Strategic Innovation Management

Question 1

Strategic Innovation-management

Answer 1

1 Specification of technology, product, processes and timing strategy (Innovation Strategy);

2. Specification of R&D program;
3. Specification of provision of technology and technics;

Question 2

Innovation Strategy and its elements

Answer 2

Technology strategy- Recognition of technology trends through: Employees, suppliers, research institutions, patents, journal articles.
employees, customers(e.g. lead users), discrepancy relative to competition (cost-benefit analysis, competitive analysis), new legal framework.

Product Strategy

Process Strategy

Timing Strategy

Question 3

S-Curve concept of Technology Development

Answer 3

Shows the concept of life cycle.

Y - Performance of technology;
X- Cumulated R&D efforts;
When the curve ends - change of technology is hapenning and new curve is on.

Example: Cassette to CD; Wet to digital photography; Tube screens to flat screens; Video to DVD;

Question 4

Initiation of technology Development

Answer 4

Early detection through internal and external sources:

• Employees;
• Suppliers;
• Research institutions;
• Scientific journals;

Question 5

Technology Portfolio

Answer 5

Helps to decide, how to choose among different technologies

Question 6

Cost-benefit analysis

Answer 6

X-Price;
Y- Customer benefit;
the straight line with dots around it

Question 7

Competitive analysis

Answer 7

The table: —,–,-,0,+,++,+++

Show the Key buying factors and mark on the graph. The Deviance shows the difference.

Question 8

5 Strategic Options

Answer 8

1. Product elimination (clean up the portfolio)
2. Product continuation - still sufficient
3. Product variation - small changes, functions remain the same, but minor changes to ecstatics, etc.
4. Product differentiation - major function remain similar, a new model for a car manufacturer (Porsche Panamero).
5. Product diversification - basic function is the same, technologies are different.

Question 9

Process strategy

Answer 9

Results from technology and product strategies;

• If the focus is new technologies - they lead to process innovation if they also result in cost reduction;
• If company concentrates on new products, it will lead to process innovation if it necessary to produce new product;

Question 10

Timing Innovation

Answer 10

1. Invention (hasnt been launched yet) - First inventors (patents). Ex: Philipps’ VCR
2. Market entry:
   - Pioneers (Sony Betamax)
   - Early followers (Panasonic VHS)
   - Late followers (Mitsubishi, RCA, Phillips, Fisher)
3. Market exit

Question 11

Product Life Cycle Model

Answer 11

y: Sales, total contribution margin;
x: Time;

Introduction, Growth, Maturity, Saturation, Degeneration

Question 12

Diffusion curve

Answer 12

Looks like a hat

Customer groups: Innovators, Early Adopters, Early majority, Late majority, Laggards.

• connected with Marketing Mix

Question 13

Specification of R&D program

Answer 13

Periodically (every half a year-year), happens when companied decide whether to start new R&D programs, or continue with the same one.

Question 14

Evaluation Criteria of R&D Projects

Answer 14

1. R&D - Risks, Available R&D know-how, development time, patent situation, required and available capacities for R&D
2. Production criteria - Available production know-how, required and available capacities
3. Marketing criteria - Relatedness to the existing range, Industry structure and development, required and available salesforce.
4. Financial criteria - required investment, revenues, Return on Investment (RoI), Amortisation, Federal subsidies

Question 15

Specification of provision of technology and technics

Answer 15

Which resources are required to follow through the Innovation strategy

Question 16

Alternatives of the Provision of Technology and Technics

Answer 16

1. Provision of new technology and technics (-Autonomous R&D, Contract R&D, R&D coops)
2. Provision of existing technology and technics:

• Unsecured technology and technics (Literature and informal contacts, Analysis of competition, Hiring competitors employees)
• Secured technology and technics (Listening, Buying trade mark rights, buying companies)