Innovation Management Overview

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Questions and Answers

What are the 17 Sustainable Development Goals (SDGs) aimed at achieving by 2030?

The 17 SDGs focus on areas like poverty, hunger, health, education, gender equality, clean water, energy, and climate action.

What characterizes the concept of Schumpeterian 'creative destruction'?

It describes the process where innovation replaces outdated industries and technologies, transforming market structures.

How do the 1st and 2nd generation models of NPD fail to meet consumer needs?

The 1st generation model fails by not addressing consumer needs, while the 2nd generation over-relies on market demands, missing radical innovation opportunities.

What is the role of Cooper's Stage-Gate-Model in New Product Development?

It structures the NPD process into stages with decision gates to evaluate progress and allocate resources effectively. Signup and view all the answers

Why is 'open innovation' considered a revolutionary framework?

'Open innovation' leverages both external and internal knowledge, reducing risks while accelerating time-to-market. Signup and view all the answers

Identify and briefly explain the 'chasm' in innovation diffusion processes.

The 'chasm' is the gap between early adopters and the majority market, which products must cross for widespread acceptance. Signup and view all the answers

What are the five currently significant megatrends impacting society?

The five megatrends are global economic power shift, demographic change, urbanization, rise of technology, and climate change/resource scarcity. Signup and view all the answers

Explain the implications of demographic change as a megatrend.

Demographic change involves aging populations, lower birth rates, and increased life expectancy, impacting labor markets and social services. Signup and view all the answers

What are the primary factors contributing to market potential in a chosen location?

The primary factors include market size, growth rate, and strategic importance. Signup and view all the answers

List two significant disadvantages of centralized R&D.

The disadvantages include limited responsiveness to local market needs and higher vulnerability to geopolitical risks. Signup and view all the answers

How does the Global Innovation Index (GII) evaluate a country's innovation performance?

The GII evaluates innovation performance using an Input Pillar for resources invested and an Output Pillar for outcomes of innovation activities. Signup and view all the answers

What are two challenges that businesses face in the digital world today?

Two challenges are rapid technological changes and adapting to evolving regulatory requirements. Signup and view all the answers

Explain one way next-gen technologies improve performance compared to current technologies.

Next-gen technologies enhance performance through faster processing and improved energy efficiency. Signup and view all the answers

What is one advantage of decentralized R&D?

One advantage is greater responsiveness to regional market demands. Signup and view all the answers

Identify a factor that affects talent availability in a specific location.

Access to skilled personnel in that location directly affects talent availability. Signup and view all the answers

Describe how dominant designs emerge over time.

Dominant designs emerge through a process of standardization, where specific design traits become widely accepted and adopted in the market. Signup and view all the answers

What challenges does urbanization bring to cities?

Increased population density causes infrastructural strain and environmental issues. Signup and view all the answers

How does the rise of technology impact business practices?

Digital transformation fosters innovation through AI, IoT, and automation, reshaping operational processes. Signup and view all the answers

What is the main concept behind sustainable innovation?

Sustainable innovation integrates environmental, social, and economic factors into business strategies. Signup and view all the answers

What are the key drivers of globalization that influence innovation?

Technological advancements, government policies, market demand, competitive pressures, and operational goals. Signup and view all the answers

What is meant by 'Glocalization' in the context of globalization?

Glocalization refers to balancing global standards with local customization of products and services. Signup and view all the answers

What complexities are involved in choosing a location for R&D?

Selecting an R&D location involves trade-offs related to talent access, market proximity, costs, and stability. Signup and view all the answers

Define the 'Curse of Past Success' and its impact on organizations.

The Curse of Past Success leads to organizational inertia and resistance to change due to reliance on established successes. Signup and view all the answers

What implications do globalization drivers have on innovation cycles?

Globalization accelerates innovation cycles through collaboration and access to diverse resources and markets. Signup and view all the answers

How do creativity and innovation differ in the context of generating and applying ideas?

Creativity involves generating original and valuable ideas, while innovation is the application of those ideas to create tangible value. Signup and view all the answers

What is a key limitation of behaviorism in the context of individual learning?

Behaviorism primarily focuses on observable actions, ignoring internal cognitive processes and emotional influences. Signup and view all the answers

Identify one drawback of the cognitivist approach to learning.

Cognitivism emphasizes mental processes but often overlooks the significance of emotions and environmental context. Signup and view all the answers

What is a potential risk associated with an explorative approach to organizational practices?

Explorative approaches can lead to inefficiency by focusing excessively on new ideas, resulting in scattered efforts and wasted resources. Signup and view all the answers

Describe the process of socialization in Nonaka's knowledge conversion framework.

Socialization involves sharing tacit knowledge through shared experiences among individuals. Signup and view all the answers

What is the significance of digital transformation on organizational ambidexterity?

Digital transformation enhances ambidexterity by streamlining exploration and exploitation while fostering agility and collaboration. Signup and view all the answers

Explain what internalization entails in Nonaka's knowledge conversion model.

Internalization is the process of learning from explicit knowledge and embedding it back into tacit understanding. Signup and view all the answers

What is one shortcoming of predominantly exploitative approaches in organizations?

An exploitative approach can lead to stagnation and increased vulnerability to market disruptions due to an overemphasis on refining existing capabilities. Signup and view all the answers

What are the key components of optimal growth in an organization?

Optimal growth involves balancing structural agility and human agility. Signup and view all the answers

How does human agility influence the effectiveness of structural agility?

Human agility ensures that employees can effectively leverage the adaptive structures provided by structural agility. Signup and view all the answers

Why are 'New Work' practices beneficial for firms in dynamic environments?

'New Work' practices foster innovation and adaptability, essential for success in rapidly changing markets. Signup and view all the answers

What role does alignment play in achieving optimal growth?

Alignment between structural and human agility is crucial; misalignment can lead to frustration in the workforce. Signup and view all the answers

How do 'New Work' practices facilitate the adaptation to digital transformation?

'New Work' practices support remote work and the use of digital tools, enhancing the agility of organizations. Signup and view all the answers

What are two key strategies firms can use to embed innovation?

Firms can embed innovation by focusing on strategic alignment and creating a learning culture. Signup and view all the answers

Define the principle of 'Doing the right thing' in the Leanovation framework.

It means focusing on strategic priorities and understanding customer needs. Signup and view all the answers

How can firms encourage their employees to innovate under the ANIMATE model?

Firms can nurture creativity and empower employees by providing them the freedom and resources to explore new ideas. Signup and view all the answers

What is the significance of structural agility in businesses?

Structural agility allows organizations to quickly adapt their structures and processes in response to market changes. Signup and view all the answers

Explain the role of collaboration in the Leanovation framework.

Collaboration involves leveraging internal and external networks to gain insights and resources. Signup and view all the answers

What does it mean to align teams in the ANIMATE model?

Aligning teams means ensuring that all employees work towards common organizational goals. Signup and view all the answers

What does continuous improvement involve in the Leanovation framework?

Continuous improvement involves using feedback loops and learning routines to enhance processes and outcomes. Signup and view all the answers

In what way does employee empowerment contribute to innovation?

Employee empowerment gives individuals the freedom to think creatively and act on their ideas. Signup and view all the answers

Study Notes

Innovation

Innovation is the combination of invention and commercialization, creating value from ideas. A broad definition describes it as a "new or changed entity" that redistributes value.
Disruptive innovation creates new markets or significantly changes existing ones. It often initially performs below mainstream products but finds value in overlooked segments.
Radical innovation represents major novelty, reshaping frameworks and impacting industries or societal systems.
Breakthrough innovation focuses on market disruption, emerging from simpler, improving technologies, while significant technological advancement is often a hallmark of breakthrough innovation; this is not always a requirement. The advancement may not necessarily disrupt markets.

### Innovation Management

A strategy is a long-term plan for an organization to achieve its goals.
Innovation management becomes strategic when it is integrated into a business strategy, focusing on long-term growth, competitive advantage, and value creation.

Sustainable Development Goals (SDGs)

The 17 SDGs are a set of goals created by the UN for the year 2030. These goals address global challenges, and include: (in no specific order) poverty, hunger, health, education, gender equality, clean water, energy, decent work, economic growth, industry & infrastructure, reducing inequalities, sustainable cities & communities, responsible consumption & production, climate action, life below water, life on land, peace, justice, and strong institutions, partnerships for the goals.

Megatrends

Global economic power shift
Demographic change
Urbanization
Rise of technology
Climate change and resource scarcity are the 5 biggest current megatrends.

Schumpeterian Creative Destruction

Creative destruction is the process of innovation-driven economic growth. Outdated systems are replaced by new industries and technologies, which fundamentally alters market structures.

Innovation Diffusion Processes

The "chasm" in innovation diffusion represents the critical gap between early adopters and the mainstream market. Products need to transition from niche acceptance to broad market adoption for mass market success.

New Product Development (NPD)

Flaws of 1st and 2nd generation NPD models are that the first generation (technology push) fails to address consumer needs, resulting in low predictability and sustainability, and the second generation fails by relying only on consumer expressed needs, missing the opportunity for radical innovation.

Open Innovation

Open innovation is a method that uses external and internal knowledge to drive innovation. It reduces risks and time to market while fostering collaboration with external partners.

Globalization Effects on Innovation

Globalization accelerates innovation cycles. This also increases the need to balance global standardization with local customization. Wider access to resources and talent, with increasing complexity in adapting to global regulatory environments is also a key factor.

R&D Location Decisions

R&D site selection involves balancing various trade-offs: access to skilled talent, proximity to key markets, cost considerations, geopolitical stability, and collaboration opportunities. Key factors that need consideration are the market potential, cost structures, talent availability, regulatory environment, and cultural/logistical factors.

Centralized vs. Decentralized R&D

Centralized R&D has the benefits of easier coordination, alignment with corporate strategy, and increased economies of scale. However, it has limitations in responsiveness to local market needs and vulnerability to geopolitical risks.
Decentralized R&D allows for quick responsiveness to regional market demands and local expertise, but coordination challenges and duplication risks are common.

Global Innovation Index (GII)

The Global Innovation Index (GII) measures a country’s ability to innovate. It consists of two pillars: Input and Output. Input pillar considers resources invested in innovation (R&D spending, human capital)
The output pillar considers the outcomes of innovation (patents, exports).

Digital World Challenges

Rapid technological changes (e.g., AI, blockchain)
Shifting customer preferences
Market disruptions from competitors
Evolving regulations in cybersecurity and data protection

Next-Gen Technologies

Enhanced performance (e.g., faster processing, more efficient energy)
Better adaptability (e.g., machine learning, AI)
Cost reduction and scalability (e.g., cloud computing, automation)
Advanced connectivity and integration (e.g., IoT)

Dominant Designs

Dominant designs emerge through experimentation and selection by the market. The most viable designs based on performance and customer acceptance become industry benchmarks and undergo incremental improvement later on.
Technological discontinuities often trigger a ferment phase of experimentation with various designs, which leads to the selection of a dominant design.

Technological Market Segmentation

Companies use strategies like pushing towards high-end customers with cutting-edge technologies or staying with existing customers for consistent upgrades in established markets. A third strategy involves adapting to unmet customer needs, identifying new markets, and creating new categories.

Market Entry Strategies

First-to-market isn't always the best strategy, as it comes with high risks, costs, and uncertainty. Established market strategies, adopting proven strategies, and learning from pioneers' mistakes are advantages for followers.

Business Model Typology

Pioneers (first-to-market) are innovators who introduce new products and services.
Early followers who imitate or improve pioneer products.
Late entrants are those who enter the market once the risks and uncertainties are mitigated. This often centers on niche markets or price-based competitiveness.

Business Model Canvas (BMC)

A business model canvas is a visual representation of a business's core components. It details aspects such as product, value proposition, customer relationships, customer segments, channels, key partners, key activities, key resources, cost structure, and revenue streams.

Magic Triangle of Business Models

Value proposition: What value does the company deliver to customers?
Value chain (How): How are the goods/services efficiently delivered?
Revenue model: How does revenue generation occur? These elements must work together to establish a sustainable strategy.

Amit and Zott's Business Models

Amit and Zott outline four business model design themes: innovation-focused (novelty-centered), streamlining processes (efficiency-centered), utilizing diverse resources for better value (complementarities-centered), and establishing strong customer relationships (lock-in model).

Organizational Knowledge Conversion

Nonaka's knowledge conversion framework explains how tacit knowledge (implicit) is transformed into explicit knowledge, and vice-versa. Tacit knowledge is turned into explicit knowledge by socialization (sharing experiences), externalization (articulation), combination (integrating knowledge), and internalization (embedding knowledge).

Digital Transformation and Organizational Ambidexterity

Digital means increasing ambidexterity by optimizing both exploration and exploitation of resources. Collaboration, agility (adaptation), and process optimization streamline the ability to respond to evolving market demands.

Embedding Innovation

Ensuring innovation initiatives are aligned with a company's goals is essential for sustainable innovation. Key strategies include cultivating a learning environment, empowering employees, fostering internal and external collaboration, and protecting new insights.

Lean innovation framework

The lean innovation framework is based on three principles: (1) doing the right thing (strategic priorities/customer needs), (2) doing it right (efficient/consistent execution), and (3) doing it better (continuous improvement, feedback loops, and learning routines).

Creating an Inventor Culture

The ANIMATE model (agile implementation, nurture and stimulate creativity, inspire, motivate, align teams, transparency, empowerment) promotes an inventor culture that supports innovation.

Structural and Human Agility

Structural agility is the ability of an organization to adapt structures, and processes. Human agility focuses on employee adaptability, learning, and innovation in responding to changes. Both are crucial for a company's optimal growth.

New Work Practices

Implementing new work practices, like remote work, flexible hours, and digital tools, helps firms adapt, increase their agility, boost productivity, attract talent, and foster innovation in dynamic markets.

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Description

This quiz covers the concepts of innovation and its management, including types such as disruptive and radical innovation. Explore how these concepts transform markets and how businesses can strategically integrate innovation for long-term growth.