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 (correct)
  • Only investing in technology
  • Only focusing on market selection
  • Short-term planning and investment
  • What is required to manage diversity of knowledge and skills effectively?

  • Neither specialist nor generalist skills
  • Only generalist skills
  • Only specialist skills
  • A combination of specialist and generalist skills (correct)
  • What is the purpose of a project portfolio approach?

  • To establish a range of projects (correct)
  • To focus on short-term planning
  • To avoid long-term planning
  • To select only one project
  • What is the characteristic of hybrid managers?

    <p>Both technical and commercial training</p> Signup and view all the answers

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

    <p>Their focus on long-term planning and investment</p> Signup and view all the answers

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

    <p>To identify suitable markets for the firm</p> Signup and view all the answers

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

    <p>Hybrid individuals</p> Signup and view all the answers

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

    <p>Into multiple types: users, providers, and others</p> Signup and view all the answers

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

    <p>Modular innovation</p> Signup and view all the answers

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

    <p>Architectural innovation</p> Signup and view all the answers

    What does incremental innovation build upon?

    <p>Existing component and architectural knowledge</p> Signup and view all the answers

    Which axis in Figure 4.4 classifies project style?

    <p>Vertical axis</p> Signup and view all the answers

    How does architectural innovation affect the components' knowledge?

    <p>Keeps the knowledge of single components the same</p> Signup and view all the answers

    What does the horizontal axis in Figure 4.4 represent?

    <p>Technological uncertainty</p> Signup and view all the answers

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

    <p>New product development process</p> Signup and view all the answers

    Which type of projects deliver mainly knowledge?

    <p>Research projects</p> Signup and view all the answers

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

    <p>Firm-related factors</p> Signup and view all the answers

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

    <p>Ingredients and recipes for innovation</p> Signup and view all the answers

    What major challenge is mentioned regarding the process of innovation?

    <p>Diversity of approaches and practices</p> Signup and view all the answers

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

    <p>Evaluate innovation activities</p> Signup and view all the answers

    Which key aspect does innovation require according to the text?

    <p>Various competencies at key stages</p> Signup and view all the answers

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

    <p>Table 4.2</p> Signup and view all the answers

    What remains a big question according to the text?

    <p>Which metric is used to measure elements</p> Signup and view all the answers

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

    <p>Innovation process</p> Signup and view all the answers

    What is the primary function of specialist equipment suppliers?

    <p>To supply specialist measuring instruments</p> Signup and view all the answers

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

    <p>Organic</p> Signup and view all the answers

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

    <p>Electronic</p> Signup and view all the answers

    What is a key characteristic of mechanistic organizational structures?

    <p>Rigid work methods</p> Signup and view all the answers

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

    <p>Inability to manage creativity effectively</p> Signup and view all the answers

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

    <p>Child</p> Signup and view all the answers

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

    <p>Organic</p> Signup and view all the answers

    Which organizational structure tends to support industrial innovation?

    <p>Organic</p> Signup and view all the answers

    What is one of the principal benefits of ERP systems?

    <p>Improving the efficiency and effectiveness of business processes</p> Signup and view all the answers

    What can ERP systems help reduce?

    <p>Data collection and processing duplication efforts</p> Signup and view all the answers

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

    <p>Late 1990s and early twenty-first century</p> Signup and view all the answers

    What do well-established management principles help organizations do?

    <p>Sustain innovation and recover from stagnation</p> Signup and view all the answers

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

    <p>Staffing the innovative technology-based organisation</p> Signup and view all the answers

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

    <p>Organising principles</p> Signup and view all the answers

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

    <p>Stagnation</p> Signup and view all the answers

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

    <p>Enterprise resource planning (ERP) business software</p> Signup and view all the answers

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

    <p>Gained competitive advantage</p> Signup and view all the answers

    What is a characteristic of process industries?

    <p>High capital investment</p> Signup and view all the answers

    How do process innovations relate to product innovations?

    <p>They are interwoven and inseparable</p> Signup and view all the answers

    What is a key aspect of process design and innovation?

    <p>Considering the physical and business environment</p> Signup and view all the answers

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

    <p>It is less visible</p> Signup and view all the answers

    What is a key aspect of process design?

    <p>Simplifying the design</p> Signup and view all the answers

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

    <p>Short throughput time</p> Signup and view all the answers

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

    <p>Process innovation</p> Signup and view all the answers

    What does 'stretch' in process industries refer to?

    <p>Evolutionary problem solving and learning effects</p> Signup and view all the answers

    What is a common challenge in process industries?

    <p>Change being expensive due to large fixed capital equipment</p> Signup and view all the answers

    What is an approach to trigger innovation in operations management?

    <p>All of the above, and more</p> Signup and view all the answers

    What is the purpose of gap analysis in operations management?

    <p>To understand the differences between customer and producer views</p> Signup and view all the answers

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

    <p>Both process and product technology</p> Signup and view all the answers

    What is a characteristic of process industries?

    <p>Large fixed capital equipment</p> Signup and view all the answers

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

    <p>Through familiar learning effects</p> Signup and view all the answers

    What can be achieved through application development in process industries?

    <p>Product development through changes in production process requirements</p> Signup and view all the answers

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

    <p>Introduction of new equipment or machinery</p> Signup and view all the answers

    When are firms likely to favour process innovation?

    <p>When products are less differentiated and there is less competition</p> Signup and view all the answers

    Which of the following is a goal of process innovation?

    <p>Achieving cost leadership</p> Signup and view all the answers

    Why might end consumers not notice process innovations?

    <p>They involve internal improvements</p> Signup and view all the answers

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

    <p>Changes in product design and materials</p> Signup and view all the answers

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

    <p>Process innovation</p> Signup and view all the answers

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

    <p>Focus on cost reductions</p> Signup and view all the answers

    How are product and process innovation typically related?

    <p>They are interwoven</p> Signup and view all the answers

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

    <p>Licensing</p> Signup and view all the answers

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

    <p>Knowledge Transfer Partnership model</p> Signup and view all the answers

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

    <p>Science park model</p> Signup and view all the answers

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

    <p>Act as a bridge between research institutions and industries</p> Signup and view all the answers

    What does the directory model of technology transfer primarily involve?

    <p>Providing a listing of potential collaboration opportunities</p> Signup and view all the answers

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

    <p>Knowledge Transfer Partnership model</p> Signup and view all the answers

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

    <p>Science park model</p> Signup and view all the answers

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

    <p>Directory model</p> Signup and view all the answers

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

    <p>The Teaching Company Scheme</p> Signup and view all the answers

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

    <p>Small companies</p> Signup and view all the answers

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

    <p>To generate commercial revenue from MOD technology</p> Signup and view all the answers

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

    <p>Qualified scientists and engineers</p> 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?

    <p>Three days</p> 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?

    <p>Hiring people with necessary skills</p> Signup and view all the answers

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

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

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

    <p>Other organizations and university research departments</p> Signup and view all the answers

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

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

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

    <p>Science park model</p> 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?

    <p>Research clubs</p> Signup and view all the answers

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

    <p>Licensing model</p> Signup and view all the answers

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

    <p>Unique skills and expertise</p> Signup and view all the answers

    Which technology transfer model is essentially adopted by consultants?

    <p>Hiring skilled employees model</p> Signup and view all the answers

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

    <p>Failure to understand the recipient organization's needs</p> Signup and view all the answers

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

    <p>To assist in the commercial exploitation of in-house developments</p> 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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    Description

    This quiz covers the different types of innovation in product development, including incremental, modular, and architectural innovations. It explains how each type affects the components and architectural knowledge of a product.

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