Innovation, Research and Development

Question 1

Why do companies innovate?

Answer 1

• Launch new products successfully and ensure they meet customer needs
• Make production process more efficient
• Reduce waste
• Gain competitive advantage

Question 2

What is product innovation?

Answer 2

Creating new products or altering existing ones

Question 3

What is process innovation?

Answer 3

Finding new ways of doing things e.g more efficient / environmentally friendly

Question 4

What is the first stage of innovation research and development?

Answer 4

Developing an idea - explores new and developing existing ideas or modifies competitiors ideas. Can be done through a morphological study, market research

Question 5

What is analysis and screening, the second stage of R and D?

Answer 5

Seeing if the product can be produced and sold at a profit, whether there is a market and if the technology and resources exist to develop it, prototype developed

Question 6

What is the development stage, the third stage of R and D?

Answer 6

Developing a working prototype, testing it scientifically and tweaking it to make the functional design and aesthetic design

Question 7

What is value analysis, the fourth stage of R and D?

Answer 7

Trying to make the product good value for money, looking at how it is made, warehoused and distributed to ensure the whole process is efficient

Question 8

What is the fifth stage of R and D?

Answer 8

Trial marketing - sometimes in a limited geographical area, customer feedback is analysed and modifications may be made

Question 9

What is the last stage of R and D?

Answer 9

Launching it, ensuring thee is enough stock for distribution. Also needs advertising and promotion in place to inform and persudade retailers and customers

Question 10

Advantages of R and D

Answer 10

• Competitive advantage
• First mover advantage
• Efficiency
• Ability to protect ideas
• Need to innovate to stay in the market

Question 11

Disadvantages of R and D

Answer 11

• Cost
• Risk - no guarantee of success
• Protection is limited
• Rapid changes in technology make it worthless
• Constant changes may annoy consumers

Question 12

What is innovation?

Answer 12

The introduction of a new idea, or method of production or new equipment into the production process, should result in an increase in productivity

Question 13

How does innovation usually arise?

Answer 13

Due to inadequate existing methods of production, employee suggestions or research and development

Question 14

When is research and development particularly important?

Answer 14

In a highly competitive or technological market. Businesses won’t survive unless they keep up with or keep ahead of the competition.

Question 15

What has increase the importance of R+D?

Answer 15

Globalisation as there is more competition due to cheap labour and more relaxed legislation.

Question 16

Why is R + D important?

Answer 16

To launch new products successfully and ensure they meet customer needs
To improve the efficiency of the production process
To explore alternative methods to produce the goods
To reduce waste

Question 17

What factors affect R and D?

Answer 17

Level of competition in the market
Nature of the product e.g technology
External environment - e.g cost of oil, legislation
State of the economy - e. g recession
Responding to a particular problem

Question 18

What is a morphological study?

Answer 18

The use of a matrix or grid with a range of alternatives to be considered in terms of factors like colour, shape or material used in the design of a product