Innovation Flashcards
Give a definition of innovation:
The ability to spot opportunities and see connections and take advantage of them.
Why might companies want to be innovative?
Firms with innovation as their primary strategy have, on average, 29% higher returns on sales (Georgia Manufacturing Survey).
What are the 3 types of innovation?
Product, service and process.
Give examples of product innovation:
4G/5G tech.
Rapid prototyping device.
Give an example of service innovation:
Internet shopping.
Budget airlines.
Give an example of process innovation:
Motor vehicle assembly line.
Intelligent automation.
What is business model innovation?
A business model is is how an organisation manages incomes and costs throughout its activities. BM innovation is the reorganisation of these elements into new combinations.
Give an example of business model innovation:
Rolls-Royce stopped selling aircraft engines and began operating a similar system to renting; ‘power by the hour’. This meant engines were affordable to budget airlines increasing their market.
What are the degrees of innovation?
Transformational (changes the way we live).
Radical (new product or system).
Incremental (step by step improvements).
Give an example for the degrees of innovation:
Invention of the telephone->landline to mobile->new models/software
Give several ways to measure innovation:
Amount spent on R&D, number of patents filed and number of new products. (Look at table for adv and disadv).
Give an example of the exploitation (implementation) phase:
William Hoover bought the vacuum patent off James Spangler and initiated the commercialisation of the ‘Hoover’. ‘Exploited’ the market.
What is diffusion?
The rate at which the innovation is adopted or the rate at which innovation captures market shares.
Describe the diffusion bell curve with percentages:
Innovators (2.5), Early adopters (13.5), Early majority (34), Late majority (34), Laggards (16).
What is the S - curve and why is it important?
Cumulative version of bell curve. Shows progress of product. Shows what happens when new products introduced to market. Capability ceiling.
