mgmt 434 chp. 7 part 3

reverse innovation

An innovation that was developed for emerging economies before being introduced in developed economies. Sometimes also called frugal innovation.

innovation ecosystem

a firm's embeddedness in a complex network of suppliers, buyers, and complementors, which requires interdependent strategic decision making

architectural innovation

a new product in which known components, based on existing technologies, are reconfigured in a novel way to attack new markets

platform business

an enterprise that creates value by matching external producers and consumers in a way that creates value for all participants, and that depends on the infrastructure or platform that the enterprise manages

disruptive innovation

an innovation that leverages new technologies to attack existing markets from the bottom up

winner-take-all system

markets where the market leader captures almost all of the market share and is able to extract a significant amount of the value created

platform ecosystem

the market environment in which all players participate relative to the platform