Podcast
Questions and Answers
What term describes the creation of new business within an existing organization?
What term describes the creation of new business within an existing organization?
Which of the following best describes the ideal balance for a large corporation to foster innovation?
Which of the following best describes the ideal balance for a large corporation to foster innovation?
According to Burgelman, which factor does NOT influence the choice of organizational design for corporate entrepreneurship?
According to Burgelman, which factor does NOT influence the choice of organizational design for corporate entrepreneurship?
Which of the following is NOT one of Peter Drucker's seven sources of innovative opportunity?
Which of the following is NOT one of Peter Drucker's seven sources of innovative opportunity?
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What is the purpose of having diverse organizational designs in corporate entrepreneurship?
What is the purpose of having diverse organizational designs in corporate entrepreneurship?
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Which factor is NOT associated with successful entrepreneurs?
Which factor is NOT associated with successful entrepreneurs?
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What is the primary focus of the innovation process?
What is the primary focus of the innovation process?
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What is a key characteristic of the implementation stage of the innovation process?
What is a key characteristic of the implementation stage of the innovation process?
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Which of these is NOT part of the commercialization phase in the innovation process?
Which of these is NOT part of the commercialization phase in the innovation process?
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Which aspect is critical for determining the success of a new venture?
Which aspect is critical for determining the success of a new venture?
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How can innovation make a physical product more attractive to users?
How can innovation make a physical product more attractive to users?
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What is a potential benefit of new production techniques?
What is a potential benefit of new production techniques?
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What is the primary means by which entrepreneurs exploit change for business opportunities?
What is the primary means by which entrepreneurs exploit change for business opportunities?
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Which of the following statements best describes the role of branding in innovation?
Which of the following statements best describes the role of branding in innovation?
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What should entrepreneurs purposefully seek according to the principles of successful innovation?
What should entrepreneurs purposefully seek according to the principles of successful innovation?
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What aspect of new products allows them to fulfill emotional needs in consumers?
What aspect of new products allows them to fulfill emotional needs in consumers?
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What are the two essential components of promotion?
What are the two essential components of promotion?
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Which philosophy can contribute to profitable innovation in production?
Which philosophy can contribute to profitable innovation in production?
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How does the concept of services relate to physical products according to the content?
How does the concept of services relate to physical products according to the content?
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Which of the following is a characteristic of corporate entrepreneurship?
Which of the following is a characteristic of corporate entrepreneurship?
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What describes a product according to the content provided?
What describes a product according to the content provided?
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What is a common misconception about promoting products?
What is a common misconception about promoting products?
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How can entrepreneurs effectively promote their products with limited resources?
How can entrepreneurs effectively promote their products with limited resources?
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Which entrepreneur is noted for leveraging the Virgin brand across various product areas?
Which entrepreneur is noted for leveraging the Virgin brand across various product areas?
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What does multiple innovation imply for an entrepreneurial venture?
What does multiple innovation imply for an entrepreneurial venture?
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What was the aim behind Frederick Smith's creation of Federal Express?
What was the aim behind Frederick Smith's creation of Federal Express?
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Study Notes
Innovation Concept
- Innovation is a tool used by entrepreneurs to leverage change for new opportunities in business or services.
- Entrepreneurs must actively seek out the sources of innovation and understand the principles of successful innovation.
New Products
- Most common form of innovation is creating new products.
- New products can utilize existing technologies or be the result of entirely new technologies.
- Innovations can be established through branding, which reassures consumers, provides association, and allows them to express themselves.
- Richard Branson utilizes the "Virgin" brand across diverse products, including airlines, record labels, soft drinks, and personal finance, to differentiate his ventures.
New Services
- A service is an act performed to complete a task or solve a problem.
- Services are as open to innovation as physical products.
- An example is Frederick Smith's creation of FedEx, a multi-million dollar international business rooted in efficient parcel delivery.
- Services can benefit from branding, and "products" and "services" should be viewed as interlinked, allowing innovation through customer service enhancements or product technology advancements.
New Production Techniques
- Innovation can occur in the manufacturing process, whether by developing existing technologies or adopting new ones.
- Successful production techniques provide new benefits to end-users by offering lower costs, higher quality, or better service.
- New production philosophies, like Just-in-Time (JIT) and Total Quality Management (TQM), provide profitable innovation platforms.
New Means of Informing Customers
- Effective promotion is essential for product or service success, comprising message and delivery.
- Entrepreneurs should actively innovate in message and delivery, particularly when resources are limited.
- Developing new promotional methods is vital for attracting new customers.
Multiple Innovation
- Entrepreneurial ventures can leverage multiple innovations, combining elements like a new product, a new delivery method, and a unique message.
Importance of Innovation for Entrepreneurship
- Corporate entrepreneurship, or intrapreneurship, refers to the creation of new businesses within existing organizations.
- Corporations must balance freedom for new ventures with control from headquarters.
Organization for Innovation: Corporate Entrepreneurship
- Burgelman proposes 9 organizational designs for corporate entrepreneurship based on the strategic importance of the new business and its relatedness to the corporation:
- Direct integration
- New product business department
- Special business unit
- Micro new ventures departments
- New venture division
- Independence business units
- Nurturing and contracting
- Contracting
- Complete spin-off
Sources of Innovation for Opportunities
- Drucker identified 7 sources of innovative opportunity:
- The Unexpected
- Incongruity
- Innovation Based on Process Need
- Changes in Industry or Market Structure
- Demographics
- Changes in Perception, Mood, and Meaning
- New Knowledge
Factors Affecting a New Venture's Success
- Industry structure
- Business strategy
- Entrepreneurial characteristics:
- Successful entrepreneurs are better
- Successful entrepreneurs have a sense of urgency
- Successful entrepreneurs have a detailed knowledge
- Successful entrepreneurs seek outside help to supplement their skills, knowledge and abilities
The Innovation Process
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Invention versus Innovation:
- Invention is the creation of a new idea, while innovation is the translation of that idea into a useful application.
Innovation Process
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Innovation Development Process:
Analytical Planning Organizing Resources Implementation Commercial Application Product design Materials, technology, human resources Organization, product design, manufacturing, services Value to customers, rewards for employees, revenues for investors, satisfaction for founders Market strategy Capital Financial need -
The innovation process involves translating an idea into an application.
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This requires persistence in developing product or service details, marketing, financing, and operations.
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Manufacturing involves obtaining materials, technical capabilities, staffing, and organizational structures.
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Description
This quiz explores the principles of innovation utilized by entrepreneurs to create new products and services. It emphasizes the significance of branding and the impact of innovative thinkers like Richard Branson and Frederick Smith. Test your understanding of how innovation can drive business success.
