Chapter 1
Which of the following are factors often associated with successful innovating organizations? (Several choices may be correct.) A. Large size B. Rich external linkages and networks C. Supportive organizational climate with structures and incentives for innovation D. Mechanisms for strategic selection of innovation options E. Large market share F. Age of the firm—the older the better
B C D
Which of the following would you class as a radical innovation? (Several choices may be correct.) A. The fiber tip pen B. The electric light bulb C. The laser D. The photocopier E. Wide‐bodied jet airliners
B C D
Innovation can take many forms. Running a hospital booking system that reduces patient waiting time is an example of which kind of innovation? A. Product (or service) innovation—changes in what is offered to the world B. Petroleum innovation—amount spent monthly by a business on its fuel costs C. Process innovation—changes in the way offerings are created and delivered D. Position innovation—changes in the context in which innovations are launched
C
Which of the following is NOT a source of strategic advantage through innovation? A. Complexity—offering something that others find it difficult to master B. Legal protection of intellectual property—offering something that others cannot do unless they pay a license or other fee C. Scale of investment in R&D D. Novelty in product or service offering—offering something no one else can
C
Which of these would not normally be considered an incremental innovation? A. An electric car B. A low fat hamburger C. Faster train journeys through better signalling D. Chicken and onion flavor potato chips
A
Which of the following is NOT an example of product innovation? A. A new toothpaste B. A new car design C. A new version of the iPod D. Computer‐control of manufacturing operations
D
Peter Drucker
innovation is a tool for entrepreneurs/organizations to exploit change as an opportunity
Field of dreams example
"if you build it they will come" NOT TRUE need to be hypothesis-driven
aspects of innovation
- Degree of novelty (incremental vs radical change) - Platforms and families of innovations (foundation to build on) - Discontinuous innovation (what happens when the game changes) - Level of innovation (components) - Timing of innovation life cycle
drivers of innovation
- acceleration of knowledge production - global distribution of knowledge - market expansion - market fragmentation - market virtualization - rise of active users - deployment of tech & social infrastructure
what is innovation about?
- identifying/creating opportunities - New ways of serving existing markets - Growing new markets - Rethinking services - Meeting social needs - Improving operations (doing what we do but better)
dimensions of innovation
- product (changes in product/service) - process (change the way we do work) - position (introduce the innovation(context)) - paradigm (how to change the mental model
types of innovation
1 - innovations identical to similar traditional activities but measured differently 2 - develop tech in organizational form 3 - innovation combination of existing tech 4 - under the radar stuff
innovation process
1. search (identify new ideas) 2. select (cost/benefit/risk) 3. implementation 4. capture value
Innovation can only happen in the private sector because the public sector is not concerned with making profits or competition between firms. (T/F)
False
joseph Schumeter
Innovation as strategic advantage Porters 5 forces (threats new entrants, threat of subs, customer bargain power, supplier bargain power, internal competition)
Peer‐to‐peer networking of the kind pioneered by Napster and now forming the basis of Internet file sharing is an example of radical innovation. (T/F)
True
2 components of successful innovation
sensing (recognizing opportunities) responding (doing something about it)
define entrepreneurship
driving innovation to create value (social and commercial) across the lifecycle of organization
Innovation success is directly linked to the size of investment in Research and Development (R&D). (T/F)
false
2 ways innovation can grow
incremental (10%) greenfield (10x)
define innovation
process of creating value from ideas