Lecture 3 - Innovation Strategy Flashcards
What framework do Chandy and Tellis propose?
the types of new products framework
What does low newness to customer and low newness of technology mean?
Incremental innovation
What does high newness to customer and low newness of technology mean?
market breakthrough
What does high newness to customer and high newness of technology mean?
Radical innovation
What does low newness to customer and high newness of technology mean?
technological breakthrough
what does newness to customer mean?
offering newness to customers per pound spent, are they getting value in terms of price? (IMPORTANT)
Give an example of radical innovation
Open AI, MPesa - first mobile payment system
What does ambidexterity mean?
the ability to run with radical and incremental innovations together
What does strategic entrepreneurship have to do with ambidexterity?
Strategic entrepreneurship is about balancing ambidexterity
Give an example of an organisation that got ambidexterity right
USA Today
By mid 90s they realised they were losing customers to the internet, so they released USA today, by hiring internet savvy individuals rather than just journalists
Explain the new product planning process
Come up with idea, screen it against criteria, conduct business analysis (could include market forecast, position to yield profits)
Explain Cooper’s (2008) stage gate process
Consists of a set of information gathering stage, followed by go/kill decision gates
Depending on the level of risk is the amount of stages
The level of investment and financial risk jumps as you move through stages
What is the biggest obstacle to effective experimentation?
Culture
What is essential for a successful culture of experimentation?
Cultivating curiosity
Failures should be seen as learning opportunities not mistakes
Explain the difference between incremental and radical innovation, providing an example of each
Incremental innovation involves small, gradual improvements to existing products, services, or processes, like adding a new feature to a smartphone
Radical innovation introduces entirely new products, services, or processes that disrupt existing markets, such as introduction of first personal computer
What is an ambidextrous organisation, and why is ambidexterity important for long term success?
An ambidextrous organisation is one that can simultaneously pursue both incremental and radical innovation, balancing exploitation and exploration
Ambidexterity is crucial for long term success because it allows a company to both refine its existing business and adapt to future market changes
Describe the Stage-Gate process and its main purpose?
The Stage-Gate process is a project management technique that divides a project ito distinct stages seperated by decision gates
Its main purpose is to ensure that projects are thoroughly evaluated at each stage, allowing for ‘go/kill’ decisions to be made, thereby reducing risk and optimising resource allocation
BOP innovatin sandbox reference?
Prahalad (2012)
