Innovation

Question 1

What is the immediate need for innovation

Answer 1

create more value, and higher willingness to pay

Question 2

commercialization of a new product or service

Answer 2

allows for temporary monopoly profits

Question 3

Why are inventions not innovation?

Answer 3

Innovation is the commercialization of ideas and inventions.Once innovation starts creating value –imitators quickly follow.

Question 4

What is disruptive innovation

Answer 4

―Low cost solution for the lower-end customers that incumbents are over-looking
―Initially, performance is inferior, but rate of improvement is faster than incumbents
―Less for less

Question 5

disruptive innovation but in depth

Answer 5

• “Disruption” describes a process whereby a smaller company with fewer resources is able to successfully challenge established incumbent businesses. Specifically, as incumbents focus on improving their products and services for their most demanding (and usually most profitable) customers, they exceed the needs of some segments and ignore the needs of others.
• Entrants that prove disruptive begin by successfully targeting those overlooked segments, gaining a foothold by delivering more-suitable functionality—frequently at a lower price. Incumbents, chasing higher profitability in more-demanding segments, tend not to respond vigorously
• Entrants then move upmarket, delivering the performance that incumbents’ mainstream customers require, while preserving the advantages that drove their early success. When mainstream customers start adopting the entrants’ offerings in volume, disruption has occurred

Question 6

What are criticisms of disruptive innovation

Answer 6

Iphone also disruptive to laptops, not just phones

Disruption often triggers an industry shakeout: top stays in place while others are threatened

Question 7

Is uber disruptive innovation

Answer 7

taxi- no

limo- yes

Question 8

Crossing the chasm, 5 groups, go

Answer 8

Technology Enthusiasts
Early Majority
Early Adopters
Late Majority
Laggards

Question 9

Who are the innovators?

Answer 9

(Technology enthusiasts) are the first to adopt; love the tech for its own sake

• First to appreciate the architecture of your product
• Spend hours trying to get the product to work

Question 10

Who are the Early Adopters

Answer 10

are the “rare breed to match technology with strategic opportunity”
-Often are new to the executive ranks, eager to make a mark

Question 11

how to get the early majority?

Answer 11

Use a “bowling pin” approach for 1 profitable segment of pragmatists, wait for the “tornado”

Question 12

Bowling pin alley

Answer 12

―Attack a specific segment; goal of 40%+ market share
―Niche markets are profitable
―Address needs of specific users (not technologists)
―Drive word-of mouth

Question 13

Inside the tornado

Answer 13

―Focus on market share
―Sell to infrastructure buyer
―Commoditize your product
―SHIP, SHIP, SHIP

Question 14

Who are the early majorty?

Answer 14

are the bulk of volume for any technology product

• Constitute about 1/3 of the total market
• They look for continuous improvement (measureable, predictable)
• Risk averse and prudent
• Focused on the quality of their vendors, want post-sales support
• Requires significant patience to market and win their business

Question 15

Who are the late majority?

Answer 15

Constitute about 1/3 of the total market
When they find something that works for them, don’t like to change
Slightly “fear” technology

Question 16

who are the laggards?

Answer 16

begrudgingly adopt technology when they are given no choice
1/6 total market
rarely profitable

Question 17

What is the industry lifecycle

Answer 17

Embryonic ->Growth ->Shakeout->Mature ->Decline

Question 18

Levels of innovation in the industry lifecycle

Answer 18

• product innovation
• customer intimacy innovation
• operational excellence innovation
• category renewal innovation