Topic 5A Managing Innovation and Growth

Question 1

Why Innovation is Important

Answer 1

• Innovation is the genesis of many new businesses
• Mechanism for growth; add new products/services!
• On average, only 32% of company profits come from new products
• Innovative firms generate 50% of profits from new products!
• Single best predictor for investement value: degree of innovativeness (study by Cooper)
• Innvative companies generate more money, more profits, more jobs

Question 2

definition of innovation

Answer 2

The act of introducing novel and useful ideas into value-creating new products, new services, or new processes

Question 3

Invention or creativity:

Answer 3

• ** **the generation of a novel AND useful idea

Question 4

Innovation:

Answer 4

the act **implementing **novel and usful ideas into value-creating new products, new services, or new processes

Question 5

How Innovation Happens:

Answer 5

combine creative ideas with resources and completecies to create a useful, value-creating new product, new service, or new process- and then successful **Commercialize **it.!

Question 6

sources of Innovation

Answer 6

Innovation←Creativity←Sources of Creativity

Question 7

Creativity

Answer 7

The ability to prodce work that is useful and novel

Question 8

Creativity - individual

Function of:

Answer 8

• Intellectural abilities
• knowledge
• style of thinking
• personality
• motivation
• Environment

Question 9

Creativity– Organizational

Function of:

Answer 9

• Creativity of individuals within the organization
• Social processes and contextual factors

Question 10

Creativity– Organizational

Amplified or Thwarted by；

Question 11

innovation Management System

Answer 11

Discover Ideas

Integrate Ideas

Anticipate Opportunities

• New Strategy Development Process
• New Bsiness Development Process
• New Capabilities Process
• New product Development Process

Question 12

New Srategy Development Process

Answer 12

• Create the drie and focus for the long term
• Identify and create new technology platforms

Question 13

New Business Development

Answer 13

• Search for new markets
• Manage product
• portfolios
• Manage for growth

Question 14

New product development

Answer 14

• Multi-functional teams
• Work on all phases to design & develop new products

Question 15

New capabilities development

Answer 15

• create new capabilities to support & enable the product developent team (e.e. technologies, flexible manufacturing)

Question 16

How do firms manage innovation:

Answer 16

–Innovation Strategy; make innovation clearly part of business strategy
–Organizing for innovation; rather than organizing to keep the existing products/services/processes going
–Managing day to day innovation processes; to support new product/new process development

Doing these things helps create an innovative culture!

Question 17

Product Development and Management Association - Survey Results Best Practices

Answer 17

• Technology, marketing, & manufacturing managers support innovation by ensuring that their people participate actively and effectively on teams
• Senior business unit managers support innovation by ensuring that structure, processes, and other organizational mechanisms support the innovation teams
• Senior managers support innovation by making sure that available resources flow smoothly to innovation projects
• Senior managers make long term investments in technology, manufacturing, and other assets to support ongoing innovation

Survey of ‘The best’ = those business units that are in top third in industry for NPD success, above the mean for relative success, and above mean for market-financial success