Lecture 1 Flashcards
Three levels of measuring an innovation succes
- Product measure levels
- Customer acceptance measures
- Financial performance measures
Product level measures (for success)
Launched on time
Speed to market
Development costs
Customer acceptance measures
Revenue goals met
Marketshare goals met
% of share sales new product
Customer satisfaction
Financial performance measures
Profit goals met
Margin goals met
ROI goals met
Definition of innovation succes:
Sustained growth through continuous invention and adoption.
- Ability to contribute consistently to growth.
Success factors of innovation
- Process perspective
- Resource perspective
- Governance perspective
The five determinants of innovation succes
- Product characteristics
- Strategy characteristics
- Process characteristics
- Marketplace characteristics
- Organizational characteristics
Product characteristics (innovation success)
- product advantage
- customer needs met?
- innovativeness
- technological sophistication
Strategy characteristics (innovation success)
- marketing synergies
- dedicated R&D and HR
- strategic orientation
Process characteristics (innovation success)
- marketing task proficiency
- technology proficiency
- launch proficiency
- market orientation
Marketplace characteristics (innovation success)
- likelihood of competitor response
- competitive response intensity
- market potential
Organizational characteristics (innovation success)
- organizational design
- degree of centralization (-)
- degree of formalization
The Innovation Value chain
Sequential three phase process:
- Idea generation
- Idea development
- Diffusion
6 crucial steps in the innovation value chain
- Internal sourcing (phase 1)
- Cross-unit sourcing (phase 1)
- External sourcing (phase 1)
- Selection (phase 2)
- Development (phase 2)
6) Company wide spread (phase 3)
Definition of Resources
“Firm resources include all assets, capabilities, organizational processes, firm attributes, information, knowledge etc. controlled by a firm that enable it to implement strategies to improve it’s efficiency and effectiveness.”
