Lecture 2

Question 1

Definition of Innovation

Answer 1

Innovation is the “production or adoption, assimilation, and exploitation of a value-added novelty in economic and social spheres; renewal and enlargement of products, services and markets; development of new methods of production; and establishment of new management systems is bot a process and outcome.”

Question 2

what is innovation?

Answer 2

Something new, original, important an breaks the development of something original

Question 3

What happens if a company is missing innovation

Answer 3

decreases organisational value on the market.

Question 4

If a company is already on the market does not react to disruptive innovation from other companies, then what happens?

Answer 4

Economic: try to have an constant revenue stream from existing products.

Organisational: seeks predictability and reliability , makes the organisation make systems and tight rutines, which results in failure.

Strategic: its hard to break the current value network of suppliers because of already formed strategic alliances which limits these.