wk 4 Digital innovation

Question 1

digital innovation def

Answer 1

Digital innovation - the use of digital technology and applications to improve process and efficiency as well as enhancing customer experience and launch new products or business models

Question 2

Sustaining or incremental innovation

Answer 2

• Sustaining or incremental innovations offer improved performance within an established market
  
  • May be radical new offerings but do not change the nature of how things work
  • E.g new apps in the app store

Question 3

Disruptive or radical innovations

Answer 3

• Disruptive or radical innovations bring to a market a different and new kind of value proposition which may have the effect of changing the markets assumptions of how things work
  
  • May initially underperform against established products, it needs to be significantly preferable - some say in order of magnitude preferable - through being advantageous in price, size, performance, simplicity or convenience
  • E.g Amazon, Digital camera, Netflix, Uber

Question 4

technology push

Answer 4

• Technology push is driven by a research and technology idea that has been qualified as
  offering the potential to be developed as a successful market offering. E.g digital camera

Question 5

Market pull

Answer 5

• Market Pull is driven by an observed need, problem or opportunity in a market

Question 6

Vertical market

Answer 6

• A vertical market refers to innovation that adresses industry specific issues such as energy, education, retail or health care. E.g AR offering that helps medical staff to learn about anatomy without having to cut open a body

Question 7

Horizontal innovation

Answer 7

• A horizontal innovation addresses the needs of many industries. Includes technologies such as cloud authentication services that provide a technical platform for a range of offerings e.g Apple pay

Question 8

Product innovation

Answer 8

• Product innovation changes to an existing product

Question 9

Paradigm innovation

Answer 9

• Paradigm innovation is one that brings about changes in the underlying mental model whereby people think about how something is done. E.g cloud based software

Question 10

How do ideas come about?

Answer 10

Association - the bringing together previously unconnected ideas to solve a problem or open a new market e.g camera and phone = iphone

Adaptation - the adaptation of an existing solution, platforms such as uber under-lie what is now called collaborative consumption

Serendipity / chance - a new idea arises through random occurrence ( Percy spencer working with electrons in 1945 led to microwave oven)

Question 11

Exploitation of ideas through a product or service offering

Answer 11

2. Exploitation of ideas through a product or service offering
   
   • The way in which an idea can be taken to market through some form of offering
   • Idea cannot be taken to market in pure form - needs to be wrapped into a product or service offering with in an associated business model

Question 12

Market consumption of an offering

Answer 12

3. Market consumption of an offering
   
   • Positive response provides evidence that the buisness model is working
   • Negative reflects badly on the idea or badly wrapped around the business model

Question 13

Absence of business strategy can lead to…

Answer 13

• Missed opportunities for additional sales
  
  • Fall behind competitors
  • Poor customer experience
  • Loss of competitive advance
  • Could lead to break down in communications
  • Takes longer / less efficient in reaching the objective