Sem 1 Week 1 Flashcards
What is innovation? Dictionary definition
1.Something newly introduced, such as a new method or device.
2.The act of innovating.
What are the benefits of innovation?
- Increase in market shares
-Higher growth rates
-Greater profitability
What does invention mean?
to conceive the idea
What is the difference between invention and innovation?
Innovation: To use - the process by which the idea or an invention is translated into the economy
What is the space in between the invention and innovation called in the process of bring a idea into the market?
The valley of death
What are the steps in brining an idea to the market?
- Imitation
2.Improvement
3.Invention
4.Innovation
What does imitation mean?
Basic value: Cost and execution advantage
What does improvement mean?
Improvement: Temporal advantage
What are the four steps in the innovation funnel?
1.Search
2.Select
3.Implement
4.Capture
What does the search step mean in the innovation funnel?
Opportunity identification: How can we find opportunities for innovation
What does select mean in the funnel of innovation?
Opportunity selection: What are we going to do and why?
What does implementation mean in the innovation funnel?
Development and Testing: How are we gong to make it happen
What does capture mean in the innovation funnel?
Production & Launch: How are we going to get the benefits from it
What does innovation mean according to the Stanford Research Institute?
“Innovation is the creation and delivery of new customer value in the marketplace with a sustainable value for the enterprise producing it.”
What does innovation encompass?
-Novelty
-Value
-Market
-Economic Sustainability
What does novelty mean?
creation of something new
What does value mean?
What is created has some value according to the customer
What does market mean?
invention is transferred to the market to become an innovation
What does economic sustainability mean?
Innovation should generate sustainable value for the organisation
What are the types of innvoation?
Product, Process, Technological, Management,
Business Model
Application
Marketing
Experiential
incremental
Disruptive
Radical
What does product innovation mean?
takes established offers in established markets to the next level
What does process innovation mean?
Makes processes for the established offers in established markets more efficient or effective
What does technological innovation mean?
development of a new technology, which creates new business sectors
What does business model innovation mean?
reframes an established value proposition to the customer or a company’s established
role in the value chain or both
What does Application innovation mean?
takes existing technologies into new markets to serve new purposes
What does marketing innovation mean?
improves customer touching processes e.g. by marketing communications or consumer transactions
What does experiential innovation mean?
makes cosmetic / surface modifications of established products or processes that improve customers’ expierence
What does incremental innovation mean?
(also know as sustaining or routine innnovation)
Gradual improvements or refinements to existing offerings
(most common, highly effective, lower risk)
What does disruptive innovation mean?
Improves on existing market by exceeding customers’ needs, eventually displacing the old market
What does radical innovation mean?
Destroys the current market and value network & creates new one
What is required for innovation?
-A market orientation
-Relevance to the organisation’s corporate objectives
-An effective project selection and evaluation system
-Effective project management and control
-A source of creative ideas
-An organisation receptive to innovation
-Commitment by individuals
