Creating and Capturing Value & the Product Innovation Process

Question 1

Why is innovation important?

Answer 1

It is a necessity for the survival of companies, since it contributes to competitive success and helps companies reach their goals.

Question 2

Why is innovation of processes and management important?

Answer 2

Returns for process innovation is approx. four times that of product innovation.
Innovation success rates can be improved through improved management (85 % of innovations never reach markets and of those fail 40 % of consumer products).

Question 3

Advantages provided through innovation?

Answer 3

Reputation, early learning curve benefits, successfully established barriers to entry, dominating new supply and distribution networks, earn monopoly profits.

Question 4

Describe the generic innovation process.

Answer 4

It’s a mix of different types of R&Ds that deal with product and process innovation and improvement. It focuses on 1) internal development, 2) external acquisition, and 3) strategic alliances.

Question 5

Why are routines important for innovation?

Answer 5

They enable coordination, provide a degree of stability in behaviour, enable sub-conscious task execution, and binds knowledge.

Question 6

What are the (5) generic phases of the innovation process?

Answer 6

1. Searching and Scanning
2. Filtering and selecting opportunities
3. Acquiring Resources
4. Implementing Development and Commercialisation
5. Reviewing and Learning

Question 7

Describe the product innovation process shortly.

Answer 7

Technological innovation + Customer needs + Investments = New products that meet customer requirements, satisfaction and needs.

Question 8

How has innovation creativeness changed?

Answer 8

Transitioned from closed to open innovation. The complexity of products has lead to the need for external expertise. Network and community cooperation has sped up the innovation process.

Question 9

What is a product?

Answer 9

Something that can be offered to a market for attention, acquisition, use or consumption.

Question 10

What are some typical causes of product problems?

Answer 10

Design faults, lack of prototypes and testing, communication problems, management pressure overriding technical rules, things (information, risks, time) fall through the gaps.

Question 11

What are some costs related to products?

Answer 11

Problem related: loss of sales, recall, repair.
Included in total costs: disposal, operating, utilisation.
Visible: research, design, test, construction etc.
Hidden: operating, software, distribution, training, maintenance etc.