Week 8 Flashcards
What is Innovation
involves the CONVERSION OF NEW KNOWLEDGE into a new product, process or service and the putting of this new product process or service into actual use
idea -> product
Types of innovations
Incremental, radical, disruptive
Refreezing
formalizing and institutionalizing new behaviours, methods, processes or routines. - to maintain
Hard Triangle
strategy, structure snd systems
elements that managers can quickly adjust. tangibility.
Soft Square
The elements of style, staffing, skills, and shared values. Soft square elements are often difficult to codify and usually take a long time to influence and change.
Incremental innovation
Building on a ESTABLISHED KNOWLEDGE BASE to create minor improvements to the product or service a firm offers.
tv oled -> led
Radical Innovation
Innovation that draws on a different knowledge base, technologies or methods to deliver value in a truly unique way
combination of different knowledge bases
Computer vs typewriter
Low end disruption
Producing a LOW COST product or service for the low end or most price sensitive segment (CHEAP!) of the market, and then gradually moving UPMARKET as the product or service improves its technology and processes.
growing from small to big with improvements along the way
Categories of Innovative Strategies (7)
Value chain reconfiguration to eliminate activities
Low end disruptive innovations
High end disruptive innovations
Value Chain reconfiguration to allow for mass customization
Blue ocean strategy: create new markets by targeting non-consumers
Creation of platform to facilitate transactions
Free business models
the 7s model
strategy
structure
systems
staffing
skills
style
shared values
Unfreezing
Leaders recognize and publicly admit that the current situation is not producing acceptable or adequate results - motivation for change
Changing (The three phases of change)
Company engages to adapt to its environment and learn new behaviors - to move from one to another. to deliver results
Reconfigure Value Chain to eliminate activities (categories of innovative strategies)
Process innovations typically create an efficient new business model
Southwest Airlines’ - elimination of meals, seat reservations and luggage transfers
High-end Disruptive Innovations
OUTPERFORM existing products when they are introduced and they sell for a PREMIUM PRICE rather than at a discount
-apple ipod vs sony discman
Reconfiguring the Value Chain to Allow for Mass Customization (innovative strategy)
When a company mass-produces the various modules of the product and then allows the customer to select which modules will be combined into the finished product
when a company produces different kinds of product and the customers are allowed to customized to deliver the finished product.
Build A Bear - mass produce components of stuffed animals customized stores
