Week 3 & 4

Question 1

Innovation Strategy

Answer 1

• An innovation strategy is also needed to focus the organization’s resources and energy on building the right set of capabilities.
• An organization’s capacity for innovation stems from an innovation system: synthesizes ideas into business concept and product designs, selects which projects get funded.

Question 2

Sustanining vs Disruptive

Answer 2

Incremental or Radical

Question 3

DISRUPTIVE

Answer 3

Leverages existing competences
Requires new business model
(e.g. ride sharing services for taxi
companies)

Question 4

ARCHITECTURAL

Answer 4

Requires new competences
Requires new business model
(e.g. digital imaging for Kodak / Polaroid)

Question 5

ROUTINE

Answer 5

Levereges existing business model
Leverages existing competences
(e.g. next generation processors)

Question 6

RADICAL

Answer 6

Levereges existing business model
Requires new competences
(e.g. Electric Vehicles for auto
companies)

Question 7

Value creation and Capture is your compass

Answer 7

§ Radical, disruptive, and architectural innovations are
often viewed as the key drivers of growth;
§ Notion that routine innovation is somehow inferior to ”outside-the-home-court” is simplicistic and often wrong;
§ The only right way to judge the merits of any innovation is value created and captured;
§ Architectural, radical and disruptive innovation are
analogous to financial options.They create future
opportunities to invest. Routine innovations are akin to
exercising those options;
§ There is no one rule for deciding. However, there are
some principles that can serve as guideposts

Question 8

Innovation management function

Answer 8

1. Centralized Department
2. Distributed R&D
3. R&D Outsourcing / Innovation by M&A
4. Innovation Manager / Chief Innovation Officer (CInO)
5. Open Innovation