Lecture 3 - Innovation Flashcards
Innovation
Refers to the process an individual or organisation undertakes to conceptualise brand new products, processes, and ideas, or to approach existing products, processes, and ideas in new ways
R&D(Research and development)
Activities that companies undertake to innovate and introduce new products and services. often first stage in development process of new innovative products or services.
Management innovation
- Innovation related to management and organisation processes and practices.
- Changes the way managers do what they do and does so in a way that enhances organisational performance.
- Refers to product, business process, marketing and organisational innovation.
- Management has not only the role of an innovation promoter in organisations, but alsoa strategic function. … They decide on the innovation strategy, release ideas for implementation, determine their goals and decide on the next steps in the gates of the innovation process.
Incremental Innovation
is most common form of innovation. Utilises existing technology and increases value to customer (features, design changes, etc.) within your existing market. Almost all companies engage in incremental innovation in one form or another.
Disruptive innovation
also known as stealth innovation, involves applying new technology or processes to company’s current market.
- Examples of disruptive innovation: Apple’s iPhone disruption of mobile phone market. Prior to iPhone, most popular phones relied on buttons, keypads or scroll wheels for user input. iPhone was result of a technological movement that was years in making, mostly iterated by Palm Treo phones and personal digital assistants (PDAs). In order to disrupt mobile phone market, Apple had to cobble together an amazing touch screen that had a simple to use interface and provide users access to a large assortment of built-in and third-party mobile applications
Architectural Innovation
Simply taking lessons, skills and overall technology and applying them within different markets. amazing at increasing new customers as long as new market is receptive. Most of time, risk involved in architectural innovation is low due to reliance and reintroduction of proven technology. Though most of the time requires tweaking to match requirements of new market – iPhone Upgrades.
Radical innovation
is what we think of mostly when considering innovation. gives birth to new industries (or swallows existing ones) and involves creating revolutionary technology. airplane, for example, was not first mode of transportation, but is revolutionary as allowed commercialised air travel to develop and prosper.
Creative Development
Qualities of innovative nature are essential for new businesses today. Companies need to learn this business skill to help make things of value to customer. opens up all kinds of opportunities and gives potential for a new market and helps to keep up with current trends.
Continuous Improvement
Innovation gives organisational sustainability when they are making continual improvements and repackaging and re-branding. Any good manager will recognise the need to innovate and grows the business skills to increase their creativity.
Reinforce the Brand
Development branding is popular in organisational leadership. This process reveals information to help leaders to learn other ways to be more innovative. It’s important because it’s recognized as one of the main drivers for success. gives organisational sustainability such as brand maintenance.
Making the Most of What You Have Already
It’s not all about creating a new product or service but also need to focus on existing business procedures to improve efficiency, find some new customers, increase profits and cut down on amount of waste. When businesses are continually innovating and improving they are more likely to attract better staff and keep more existing staff.
Responding to Competition and Trends
Innovation can help to see what exists now in opportunities or which ones will likely pop up in near future. Businesses which are successful don’t only respond to current needs of customers, but usually predict future trends and come up with idea, service or product that can meet future demand quickly and effectively. this way they can stay ahead of competition as trends, technology or markets shift.
Having a Unique Selling Point
Generally, consumers will see innovation as something which adds value to products or a company. When this is used the right way, it can give an advantage commercially, especially in a market that is saturated or shifting rapidly. Customers will be more willing to pay the extra money for something that is well-designed and new, rather than picking the less exciting and cheaper rival.
The Use of Social Media
- When used then businesses are drawing ideas from a wide range of people on the social networks, giving a successful outlet to find new ideas. Businesses can use social networks to see what customers are saying about their services, products or company.
Ultimately businesses innovate to keep the competitive edge and remain or obtain number one position in the market.
Classic example is Apple. this succeeds as its lifeblood is innovation and consequently always staying one step ahead of the competition in terms of technological advancement and being one step ahead of the competition, mainly Samsung.
Strategic approaches to innovation
- Innovation strategy is about mapping organisation’s mission, vision and value proposition for defined customer markets.
- sets boundaries for business innovation performance expectations by simplifying and structuring innovation work to achieve best possible outcome.
- no point of innovating just for sake of it, as has to contribute to businesses bigger plan. So, before starting to develop an innovation strategy, business has to understandhow innovation helps it to achieve goals
5 Steps for Developing and Innovation Strategy
- Determine objectives and strategic approach to innovation
- Know the Market: Customers and Competitors
- Define the Value Proposition from the innovation.
- Assess and Develop Core Capabilities
- Establish Innovation Techniques and Systems
Why Approach to Innovation needs to be flexible
- Georgsdottir and Getz (2004) noted flexibility is an important dimension for organisations becauseit allows a higher level of innovation, reducing vulnerability and increasing opportunities for growth.
- Businesses need to be adaptable and flexible with approach to innovation otherwise they can miss new technological opportunities or new ideas that have just sprung up.
- By adhering stringently to strategy set out regrading innovation businesses risk not making most out of whole process of innovating.
- Opportunities that come from sudden technological breakthroughs or new knowledge that could be beneficial to business may be missed if strict inflexible approach to innovation is adhered to.
Innovation hubs
- Initiatives aimed at generating business between startups and large companies, mainly. They are conducive to meeting people who interact, create, undertake, work and innovate together, in a network. Help in development of technology-based companies with high growth potential.
- These innovation spaces are physical manifestations of economic, demographic and cultural prosperity. With the fading of traditional lines, the changing nature of innovation is transforming spaces into open, flexible places where different kinds of professionals from all sectors come together.
- Space matters ininnovation as it affects and effects outcome, especially when chosen and designed consciously. Physical environment influences how people feel, think and interact. All three conditions have significant impact on quantity and quality of output in innovation processes
- These spaces are not considered important and essential post pandemic. Many organisations have innovation spaces online through Zoom, teams etc.
- More creative workers are working online and bouncing ideas off each other online, a feature likely to stay.
