Module 7: Innovation Flashcards
What are the main sources of new ideas?
Consumers
Existing companies/market
Distribution channels
What are methods of generating ideas?
Brainstorming
Focus groups- moderator leads
Problem inventory analysis- may be by a FG, overcome problems
Desk Research
Approaches to innovating?
Identifying or creating opportunities New ways of serving existing markets Growing new markets Rethinking services Meeting social needs Improving operations
What are the ways a business can innovate?
Novelty factor- product
Novelty factor-process
Complexity
Timing
Legal protection of intellectual property
Changing the rules
Offering an existing product/service to a new market
What is the strategic advantage of novelty factor- product?
No-one else can give
First of its kind
What is the strategic advantage of novelty factor-process
Produced in such a way competitor can’t match
What is the strategic advantage of complexity?
Complex nature so can’t easily be copied
What is the strategic advantage of timing?
First to market allows to gain significant market share
May encounter more problems
May be easier to follow others and learn from their mistakes
What is the strategic advantage of legal protection of intellectual property?
Licensing product/service
What is the strategic advantage of changing the rules?
Can alienate the competition
Changes the way things are done
What is the strategic advantage of offering an existing product/service to a new market?
Changes the application context of the offering
e.g. Lucozade energy not illness
What are the 4 dimensions/P’s of innovation?
Product- on offer
Process- way created and delivered
Position- to market introduced to
Paradigm
What is the paradigm?
Changes to the fundamentals of how and why a business operates in a certain way
What is incremental vs radical innovation?
Incremental: step at a time
Radical: completely re-thinking product/complete change to existing market
What is knowledge push innovation?
R and D or a knowledge breakthrough drives the launch of a new product
Technical issues and problems within range of existing products
Scientific/Tech knowledge
What is need pull innovation?
Market demand for a solution to a problem triggers R and D
What are other types of innovation?
Innovation due to regulation Recombinant innovation Copycat innovation Crisis driven innovation Mass customisation User-led innovation
What is innovation due to regulation?
Laws/regs can springboard new innovations
May also cause counter-innovation where a solution is designed to avoid regulation
What is recombinant innovation?
Successful idea in a new market
Individuals from existing areas of expertise to come together
What is mass customisation?
Make more unique which can lead to innovation
What is user led innovation?
Innovation by immediate users such as consumers or user firms rather than manufacturers
What is social innovation?
Innovate to generate social value rather than solely profits
Differences between social innovation and commercial innovation?
Social enterprises address social issues and objectives reflect this
Charitable organisations must have purposes which are charitable and must operate for public benefits
Gov bodies promote interests of public
Intense public and political scrutiny can create an environment for innovation that is?
Risk adverse
Bureaucratic
Slow moving
Blame orientated
