Operational Strategies - Innovation

Question 1

What is innovation?

Answer 1

1. Introduction of a new or significantly improved product (good or service)
2. Introduction of a new process for making or supplying a product
3. Expenditure in areas such as research and development, linked to innovation activities
4. Training or the acquisition of external knowledge that us linked to innovation activities
5. Introduction of new machinery and equipment for the purpose of innovation activities

Question 2

Benefits and purposes of innovation

Answer 2

1. Improve quality
2. Enter new markets
3. Increase value added
4. Increase product range
5. Reduce costs
6. Improve flexibility
7. Increase capacity
8. Meet regulations
9. Reduce environmental impact

Question 3

Problems with innovation

Answer 3

1. Uncertainty
2. Operational difficulties
3. Competition
4. Generic products

Question 4

The implications of innovation

Answer 4

1. Finance
2. Marketing
3. Human resource management