Innovation Management Flashcards
3 life phases of a technology.
1) Introduction
2) Growth
3) Maturity
3 types of R&D.
1) Basic
2) Applied
3) Experimental
Define “Basic R&D”.
General new scientific knowledge. It describes and explains observable phenomena.
Define “Applied R&D”.
It is new industrial/engineering knowledge that provides technical solutions to specific problems.
Define Innovation. 2 categories.
1) Product innovation
2) Business process innovation
Product or process that is an improvement and differs significantly from the previous one.
2 ways of acquiring Innovation inputs. Explain.
1) Technology push: emphasis on R&D for completely new technologies
2) Market pull: emphasis on analysing market needs
3 types of innovation. Explain.
1) Incremental: a significant improvement
2) Radical: something completely new and unforeseen
3) Disruptive: usually happens when new companies capture the lower-end segments of already established companies
5 Porter’s threats.
1) Competition
2) Potential of new entrants
3) Bargaining power of suppliers
4) Bargaining power of customers
5) Threat of substitute products
4 categories of “Technologies”. Explain.
1) Base: vital to the business and well known in the industry
2) Key: give the current advantage in the market
3) Pacing: not yet implemented, but new technologies with high potential already under testing
4) Emerging: new but unclear technologies
3 examples of “Technology protection”.
1) Patents
2) Legal agreements (confidentiality)
3) Appropriation: no formal protection because the process/product is so complex or ahead of time for competitors to copy
What are “patents”?
A legal document that guarantees the company protection for 20 years
5 types of Innovation strategies.
[approaches to innovation]
1) Offensive / proactive
2) Defensive / reactive
3) Opportunistic
4) Dependant
5) Imitative / traditional (almost no innovation)
4 key points of the Offensive Innovation strategy.
1) High risk and cost
2) Higher potential profits (monopoly)
3) Low starting efficiency
4) Good corporate image
3 key points of the Defensive Innovation strategy.
1) Little risk
2) Better existing production and distribution efficiency
3) Improve upon others innovations and learn from their mistakes
Explain the Opportunistic Innovation strategy.
Focus on niche markets (e.g., phones for blind people)
Explain the Dependant Innovation strategy.
Tech acquisition (patents & licenses)
8 Knowledge (learning) strategies.
1) Explorative VS exploitative
2) External VS internal
3) Breadth VS depth
4) Slow VS fast
Explain the Explorative Knowledge strategy.
Experimentation with new alternatives and unknowns.
Explain the Exploitative Knowledge strategy.
Refinement and deepening of existing tech and solutions.
Explain Ambidexterity as a Knowledge strategy.
Explorative + exploitative
Explain Open innovation as a Knowledge strategy.
Internal + external
3 types of Organisational structure.
1) Functional
Multidivisional:
2) Product
3) Geographic / market
4 advantages of Functional organisational structure.
1) Specialisation (no duplication)
2) Economies of scale
3) Management is in touch with all functions
4) Clear responsibilities
3 disadvantages of Functional organisational structure.
1) Higher authority (less employee involvement)
2) Unflexible (problematic on a very large scale)
3) Low diversity
4 advantages of Multidivisional organisational structure.
1) Decentralisation
2) More contact with customers
3) Improved inter-unit communication
4) Local adaptation
3 disadvantages of Multidivisional organisational structure.
1) Fragmentation and non-cooperation
2) Loss of central control and common path
3) Task and resource duplication
3 advantages of Matrix organisational structure.
1) Adaptation to complexity and change
2) Improved inter-function communication
3) Increased participation in decision-making
3 disadvantages of Matrix organisational structure.
1) Conflict between managers
2) Unclear job responsibilities
3) Unclear cost / profit responsibilities
2 types of Knowledge. Explain.
1) Tacit: hard to explain, usually unconscious and hard to store (like explaining how to ride a bike etc.)
2) Explicit: conscious, easy to store and explain (like how to solve a math problem)
What is a Learning organisation compared to the Traditional type?
In contrast to the Traditional concept, where organisations are hierarchies to be managed, the Learning organisation provides more adaptation, open dialogue and diversity.
5 criteria of a Learning organisation.
1) Experimentation
2) Risk taking
3) Interaction with the external environment
4) Dialogue
5) Participative decision making
