MGMT 498 Exam 1: CH. 7
Architectural Innovations:
An innovation in which known components are reconfigured in a new way
Radical Innovations
An innovation that draws on novelty and is derived from an entirely different knowledge base
Disruptive Innovations
An innovation that leverages new components
Incremental Innovations:
An innovation that squarely builds on an established knowledge base and steadily improves an existing product/service
First Movers Advantage:
Competitive benefits that accrue to the successful innovator
Industry Life Cycle: 5 Stages:
Introduction (Launching successful innovation/industry) > Growth (Demand increases rapidly, many firms enter) > Shakeout (Rate of growth declines, firms compete directly) > Maturity (Few large firms, increases competition, maximum process innovation) > Decline (Market size contracts, demand falls)
Respond to disruptive innovations:
continue to innovate, protect against disruptive innovations by protecting low end of market, disrupt own industry before someone else does.