the opportunity
- Finding the resources
- Developing the idea
- Capturing value
These steps guide organizations in transforming ideas into successful innovations.
What is a tool for strategic analysis in innovation?
- SWOT analysis
- PEST analysis
- Scenarios
These tools help organizations assess their strategic position and identify innovation opportunities.
What does strategic selection in innovation involve?
Deciding what the organization is going to do and why
This process includes aligning innovation efforts with overall business strategy.
