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5th semester BSCB > Innovation Management > Flashcards

Innovation Management Flashcards

1
Q

What is the definition of innovation?

A
  1. Innovations are qualitatively new products or processes that differ significantly from what existed before
  2. A new way of doing things that is commercialized
  3. The adoption of ideas that are new to the adopting organizations
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2
Q

What are the types of innovation?

A
  1. Product or service innovation: to generate/increase sale
  2. Process innovation: enable/improve production of goods or services
  3. Business model innovation: find new ways to generate revenue, increase value for customers
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3
Q

What is the difference between innovation and invention?

A

An invention only becomes an innovation when it is launched to the market. So useless inventions are not innovations, as there is no market/need for it, and it is not launched.

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4
Q

Why are companies interested in managing innovation?

A
  1. To increase efficiency

2. Create a competitive advantage

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5
Q

When are firms successful in creating a competitive advantage?

A

When the offer new, better and/o cheaper products and services, which their competitors cannot provide.

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6
Q

Explain how outcome and process relates to innovation?

A

Innovation is an outcome (new product, service or process), and a process of managerial and organizational combinations and decisions.

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7
Q

What is the two-dimensional structure of complexity?

A

Dimensions are need and solution and the degree of newness of the two.

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8
Q

What are the elements of managing innovation?

A
  1. Innovation strategy
  2. Communities and networks
  3. R&D
  4. Design and new product development
  5. Operations and process innovation
  6. Value delivery
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9
Q

What are the paths in innovation development?

A
  1. Early period competing radical design combinations
  2. Long period of decreasing unit cost and developing increasing economic return
  3. End state with diseconomies of scale
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10
Q

What are the advantages of pursuing increasing economic return?

A
  1. New entrants are faced with a moving target

2. Lowering unit costs expands scale of market

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11
Q

What are the disadvantages of pursuing increasing economic return?

A

Underestimating the danger of diseconomies of scale and disruptions

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12
Q

What is the network effect?

A

When we select a “standard”, not because it gives the best utility, but because many other uses it, and it thereby gives us access to products/services that do give the highest utility

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13
Q

Why did the QWERTY keyboard become the standard?

A

It was not the speed optimal keyboard, but it got licensed to Remington, and was the most reliable keyboard. Since Remington was the most popular typewriter, people bought this (including type-writing schools).
–> Network effect

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14
Q

What lang term patterns of technological change are there?

A
  1. Technological change is cumulative and evolutionary
  2. Most innovations are new combinations of existing technologies
  3. Technological development is not a smooth, automatic process
  4. In hindsight some changes are revolutionary leading to “technological revolutions”
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15
Q

What is diffusion?

A

Diffusion is the process on which an innovation is communicated through certain channels over time among the members of a social system.

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16
Q

What is ex-ante?

A

Before the event

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17
Q

What is ex-post?

A

After the event

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18
Q

Who has the most gain from innovation? Monopolist, firm in competitive market, or social planner?

A

Social planner, because total welfare consists only of consumer surplus

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19
Q

What is the efficiency effect?

A

When the innovation is only slightly better than existing solutions

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20
Q

What is the cannibalization effect?

A

Radical innovation that supplants existing products

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21
Q

What are some of the liabilities/disadvantages of new firms/newness?

A
  1. Roles and tasks have to be assigned (take times, creates conflicts)
  2. New organizations lack reputation and experience
  3. Exchange relationships with various actors have to be established
  4. New firms have to rely on interactions among “strangers”
  5. Limited resources
  6. Low market power
22
Q

What are some of the advantages of new firms?

A
  1. No path dependence
  2. Flexible company structure
  3. More flexible culture
  4. Can hire people which exactly matches the task at hand
23
Q

What are resources for innovation?

A

Financial, human, technological, organization, marketing, and networking resources

24
Q

What are innovative capabilities?

A

Organizational and managerial skills necessary to organize the resources and deploy them strategically.

25
Q

What is resource based view?

A

finding resources and capabilities which gives a competitive advantage. This can be done through VRIN

26
Q

What is VRIN?

A

Framework to find sustainable competitive advantages

27
Q

What is innovation strategy?

A

o Statements on the role of innovation in creating value and building sustainable competitive advantage

28
Q

What is market pull?

A

Identifying a need and developing a solution/technology –> triggered by market

29
Q

What is technology push?

A

developing a technology and searching for market –> creating new demand

30
Q

What are the different types of innovation strategies?

A

Passive, reactive, active, proactive

31
Q

What is design thinking?

A

Combination of innovation and empathy. Walk in the users shoe and experience a problem. Work in teams to develop solutions

32
Q

What skills must the design thinker have?

A
  1. Finding inspiration from a wide range of sources
  2. Collaborating radically in teams
  3. Sharing knowledge
  4. Exploring options and ideas early to clarify assumptions
33
Q

What are some of the assets of using a group?

A
  1. More knowledge and information
  2. Opportunity for cross-fertilization
  3. More experience to draw upon
34
Q

What are some of the liabilities of using a group?

A
  1. Social pressure
  2. Converge on options (group think)
  3. Dominant individuals
35
Q

What are process constraints?

A

Constraints on: time, equipment, money, HR - constraints on how the work is done

36
Q

What are product constraints?

A

Product requirements, customer needs, business needs - constraints on the expected solution

37
Q

What is the difference between interaction/communication and collaboration?

A

Interaction/communication is the structured part
Collaboration is unstructured
–> Interaction does not have positive effect on performance (but necessary)
–> Collaboration correlates with success

38
Q

How can degree of harmony be measured?

A
  1. The cooperation between two parties
  2. Feelings of warmth expressed
  3. Sense of mutual commitment
39
Q

What is the business creativity model?

A

Model of how creativity is created (combination of expertise, creative thinking skills, and motivation), and raises the challenge of how management can influence these to create more creativity - and how they can destroy it

40
Q

What characterises disruptive innovation?

A
  1. Inferior performance
  2. Initially, sold to new/niche market
  3. Eventually, new technology supplants the old one in the stablished main market
41
Q

What is the difference between sustaining and disruptive innovations?

A

Sustaining serves the current customers with an improved solution, where disruptive serves new customers.
Sustaining is incumbent firms, whee disruptive is entrants

42
Q

How can incumbent firms manage disruptive innovation?

A

Organizational seperation: spinoffs, start-ups

43
Q

Was is the basic idea with having patents and copyright?

A

It is a right to exclude others from some strictly defined subject matter

44
Q

What is copyright?

A

works of authorship … fixed in a medium

45
Q

What are patents and what are the patent criteria?

A

All fields of technology

  1. “New”/novel
  2. Nonobvious
  3. Utility (must work/functionality)
  4. Enabling disclusure
46
Q

Where did the da Vinci helicopter fail in the patent criteria?

A

Nr 3, utility. It did not work

47
Q

What is the difference between user and manufacture innovation?

A

The user expects to benefit from using the invention, and the manufacture expects to benefit from selling it. Users tend to develop new functional capability innovations, where manufacturers tend to develop improvements

48
Q

What is crowdsourcing?

A

When a company takes a task normally performed by employees, and outsources it to an undefined network of people

49
Q

What are the types of crowdsourcing?

A 
Type 1: many people = small contribution.
- Creation
- Prediction
- Organization
Type 2: few people = large contributions
50
Q

How can innovation be measured?

A
  1. R&D expenditure
  2. Patents
  3. Commercializaton indicators
51
Q

Which innovation tools are there for market and demand?

A
  1. delphi analysis
  2. Positioning
  3. Conjoint analysis
52
Q

Which innovation tools are there for technology?

A
  1. Monitoring
  2. Road mapping
  3. Forecast

5th semester BSCB (2 decks)

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