Lecture 2 Flashcards
innovation process
exploration → exploitation → diffusion
* Exploration = the innovation process in the organization. It is the awareness that you must do something new as an organization; exploring the possibilities.
* Exploitation = value prosition. Turning the discovered ideas and oppurtunities into real value.
* Diffusion = spreading the innovation around the market
Trigger events
Specific events or situations that stimulate the need for new ideas or motivate the exploration of potential innovations.
Idea triggers
Ways/approaches to create innovation.
Process of innovation (in organizations)
- Idea: Come up with a new idea or improvement.
- Object: Turn the idea into something real, like a product or tool.
- Practice: Put the new product or idea into use in daily work or offer it to customers.
Innovation funnel
The process from ideation to practice; from many ideas to ultimately a few innovations in practice.
Two types of innovations: closed innovation vs. open innovation
- closed: ideas are generated in the organization, and are then funneled to the market
- open: ideas can also be generated outside the organization and innovations can be brought into the market by other organizations
crowdsourcing
A method where an organization asks a large group of people, often through the internet, to contribute to a specific task or project.
type of user innovation (open innovation)
Types of innovation (4 p’s of innovation)
- product/service innovation
- process innovation
- business model innovation (=position)
- paradigm innovation (=strategy)
product/service innovation
a clearly defined product or service that compared to an existing situation (market or use practices) brings incremental or disruptive change.
Het verbeteren of vervangen van wat beschikbaar is in de markt, gericht op consumentenvoordeel
Process innovation
changing business processes.
Dit richt zich op het verbeteren van de manier waarop een product wordt gemaakt of een dienst wordt geleverd.
Interne processen worden veranderd.
Business model innovation
Changing the way an organization creates, delivers and captures value.
Het veranderen van hoe een bedrijf waarde creëert en inkomsten genereert.
Paradigm innovation
Change in the basic thinking of an organization’s core identity.
Dit betreft een fundamentele verandering in de manier waarop een organisatie zichzelf ziet en opereert.
Een verandering in de basis denkwijze
Dichotomous typology
Disruptive/radical innovation vs. incremental innovation
- disruptive = breaks with the past and creates new markets or replaces technologies
- Incremental = builds on existing products and improves those gradually
Matrix typology
- niche creations = new market, existing technology
- architectural = new product, new market
- regular = same market, product minor changes
- revolutionairy = same market, new technology
business model
How an organization creates, delivers, and captures value.
innovation must match organization’s strategy on four levels
- societal level (fit social developments (PESTEL))
- industry level (looks at the whole industry: competitors, suppliers, and substitutes ((Porter’s five forces analysis))
- market level (specific market for the innovation: target customers, market demand, and growth potential (diffusion of innovation, s-curves, business model canvas))
- firm level (fit with intern organisation (SWOT, value chain analysis, business model canvas))
value proposition
de waarde die het product of dienst levert aan de klant, de reden om voor dat product te kiezen.
Niche market
a market with a very specific, small group of customers (with specific needs)
mass market
A broad audience where anyone could be a customer; no segmentation.
segmented market
Different but related customer groups with varying needs or budgets.
Apple offers entry-level models (iPhone SE) and premium models (iPhone Pro Max).
diversified market
Completely different target groups
one sided vs. more sided
- One-sided: Focuses on one type of customer.
- More-sided: Focuses on more types of customers.
licensing
a company (licensor) allows another company (licensee) to use its product or brand
the middleman
creating revenue by facilitating between other parties. Helping other people to complete transactions,
