Innovation Types in Product Development

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Questions and Answers

What is the focus of a firm's strategy towards innovation?

Long-term planning and investment in technology and markets

What is required to manage diversity of knowledge and skills effectively?

A combination of specialist and generalist skills

What is the purpose of a project portfolio approach?

To establish a range of projects

What is the characteristic of hybrid managers?

Both technical and commercial training Signup and view all the answers

What is the main distinction between firms with a strategy towards innovation and those without?

Their focus on long-term planning and investment Signup and view all the answers

What is the purpose of recognising the organisation's skills, technology, and knowledge?

To identify suitable markets for the firm Signup and view all the answers

What type of individuals are useful in facilitating the transfer of knowledge within a company?

Hybrid individuals Signup and view all the answers

According to Pavitt, how can firms be classified with regard to technology usage?

Into multiple types: users, providers, and others Signup and view all the answers

What type of innovation requires new knowledge for one or more components while keeping the architectural knowledge unchanged?

Modular innovation Signup and view all the answers

Which innovation type has a significant impact on the linkage of components?

Architectural innovation Signup and view all the answers

What does incremental innovation build upon?

Existing component and architectural knowledge Signup and view all the answers

Which axis in Figure 4.4 classifies project style?

Vertical axis Signup and view all the answers

How does architectural innovation affect the components' knowledge?

Keeps the knowledge of single components the same Signup and view all the answers

What does the horizontal axis in Figure 4.4 represent?

Technological uncertainty Signup and view all the answers

According to the new product development (NPD) literature, what do project management models focus on?

New product development process Signup and view all the answers

Which type of projects deliver mainly knowledge?

Research projects Signup and view all the answers

What is the central focus of the chapter based on the provided text?

Firm-related factors Signup and view all the answers

What do Adams et al. (2006) suggest is essential for understanding innovation management?

Ingredients and recipes for innovation Signup and view all the answers

What major challenge is mentioned regarding the process of innovation?

Diversity of approaches and practices Signup and view all the answers

What does the framework developed by Adams et al. (2006) help managers to do?

Evaluate innovation activities Signup and view all the answers

Which key aspect does innovation require according to the text?

Various competencies at key stages Signup and view all the answers

Which table is mentioned to provide a summary of organizational characteristics that facilitate the innovation process?

Table 4.2 Signup and view all the answers

What remains a big question according to the text?

Which metric is used to measure elements Signup and view all the answers

Competitive success is dependent on a firm's management of what?

Innovation process Signup and view all the answers

What is the primary function of specialist equipment suppliers?

To supply specialist measuring instruments Signup and view all the answers

Which organizational structure is characterized by flexibility and the absence of hierarchy?

Organic Signup and view all the answers

Burns and Stalker's 1961 work focused on which type of organizations?

Electronic Signup and view all the answers

What is a key characteristic of mechanistic organizational structures?

Rigid work methods Signup and view all the answers

What is a common criticism of mechanistic structures mentioned in the text?

Inability to manage creativity effectively Signup and view all the answers

Which of these individuals raised objections against Burns and Stalker's argument?

Child Signup and view all the answers

Which type of organizational structure is more adaptable and openly communicating?

Organic Signup and view all the answers

Which organizational structure tends to support industrial innovation?

Organic Signup and view all the answers

What is one of the principal benefits of ERP systems?

Improving the efficiency and effectiveness of business processes Signup and view all the answers

What can ERP systems help reduce?

Data collection and processing duplication efforts Signup and view all the answers

Which time period saw noticeable changes within organizations due to large IT systems?

Late 1990s and early twenty-first century Signup and view all the answers

What do well-established management principles help organizations do?

Sustain innovation and recover from stagnation Signup and view all the answers

What is one role of the individual in the innovation process, according to Roberts and Fushfield?

Staffing the innovative technology-based organisation Signup and view all the answers

What is a key clash between ERP systems and innovative organisations?

Organising principles Signup and view all the answers

What can well-applied management principles prevent in science and technology-related organizations?

Stagnation Signup and view all the answers

What kind of software has become one of the most successful products in the world?

Enterprise resource planning (ERP) business software Signup and view all the answers

What is a key benefit of process innovation in an organization?

Gained competitive advantage Signup and view all the answers

What is a characteristic of process industries?

High capital investment Signup and view all the answers

How do process innovations relate to product innovations?

They are interwoven and inseparable Signup and view all the answers

What is a key aspect of process design and innovation?

Considering the physical and business environment Signup and view all the answers

Why has process innovation received less attention than product innovation in the literature?

It is less visible Signup and view all the answers

What is a key aspect of process design?

Simplifying the design Signup and view all the answers

What is a characteristic of process industries in terms of production?

Short throughput time Signup and view all the answers

What is an important source of increased productivity in an organization?

Process innovation Signup and view all the answers

What does 'stretch' in process industries refer to?

Evolutionary problem solving and learning effects Signup and view all the answers

What is a common challenge in process industries?

Change being expensive due to large fixed capital equipment Signup and view all the answers

What is an approach to trigger innovation in operations management?

All of the above, and more Signup and view all the answers

What is the purpose of gap analysis in operations management?

To understand the differences between customer and producer views Signup and view all the answers

What can be improved through 'stretch' in process industries?

Both process and product technology Signup and view all the answers

What is a characteristic of process industries?

Large fixed capital equipment Signup and view all the answers

How can intensity of use lead to improvements in process industries?

Through familiar learning effects Signup and view all the answers

What can be achieved through application development in process industries?

Product development through changes in production process requirements Signup and view all the answers

What is a common association with process innovation in the food industry?

Introduction of new equipment or machinery Signup and view all the answers

When are firms likely to favour process innovation?

When products are less differentiated and there is less competition Signup and view all the answers

Which of the following is a goal of process innovation?

Achieving cost leadership Signup and view all the answers

Why might end consumers not notice process innovations?

They involve internal improvements Signup and view all the answers

Which factor often accompanies the introduction of a cost-reducing process?

Changes in product design and materials Signup and view all the answers

What type of innovation involves new activities to achieve lower costs and higher product quality?

Process innovation Signup and view all the answers

What is often an outcome for firms focusing on process innovation?

Focus on cost reductions Signup and view all the answers

How are product and process innovation typically related?

They are interwoven Signup and view all the answers

Which process involves granting another business permission to use intellectual property?

Licensing Signup and view all the answers

In which model does a business use its industrial context to transform knowledge into action?

Knowledge Transfer Partnership model Signup and view all the answers

Which model relies on the creation of specific locations that facilitate collaboration between businesses and scientific institutions?

Science park model Signup and view all the answers

What is the main role of an intermediary agency in the context of technology transfer?

Act as a bridge between research institutions and industries Signup and view all the answers

What does the directory model of technology transfer primarily involve?

Providing a listing of potential collaboration opportunities Signup and view all the answers

Which model assists companies to utilize academic research through partnerships for mutual benefit?

Knowledge Transfer Partnership model Signup and view all the answers

Which of the following models is known for facilitating the hiring of skilled employees to transfer knowledge?

Science park model Signup and view all the answers

Which model emphasizes the listing and awareness of business opportunities over physical interactions?

Directory model Signup and view all the answers

What was the original name of the Knowledge Transfer Partnership (KTP) model?

The Teaching Company Scheme Signup and view all the answers

What kind of firms does the Knowledge Transfer Partnership model primarily aim to assist?

Small companies Signup and view all the answers

What is the primary goal of the Ferret model developed by Defence Technology Enterprises (DTE)?

To generate commercial revenue from MOD technology Signup and view all the answers

Who are the 'ferrets' in the Defence Technology Enterprises model?

Qualified scientists and engineers Signup and view all the answers

How many days a week does a student in the KTP model typically spend at the company working on their project?

Three days Signup and view all the answers

What is a commonly used method for companies to gain necessary technology in areas where they have limited knowledge?

Hiring people with necessary skills Signup and view all the answers

Which organizations were involved in the joint initiative that led to the creation of Defence Technology Enterprises (DTE)?

UK Ministry of Defence (MOD) and a consortium of technology firms Signup and view all the answers

Where are new employees often recruited from, according to the most effective hiring methods for skilled employees?

Other organizations and university research departments Signup and view all the answers

What is the primary function of technology transfer units established in the 1980s?

To find partners to help exploit in-house developments Signup and view all the answers

What is the main method of technology transfer adopted by research clubs?

Science park model Signup and view all the answers

What is the UK Department of Trade and Industry (DTI) funded program that brings companies together with common research interests?

Research clubs Signup and view all the answers

Which model is NOT used by the European Space Agency for technology transfer?

Licensing model Signup and view all the answers

What do consultants offer to R&D research groups within large organizations?

Unique skills and expertise Signup and view all the answers

Which technology transfer model is essentially adopted by consultants?

Hiring skilled employees model Signup and view all the answers

Which of the following is a limitation of technology transfer models?

Failure to understand the recipient organization's needs Signup and view all the answers

For what purpose are industrial liaison units and technology transfer units primarily established?

To assist in the commercial exploitation of in-house developments Signup and view all the answers

Study Notes

Types of Innovation

Incremental innovation: builds upon existing component and architectural knowledge
Modular innovation: requires new knowledge for one or more components, but architectural knowledge remains unchanged
Architectural innovation: has a great impact on the linkage of components, but knowledge of single components remains the same

Organizational Structure and Innovation

Organic structures: flexible, adaptable, and openly communicating, support innovation more effectively
Mechanistic structures: characterised by long chains of command, rigid work methods, and strict task differentiation, are less suitable for innovation

The Role of Individuals in Innovation

Key individual roles: idea generators, champions, and project leaders
Hybrid managers: have technical and commercial training, and are particularly useful in product development

IT Systems and Innovation

Enterprise Resource Planning (ERP) systems: can integrate business functions, reduce data duplication, and provide more accurate and timely information
However, ERP systems can also stifle innovation due to the need for standardization and rigid processes

Strategy and Innovation

A firm's strategy towards innovation involves planning for the future, selecting markets to enter, and identifying appropriate technologies
A project portfolio approach can be used to establish a range of projects and provide opportunities for the firm to exploit

Measuring Innovation

A framework for measuring innovation management can be used to evaluate a firm's innovation activities and identify areas for improvement
Key elements to be measured include idea generation, project management, and the commercialization of new products or services

Process Innovation

Process innovation: new activities introduced into a firm's production or service operations to achieve lower costs and/or produce higher quality products
Can be triggered by gap analysis, quality circles, and total quality management (TQM)

Triggers for Innovation

Gap analysis: identifies differences between the customer and producer view or experience of a product or service
Quality circles: a team-based approach to continuous improvement
TQM: a philosophy of continuous improvement and customer satisfaction

Open Innovation

A shift from closed systems to open systems, where innovation is not limited to internal resources
Involves collaboration, licensing, and other forms of knowledge transfer

Knowledge Transfer and Technology Transfer

Knowledge transfer: the process of sharing knowledge and expertise between individuals and organizations
Technology transfer: the process of transferring technology from one organization to another
Models of technology transfer: licensing, science park model, intermediary agency model, directory model, Knowledge Transfer Partnership model, Ferret model, and hiring skilled employees### Technology Transfer Units
In the 1980s, US Federal Labs and research-based organizations, including universities, established industrial liaison units and technology transfer units to bring in technology from outside and/or to find partners to help exploit in-house developments.
Technology transfer units use elements of the intermediary and licensing models.

Research Clubs

The UK Department of Trade and Industry (DTI) funded research clubs that bring companies together with common interests in particular research areas.
Some research clubs conduct collaborative research, while others exchange information, knowledge, and/or experience.
This approach adopts the science park model of technology transfer.

European Space Agency (ESA)

The ESA offers access to space research in virtually all fields of science and technology.
The ESA uses a combination of three models: the intermediary agency model, the directory model, and the ferret model.

Consultancy

Consultants are former researchers who offer their unique skills to the wider industry.
R&D research groups within large organizations often contact several consultants prior to establishing a research project in a particular field related to the consultant's area of expertise.
Consultants can offer help, advice, and useful contacts to get the research project off to a flying start.
They often remain part of the research group during the early years of the project.
This is a very popular method of technology transfer, essentially adopting the hiring skilled employees model.

Limitations of Models

Technology transfer models fail to understand the recipient organization's needs.

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