Module 2 Innovation Flashcards
Sources of New Ideas
- Consumers
- Existing companies / market
- Distribution channels
Methods of Generating Ideas
- Brainstorming
- Focus groups
- Problem inventory analysis
- Desk Research
Dimensions for innovation
(The four P’s)
- Product
- Process
- Position
- Paradigm
Strategies to actively search for innovation
(Search spaces)
- Operational optimisation
- Organisational transformation
- Reframe
- Co-evolve
Offering a product no one else can
Novelty factor – product
Offering a product which is produced in such a way that competitors cannot match
Novelty factor –
process
ComplexityOffering a product to the market which is of a complex nature
Complexit
Being the first into a market
Timing
Licensing a product to obtain a strategic advantage
Legal protection of
intellectual property
Offering a product or service which completely changes the way things are done
Changing the rules
Lucozade was rebranded in the 1980s as an energy drink as opposed to something sold in pharmacies for illness.
What is the innovation?
Offering an existing
product to new market
Knowledge push
R&D drives the launch of a new product
Need pull
Market demand for a solution to a problem
Innovation due to regulation
Laws can springboard new innovations
Recombinant innovation
- Inspiration may come from an existing product
- OR bring individuals from exsiting expertise together
Crisis-driven innovation
innovation can be driven by a crisis occurring
Mass customisation
Customers want customisation of products to make them more unique
User-led innovation
Innovation by users such as consumers or user firms
Environment for innovation under public/political scrutiny
- risk-averse
- bureaucratic
- slow-moving
- blame-oriented
Advantages of R&D
- Unique selling point
- Income
- Funding
- Tax Benifits
- Reputation
Corporate spin-off
- New company which is formed out of an existing business
- Distribute shares in the new company to existing owners of the large company
Advantages of spin-off companies
- Separate different business concepts
- Leadership more effective, each company has its own expertise
- Risk is decreased
