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Questions and Answers
What are the main research interests of Riccardo Rialti, Ph.D.?
Digital Transformation; Digital Marketing Strategies; Big Data Analytics; SMEs
What is the focus of the course on economics of innovation and digital management at the macro level?
Innovative companies are increasingly digitally-driven which influences their strategies.
True
What type of exam is conducted for evaluation where there are 15 closed-ended questions worth 2 points each?
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What are the three defining characteristics of a start-up?
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What are some challenges that start-ups typically face? (Select all that apply)
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Seed stage of start-up development is when founders have already generated revenue.
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The Valley of Death is a critical phase in new ventures when substantial work has begun but no sufficient _________ has been generated.
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Match the source of financing with its type:
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What is the definition of innovation?
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How can innovations be classified according to nature?
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Process innovation happens when a firm performs an existing business process in a radically different way that results in something highly beneficial to those who perform the process, those who rely on the process or both. ______ innovations include both new products and new uses for existing products.
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What are the 4Ps of Innovation?
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Closed Innovation is intended to yield immediate profit.
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Match the following terms with their descriptions:
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Define Frugal Innovation.
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What is a service according to Vargo and Lusch (2004)?
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What are the characteristics of services according to Shostack (1977)?
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Innovation in services is peculiar due to its high ________ content.
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Users play a central role in service innovations.
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What is the solution to the commodity trap according to Chesbrough?
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What does the Service-Dominant Logic perspective focus on?
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Which of the following dimensions are included in the new framework of Service-Dominant Logic perspective? Select all that apply
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Service innovation based on Service-Dominant Logic perspective does not involve asymmetric information flows. (True/False)
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Value chain is the coordinated series or sequence of functional activities necessary to transform inputs into _________ that customers value.
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How can digital technologies such as artificial intelligence and cloud computing be characterized?
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What role do basic technologies play in digital transformation projects?
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What are the characteristics of basic technologies? (Select all that apply)
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What is the main purpose of IT infrastructure in the context of basic technologies?
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___ and Actuators are considered basic technologies.
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What is the primary importance of mobile technologies?
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Communication and Networking represent the base for Industrial Internet of Things (IIoT).
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What are the consequences of digital transformation for the value chain?
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What is one reason for the limited impact of digitalization on innovation in small and medium-sized enterprises (SMEs)?
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What is the relevance of cloud computing?
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Which of the following are types of data analytics? (Select all that apply)
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Match the following concepts with their descriptions:
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What is the basic concept of blockchain technology?
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What does SMEs stand for?
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Research and Transfer Institutes (RTIs) play no role in digitalizing SMEs in Industrial Districts.
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What is the role of 'gatekeepers' in the local dissemination of knowledge?
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What is mentioned as important mechanisms for the dissemination of Industry 4.0 knowledge in traditional industrial districts?
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In the Trajectory of diffusion and dissemination of I4.0 knowledge, during the pioneering phase (2015-2016), BIESSE launched the project ______ (IoT and sensors).
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What are the roots of the Vinalopo footwear district?
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What are some of the technologies mentioned as part of the Vinalopo footwear district?
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Virtual prototypes reduce the cost of manufacturing physical prototypes.
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______ manufacturing of footwear lasts for footwear prototyping or for shoes prototyping permits having the exact prototype.
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Match the Industry 4.0 adoption strategies with their descriptions:
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What kind of technologies did Del Brenta shoe district focus on for product development?
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Study Notes
Course Overview
- The course covers the economics of innovation and digital management.
- It is taught by Riccardo Rialti, Ph.D. at the University of Siena.
Content
- The course provides an overview of the impact of innovation on economic activities.
- It examines how innovation has affected industries at national and international levels.
- It focuses on how digital technologies are changing how companies create value.
- It covers how companies are becoming digitally-driven and need to rethink their strategies, processes, and organizational structures.
Learning Objectives
- Understand new I4.0 technologies shaping modern businesses.
- Learn how digitalization is affecting different industries.
- Be able to participate in digital transformation teams within businesses.
Course Structure
- Lessons comprise in-class discussions, guest speakers, and cases.
- The course includes readings, group assignments, and a written exam.
Evaluation and Exam
- The evaluation consists of two group assignments (30% each) and a written exam (40%).
- The first group assignment is a short essay on digital transformation within a large manufacturing company.
- The second group assignment is a business idea generation project.
- The written exam consists of 15 closed-ended questions.
Guest Speakers
- There are three guest speakers scheduled for the course.
- The topics include digital marketing foundations, leading digital transformation projects, and digital transformation strategies in luxury.
Group Project Work
- The group project work involves developing digitally-embedded products.
- The project should include a presentation with 25 slides covering various aspects of the product.
Industry 4.0
- Industry 4.0 is characterized by the use of digital technologies such as artificial intelligence, business analytics, cloud computing, and the Internet of Things (IoT).
- It involves the integration of these technologies to create new business models and opportunities.
- Industry 4.0 is driven by the need for companies to innovate and stay competitive in a rapidly changing business environment.
Digital Technologies
- Digital technologies include artificial intelligence, business analytics, cloud computing, and the Internet of Things (IoT).
- These technologies are characterized by accessibility, ease of deployment, scalability, and ubiquity.
- They are enabling companies to create new business models and opportunities.
Additive Manufacturing
- Additive manufacturing is a type of production process that involves the creation of products layer by layer.
- It is also known as 3D printing.
- Additive manufacturing is becoming increasingly popular due to its ability to create complex geometries and short production times.
Adaptive Robots
- Adaptive robots are a type of robot that can learn and adapt to new situations.
- They are used in various industries such as manufacturing, healthcare, and logistics.
- Adaptive robots are becoming increasingly popular due to their ability to improve efficiency and productivity.
Virtualization Technologies
- Virtualization technologies include augmented reality (AR), mixed reality (MR), and virtual reality (VR).
- They are used to create immersive and interactive experiences.
- Virtualization technologies are becoming increasingly popular in various industries such as education, healthcare, and entertainment.
Data Analytics
- Data analytics is the process of extracting insights and patterns from data.
- It involves the use of various techniques such as descriptive, diagnostic, predictive, and prescriptive analytics.
- Data analytics is becoming increasingly important for businesses as it enables them to make informed decisions and improve their operations.
Artificial Intelligence
- Artificial intelligence (AI) is the development of computer systems that can perform tasks that typically require human intelligence.
- AI involves the use of machine learning algorithms and natural language processing.
- AI is becoming increasingly popular in various industries such as healthcare, finance, and customer service.
Blockchain
- Blockchain is a decentralized, digital ledger that records transactions across multiple computers.
- It is used to create a secure and transparent record of transactions.
- Blockchain is becoming increasingly popular in various industries such as finance, supply chain management, and cybersecurity.### Blockchain Networks
- Private blockchains are not decentralized, closed, and secure databases that grant access to a few participants.
- They are used for running nodes, making transactions, and authenticating settings.
- Public blockchain networks are different from private blockchain networks.
Permissioned Blockchain Network
- A permissioned blockchain is a mix of private and public blockchain networks.
- It allows anyone to join the network after their identities have been sufficiently verified.
- The purpose of a permissioned blockchain is to grant special permissions to each participant.
- This allows participants to perform specific functions and handle specific processes.
Digital Transformation
- Digital transformation is fundamental for companies to remain competitive.
- The integration of digital technologies has proven to enhance business performance.
Start-ups
- A start-up is defined by 3 characteristics:
- Less than 10 years old
- Highly innovative technologies and/or business models
- Significant employee and/or sales growth
- Start-ups face several challenges, including:
- Sales and customer acquisition
- Product development
- Processes and internal organization
- Growth and internationalization
- Raising capital
- Cash flow and liquidity
- Profitability
- Acquisition of staff
- Team development
- Start-ups can overcome the "Valley of Death" through financing and collaboration.
Financing
- There are several sources of financing, including:
- Savings of the founders
- Family and friends
- Governmental subsidies/funding
- Business angels
- Venture capital
- Incubators and accelerators
- Bank loans
- Financing can help start-ups overcome the "Valley of Death".
Established Firms
- Large businesses have a higher capability of obtaining financing for R&D projects.
- However, they also have a loss of managerial control, lower incentives for individual scientists, and bureaucracy.
- Agile leadership can help mitigate these costs.
Innovation
- Innovation is the commercial introduction of a new or significantly improved product or service.
- Innovations can also be for non-commercial applications, such as for better public services or for addressing social needs.
- Innovation can be classified according to:
- Nature (product/service, process)
- Intensity (incremental, radical)
- Effect on competences
- Destination (modular, architectural)
Technology and Innovation
- Technology can advance through innovation, which is "produced" within the system, subject to economic incentives.
- Endogenous growth theory suggests that innovation is the output resulting from inputs, such as physical capital, human capital, R&D, and economies of scale.
- Economic agents are motivated by selfish considerations of advancement.
- Technology is non-rivalrous, but knowledge is often produced under conditions of "open source".### Internalist vs. Externalist Theories of Technological Change
- Internalist theory: evolutionary process, past influences the future, and technological change is determined by internal factors.
- Externalist theory: technological change is determined by economic needs.
Social Constructionist Theory
- Technology is the result of political processes and cultural transformations.
- Lobbies, classes, and groups of interests play a crucial role in shaping technology.
Types of Knowledge
- Prescriptive knowledge (technology): focuses on how to do something.
- Propositional knowledge (science): focuses on understanding nature.
Innovation and Efficiency
- The degree of inefficiency of the innovative process can be reduced by trying fewer options.
- Modern economic growth was allowed by the division of knowledge (specialization).
- Total social knowledge equals the union of all individual pieces of knowledge.
Technology in a Malthusian Economy
- Pre-1800 society was able to develop many techniques without understanding why they worked.
- There was progress before the First Industrial Revolution, but most gains were attributed to the growth of commerce and markets.
- Most inventions were introduced by artisans, but could they alone generate the Industrial Revolution?
Research and Development (R&D)
- R&D is the set of innovative activities undertaken by corporations or governments to develop new services or products.
- R&D constitutes the first stage of development of a potential new service or product.
- There are two primary models of R&D departments: staffed by engineers or industrial scientists.
Open vs. Closed Innovation
- Closed Innovation: a company generates, develops, and commercializes its own ideas.
- Open Innovation: a company uses external ideas and partnerships to accelerate innovation.
Frugal Innovation
- Frugal innovation is the redesigning of products, services, systems, and business models to reduce complexity and costs while enhancing functionality.
- Frugal innovation targets marginalized contexts, i.e., social scenarios within specific geographical boundaries where people have low income, capabilities, and freedom.
- Examples of frugal innovation include the Chotukool, a low-cost refrigerator designed for Indian households.
Service Sector
- Services are the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself.
- Services have four characteristics: intangibility, inseparability, heterogeneity, and perishability.
- The service sector is wide and varies across countries.
Classifying Services
- Services can be classified into different categories, such as education and healthcare, banks and insurances, public administration, and more.
- Lovelock proposes a classification of services based on the recipient of the service, such as people processing, possession processing, and mental stimulus processing.
Innovation in Services
- Innovation in services is peculiar and has different characteristics than innovation in manufacturing.
- According to Sirilli and Evangelista (1998), innovation in services involves co-terminality, high information-intangible content, human resources, and organizational factors.
- Classifying innovation in services is difficult, but many classifications exist, such as major service innovations, major process innovations, product line extension, and more.
Open Service Innovation
- Open Service Innovation is a solution to the commodity trap, which is caused by the diffusion of production and ideas, manufacturing activities moving to low-cost countries, and shorter product life cycles.
- According to Chesbrough, Open Service Innovation involves considering your company as a business open to services, inviting clients to co-create, considering Open Innovation, and modifying your business model.
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Description
Learn about the economics of innovation and digital management with Riccardo Rialti, PhD. Explore the concepts and principles of innovation and digital management.
