Podcast
Questions and Answers
What is innovation?
What is innovation?
Taking something existing and transforming it to something that creates new wealth or improves the well-being of society or both.
Which of the following are the steps of innovation? (Select all that apply)
Which of the following are the steps of innovation? (Select all that apply)
The three steps of innovation are __, __, and __.
The three steps of innovation are __, __, and __.
Idea, Create, Validate
Which type of innovation creates new markets and new categories of customers?
Which type of innovation creates new markets and new categories of customers?
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What is Breakthrough Innovation?
What is Breakthrough Innovation?
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Match the type of innovation with its characteristics:
Match the type of innovation with its characteristics:
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Radical Innovation often uses existing technology to open up new markets.
Radical Innovation often uses existing technology to open up new markets.
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Give an example of Incremental Innovation.
Give an example of Incremental Innovation.
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Study Notes
Innovation Management Overview
- Innovation is transforming existing concepts into new products or services that generate wealth or improve societal well-being.
- It is essential for competitive advantage and involves turning ideas into original offerings that meet consumer needs.
- The innovation process consists of three main steps: Idea, Create, Validate.
- The Innovation Cycle follows a sequence of Think, Make, Try, and Refine.
Types of Innovation
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Disruptive Innovation
- Creates new markets and customer categories by employing unique and superior products or services that challenge traditional methods.
- Example: High-quality camera integration in smartphones disrupted the digital camera market.
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Breakthrough Innovation
- An unexpected solution that leads to a major global paradigm shift, often using new technology.
- Consumers often realize the need only after encountering the product.
- Breakthrough products are technologically advanced and creatively superior.
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Radical Innovation
- Reshapes industry standards to provide new benefits and meets contemporary consumer demands.
- Typically involves pioneering new products or services using novel technologies.
- Example: Apple AirPods, utilizing wireless technology for Bluetooth signals revolutionized personal audio.
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Incremental Innovation
- Focuses on gradual improvements through small adjustments to existing products or services.
- Enhancements include new features or design tweaks based on consumer use preferences.
- Example: Updated versions of Apple iPhones introduce enhanced camera and processor capabilities.
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Sustaining Innovation
- Focuses on improvements based on predicted consumer needs, expanding product lines without altering company goals.
- Drives customer loyalty and business sustainability.
- Example: Canon redesigned copiers to small desktop models, opening a new market for personal use.
Sources of Innovation (Peter Drucker's Framework)
- Unexpected: Innovations arising from unforeseen events.
- Incongruity: Discrepancies between reality and expectations leading to new opportunities.
- Process Need: Identifying and resolving inefficiencies in operational processes.
- Industry or Market Structure: Innovations driven by changes in the competitive landscape or market dynamics.
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Description
Test your knowledge on innovation management concepts and strategies with this quiz from the ACCTG 705 course. Dive into the fundamentals of innovation and its role in business strategy formulation. Perfect for students in the School of Business and Management's Accountancy and Finance Department.
