THE IMPACT OF INNOVATION ON FUNCTIONAL AREAS Flashcards
What is innovation strategy
Innovation strategy: A plan that will enable the business to achieve the objectives of increasing the number of new products or processes introduced.
What are some ways of achieveing ‘innovation strategy’
Kaizen
R&D
Intrapeneurship
Benchmarking
What is the impact of innovation on finance
High cost of research and development
Impact on budget - market research, R&D
Opportunity cost
Short term costs vs long term revenues - cash flow forecasting difficulties
What is the impact of innovation on marketing
Need for market research
Test marketing of new products - need to cooperate with operations
Impact on product portfolio - products at development/ introduction stage need significant investment
Marketing mix and branding decisions
Niche vs mass market
What is the impact on innovation on operations
New technologies to be used in production process - move from labour to capital intensive
Requirement to produce prototypes and test materials
Impact on supply chains
Quality considerations
What is the impact of innovation of human resources
eed for recruitment/ training of staff
Impact on organisational structure - delayering/ flat hierarchies more likely to be conducive to innovation
Need for soft human HRM
Impact on organisational culture
