Innovation, Research And Developement Flashcards
What is meant by innovation?
Introduction of new idea, method of production or equipment into production process.
Whats the aim of innovation?
- inc productivity to meet market needs
What is product innovation?
Introduction of usually new and better product to market
What is process innovation?
Introduction of new production process - improves productivity + lowers costs
What is research and development?
Gathering knowledge to create new products or discover new ways to improve existing ones.
What are the reasons for innovation?
- keep up or be ahead of competition
- increase productivity
What are the reasons for R&D?
- to launch new products successfully to ensure meet customer needs
- examine how to improve production process and its efficiency
- explore alternative materials
- reduce amount of waste generated
These help a business maintain or gain competitive advantage. Can charge premium prices
What are the problems in research and development?
- cost
- risk
- copying from other businesses
- limited protection of new ideas
- coping with such rapid chnages in technology
- constant changes may annoy customers
- unemployment
- technological chnages
How is cost a problem in r&d?
Can be very expensive - depends on nature of product eg pharmaceuticals
How is risk a problem in r&d?
No guarantee of success - money spent may not be covered
How is copying from other businesses a risk in r&d?
Danger of other companies copying but charge lower prices as didnt go through r&d process
How is limited protection of new ideas a problem in r&d?
Patents don’t cover all aspects of new products + if no patent nothing to stop copying. Expensive + time consuming to prove copying
How is coping with rapid changes in technology a problem in r&d?
Rate of change significant - if fail to keep up with this could fall out of market quickly
How is constant changes annoying customers an issue in &d?
Some customers are happy w the type of product they have despite new ones being bough out - annoying if parts for older ones no longer available - feel forced to update
How is unemployment an issue in r&d?
Constant improvements could cause shift from labour-intensive to capital-intensive - significant effect on level of employment
How are technological changes an issue in r&d?
Technological advancements in communication = inc working from home = isolation and lack of team-building
What are the processes of r&d?
- Market research
- Brainstorming
- Value analysis
What is market research?
Ensuring the product is something the consumer will want to buy - market orientated
What is a market-orientated approach?
Tailoring a product to consumer needs
What is a product-orientated approach?
Concentrating on improving the product without market research
What is brainstorming?
Method of generating ideas and sharing ideas
What is a morphological study?
A method of brainstorming that generates a lot of ideas quickly and thus cheaply
What is value analysis?
A process that designers will consider when dev a new product. Three key aspects:
- function
- cost
- aesthetics
What is the function aspect of value analysis?
The functional focus on a product in r&d - ensuing it does what its meant to
What’s the cost aspect of value analysis?
Keeping down cost allows business to remain competitive/ more profitable.
Challenge to guarantee functional element without incurring high costs.
Value for money may attract customers.
Cost will vary depending on market + nature
What is the aesthetics aspect of value analysis?
Looks of the products
Importance varies depending on nature of product
What must the design dept do?
Consider the importance of each aspect - difficult to balance. Eg bridge - function most important
How is value analysis presented?
In a triangle. Most important aspect at top.
What are the factors affecting r&d?
- level of competition in market
- product
- external environment
- state of the economy
- responding to a particular problem
How does level of competition affect r&d?
If market highly competitive - likely expenditure on r&d greater to gain comp advantage. However inc costs = higher prices which decreases competitiveness
How does the type of product affect r&d?
The more technologically advantaged a product = more likely to need r&d
How does the external environment affect r&d?
For example prices of fuel - r&d into better fuel consumption ect
How does the state of the economy affect r&d?
Economy in recession - business undertake cutbacks eg on r&d
