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Stages of Innovation in Business
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Stages of Innovation in Business

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@BelievablePeninsula

Questions and Answers

What is a key characteristic of innovation according to Joseph Schumpeter?

  • Innovation results in the creative destruction of old rules. (correct)
  • Innovation often leads to the simplification of existing products.
  • Innovation serves as a barrier to entry in competitive markets.
  • Innovation is solely focused on technological advancement.

    • Which of the following is NOT mentioned as a type of innovation in the content?

  • Sustaining innovation
  • Discontinuous innovation
  • Radical innovation (correct)
  • Incremental innovation

    • What does the term 'creative destruction' refer to in the context of innovation?

  • The process of enhancing existing products without changing their core functionalities.
  • The transformative impact of new innovations on existing market structures. (correct)
  • The practice of using old technologies to reduce costs.
  • The effort to maintain product standards despite new developments.

    • What role does incremental innovation play according to the content?

    <p>It provides gradual improvements to existing products or services.</p> Signup and view all the answers

    What is one of the strategic advantages of innovation highlighted in the content?

    <p>Creation of unique offerings that set a company apart.</p> Signup and view all the answers

    What is the primary focus during the Developmental Phase of discontinuous innovation?

    <p>Emergence of dominant design and shift to imitation</p> Signup and view all the answers

    What characterizes the Specific Phase of discontinuous innovation?

    <p>Shift to incremental innovation and rationalization</p> Signup and view all the answers

    Which of the following is an example of the Not Invented Here (NIH) phenomenon?

    <p>Kodak rejecting the potential of the polaroid process</p> Signup and view all the answers

    What does Christensen’s Disruptive Innovation Theory suggest as a primary reason for failure?

    <p>Failing to anticipate changes in customer needs</p> Signup and view all the answers

    What does the Sailing Ship effect imply in the context of technology?

    <p>Simultaneous advancements in both old and new technologies</p> Signup and view all the answers

    What is a key characteristic of discontinuous innovation?

    <p>It creates entirely new markets.</p> Signup and view all the answers

    Which of the following is considered a disadvantage of discontinuous innovation?

    <p>Need for a strong team to execute effectively.</p> Signup and view all the answers

    What is one reason organizations pursue discontinuous innovation?

    <p>To address unserved or underserved market needs.</p> Signup and view all the answers

    Which phase of discontinuous innovation involves a stable configuration and specific target?

    <p>Specific phase</p> Signup and view all the answers

    What is often required to succeed in a discontinuous innovation strategy?

    <p>A commitment to a long-term plan.</p> Signup and view all the answers

    What is a common misconception about the commercialization of discontinuous innovations?

    <p>It often has a higher level of commercialization difficulty.</p> Signup and view all the answers

    What often accompanies the introduction of a new business model in discontinuous innovation?

    <p>Significant organizational changes.</p> Signup and view all the answers

    What does the potential for high rewards in discontinuous innovation primarily depend on?

    <p>The introduction of new technologies and markets.</p> Signup and view all the answers

    What is the primary benefit of incremental innovation over radical changes?

    <p>It leads to greater cumulative gains in efficiency over time.</p> Signup and view all the answers

    Which type of innovation refers to a significant improvement on an existing product?

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

    What does the 'Process' component refer to in the 4Ps of innovation?

    <p>Changes in the ways products/services are created and delivered.</p> Signup and view all the answers

    What type of innovation is characterized by a technological breakthrough that transforms industries?

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

    Which aspect of the 4Ps of innovation involves changes in the mental models framing an organization’s operations?

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

    What defines disruptive innovation?

    <p>Technologies that transform and create new markets.</p> Signup and view all the answers

    Deploying technology across various market fields is a key element of which concept?

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

    Which is an example of incremental innovation?

    <p>A software update that improves speed and efficiency of an application.</p> Signup and view all the answers

    What is a strategic advantage associated with offering something that others find difficult to master?

    <p>Offering products with complex technology</p> Signup and view all the answers

    Which example illustrates the legal protection of intellectual property as a strategic advantage?

    <p>Viagra and Prozac</p> Signup and view all the answers

    What does robust/platform design allow companies to do?

    <p>Build variations on a platform</p> Signup and view all the answers

    Rewriting the rules in innovation typically means:

    <p>Establishing completely new products or processes</p> Signup and view all the answers

    Rethinking the way in which components work together can result in which strategic advantage?

    <p>Enhancing efficiency across the system</p> Signup and view all the answers

    Which type of innovation involves gradual, continuous improvements on existing products?

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

    Transferring established elements across different application contexts is referred to as:

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

    Offering something that is completely new and renders existing ones obsolete is known as:

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

    Sustaining or sustaining innovation typically involves:

    <p>Making improvements to current offerings</p> Signup and view all the answers

    What is a characteristic of disruptive innovation?

    <p>It often introduces simple products to the market.</p> Signup and view all the answers

    Study Notes

    INNOVATION SPACE

    • Innovation can be classified into various types, including discontinuous innovation, which creates new markets or significantly transforms existing ones.
    • Discontinuous innovation is often referred to as breakthrough or disruptive innovation.
    • It typically relies on new technology platforms and can be more challenging to commercialize compared to incremental innovations.

    Purpose of Discontinuous Innovation

    • Enables entry into new markets and the creation of new customer bases.
    • Targets unserved or underserved markets and addresses emerging customer needs.

    Utilization of Discontinuous Innovation

    • Develop a comprehensive understanding of market opportunities and associated risks.
    • Identify and assess these risks while building a strong strategy and team to navigate the innovation process.

    Characteristics of Discontinuous Innovation

    • Built on new technological platforms, leading to the creation of different business models.
    • Engenders new markets with the potential for high risks and rewards.

    Advantages of Discontinuous Innovation

    • Capable of creating entirely new markets or significantly disrupting current ones.
    • Offers potential for substantial rewards and competitive advantages.
    • Provides solutions to pressing problems in various industries.

    Disadvantages of Discontinuous Innovation

    • Involves a high level of risk and may require a fundamentally different business model.
    • Demands a robust team and long-term commitment; the possibility of failure looms large.

    Phases of Discontinuous Innovation

    • Involves specific, fluid, and transitional phases that address different dimensions of innovation strategy.
    • Key questions include the nature of the new product configuration and the target market's desires.

    Key Issues in Innovation Management

    • Consolidates essential themes, such as definitions and types of innovation, strategic advantages, incremental innovation significance, and understanding the innovation life cycle.
    • Highlights the challenge posed by discontinuous innovation and outlines sources of disruption.

    Definition of Innovation

    • Defined as the practical implementation of ideas leading to new or improved goods or services.

    Strategic Advantages Through Innovation

    • Innovation can create novelty in products, processes, and business complexity.
    • Offers legal protection advantages, making it difficult for competitors to replicate without incurring costs.
    • Enables robust platform designs, allowing for the construction of variations from a solid base.

    Types of Innovation

    • Classified into disruptive, sustaining, incremental, modular, radical, and architectural innovations.
    • Incremental innovation focuses on gradual improvements, while disruptive innovation creates new value networks.

    Knowledge-Based Process of Innovation

    • Highlights cumulative efficiency gains from incremental changes over time through robust design concepts and cross-market technology deployment.

    4Ps of Innovation

    • Product: Encompasses changes in the products/services an organization offers.
    • Process: Involves modifications in how products/services are created and delivered.
    • Position: Refers to changes in how products/services are presented in the market context.
    • Paradigm: Represents shifts in underlying mental models that drive organizational actions.

    Phases of Discontinuous Innovation

    • Transition to a dominant design phase highlighting imitation and development.
    • Emphasizes incremental innovation for cost rationalization and market customization efforts.

    Not Invented Here (NIH) Syndrome

    • Describes a reluctance to adopt external technologies that challenge a company’s traditional industry perspectives, illustrated by Kodak rejecting the Polaroid process and Western Union dismissing the telephone.

    Christensen’s Disruptive Innovation Theory

    • Failure to embrace new markets or technologies leads to business decline; not merely an inability to adapt to technological advancements but also missing emerging needs and expectations of new customers.

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    1. KEY ISSUES IN INNOVATION MANAGEMENT.pptx

    Description

    This quiz explores the different stages of innovation, particularly focusing on discontinuous innovation. Understand how breakthrough or disruptive innovations create new markets and customers and their challenges in commercialization. Test your knowledge of innovative strategies and their impacts on existing markets.

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