MI - Week 1

Question 1

What are the 4 types of innovation?

Answer 1

1. Breakthrough
2. Basic Research
3. Sustaining
4. Disruptive

Question 2

Breakthrough innovation

Answer 2

Focus: Solving incredibly difficult, well-defined problems with new approaches.
Goal: Create new value and applications from existing technologies.
Example: Cancer treatement
Matrix: Not well defined domain, well defined problem

Question 3

Sustaining innovation

Answer 3

Focus: Improving existing products or services within established markets.
Goal: Enhance current offerings to increase profitability and market share.
Example: New apple phone model has new camera
Matrix: Well defined domain, well defined problem

Question 4

Disruptive Innovation

Answer 4

Focus: Creating new products or services that disrupt the status quo.
Goal: Enter new or underserved markets with simpler, more affordable solutions.
Example: Netflix, Uber, Airbnb
Matrix: Well defined domain, not well defined problem

Question 5

Basic research

Answer 5

Focus: Exploring new phenomena to build foundational knowledge.
Goal: Understand and develop new theories, concepts, or technologies.
Example: Discovering new elements or particles
Matrix: Not well defined domain, not well defined problem

Question 6

What is innovation?

Answer 6

New ideas that generate value and improve existing resources

Question 7

How does Drucker describe/define innovation?

Answer 7

Innovation is the specific function of entrepreneurship, aimed at creating purposeful and focused change in an enterprise’s economic or social potential. It is a systematic practice that enhances or creates new wealth-producing resources.

Question 8

According to Drucker, what are the key sources of innovation? INTERNAL

Answer 8

1. Unexpected occurences
2. Incongruities
3. Process needs
4. Industry and market changes

Question 9

According to Drucker, what are the key sources of innovation? EXTERNAL

Answer 9

5. Demographic changes
6. Changes in perception
7. New knowledge

Question 10

Unexpected occurences

Answer 10

Internal source of innovation: failures or successes

Question 11

Incongruities

Answer 11

Internal source of innovation: discrepancies between reality and expectations

Question 12

Process needs

Answer 12

Internal source of innovation: driven by improving existing processes

Question 13

Industry and market changes

Answer 13

Internal source of innovation: industry structure and markets

Question 14

Demographic changes

Answer 14

External sourced of innovation: shifts in population and workforce

Question 15

Changes in perception

Answer 15

External source of innovation: how people view themselves and their needs

Question 16

New knowledge

Answer 16

External source of innovation: scientific, technical, or social advancements

Question 17

Describe the approach small, young companies use to beat larger, more established firms

Answer 17

Small, young companies (new entrants) often beat larger, more established firms (incumbents) by leveraging disruptive innovation. These smaller firms focus on underserved markets or niches where they can provide a more affordable, accessible, or simpler solution. Over time, their innovation improves, allowing them to challenge incumbents in the mainstream market

Question 18

How can more established firms respond to newer companies and their innovations?

Answer 18

Established firms can respond to newer companies by embracing both disruptive and sustaining innovations. They must balance improving existing products while also investing in disruptive innovations that may challenge their current offerings. Partnering with or acquiring smaller innovative companies is another effective response​

Question 19

What are some barriers to entry that protect incumbents and make it more difficult for new entrants to compete?

Answer 19

1. Economies of scale: allow larger firms to produce at lower costs.
2. Brand loyalty: customers are accustomed to established brands.
3. Access to resources: such as capital or distribution channels, which are harder for new entrants to secure​.

Question 20

What levels should a firm assess in its environment in the context of innovation?

Answer 20

1. Macro trends impacting industry
2. Industry dynamics and the threat of new entrants
3. Competitors within the industry