Innovation Flashcards
What is the combined definition of innovation?
Systematic practice of creating and marketing new products/services for customer adoption.
How does creativity relate to innovation?
Creativity generates ideas, while innovation implements them to add value.
Why is innovation essential in free markets?
Drives evolution of products to better meet consumer needs.
What role does marketing play in innovation?
It identifies market needs and creates superior solutions to meet them.
How does marketing identify consumer needs?
Through market research and understanding customer pain points.
Define disruptive innovation.
Innovations that create new markets and displace existing products/companies (e.g., driverless cars).
Why is disruptive innovation impactful?
It redefines market structures and challenges existing business models.
What is NPDP?
New Product Development Process (NPDP)
Advantages of NPDP?
Consistent production, resource dedication, idea diversity, and objective evaluation.
Disadvantages of NPDP?
High cost, needs scale, favors incremental over disruptive changes, risk of market introversion.
List the 6 NPDP process stages.
Policy development, 2. Idea generation, 3. Screening, 4. Development, 5. Decision, 6. Commercial launch.
Why is NPDP uncommon in NZ businesses?
Small scale makes supporting NPDP difficult.
Key NPDP pressure points?
product policy, concept development, specifications, financial analysis, commercialization.
Outcomes of failing at pressure points?
Lack of resources, no consumer need, unprofitability, or missed market opportunities.
What is an innovation policy?
A strategic plan outlining innovation roles, goals, and resource alignment in an organization.
What are indicators of a poor innovation policy?
Fragmentation, introspection, lack of direction, and resource constraints.
What is an offer concept?
Links consumer need, potential revenue, solution, and costs.
Steps to develop offer specifications?
Define cycle, set specifications, consolidate, assess functionality, and ask “How can it fail?”
Why is offer deletion necessary?
To remove low-selling products, reduce costs, and make space for new innovations.
What happens if products are not deleted?
Overcrowded market, increased costs, and reduced product focus.
What is a form study prototype?
Shows product size and appearance but not functionality.
Define functional prototype.
Captures function and appearance, potentially with different production methods.
What is a service blueprint?
A guide for service delivery, detailing physical evidence, staff actions, and support needs.
Why use a service blueprint?
To standardise and improve service consistency across channels.
