Week 4: Innovation

Question 1

What is Innovation?

Answer 1

The process of implementing new ideas to create value for an organization

Question 2

What are the 4 types of innovations?

Answer 2

1. Incremental - Faster, better, or cheaper versions of existing products
2. Architectural - New way of re-configuring existing components in an established system
3. Modular - Invention of new components and modules in a system
4. Radical/Disruptive - Using architectural and modular innovation to create new products

Question 3

What are the differences between First Movers and Followers?

Answer 3

• First Movers have potential gain of temporary monopoly and lead time to build relationships, but with higher risk of failure
• Followers benefit from pioneer strategies and failures

Question 4

What is the Diffusion of Innovation?

Answer 4

It describes the process of how innovations spread through a population of potential adopters

Question 5

What are the 5 characteristics of an innovation?

Answer 5

1. Relative advantage - Perceived superiority of innovation of economic benefit or performance
2. Compatibility - Perceived fit with existing values, practices, etc
3. Complexity - Perceived difficulty to understand
4. Trial-ability - Ability to try before buying
5. Observe-ability - Extent innovation is visible within population of adopters

Question 6

What are the 5 population cohorts?

Answer 6

1. Innovators
2. Early adopters
   —Crossing the Chasm—
3. Early majority
4. Late majority
5. Laggards
   Note: Remember S-curve for speed of adoption

Question 7

What is the Tipping Point?

Answer 7

When an idea, trend, or social behaviour crosses a threshold, tips, and spreads like wildfire

Question 8

What are the 3 principles the Tipping Point is based on?

Answer 8

1. The Law of the Few
2. The Stickiness Factors
3. The Power of Context