Podcast
Questions and Answers
Which type of innovation is best represented by the creation of a new or improved physical item?
Which type of innovation is best represented by the creation of a new or improved physical item?
- Process innovation
- Product innovation (correct)
- Social business innovation
- Business model innovation
Which type of innovation is IKEA's 'ready to assemble' furniture an example of?
Which type of innovation is IKEA's 'ready to assemble' furniture an example of?
- Social Business Innovation
- Process Innovation (correct)
- Product Innovation
- Business Model Innovation
Which type of innovation is best exemplified by Netflix’s subscription-based movie rental service?
Which type of innovation is best exemplified by Netflix’s subscription-based movie rental service?
- Social business innovation
- Process innovation
- Product innovation
- Business model innovation (correct)
Which approach is best represented by microcredit lending pioneered by Grameen Bank?
Which approach is best represented by microcredit lending pioneered by Grameen Bank?
In Hamel's 'wheel of innovation,' what is the first step a company should take?
In Hamel's 'wheel of innovation,' what is the first step a company should take?
A company is testing the practicality and financial value of a prototype. According to Hamel's wheel of innovation, which step are they in?
A company is testing the practicality and financial value of a prototype. According to Hamel's wheel of innovation, which step are they in?
In Hamel's wheel of innovation, what does 'scaling' primarily involve?
In Hamel's wheel of innovation, what does 'scaling' primarily involve?
What is a core principle of 'design thinking'?
What is a core principle of 'design thinking'?
When applying the '5 Whys' technique, what is the ultimate goal?
When applying the '5 Whys' technique, what is the ultimate goal?
What is the primary catalyst for reverse innovation?
What is the primary catalyst for reverse innovation?
Which scenario is the best example of disruptive innovation?
Which scenario is the best example of disruptive innovation?
What is the central idea behind sustainability?
What is the central idea behind sustainability?
What is the principal aim of sustainable development?
What is the principal aim of sustainable development?
What does the triple bottom line primarily evaluate?
What does the triple bottom line primarily evaluate?
What characterizes a sustainable business?
What characterizes a sustainable business?
What does human sustainability emphasize in the context of management practices?
What does human sustainability emphasize in the context of management practices?
Which of the following is an example of a socio-cultural factor in an organization's external environment?
Which of the following is an example of a socio-cultural factor in an organization's external environment?
What is the term for moving jobs from foreign locations back to the domestic market?
What is the term for moving jobs from foreign locations back to the domestic market?
Which of the following best demonstrates a company’s commitment to environmental capital?
Which of the following best demonstrates a company’s commitment to environmental capital?
What are the two factors that contribute to environmental uncertainty for an organization?
What are the two factors that contribute to environmental uncertainty for an organization?
Which action best exemplifies the 'assessing' step in Hamel’s wheel of innovation?
Which action best exemplifies the 'assessing' step in Hamel’s wheel of innovation?
In the context of organizations, what does 'human capital' primarily refer to?
In the context of organizations, what does 'human capital' primarily refer to?
How does 'reverse innovation' primarily occur?
How does 'reverse innovation' primarily occur?
Which approach demonstrates a company’s commitment to the ‘people’ aspect of the triple bottom line?
Which approach demonstrates a company’s commitment to the ‘people’ aspect of the triple bottom line?
How might reverse innovation offer a competitive edge?
How might reverse innovation offer a competitive edge?
What is the primary goal of 'design thinking'?
What is the primary goal of 'design thinking'?
When is a company considered to have environmental uncertainty?
When is a company considered to have environmental uncertainty?
What is the role of 'environmental capital' in sustainable development?
What is the role of 'environmental capital' in sustainable development?
Which of the following is the best application of The 5 Whys technique?
Which of the following is the best application of The 5 Whys technique?
What are possible results from practicing sustainability?
What are possible results from practicing sustainability?
Can the triple bottom line be achieved when maximizing environmental performance, regardless of economic or social well being?
Can the triple bottom line be achieved when maximizing environmental performance, regardless of economic or social well being?
A car manufacturer introducing a new electric model addresses which part of the triple bottom-line?
A car manufacturer introducing a new electric model addresses which part of the triple bottom-line?
What is a key different between innovation and invention?
What is a key different between innovation and invention?
Which example demonstrates innovation?
Which example demonstrates innovation?
Where is reverse innovation best suited to find opportunities?
Where is reverse innovation best suited to find opportunities?
What is most important to consider in regards to sustainable innovations or green innovations?
What is most important to consider in regards to sustainable innovations or green innovations?
Where would the focus be when attempting to improve accomplishments in sustainability initiatives? (Select all that apply)
Where would the focus be when attempting to improve accomplishments in sustainability initiatives? (Select all that apply)
Are the triple bottom line's 3 P's of organizational performance interdependent?
Are the triple bottom line's 3 P's of organizational performance interdependent?
Which innovation type is exemplified by a company creating an app that connects local farmers directly to consumers?
Which innovation type is exemplified by a company creating an app that connects local farmers directly to consumers?
What initial action does design thinking emphasize when addressing a problem?
What initial action does design thinking emphasize when addressing a problem?
When applying the '5 Whys' technique, what is the significance of identifying a 'human problem' behind a technical issue?
When applying the '5 Whys' technique, what is the significance of identifying a 'human problem' behind a technical issue?
In what way does reverse innovation challenge traditional global product development strategies?
In what way does reverse innovation challenge traditional global product development strategies?
What is the long-term aim of sustainable development regarding resource utilization?
What is the long-term aim of sustainable development regarding resource utilization?
When considering the triple bottom line, what would be the impact of a company that reduces pollution but is also responsible for local job losses?
When considering the triple bottom line, what would be the impact of a company that reduces pollution but is also responsible for local job losses?
How does a sustainable business differentiate itself from a conventional business approach?
How does a sustainable business differentiate itself from a conventional business approach?
What does focusing on 'human sustainability' in management involve?
What does focusing on 'human sustainability' in management involve?
What is the strategic significance of 'reshoring' for a company?
What is the strategic significance of 'reshoring' for a company?
How does an organization demonstrate commitment to environmental capital beyond basic compliance?
How does an organization demonstrate commitment to environmental capital beyond basic compliance?
What conditions create environmental uncertainty for an organization?
What conditions create environmental uncertainty for an organization?
What is the focus of the 'assessing' step in Hamel’s wheel of innovation?
What is the focus of the 'assessing' step in Hamel’s wheel of innovation?
What constitutes 'human capital' in the context of an organization?
What constitutes 'human capital' in the context of an organization?
How does reverse innovation provide a competitive advantage?
How does reverse innovation provide a competitive advantage?
What is the key goal of 'design thinking'?
What is the key goal of 'design thinking'?
What defines environmental uncertainty for a company?
What defines environmental uncertainty for a company?
What role does 'environmental capital' play in sustainable development?
What role does 'environmental capital' play in sustainable development?
How can the '5 Whys' technique be best applied to a problem?
How can the '5 Whys' technique be best applied to a problem?
What are likely outcomes from practicing sustainability?
What are likely outcomes from practicing sustainability?
Is it feasible to maximize environmental performance in the triple bottom line regardless of economic or social well-being?
Is it feasible to maximize environmental performance in the triple bottom line regardless of economic or social well-being?
A soft-drink company reduces packaging waste for their product. Which of the triple bottom-line components does this best address?
A soft-drink company reduces packaging waste for their product. Which of the triple bottom-line components does this best address?
When implementing sustainable innovations, what is important to consider?
When implementing sustainable innovations, what is important to consider?
When attempting to improve accomplishments in sustainability initiatives, where would the focus best be placed?
When attempting to improve accomplishments in sustainability initiatives, where would the focus best be placed?
In the context of external environment trends, what is the impact of generational cohorts on organizations?
In the context of external environment trends, what is the impact of generational cohorts on organizations?
What impact does the legal-political environment have on organizations?
What impact does the legal-political environment have on organizations?
Which aspect of the specific environment encompasses the direct clientele base of an organization?
Which aspect of the specific environment encompasses the direct clientele base of an organization?
What qualities/features make a company have a competitive advantage?
What qualities/features make a company have a competitive advantage?
Which scenarios are great use-cases for social business innovation?
Which scenarios are great use-cases for social business innovation?
What factor is considered when defining sustainability goals in a business or non-profit organization?
What factor is considered when defining sustainability goals in a business or non-profit organization?
How does the process of reverse innovation work?
How does the process of reverse innovation work?
If a company has owners and investors in conflict with the local community, how does a business determine which stakeholder gets priority?
If a company has owners and investors in conflict with the local community, how does a business determine which stakeholder gets priority?
Who should be considered as stakeholders when a business executive is mapping the task environment?
Who should be considered as stakeholders when a business executive is mapping the task environment?
What are some of the top challenges global business executives face?
What are some of the top challenges global business executives face?
Which of the following would influence organizations through existing and proposed laws and regulations, government policies, and the philosophy and objectives of political parties?
Which of the following would influence organizations through existing and proposed laws and regulations, government policies, and the philosophy and objectives of political parties?
What is a scenario where human capital is lost?
What is a scenario where human capital is lost?
What is the key difference between invention and innovation?
What is the key difference between invention and innovation?
Which of the following is the first step in Hamel's wheel of innovation?
Which of the following is the first step in Hamel's wheel of innovation?
How does social business innovation primarily differ from traditional business innovation?
How does social business innovation primarily differ from traditional business innovation?
In the context of the 'wheel of innovation,' what is the key objective of the 'experimenting' stage?
In the context of the 'wheel of innovation,' what is the key objective of the 'experimenting' stage?
Why is design thinking considered a 'hands-on' approach to problem-solving?
Why is design thinking considered a 'hands-on' approach to problem-solving?
What is the fundamental purpose of employing the '5 Whys' technique?
What is the fundamental purpose of employing the '5 Whys' technique?
In what primary way does reverse innovation challenge traditional innovation models?
In what primary way does reverse innovation challenge traditional innovation models?
According to Clay Christensen, what is the hallmark of disruptive innovation?
According to Clay Christensen, what is the hallmark of disruptive innovation?
What foundational concept does 'sustainability' embody?
What foundational concept does 'sustainability' embody?
How does the 'triple bottom line' extend traditional business performance evaluation?
How does the 'triple bottom line' extend traditional business performance evaluation?
What distinguishes a sustainable business from a conventional business model?
What distinguishes a sustainable business from a conventional business model?
What does 'human sustainability' primarily address within organizational management?
What does 'human sustainability' primarily address within organizational management?
Which factor is considered part of an organization's external environment?
Which factor is considered part of an organization's external environment?
What is the primary driver for the movement of 'reshoring'?
What is the primary driver for the movement of 'reshoring'?
Which initiative effectively signals a company’s dedication to environmental capital?
Which initiative effectively signals a company’s dedication to environmental capital?
What environmental circumstance causes uncertainty for an organization?
What environmental circumstance causes uncertainty for an organization?
What is the initial action in Hamel's wheel of innovation's 'assessing' phase?
What is the initial action in Hamel's wheel of innovation's 'assessing' phase?
What does 'human capital' represent in the context of organizations?
What does 'human capital' represent in the context of organizations?
What is the main purpose of 'design thinking'?
What is the main purpose of 'design thinking'?
From a sustainability perspective, what is 'environmental capital'?
From a sustainability perspective, what is 'environmental capital'?
How can the '5 Whys' technique be applied to improve customer service issues?
How can the '5 Whys' technique be applied to improve customer service issues?
Flashcards
Product Innovation
Product Innovation
Creation of new or improved goods and services.
Process Innovation
Process Innovation
Better ways of doing things, often improving efficiency.
Business Model Innovation
Business Model Innovation
New ways of making money for a firm.
Social Business Innovation
Social Business Innovation
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Invention
Invention
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Application
Application
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Imagining
Imagining
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Designing
Designing
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Experimenting
Experimenting
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Assessing
Assessing
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Scaling
Scaling
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Design Thinking
Design Thinking
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Reverse Innovation
Reverse Innovation
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Disruptive Innovation
Disruptive Innovation
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Sustainable Development
Sustainable Development
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Triple Bottom Line
Triple Bottom Line
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Environmental Capital (Natural Capital)
Environmental Capital (Natural Capital)
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Sustainable Businesses
Sustainable Businesses
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Sustainable Innovations/Green Innovations
Sustainable Innovations/Green Innovations
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Human Sustainability
Human Sustainability
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External Environment
External Environment
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Generational Cohorts
Generational Cohorts
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Internet Censorship
Internet Censorship
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Offshoring
Offshoring
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Reshoring
Reshoring
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Specific Environment (Task Environment)
Specific Environment (Task Environment)
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Competitive Advantage
Competitive Advantage
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Environmental Uncertainty
Environmental Uncertainty
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Product Innovations
Product Innovations
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Process Innovations
Process Innovations
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Business Model Innovations
Business Model Innovations
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Disruptive Innovation
Disruptive Innovation
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Stakeholders
Stakeholders
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Study Notes
Types of Innovations
- Product innovations create new or improved goods and services.
- Process innovations lead to better ways of doing things.
- Business model innovations result in new ways for a firm to generate revenue.
- Groupon exemplifies product innovation by putting coupons on the Web.
- RIM's BlackBerry pioneered portable email devices.
- Apple's iPod, iPhone, and iPad revolutionized their respective markets through product innovation.
- Amazon's Kindle ushered in a new era of e-readers via product innovation.
- Facebook and Instagram integrated social media into daily life as product innovations.
- IKEA's "ready to assemble" furniture transformed retail shopping, showing process innovation.
- Amazon.com's "1-Click" ordering streamlined online shopping via process innovation.
- Nike's customization option allows customers to design their own shoes, illustrating process innovation.
- Grocery store self-checkout reduces wait times and costs, demonstrating process innovation.
- Netflix transformed movie rentals into a subscription business through business model innovation.
- Redbox innovated by placing movie rentals in vending machines, using business model innovation.
- Zynga monetized "extras" in free online games, showcasing business model innovation.
- Innovation applies to solving social problems like poverty, famine, and disease.
- Social business innovation uses business models to address social issues.
- Microcredit lending, pioneered by Muhammad Yunus at Grameen Bank in Bangladesh, exemplifies social business innovation.
- Grameen Bank provides small loans at low interest rates to promote self-sufficiency through small enterprises for those lacking collateral for regular bank loans.
The Innovation Process
- The innovation process starts with invention (discovery) and ends with application (use).
- Gary Hamel's five-step "wheel of innovation" includes:
- Imagining: Thinking about new possibilities.
- Designing: Building initial models, prototypes, or samples.
- Experimenting: Examining practicality and financial value through experiments and feasibility studies.
- Assessing: Identifying strengths, weaknesses, costs, benefits, markets, and applications.
- Scaling: Implementing and commercializing new products or services.
- Commercialization turns innovation into products, services, or processes that increase sales or lower costs.
Design Thinking
- Design thinking is a hands-on method for creative problem-solving.
- Design thinking is used by companies like Apple, Google, Samsung, and GE.
- Design thinking emphasizes challenging assumptions and framing questions to address user needs.
- Designers avoid jumping to solutions and instead determine the root issue.
- The design thinking process is iterative and expansive, involving considering a wide range of potential solutions before converging on a proposal.
The 5 Whys
- The "5 Whys" technique identifies the root cause of a problem.
- Eric Ries suggests that a human problem underlies most technical problems.
- The process involves asking "why" repeatedly to trace intermediate causes to their origin.
- Addressing each level of the responses is important for fixing the root cause.
Reverse Innovation
- Reverse innovation involves innovation from lower organizational levels and diverse settings.
- Global firms find innovations in environments with income and pricing constraints.
- GE developed low-priced, portable electrocardiogram and ultrasound machines in India.
- GE then introduced these products to North American markets through reverse innovation.
Disruptive Innovation and Technology
- Disruptive innovation starts small-scale and then displaces prior practices and competitors.
- Cellular phones disrupted landlines, MP3 players disrupted CDs and cassettes, and discount retailers disrupted full-line department stores.
- Online retailers, gaming, and movie streaming, and tablet devices are examples of disruptive innovation.
Environment and Sustainability
- Sustainability is a commitment to protect the rights of present and future generations as co-stakeholders of the world’s resources.
- Sustainability applies to air, water, spaces, and human labor.
Sustainable Development
- Sustainable development aims to use environmental resources to support society’s needs today while preserving them for future generations.
- "Renew," "recycle," "conserve," and "preserve" are sustainable development catchwords.
- Environmental capital (natural resources) sustains life on Earth.
- Organizations must balance consumption of environmental capital with the potential costs of losing it in the future.
- Organizations should consider the triple bottom line: economic, social, and environmental performance.
- The triple bottom line includes: profit, people, and planet.
Sustainable Business
- Sustainable businesses meet customer needs and protect the environment.
- Sustainable businesses set goals for recycling, carbon reduction, energy efficiency, ethical sourcing, and food security.
- Sustainable businesses employ sustainability officers, green building managers, and sustainability planners.
- Sustainable innovation (green innovation) reduces negative environmental impact and seeks to achieve positive impact.
- A sustainable business model seeks win-win outcomes for the organization and the environment.
- Vancity developed Canada’s first mutual fund that excludes companies associated with fossil fuel production.
- Telus Corporation was named to the Dow Jones Sustainability North America Index for its ethical treatment of animals.
Human Sustainability
- Human sustainability focuses on protecting human rather than natural resources.
- Socially responsible businesses consider the effect of management practices on employee well-being.
- Organizations should support human health and well-being by providing health benefits and wellness programs.
- Companies can show human sustainability by avoiding layoffs, structuring work hours to reduce stress and work-family conflict, designing jobs to reduce stress and give people control, and being transparent and fair in handling wage and status inequalities.
- Pfeffer suggests including employees as organizational stakeholders.
- A tragic industrial complex collapse in Bangladesh, which killed more than 1,100 people, highlighted the need for improved human sustainability.
- Efforts have since been made to improve working conditions for Bangladeshi garment workers.
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