Topic 9.2 - Assessing innovation Flashcards
Pressure for innovation
- competition
- market
- growth
Product innovation
New or improved products onto the market
Process innovation
Finding new or better ways of producing existing services or delivering existing services
The value of innovation
- monopoly
- high price
- reputation
- cost reduction
- quality improvement
Product innovation benefits
- greater added value
- higher prices
- build customer loyalty
- enhance reputation
- increase market share
Process innovation benefits
- reduce costs
- improved quality
- more responsive customer service
- greater flexibility
Impact of innovation on finance
- requires long term investment
- long payback periods
Impact of innovation on people
- increased team working
- increased communication
- high expertise needed
Impact of innovation on production
- cheaper and more efficient
- new equipment and machinery
Impact of innovation on marketing
- competitive pricing
- product development
- charge a premium price for new innovation
Kaizen
Continuous improvement
Quality assurance
- higher capacity utilisation
- less waste
- more energy efficient
- reduced risk
- better customer experience
- more accurate data
Research and development
- high costs with uncertain outcomes
- ## spending can be hard to justify
Intrapreneurship
When a large business enables employees and managers to demonstrate entrepreneurial behaviours
Benchmarking
Compare current operations to the best practice and identify areas and means of performance improvement
Strategic benchmarking
- long term strategies and general approaches that have enables high performers to succeed
