Intro Flashcards
Why might a business fail?
External forces (PESTLE)
Intensive competition and consumer power
Poor internal governance/allocation of resources
Failure to innovate
What are the PESTLE forces?
Political Economic Social Technological Legal Environmental
Give examples of companies that failed to innovate.
Kodak created the digital camera but were slow to implement as they feared hurting their current products. Sony then released a digital camera and became industry leaders.
Blockbuster failed to adapt to the digital age and were ‘Netflixed’
Give an example of a company that has succeeded because of innovation.
Convert Technologies originally produced a digital sound system that could play and record records with high accuracy. This required hardware and software engineers. These skills in sound were then used to create a low power radio tracking device for the medical industry.
What are the phases of innovation?
Ideas -> Select best idea(s) -> Implementation(exploitation) -> Diffusion
What are the types/reasons for idea generation?
To solve a problem
Through association
Serendipity
Give an example of a problem that was solved through innovation.
James Spangler was a sweeper in a department store. He had asthma. There were industrial vacuums, however, spangler invented a small and portable vacuum using a sewing machine motor and a pillowcase. His patent was then bought by Hoover.
Give an example of innovation through association.
Karl Dahlman saw a hovercraft and saw this could assist with decreasing resistance when mowing lawns. Flymo.
Give an example of innovation through serendipity.
George de Mestral. By chance. Whilst removing burdock spurs from his dog he came up with the idea of velcro.
Give another example of a problem that was solved through innovation.
Loughborough university was asked for a way to train intercostal muscles. They came up with several ideas but ultimately implemented the respibelt which is now used by world class athletes. License patent out.
Why do governments encourage innovation?
SMEs play a key role in the economy representing 90% of businesses, 50% of employment and around 40% of national income: Innovative, based on innovation… ENCOURAGE INNOVATION
