module1 - Innovation Life Cycles Flashcards
What are the three key drivers of innovation lifecycles?
Technology trajectories, Firm entry, Customer adoption
What is the S-curve in innovation?
A graph that represents the lifecycle of a technology, showing its emergence, growth, and maturity phases.
In which phase of the S-curve is technological uncertainty the highest?
In the Ferment phase.
What are the characteristics of the Growth phase in the S-curve?
Standardization of design and infrastructure development.
Which type of customer adopts innovations early according to the innovation adoption lifecycle?
Innovators, who make up 2.5% of the market.
What is the takeoff point in the context of firm lifecycles?
The moment when there is a sharp increase in the number of firms entering the market.
What does the firm takeoff signify in an industry lifecycle?
It signifies the transition from technological uncertainty to a valuable, growing industry.
What is a dominant design in innovation?
A design that becomes standard in the market, adopted by the majority, even if it’s not the best design.
What is the difference between process innovation and product innovation?
Process innovation focuses on improving efficiency, while product innovation focuses on improving the product itself.
What is a disruptive innovation?
An innovation that initially serves a niche market but grows to disrupt and dominate the mainstream market.
What is the significance of the takeoff point in the product life cycle (PLC)?
It marks the transition from niche market to mass-market adoption.
How does the innovation adoption lifecycle categorize different types of customers?
It classifies them into Innovators, Early Adopters, Early Majority, Late Majority, and Laggards.
What is the key difference between the Early Majority and the Late Majority in the innovation adoption lifecycle?
Early Majority adopts when the product-market fit is correct, while Late Majority waits until the majority has adopted.
What does the ‘Crossing the Chasm’ concept refer to in innovation?
The challenge of transitioning from niche markets (early adopters) to mainstream markets (early and late majority).
What is Prospect Theory in innovation?
A cognitive framework for understanding how managers and customers make decisions to minimize losses and maximize gains.
