THE VALUE OF INNOVATION Flashcards
What is innovation
Innovation is the process of generating a new ideas and putting it into action
What does innovation include
Coming up with a completely new idea
Refining an old idea
What are the advantages of innovation
Creates a competative advantage and cnhances brand image
Differentiates an organisation and creates a USP
Increases sales and leads to growth
Allows an organisation to charge a premium price
Reduces costs
Motivational for workforce
Reduce environmental impact
What are the disadvantages of innovation
Time consuming
Required market research
Need for product testing to be undertaken
Requires training
Benefits tenf to be felt in long term
Need to protect intellectual property which is difficult and expensive
Risk of copy cat products
What does the amount of inovation inside and organisation depend on
Levels and nature of competition
The nature of demand in the industry
Management attitude to risk and failure
Corporate culture
The cost of innovation, and availability of finance
The skills of the workforce
Pressure from government - Maybe cut emissions
Ability to utilise technological advances
