HC5-Sources and search strategies (2)

Question 1

knowledge push

Answer 1

Involves generating ideas which will provide the basis for a steady stream of innovations. Knowledge
push has long been a source of innovative start-ups where entrepreneurs have used ideas based on
their own research to create new ventures. The knowledge- push model involves a mixture of
occasional breakthroughs followed by extensive elaboration on the basic theme, searching around
the core trajectory

Question 2

need pull

Answer 2

Innovation requires some form of demand if it is to take root. Ideas themselves are not enough –
they may not meet real or perceived need and people may not feel motivated to change. Innovation
is often the response to a real or perceived need for change. Need pull is particularly important at
mature stages in industry or product life cycles when there is more than one offering to choose from.
Competing depends on differentiating on the basis of needs and attributes, and/or segmenting the
offering to suit different adopter types.

Question 3

mass customization

Answer 3

the ability to offer highly configured bundles of nonprice factors configured to suit different market segments but to do this without incurring cost penalties and trade-offs.

Question 4

4 types of customization

Answer 4

1. distrubution customization: customer may customize product/service packaging, delivery schedule, but product is standsardized.
2. Assembly customization: Customers are offered a number of predefined options. Products/services are made to order using standardized components.
3. Fabrication customization: Customers are offered a number of pre-defined designs. Products/services are manufactured to order.
4. Design customization: Customer input stretches to the start of the production process. Products do not exist until initiated by a customer order.

Question 5

important features of prototyping 6

Answer 5

1. it creates a boundary object
2. It offers a stepping stone in though processes
3. It allows plurality, bet on multiple ideas
4. Allows for learning
5. allows for working with half-formed ideas
6. it allows for emergence

Question 6

innovation search space

Answer 6

Tool: novelty and environmental complexity

• Zone 1 – Exploit (business as usual):
  innovation but under steady state conditions
• Zone 2 – Bounded exploration
  (business model as usual):
  exploration governed by shared frame
• Zone 3 – Reframing (alternative
  frame): taking in new/different elements in environment
• Zone 4 – Co-evolve (Radical): ‘new to the world’ possibilities

Question 7

Absorptive capacity

Answer 7

Absorptive capacity is the ability of a firm to recognize the value of new, external information,
assimilate it, and apply it to commercial ends.

Requires two complementary types of learning:

1. adaptive learning: reinforcing and establishing relevant routines for dealing with a
   particular level of environmental complexity
2. generative learning: taking on new levels of compexity

Question 8

Conditions undermined closed innovation practices

Answer 8

-more venture funds to exploit innovations
-increasing change of knowledge spills, because people travel more and more easily. Transportation changed and so they could start businesses more easy
-time to market pressure increased, ed cars need to be every two years new technology.
-companies were increaingliy operatin gin networks. You had to share knowledge to bring your product forward.
Therefore open innovation was needed.