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
Performance or competitive benchmarking
- consider the position in relation to performance characteristics of key products and services
Process benchmarking
- comparing against best practice that perform similar work or deliver similar services
Functional benchmarking
compare with partners drawn from different business sectors to improve work processes
Internal benchmarking
Benchmarking business or operation from within the same organisation
External benchmarking
Analysing outside organisations that are simply known to be best in class
Why do firms protect intellectual property
- maintain unique selling point
- maximise return on investment
- reduce threat of competition
Patents
Protects a new innovative product
Copyright
Automatic protection for original artistic work
Trademark
A symbol, word or words that are legally registered or established by use of a business or product
