Entrepreneurship and innovation

Question 1

what are the four major themes of innovation and entrepreneurship?

Answer 1

Entrepreneurship -> innovation -> innovation diffusion // innovators and imitators

Question 2

what is innovation?

Answer 2

innovation involves the conversion of new knowledge into a new product, process or service AND the putting of this new product, process or service into actual commercial use

innovation is more complex than invention - putting the invention into use can be the most challenging part of the process

Question 3

what is technology push?

Answer 3

technology push is the view that it is the new knowledge created by technologists or scientists that pushes the innovation process

Question 4

what is market pull?

Answer 4

market pull is the view that it is the pull of users in the market that is responsible for innovation.
Lead users are of particular importance. In contrast, “frugal innovation” is also important- sensitivity to the real needs of poorer consumers

Question 5

technology push flow chart

Answer 5

basic science -> development -> manufacture -> marketing

Question 6

need pull flow chart

Answer 6

market need -> development -> manufacture -> sales

Question 7

closed innovation

Answer 7

the traditional approach to innovation, relying on the organisation’s own internal resources - ts own laboratories and marketing departments.

innovation is secretive and organisations are anxious to protect intellectual property

Question 8

open innovation

Answer 8

involves the deliberate import and export of knowledge by an organisation in order to accelerate and enhance its innovation.
exchanging ideas openly is seen as likely to produce better products more quickly.

Question 9

how is open innovation being adopted?

Answer 9

collaboratories - joint development of companies
and
crowdsourcing - an organisation broadcasts a specific problem to a crowd of individuals or teams often in tournaments with prizes awards to the best solution

Question 10

what is innovation diffusion?

Answer 10

diffusion is the process by which innovations spread amongst users. this can vary with respect to both speed and extent

Question 11

what are the supply- side determinants of diffusion?

Answer 11

degree of improvement
compatibility
complexity
experimentation
relationship management

Question 12

demand side determinants of diffusion

Answer 12

market awareness
network effects
customer propensity to adopt

Question 13

diffusion of innovation

Answer 13

innovators - 2.5%
early adopters - 13.5%
early majority - 34%
late majority - 34%
laggards - 16%

Question 14

what is the first mover advantage?

Answer 14

first mover advantage exists where an organisation is better off than its competitors as a result of being first to market with a new product, process or service

Question 15

first mover advantages

Answer 15

experience curve benefits
reputation
buyer switching costs
scale benefits

Question 16

late mover advantages

Answer 16

free riding - imitating pioneers strategies but more cheaply

learning - from the pioneers mistakes

Question 17

what is a fast second?

Answer 17

being one of the first to imitate the original innovator
dominating the second generation of competitors

Question 18

what are the three contextual factors in choosing between innovating and imitating?

Answer 18

capacity for profit capture
complementary assets
fast moving arenas

Question 19

what is a disruptive innovation?

Answer 19

disruptive innovation creates substantial growth by offering a new performance trajectory that, even if initially inferior to the performance of existing technologies, has the potential to become markedly superior

Question 20

two theories on disruption

Answer 20

the good - organisational effectiveness in delivering its strategy

the bad - organisation is trapped in its current trajectory and way of seeing success

Question 21

entrepreneurship definition

Answer 21

is a process by which individuals, teams or organisations identify and exploit opportunities for new products or services that satisfy a need in a market

Question 22

what is opportunity recognition?

Answer 22

recognising an opportunity is central for any form of entrepreneurship

Question 23

six steps in the entrepreneurial process:

Answer 23

opportunity recognition
feasibility analysis
business plan
industry conditions and competitor analysis
choose a business model and strategy
financing and funding

Question 24

entrepreneurial life cycle

Answer 24

start up - source of capital
growth - transition to management
maturity - retaining commitment and generating new growth
exit - alternative ways of releasing capital

Question 25

what is the innovation trinity

Answer 25

viable - how do we make money feasible - can we build desirable - do customers want it

Question 26

social entrepreneurs definition

Answer 26

social entrepreneurs are individuals and groups who create independent organisations to mobilise ideas and resources to address social problems, typically earning revenues but on a not-for-profit basis

Question 27

what are social entrepreneurship decisions

Answer 27

social mission - objectives and operational processes organisational form - often cooperatives involving more stakeholders business model - various revenue streams and maybe innovative value chains