Chapter 7 takeaway concepts

Crossing the Chasm Framework

-point: each stage of the industry life cycle is dominated by a different customer group, which responds differently to a new technological innovation. -There exists a significant difference between the customer groups that enter early during the introductory stage of the industry life cycle versus customers that enter later during the growth stage. -This distinct difference between customer groups leads to a big chasm in which companies and their innovations frequently fall into. -To overcome the chasm, managers need to formulate a business strategy guided by the "who-what-why-and-how" questions of competition.

industries generally follow a predictable life cycle with 5 distance stages

introduction, growth, shake out, maturity, and decline

Entrepreneurship

the process by which change agents undertake economic risk to innovate—to create new products, processes, and sometimes new organizations.

Strategic entrepreneurship

the pursuit of innovation using tools and concepts from strategic management.

Social entrepreneurship

the pursuit of social goals by using entrepreneurship. Social entrepreneurs use a triple-bottom-line approach to assess performance.

Outline Four Step Innovation process from idea to imitation

Innovation describes the discovery and development of new knowledge in a four-step process captured in the 4 I's: idea, invention, innovation,and imitation. The innovation process begins with an idea. An invention describes the transformation of an idea into a new product or process, or the modification and recombination of existing ones. Innovation concerns the commercialization of an invention by entrepreneurs (within existing companies or new ventures). If an innovation is successful in the marketplace, competitors will attempt to imitate it.

Innovations frequently lead to what

the birth of new industries

Explain the long-tail concept and derive its strategic implications

-An architectural innovation is an embodied new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets (new market / existing technology). -A disruptive innovation is an innovation that leverages new technologies to attack existing markets from the bottom up (existing market / new technology).

Four types of innovation emerge when applying existing versus new dimensions of technology and markets.

-incremental- innovation builds on an established knowledge base, and steadily improves an existing product or service. -radical- innovation draws on novel methods or materials, and is derived from either an entirely different knowledge base. -architectural- innovation is an embodied new product in which known components, based on existing technologies, are reconfigured to attack new markets. -disruptive- innovation leverages new technologies to attack existing markets from the bottom