Innovation Strategy Flashcards
Types of new products (Chandy and TellIis 1998)
RIMT
Scale of newness to customer and newness of technology
Low + Low = Incremental Innovation
Low NT + High NC = Market Breakthrough
High NT + Low NC = Technological Breakthrough
High + High = Radical Innovation
What are the challenges of strategic entrepreneurship
Strategy - designing the firms scope, managing the firms resources, developing competitive advantages, advantage-seeking behaviours
Entrepreneurship - Creating newness, creating units, organisational renewal, opportunity-seeking behaviours
What is an ambidextrous strategy
A company who explores and exploits new strategy’s
Firms need to balance exploration and exploitation activities effectively
What is the process of the development of technology (basic knowledge is the start)
Basic Knowledge - invention (creation of a product or service) innovation (commercialising the invention I.e. it is developing and launching the new product or service in the marketplace) diffusion (your innovation/product/service launches and gets adopted by customers)
Supply side imitation - demand side adoption
What is the new product planning process steps to launch (Hooley et al 2004) ISBDTL
Idea - create idea
Screening - apply criteria to choose from initial ideas I.e. are the new ideas compatible with the companies objectives
Buisness analysis - it is market attractiveness and business decision
Development - bring the process away from marketing, towards the technical people, their role is to develop a good prototype, manufacturing the product. It is pretty costly at this point
Testing - market testing, you take your products you’ve developed and test them somewhere else
Launch - commercialise, you go full scale
Stage gate structured process (Cooper 2008) AIDG
Consists of a set of information gathering followed by go/kill decision gates
Activities
Integrated analysis
Deliverables
Go/Kill
What are the ways for knowledge integration (Robson et al, 2022)
NNCP
New product performance
New product competetive advantage
Commercialisation capability
Product development and testing capability
Real world examples of this
Failure - Dasani in the UK, sold at too high a price for what the product actually was (tap water)
High newness to customer, low newness of technology - Gojek in Bali
AR glasses - high newness of technology and high newness to customer
Opposite to the above could be a UV lightbulb
What are the main types of innovation
Incremental - small improvements
Radical - significant changes of breakthroughs
Robson et al (2022) - Pricing
Pricing strategy can be detrimental when firms look to establish competetive advantage - it can lead to market perception of low value - in turn can reduce market acceptance if it does not align with a consumers view
Robson et al (2022) - managers focusing on new strat
It is a negative if managers are forced to focus on the new strategy as Robson points out, if they are running an ambidextrous strategy then they could misallocate the resources
