Innovation Management

What is the difference between Innovation Adoption and Innovation Diffusion? Provide examples.

Adoption: The decision to implement innovations, e.g., a company adopting new software for efficiency. Diffusion: The process of innovations spreading over time, e.g., the gradual spread of smartphone usage. Differences: Adoption is about individual or organizational decision-making; Diffusion is about the societal spread of innovation. For example, Adoption might occur in a firm deciding to use cloud computing, while diffusion is observed as cloud computing becomes a common practice over time.

What characterizes Visionaries in the Early Market?

Adventurous, willing to take risks. Seek revolutionary products and solutions. Motivated by future opportunities. Follow their own dictate. Example: Early adopters of electric or self-driving cars.

What are the key differences between Agile and Traditional project management?

Agile: Customer-focused, adaptable to change, incremental planning, collaborative teams, and minimal flexible practices. Traditional: Plan-focused, resistant to change, detailed upfront planning, top-down control, and rigid methods.

What is the concept of the Ambidextrous Organization?

An ambidextrous organization balances exploitation of existing assets and exploration of new opportunities. It separates people responsible for core business from those exploring new markets.

What is Appropriability and its key components?

Appropriability is a firm's ability to capture value from innovations, with key components being transferring technological advantage to commercial products and defending against imitators through intellectual property. It involves a trade-off between protection and disclosure in intellectual property.

What are Discovery Skills?

Associating: Connecting things from different fields. Questioning: Finding the right question, not just the answer. Observing: Paying close attention to details. Experimenting: Trying out new things. Networking: Interacting with diverse individuals for idea exchange.

What are asymmetric incentives in the context of innovation?

Asymmetric incentives provide strong rewards for success and weak penalties for failure, encouraging risk-taking.

What are common Barriers to Innovation?

Barriers to innovation can include: Idea Fixation: Organizations often focus only on the idea stage and neglect the full innovation journey. Resistance to Change: Failing to recognize the need for change can stifle innovation. Complacency: Core competencies can become rigidities that prevent adaptation. Closed Networks: An insulated information network can block new, innovative ideas.

What are the advantages of being a first mover?

Brand Loyalty: Establishing brand identity and customer loyalty, e.g., Coca-Cola. Technological Leadership: Gaining a technological edge, e.g., Tesla's electric vehicle technology. Preemption of Scarce Assets: Securing crucial resources or market positions early, e.g., prime retail locations. Exploiting Buyers' Switching Costs: Making it costly for customers to switch to competitors, e.g., software platforms with learning curves. Reaping Increasing Returns Advantages: Benefiting from economies of scale and network effects, e.g., Facebook growing more valuable as more people join.

What is the chasm and what are the problems with crossing the chasm?

Chasm: Gap between early and mainstream markets, transitioning is challenging. Problems: Market stalls, revenue declines, firms lose money, venture capitalists become impatient. Common mistake is spreading too thin by targeting multiple segments, confusing the mainstream market. Example: A tech startup struggling to transition from a niche tech-savvy audience to a broader mainstream audience.

How to choose between trade-offs like crowdsourcing and co-creation?

Choosing between crowdsourcing and co-creation depends on your strategic objectives and the trade-offs you're willing to make. Crowdsourcing: Pros: Fast, creative, and efficient. Cons: Best with modular systems and requires efficient testing. Example: LEGO Ideas, where fans submit and vote on new set ideas. Co-creation: Pros: Reveals deep customer insights. Cons: Close relationships may blind you to radical innovations. Example: Starbucks' "My Starbucks Idea" platform. Your innovation strategy will guide you in deciding which approach aligns best with your objectives.

Why is a company motivated to develop an innovation strategy?

Companies are typically motivated to develop an innovation strategy for one of three reasons: Crisis Mode: Facing dropping profits, changing markets, or more demanding customers. Evolution: Realizing that innovation is an ongoing process, not a one-off event. Staying Ahead: Aiming to maintain market leadership and stay ahead of competitors. Understanding these motivations is critical for evaluating options for an innovation strategy.

Why do some new technologies quickly outperform their predecessors while others catch on only gradually?

Competition often occurs between new and old ecosystems, not just the technologies themselves. It's crucial to look at the broader ecosystem that supports the technology, not just the technology itself.

What is Creative Destruction in the Context of Innovation?

Creative Destruction refers to the economic cycle where innovation acts as the main driver. It has two facets: Creative: Innovation generates wealth, economic growth, and entrepreneurial opportunities. Destruction: The old methods and industries are eliminated, making it challenging for incumbent firms to adapt. This phenomenon is especially frequent in digitalized industries and is sometimes labeled as Disruptive Innovation.

What is the difference between Creativity and Innovation?

Creativity: The ability to develop new ideas and discover new ways of looking at problems and opportunities. Innovation: The ability to apply creative solutions to problems and opportunities to enhance or enrich people's lives. In a nutshell, creativity is thinking new things, while innovation is doing new things.

What are the key features of an innovation culture?

Customer-centric focus Openness to new ideas Effective cross-functional teams Well-defined processes for idea generation Risk tolerance Rewards and recognition Appropriate leadership

What are the key points about Trademarks?

Definition: Protect signs or expressions like "Just Do It" by Nike. Special Features: Not based on technology claims. Registered in specific economic activity classes. Do not expire with continuous use, e.g., Coca-Cola's logo. Trademarks vs Patents: Trademarks protect brand identities, while patents protect inventions.

What is Diffusion of Innovation and what are the elements influencing it as per the slides?

Diffusion of Innovation: A theory explaining the spread of new ideas and technology over time among participants in a social system. Influencing Elements: The Innovation Itself: The nature of the innovation being introduced. Communication Channels: The mediums through which information about the innovation is spread. Time: The duration over which the innovation spreads. Social System: The group of individuals among whom the innovation is spreading.

What are the key questions to ask when dividing work for innovation?

Does the company have the needed skills for all aspects of the project? Are portions of the innovation initiative consistent with existing work relationships?

What are Dominant Technical Standards?

Dominant Technical Standards are widely accepted solutions or protocols in a particular industry. They can be influenced by: Threshold Effects: High costs of change make a technology dominant, like driving on the left in the UK. Network Effects: The value of a technology increases as more people use it, such as Facebook or Twitter. External Factors: Government mandates, trade associations, or joint cooperation between organizations can also establish dominant designs.

What Factors Influence Dominant Technical Standards?

Dominant Technical Standards can be influenced by: Threshold Effects: Such as the QWERTY keyboard layout, where change is costly. Network Effects: The more people use a technology, the more valuable it becomes. External Influences: These can be government regulations, industry standards, or collaborative efforts between organizations like Philips and Sony in compact disk technology.

What are some rules for fostering an innovative environment?

Encourage action and reward innovation. Tolerate failure as a learning experience. Use informal meetings and physical layout to encourage communication. Avoid rigid procedures and bureaucratic red tape. Use small teams for future-oriented projects.

What strategies can be employed in Defending a Technical Standard?

Enhance product functionality. Sign long-term contracts with complementary product producers. Ensure backward compatibility. Make products incompatible with competitor alternatives.

What should upper management focus on to promote innovation?

Establish an innovation policy and communicate it to employees. Promote a team climate and give autonomy for idea cultivation. Engage expert team leaders in innovative activities.

What is Portfolio Selection in innovation management?

Evaluate Each Project: Assess if the project offers good value to the organization. Portfolio Balance: Maintain a mix of high and low-risk projects, long and short-term initiatives, and diversification across business functions. Strategic Fit: Ensure projects align with the organization's overall strategy.

What examples are of successful companies that were not the first movers?

Examples include IBM in mainframe computers, Texas Instruments in pocket calculators, and Google in internet search among others. Fast followers have a noted lower failure rate compared to first movers, with an analogy of pioneers creating trails that later movers can follow.

What are the contrasting features of Exploitative Business vs Explorative Business?

Exploitative Business: Focuses on cost, profit, efficiency, and incremental innovation. Explorative Business: Focuses on adaptability, new products, entrepreneurial spirit, and risk-taking.

What are the strategies for crossing the chasm?

Focus on One Beachhead Segment: Dominate a single, accessible market segment with no entrenched competitor, offering a feasible solution. Utilize a Whole Product Solution: Provide a complete solution with necessary augmentation like maintenance and support, collaborating with partners and allies, and choosing appropriate sales channels and pricing. Bowling Pin Strategy: Use the beachhead segment to influence other adjacent segments, either targeting new segments with the same application or introducing new applications to the same segment. Avoid Common Mistakes: Such as spreading too thin or over-advertising an incomplete product.

What are the late mover advantages as per the slides?

Free Ride on First Mover Investments: Benefiting from first mover's investments in creating supply infrastructure and distribution channels. Correcting First Mover Mistakes: Designing products that correct the mistakes made by first movers. Leapfrogging Technology: Advancing beyond the first mover's technology. Benefiting from R&D Investments: Utilizing the research and development investments made by the first mover. Better Market Timing: Entering the market at a better time to take advantage of developed complementary technology. Flashcard:

What are the 5 kinds of teams and their characteristics?

Functional Teams: Composed of members from the same department or area. Cross-Functional Teams: Members come from different departments. Heavyweight Cross-Functional Teams: Members have decision-making authority. Autonomous Teams: Operate independently with little supervision. Virtual Teams: Members are geographically dispersed and communicate electronically.

How can managers nurture individual creativity?

Give full access to relevant knowledge domains. Motivate individuals to develop a passion for their work. Provide time for immersion in the issues. Avoid creating personal uncertainty.

What factors can prevent innovation in teams?

Groupthink: Limits interpretation and response. Siege Mentality: Focus on group vs. organizational goals. Means vs. Ends: Attachment to social systems rather than goals.

What does "Coupled" refer to in the context of Open Innovation modes?

In Coupled Open Innovation, companies collaborate and combine resources to work on projects that generate value for both parties. This approach is collaborative and involves sharing of resources and expertise.

What is the Role of Innovation in Creative Destruction?

In Creative Destruction, innovation serves as the catalyst. It: Creates Wealth: By introducing new products or services, it generates economic growth. Destroys Obsolescence: It makes older technologies or methods redundant, forcing industries and firms to adapt or perish. This concept is particularly relevant in industries that are rapidly digitalizing.

Why does Innovation Matter from a Society Perspective?

Innovation is crucial at a macro-economic level as it fuels global competitiveness and drives economic progress and social well-being. It serves as a tool to tackle societal challenges like resource scarcity, global warming, poverty, and health. According to economist William Baumol, virtually all economic growth since the 18th century is attributable to innovation.

Why does Innovation matter from a Company Perspective?

Innovation is crucial for companies because it provides strategic value and serves as a key differentiator. It can increase revenues, decrease costs through efficiencies, reduce competitive and financial risk, improve positioning and performance, enhance customer satisfaction, and elevate employee behaviours in a way that competitors cannot easily imitate.

How can Innovation be defined?

Innovation is the implementation of a new or significantly improved product, process, marketing method, or organizational method. It involves the creation of a new idea and its reduction to practice, including all activities required for commercialization. Innovation equals a feasible idea plus a business model plus customer value.

What does "Disagree and then commit" mean in the context of innovation?

It means that team members should stop fighting after a decision is made, as continued disagreement undermines implementation.

What is. Modes of Open Innnovation?

It refers to the different ways in which companies can engage in open innovation, such as through collaboration with external partners, licensing of intellectual property, or crowdsourcing of ideas. These modes can be used individually or in combination to achieve specific innovation goals.

What are Kondratiev's Long Waves of Innovation?

Kondratiev's Long Waves are economic cycles driven by waves of technological innovation. Initially, he identified two waves and speculated a third. Now, experts believe a sixth wave is ongoing. These waves influence consumption and adoption rates, which have generally become faster over time.

What are the key points/benefits/disadvantages about collaborating with startups?

Large companies benefit from new technologies and faster time-to-market. Startups gain resources, market reach, credibility Common barriers include lack of awareness and cultural differences. The collaboration allows large companies to engage with disruptive innovations without being disrupted.

What is the Adoption Curve and its key categories?

Lead Users: Early adopters who are ahead of market trends and have unique needs. Pilot Customers: Those who are willing to be the first to try and provide feedback. Opinion Leaders: Individuals whose opinions are highly valued and can influence others. Early Adopters: People who adopt new products or technologies before the majority. Routine Users: The mainstream consumers who adopt a product once it's widely accepted. Non-Adopters: Those who resist or never adopt the new product or technology.

Why is selection important in innovation?

Limited Resources: Organizations have finite time, money, and manpower. Risk Management: Innovation involves uncertainty; selection helps balance risk and reward. Optimization: Random choice is akin to gambling and not a strategic approach.

What are the limitations of relying solely on S-Curves for technology adoption?

Limits of technology are unknown. S-curve shape can be influenced by market changes, component technologies, and complementary technologies. Following the S-curve too closely can lead to poor timing, either switching too soon or too late.

Are the Best Innovations Always Adopted?

Not necessarily. The adoption of innovations can be influenced by: Government Mandates: Regulations can enforce or hinder adoption. Strategic Actions: Companies may push their own solutions. Standard-Setting Bodies: Agreements on technical standards can dictate which innovations succeed. Social Support: Public opinion can favor certain technologies. Installed Base: A large user base can make it hard for new innovations to gain traction. This raises the question of whether investing in efforts to establish and control a technical standard is worthwhile for a company.

What are some reasons for strategic patenting?

Offensive: To actively protect and enforce the patent rights, possibly leading to a competitive advantage. Defensive: To prevent competitors from entering the same technological space. Financial: To generate revenue through licensing, selling, or leveraging patents as assets. Bargaining: To have a stronger position in negotiations, potentially in cross-licensing agreements. Reputation: To enhance the reputation of the firm as an innovator or a leader in the field.

What characterizes Pragmatists in the Mainstream Market?

Prudent, manage risk. Seek evolutionary products and solutions. Motivated by present problems. Consult colleagues and peers before adopting new products. Example: Majority waiting for electric cars to become more affordable and charging infrastructure to be well-established.

What are the four quadrants in the framework for analyzing the pace of Technology Substitution?

Quadrant 1: Illusion of Resilience: Existing technology appears stable but is vulnerable to rapid substitution. Quadrant 2: Robust Resilience: Existing technology is stable and not easily substituted. Quadrant 3: Creative Destruction: Existing technology is rapidly replaced by a disruptive new technology. Quadrant 4: Robust Coexistence: Both existing and new technologies coexist and serve different market needs.

What questions should you consider when choosing a project management model?

Requirements: Can they be well-designed or do they change? Prototyping: Is rapid prototyping possible? Team Meetings: Can team members meet easily? Specialism: Is only one specialism needed or more?

What are the 10 innovation climate factors?

Risk-taking Playfulness Challenge/motivation Freedom Idea support Trust/Openness Liveliness/Dynamism Debates Conflict-freeness Time slack

What is Roadmapping as a tool?

Roadmapping is a comprehensive tool that can be tailored to various aspects of the business. Types of roadmaps include Market & Strategy, Visionary, Technology, Platform, and Product roadmaps. Each type serves a different purpose, such as outlining technology trends or detailing core platform developments.

What is Scenario Planning as a tool?

Scenario Planning is a tool designed to help organizations understand the range of possible futures they might face. It involves identifying key factors that could impact the business and creating different scenarios based on these factors. The aim is to prepare for potential disruptive changes and to identify strategies that would be effective across multiple scenarios.

Can you elaborate on the characteristics and use-cases of the 5 Project Management Models?

Staged (or Sequential) Model: This is the most traditional form of project management. Each stage is distinct and ends with specific deliverables. This model is often used in construction and manufacturing where stages are linear and don't overlap. Waterfall Model: Originated in the 1970s and is heavily inspired by IT projects. It's similar to the sequential model but allows for some iteration. The stages include Initiation, Definition, Design, Development, and Implementation. It's commonly used in software development but is being replaced by more agile methods. Cross-Functional Team: This model involves team members from multiple departments that are affected by the innovation. It is led by a project manager and is ideal for projects that have diverse requirements needing expertise from different parts of the organization. Good communication is crucial, and a common location is ideal. Agile Models: Originated around 2001 and is particularly useful for projects that are customer-focused and where requirements may change. It focuses on customer feedback and allows for many updates and modifications. Agile is often used in software development but is also applicable in marketing and product development. Scrum Model: This is an extreme case of the agile model. A small team works on "sprints" to produce a deliverable in a short time frame, usually a week or two. Roles include a "scrum master," who facilitates daily group meetings, and a "product owner," who decides what is deliverable. Scrum emphasizes flexibility, close communication, and is often used in fast-paced development environments.

What is the Stage-Gate Model and its limitations?

Stages and Gates: The model involves multiple development stages and decision gates. Type I and II Errors: At each gate, assess the risk of false positives and negatives. Drawbacks: Not suited for new growth businesses and assumes the proposed strategy is always correct.

How are the best ideas selected in innovation management?

Step 1: Rough Selection: Use ABC analysis to categorize ideas as A (necessary), B (uncertain), or C (reject). Step 2: Fine Selection: Use methods like the "100$ method" to prioritize projects by allocating virtual "money." Step 3: Detailed Analysis: Evaluate factors like customer value, differentiation potential, and feasibility.

What exercises can help boost creativity?

Storyboarding: Writing ideas on sticky-notes and arranging them. Forced Connections: To shift thinking in new directions. Alter-egos/heroes: Adopting different perspectives. Group Sketching: Collaborative visual idea generation. Six Thinking Hats: A method for looking at decisions from multiple perspectives.

How can an organization achieve Ambidexterity?

Structural Separation: Different teams for sustaining innovation and disruptive culture. Temporal Separation: Designated times for innovation and regular operations. Contextual Ambidexterity: Balancing exploration and exploitation within the same organizational context. Domain Separation: Using external resources, like outsourcing customer service to a cheaper location.

What are the 7 crucial elements in the implementation phase of innovation project management?

The 7 crucial elements for successful implementation in innovation project management are: Clear Aims: Understanding and managing trade-offs to align with project objectives. Planning of Work Tasks: Using tools like Work Breakdown Structure to plan tasks in manageable sizes. Schedule Plan: Prioritizing tasks based on their critical path to ensure timely completion. Resource Plan: Allocating necessary resources, especially for critical tasks. Risk Management: Identifying and mitigating risks using methods like premortem discussions. Objective Staged Review Process: Employing a stage-gate process for ongoing assessment. Active Management of Stakeholders: Effectively managing collaborations, subcontracts, and joint ventures.

What is the ERRC Grid?

The ERRC Grid (Eliminate-Reduce-Raise-Create Grid) is a strategic tool used to create a new value curve in the Strategy Canvas. It helps companies break away from the competition by: Eliminate: Removing factors that the industry takes for granted but are no longer needed. For example, traditional taxi services assumed that phone dispatch was necessary, but Uber eliminated this feature. Reduce: Lowering factors below the industry standard. For example, budget airlines have reduced in-flight services. Raise: Enhancing factors above the industry standard. Luxury car brands like Tesla have raised the bar on electric vehicle range and technology. Create: Introducing new factors that the industry has never offered. For example, Amazon Prime created the concept of free, two-day shipping for a wide range of products. The ERRC Grid helps in crafting a new value curve and is a framework for simultaneously pursuing differentiation and low cost.

What does the Innovation Landscape Map entail, and can you provide examples?

The Innovation Landscape Map categorizes innovations into four types: Disruptive: Innovations that displace existing markets or technologies. Example: Streaming services like Netflix disrupting traditional cable TV. Architectural: Changes in the overall design where components interact. Example: Transition from feature phones to smartphones. Routine: Regular and incremental improvements. Example: Software updates for better performance. Radical: Fundamental changes that revolutionize industries. Example: Introduction of the internet.

What are the 4 types of innovation problems and how can they be addressed?

The Lamp-post Problem: Challenge of looking for solutions in unexpected places. The Messenger Problem: Navigating the corporate immune system that resists change. The Rewiring Problem: Forming new networks for innovation. The Balancing Problem: Managing innovation while maintaining core business operations.

What is the Six Paths Framework?

The Six Paths Framework is a tool that helps companies look for blue ocean opportunities by examining: Industry: Looks at alternative industries rather than just focusing on the existing one. Example: Tesla looked beyond the automotive industry to renewable energy, introducing solar products and energy storage solutions. Strategic Group: Examines different strategic groups within industries. Example: Walmart targeted budget-conscious shoppers, differentiating itself from department stores focusing on middle-to-high-income consumers. Buyer Group: Considers the entire chain of buyers, not just the end-users. Example: Pharmaceutical companies often market directly to doctors as well as consumers, recognizing that both groups influence the buying decision. Scope of Product or Service Offering: Looks at complementary products and services. Example: Apple doesn't just sell iPhones; it offers a range of complementary services like iCloud, Apple Music, and the App Store to lock in users. Functional or Emotional Appeal: Rethinks the functional-emotional orientation of the industry. Example: Nike sells athletic gear (functional) but also focuses on the emotional appeal of inspiration and achievement. Time: Anticipates future trends to create forward-looking strategies. Example: Netflix moved from DVD rentals to streaming, anticipating the shift towards online content consumption. By examining these paths, companies can identify new market spaces, differentiate their offerings, and potentially find blue oceans.

What is the Strategy Canvas?

The Strategy Canvas is a visual tool that captures a company's current strategic position compared to its competitors. It plots key factors that the industry competes on and invests in (X-axis) and the offering level that buyers receive across these key competing factors (Y-axis). This canvas helps companies identify where they can differentiate their offerings and potentially find blue oceans. For example, Southwest Airlines used a Strategy Canvas to differentiate itself by eliminating or reducing factors like in-flight meals and seating classes, which were industry standards, while focusing on speed and frequent point-to-point departures.

What is the Technology S-Curve?

The Technology S-Curve describes the typical path of technological improvement. It has three stages: Emerging Stage: Slow initial growth due to poor understanding and limited resources. Pacing Stage: Accelerated improvement as understanding increases and commercial potential is recognized. Base Stage: Slowing down as technological limits are approached. Note that the S-Curve is not predictive; the upper limit of technological improvement is hard to determine.

How Does the Technology S-Curve Progress?

The Technology S-Curve progresses through stages: Emerging: Initial slow growth due to lack of understanding and resources. Pacing: Rapid improvements as the technology is better understood. Base: Slows down as the technology matures and faces the risk of being replaced. It's important to note that the S-Curve is not a tool for predicting the ultimate potential of a technology.

What are the Two Ocean Strategies?

The Two Ocean Strategies are: Red Ocean Strategy: This strategy competes in existing market spaces, aims to beat the competition, and exploits existing demand. Companies following this strategy often engage in a zero-sum game where one company's gain is another's loss. Blue Ocean Strategy: This strategy aims to create uncontested market spaces, making competition irrelevant and generating new demand. Companies following this strategy innovate to offer unique value propositions. Both strategies are designed to guide innovation and strategic planning, but they differ fundamentally in their approach to competition and market demand.

What are the Dimensions of Innovation?

The dimensions of innovation are categorized into four main areas: Products: Changes in the offerings of an organization. Process: Changes in how products are created and/or delivered. Position: Changes in the context where products/services are introduced. Paradigm: Changes in the underlying mental and business models that frame what the organization does.

How does the innovation strategy start, and what should it include?

The innovation strategy starts by clarifying the company's sustainable competitive advantage and defining tangible objectives related to this advantage. It should answer three key questions: How will the innovation create value for potential customers? How will the company capture a share of the value its innovations generate? What types of innovations will allow the company to create and capture value, and what resources should each type receive?

What are the key Innovation Classification Models?

The key innovation classification models include: Abernathy & Clark Model: Focuses on the impact of innovation on existing markets and technologies. Henderson & Clark Model: Emphasizes the role of architectural and component-level innovations. Tushman et Al. 1997 Model: Discusses the cyclical nature of innovation and organizational change. Chandy and Tellis Model 1998: Examines the factors that drive firms to pioneer innovations.

What are the key disadvantages of the Traditional (Closed) Innovation Approach?

The main drawbacks include False Positives, where companies invest in unprofitable ideas, and False Negatives, where profitable ideas are overlooked. It also suffers from a limited perspective, high costs, slow time-to-market, and the risk of being outpaced by competitors using open innovation.

What Drives the Need for Innovation?

The need for innovation can be driven by various factors, both internal and external: Technological Advances: Rapid tech developments can make current offerings obsolete. Changing Customer Needs: Evolving consumer preferences require new solutions. Strategic Intent: A company's own strategy may necessitate innovation. Business Environment: Changes like increased demand for eco-friendly products can drive innovation. Intensified Competition: To stay ahead or catch up, innovation becomes essential.

What are the 3 Degrees of Innovation and can you elaborate on them?

The three degrees of innovation are: Incremental: These are small, continuous improvements often focused on existing processes or products. For instance, a new version of a smartphone with a better camera. Breakthrough: These are significant changes that offer new capabilities and substantial advantages. An example would be the development of electric cars as an alternative to fossil fuel vehicles. Radical: These are transformative innovations that create new industries or revolutionize existing ones. The invention of the airplane or the internet are examples of radical innovations.

What are the 3 fundamental innovation strategies?

The three fundamental innovation strategies are: Seekers: Companies like Apple focus on customer engagement to generate new ideas. They aim for groundbreaking products based on deep customer insights. Market Readers: Companies like Hyundai closely monitor market trends and customer needs. They generally focus on incremental innovations. Technology Drivers: Companies like IBM rely on their internal technological capabilities. They invest heavily in R&D as the primary driver of innovation. Each strategy has its own approach to innovation, influenced by market interaction, customer engagement, and internal capabilities.

What are the Three Main Patterns of Innovation and How Do They Impact Industries?

The three main patterns of innovation are Creative Destruction, Technology S-Curve, and Dominant Technical Standards. Creative Destruction: Driven by innovation, this pattern creates new opportunities and wealth while eliminating outdated methods and industries. It's especially prevalent in digitalized sectors. Example: Streaming services like Netflix disrupting Blockbuster. Technology S-Curve: Describes the life cycle of technological improvement, starting slow, accelerating, and then slowing down again. It helps industries understand the maturity and potential of technologies. Example: Electric cars now entering the 'pacing stage,' improving rapidly. Dominant Technical Standards: These are widely accepted protocols or technologies in an industry. They can be influenced by threshold effects, network effects, and external factors like government mandates. Example: USB becoming the standard for data transfer.

What are the 3 tools for analyzing innovation strategy?

The three tools for analyzing innovation strategy are: Scenario Planning: Helps in understanding a range of possible futures and preparing for disruptive changes. The Strategic Landscape: A simplified version of roadmapping that provides a high-level overview of important business aspects like technology and competitors. Roadmapping: A detailed tool that can be tailored to various aspects of the business, such as market entry strategy or technology trends. These tools help align innovation efforts with market trends, customer needs, and internal capabilities.

What is the Innovation Funnel?

Wide End: Many ideas are generated and enter the funnel. Evaluation Stages: Ideas are scrutinized and filtered through various criteria. Narrow End: Only the most viable ideas emerge for implementation. Financial Considerations: Become most relevant in the later stages. The innovation funnel serves as a mechanism for evaluating and selecting the best ideas for implementation.

What does "Inside-Out" refer to in the context of Open Innovation?

"Inside-Out" in Open Innovation refers to large firms using technology incubators, corporate venture groups, or licensing out technology. The aim can be to develop technology to sell it or to occasionally consider that option. Intermediaries are often used. For example, Philips Electronics' incubator initiated 11 new projects in its first two years, and in five years, five remained and five had spun out.

What does "Outside-In" refer to in Open Innovation?

"Outside-In" refers to the practice of sourcing ideas and technologies from external sources like customers, partners, or even competitors. The company focuses on gathering external insights to fuel its innovation processes. Example: Starbucks using customer suggestions from its "My Starbucks Idea" platform to create new drinks or features.

How can companies find the right balance when spawning new businesses?

Companies can find the right balance through several strategies: Developing Strategy by Trial and Error: Using prototypes and non-financial milestones to measure progress. Operate with Something Old, Something New: Appointing experienced individuals who are also open to new ideas. Integrate with Autonomy: Using a mix of corporate executives and division managers as sponsors. Balancing Acts for Potential Solution: Creatively combining formal and informal reporting relationships for oversight and support.

Can you give examples of the disadvantages of Traditional (Closed) Innovation?

False Positives could be a company investing in a feature customers don't want. False Negatives are like Xerox overlooking the graphical user interface, which Apple and Microsoft later popularized. Limited perspective might mean missing out on external groundbreaking ideas, high costs could involve billions spent on failed R&D, and slow time-to-market might mean missing a trend or being outpaced by faster, open innovators.

How can a firm win the battle for Dominant Design?

Gain support from producers of complementary products. Ensure availability of complementary products for added customer value. Maintain backward compatibility. Reduce the cost to customers of choosing the wrong technology.

What are the key considerations in Overlapping S-Curves in technology adoption?

Old technologies can be displaced by new ones, like vinyl records to CDs. New technologies often start with lower performance. Incumbent firms may be reluctant to adopt due to initial slow performance and significant investment in existing technology.

What are some common selection criteria for innovation projects?

Profitability: Earning potential. Clarity: Minimal assumptions needed. Usability: Practical utility. Stability: Long-term market viability. Scalability: Potential for growth. Stickiness: Likelihood of becoming a habit. Integration: Alignment with organizational strategy.

What are the disadvantages of being a first mover?

R&D Expenses: High research and development costs, e.g., pharmaceutical companies in new drug development. Undeveloped Supply and Distribution Channels: Initial lack of infrastructure for sales and delivery, e.g., early e-commerce companies building distribution networks. Immature Enabling Technologies and Complements: Lack of necessary supporting technologies or complementary goods, e.g., early electric cars and charging stations.

When does secrecy work in the context of intellectual property?

Secrecy works in mitigating imitation under certain conditions: Few sources of information about the new product or service (e.g., secret formula of Coca-Cola). When a new product or service is complex. When the process of creating a new product or service is poorly understood. When the secret is tacit knowledge, not documented in written form. Limited numbers of people capable of understanding the information being kept secret. Secrecy works better for processes, inputs, and materials than for products since products are sold and observable in the market.

What are different search strategies for innovation?

Sending out Scouts: Deploying individuals to gather market intelligence. Exploring Multiple Features: Investigating various aspects of a problem. Using the Web: Online research and data mining. Working with Active Users: Engaging with the most involved customers. Deep Diving: In-depth research into a specific area. Probe and Learn: Iterative testing and learning. Mobilize the Mainstream: Engaging with the general public for ideas. Corporate Venturing: Investing in external startups. Corporate Entrepreneurship: Fostering internal startups. Brokers and Bridges: Utilizing intermediaries for idea exchange. Deliberate Diversity: Encouraging a mix of perspectives. Idea Generator: Using software or structured brainstorming to generate ideas.

What are the four strategies to make it to the markets as outlined in the slides?

Shotgun Approach: (No detailed specifics provided). D-Day Analogy (Normandy attack): Select a point of attack, attack with overwhelming force, and move outward capturing the center. Whole Product Solution: Develop the whole product. Involves hardware customization, software development, training and support, and maintenance. Other (Strategic) Decisions: Utilize partners/allies, sales channels (direct sales, authorized dealer, value-added reseller), and pricing strategies (cost plus, premium, value-based).

What is Project Scoring and how does it work?

6 Factors: Important aspects considered in the project, such as cost, feasibility, and strategic fit. Scores: Numerical values assigned to each factor based on its importance. Scoring Tool: A table listing factors and scores, often with weights to indicate the importance of each factor. Purpose: Helps create a priority list of projects by assigning scores based on multiple weighted criteria.

What are the 5 Project Management Models and their characteristics?

Staged Model: Earliest paradigm, each stage ends with specific deliverables. Waterfall Model: Allows for iteration, stages include Initiation, Definition, Design, Development, and Implementation. Cross-Functional Team: Involves multiple departments, led by a project manager, and emphasizes communication. Agile Models: Focuses on customer feedback, allows for trial and error, and is adaptable. Scrum Model: An extreme form of Agile, involves "sprints," roles include a "scrum master" and a "product owner."

What are the two extra tools specifically useful for Service Innovation?

Two specific tools for service innovation are: Service Concept: Helps identify opportunities by focusing on service value and outcomes, asking questions like "what does the customer gain?" Service Blueprint: A flow diagram outlining the customer-service provider interaction, useful for visualizing and improving the service process.

What is Contingency Theory and its relevance in New Product Development?

Contingency Theory emphasizes that there's no one-size-fits-all solution; strategies should be tailored to specific business environments. In New Product Development (NPD), this means that the effectiveness of a strategy or leadership style is contingent on the specific setting or situation. For example, a highly bureaucratic approach may work in a stable industry but fail in a fast-paced tech environment.

What are some critical roles in an innovation team?

Coordinator: Manages tasks and ensures team members are aligned. Shaper: Drives the team and challenges members to improve. Plant: Creative thinker who supplies innovative ideas.

What are the limits of Intellectual Property Rights as mentioned in the slides?

Cost: The expenses related to search, registration, and renewal of intellectual property rights. Registration in Various Markets: The need to register intellectual property in different national markets. Public Disclosure: The requirement to fully and publicly disclose your idea which can be risky. Enforcement: The necessity to have the capability to enforce the intellectual property rights.

What is Design Thinking?

Empathize: Understanding users by immersing in their environment. Define: Clearly articulating the problem to be solved. Ideate: Generating a wide range of possible solutions. Prototype: Creating low-fidelity versions of solutions for testing. Design thinking is a human-centric approach to problem-solving that involves these four steps.

What is the Stage Gate Process Review in project management?

The Stage Gate Process Review is a method that divides a project into distinct stages, separated by decision-making "gates." At each gate, the project is evaluated to decide whether to continue, modify, or halt it. This approach allows for ongoing assessment, risk mitigation, and alignment with project objectives.

What is the Strategic Landscape as a tool?

The Strategic Landscape is often the first step in strategic thinking. It provides a high-level overview of the business environment, including technology trends and competitor movements. This tool helps companies identify what is important now and what will be important in the future.