Podcast
Questions and Answers
What distinguishes radical innovation from incremental innovation?
What distinguishes radical innovation from incremental innovation?
- Radical innovation is a process innovation focused on marketing techniques.
- Radical innovation is based solely on existing knowledge.
- Radical innovation introduces solutions that are completely new and different. (correct)
- Radical innovation is focused on minor adjustments to existing practices.
Which statement accurately describes competence-enhancing innovation?
Which statement accurately describes competence-enhancing innovation?
- It creates entirely new skills that existing employees must learn.
- It relies on the existing knowledge and skills of an organization. (correct)
- It renders the organization’s existing capabilities obsolete.
- It solely focuses on new market strategies.
Which of the following best summarizes the advantages of being a first mover in innovation?
Which of the following best summarizes the advantages of being a first mover in innovation?
- First movers face lower development costs and fewer financial risks.
- First movers are less affected by competitors imitating their innovations.
- First movers gain reputational advantages and control over important resources. (correct)
- First movers are guaranteed long-term customer loyalty from their innovations.
What is primarily at risk for organizations that pursue first mover advantages?
What is primarily at risk for organizations that pursue first mover advantages?
How is process innovation different from product innovation?
How is process innovation different from product innovation?
Flashcards
Radical Innovation?
Radical Innovation?
An innovation that introduces a completely new or significantly different product or process.
Incremental Innovation?
Incremental Innovation?
An innovation that makes small adjustments or improvements to existing products or processes.
Competence-enhancing Innovation?
Competence-enhancing Innovation?
An innovation that builds on existing knowledge and skills.
Competence-destroying Innovation?
Competence-destroying Innovation?
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First Mover?
First Mover?
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Study Notes
Innovation Definition
- Innovation is the generation of novel ideas for new products, procedures, and processes with utility.
Types of Innovation
- Product innovation involves new goods or services.
- Process innovation relates to new ways of conducting business.
- Radical innovation introduces significant differences from previous solutions.
- Incremental innovation refines existing practices.
- Competence-enhancing innovation leverages existing knowledge.
- Competence-destroying innovation makes previous knowledge obsolete.
Innovation Strategies
- Innovation strategies focus on new product/process development or applying existing technology to new uses.
First Mover Advantages
- Reputation: Established as an innovative industry leader.
- Cost & Learning: Benefit from early adoption.
- Resource Control: Access to scarce resources.
- Loyalty: Potential for building strong customer relationships.
First Mover Disadvantages
- Uncertainty: Difficulty in precise market and technological predictions.
- Imitation: Risk of competitors copying innovations.
- Financial Risk: High development costs and other financial concerns.
- Strategic Risk: Uncertainty about the proper innovation strategy.
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Description
Explore the various types and strategies of innovation in this quiz. Learn about product and process innovations, as well as the advantages of being a first mover in the market. Gain insights into how these concepts shape modern business practices.
