Innovation, Research And Developement

Question 1

What is meant by innovation?

Answer 1

Introduction of new idea, method of production or equipment into production process.

Question 2

Whats the aim of innovation?

Answer 2

• inc productivity to meet market needs

Question 3

What is product innovation?

Answer 3

Introduction of usually new and better product to market

Question 4

What is process innovation?

Answer 4

Introduction of new production process - improves productivity + lowers costs

Question 5

What is research and development?

Answer 5

Gathering knowledge to create new products or discover new ways to improve existing ones.

Question 6

What are the reasons for innovation?

Answer 6

• keep up or be ahead of competition
• increase productivity

Question 7

What are the reasons for R&D?

Answer 7

• 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

Question 8

What are the problems in research and development?

Answer 8

• 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

Question 9

How is cost a problem in r&d?

Answer 9

Can be very expensive - depends on nature of product eg pharmaceuticals

Question 10

How is risk a problem in r&d?

Answer 10

No guarantee of success - money spent may not be covered

Question 11

How is copying from other businesses a risk in r&d?

Answer 11

Danger of other companies copying but charge lower prices as didnt go through r&d process

Question 12

How is limited protection of new ideas a problem in r&d?

Answer 12

Patents don’t cover all aspects of new products + if no patent nothing to stop copying. Expensive + time consuming to prove copying

Question 13

How is coping with rapid changes in technology a problem in r&d?

Answer 13

Rate of change significant - if fail to keep up with this could fall out of market quickly

Question 14

How is constant changes annoying customers an issue in &d?

Answer 14

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

Question 15

How is unemployment an issue in r&d?

Answer 15

Constant improvements could cause shift from labour-intensive to capital-intensive - significant effect on level of employment

Question 16

How are technological changes an issue in r&d?

Answer 16

Technological advancements in communication = inc working from home = isolation and lack of team-building

Question 17

What are the processes of r&d?

Answer 17

1. Market research
2. Brainstorming
3. Value analysis

Question 18

What is market research?

Answer 18

Ensuring the product is something the consumer will want to buy - market orientated

Question 19

What is a market-orientated approach?

Answer 19

Tailoring a product to consumer needs

Question 20

What is a product-orientated approach?

Answer 20

Concentrating on improving the product without market research

Question 21

What is brainstorming?

Answer 21

Method of generating ideas and sharing ideas

Question 22

What is a morphological study?

Answer 22

A method of brainstorming that generates a lot of ideas quickly and thus cheaply

Question 23

What is value analysis?

Answer 23

A process that designers will consider when dev a new product. Three key aspects:
- function
- cost
- aesthetics

Question 24

What is the function aspect of value analysis?

Answer 24

The functional focus on a product in r&d - ensuing it does what its meant to

Question 25

What’s the cost aspect of value analysis?

Answer 25

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

Question 26

What is the aesthetics aspect of value analysis?

Answer 26

Looks of the products
Importance varies depending on nature of product

Question 27

What must the design dept do?

Answer 27

Consider the importance of each aspect - difficult to balance. Eg bridge - function most important

Question 28

How is value analysis presented?

Answer 28

In a triangle. Most important aspect at top.

Question 29

What are the factors affecting r&d?

Answer 29

• level of competition in market
• product
• external environment
• state of the economy
• responding to a particular problem

Question 30

How does level of competition affect r&d?

Answer 30

If market highly competitive - likely expenditure on r&d greater to gain comp advantage. However inc costs = higher prices which decreases competitiveness

Question 31

How does the type of product affect r&d?

Answer 31

The more technologically advantaged a product = more likely to need r&d

Question 32

How does the external environment affect r&d?

Answer 32

For example prices of fuel - r&d into better fuel consumption ect

Question 33

How does the state of the economy affect r&d?

Answer 33

Economy in recession - business undertake cutbacks eg on r&d