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Description
Flashcards by Madeline Briscoe, updated more than 1 year ago
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Created by Madeline Briscoe
over 8 years ago
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| Question | Answer |
| what is innovation? | the process through which inventions and new ideas become a business reality. it is more than invention as innovationcan happen with new products, processes, strategies and structures |
| why is innovation important? | -to develop competitive economy/foster competition in innovation -to achieve future economic prosperity -provides the co. with a competitive advantage -fundamental to the long-term development of a brand |
| what are the 2 basic ways innovation may occur? | -demand-pull (fulfilling market need) -technology push (applying existing knowledge) |
| what are the 5 types of R&D? (burns & stalker) | -pure research (advancing knowledge w/ no immediate commercial application) -basic research (advancing knowledge with the hope that it will be useful) -industrial research (transform pure/basic research to profitable use) -design (development of final product for the customer) |
| what is the simple 1st generation - linear model of innovation (technology push/demand pull) | tech push: science discovers>technology produces>firm MARKETS demand pull: MARKET needs>technology responds>firm markets (Rothwell) |
| what are some criticisms of Rothwell's linear modes of innovation? | -very compartmentalised -slow process -no room for collaborative innovation e.g.between scientists and marketers |
| what is the 3rd generation - coupling model of innovation | |
| what is the 4th generation - integrated innovation model | -multifunctional teams where all areas come together -marketing has a role all the way through the innovation process -quicker than previous models -arguably more responsive to market needs |
| what is the 5th generation innovation process model? | -greater overall organisational and systems INTEGRATION -flatter, more FLEXIBLE organisational structures -fully developed internal database structures -electronically assisted product development |
| what are closed innovation models and what are their downfalls? | -research the market, filter the research and use it to develop product -assume companies do the innovating -rely on idea that innovation is occurs only through desiging products (Chesburgh) |
| where should innovation start and why? | should start with innovation in service provision, sourcing decision. buying decisions THEN can have better innovation in product development |
| what are the 5 types of innovation (where innovation can occur?) | -raw material (change plastic to make tougher) -product (change dashboard to make easier to read -process (use robots to weld cars) -marketing (using celebrities) -organisation (outsourcing payroll) |
| the importance of innovation in business models | -shifts focus to the 'how' of doing business, as opposed to the what, where -focuses on a holistic perspective of how business is conducted, rather than on particular strategy or market -emphasises value creation for all members of business (incl customers) as apposed to value capture |
| e.g. of co. that benefitted from business-model thinking in terms of innovation? | -firm that manages brands such as Zara made business-model thinking a priority -have innovative production process where generic activities such as dyeing, washing, ticketing are performed in-store, sewing is outsourced -can bring garments to shop floor in record timing |
| what are characteristics of entreprenurial organisations? | -focus more attention/resources on what they do not know yet (investment, R&D) than controlling what they already know -measure success not by how far they've come, but how far they have yet to go |
| what are economic, policial and personal conditions that allow for innovation to thrive? | E: changing economy, unemployment, downsizing, globalisation, competitino Political: ideology, policy, regulation Personal: education, support, social class, family history - innovator as craftsman, opportunist, organisation builder |
| what is open innovation? | Open: 'not all smart people work for us', exertnal R&D can create value, don't have to originate research to profit from it, make best use of internal and external ideas |
| what is closed innovation? | Closed: 'smart people work for us', to profit from R&D, must do it ourselves, if we create the best ideas, we will win |
| e.g. of co. that changed from closed to open innovation | -P&G closed until financial troubles, there was an increase in pace of innovation, costs, consumer demands. co. required growth which exceeded ind growth rate, collaborated with external source -when process began 10-15% innovation was external, when ended 50% -6% growth rate in avge 2-3% industry |
| what are the challenges of using open innovation? | -multiple owners of idea -research co. need to change and adapt processes for different companies -using external source creates gap in internal capabilities |
| what is user-led innovation? | -Innovation by consumers and end users, rather than suppliers -can be innovation in use, service, configuration of technology or novel technology |
| e.g. of user-lead innovation | discovery that using the x-box can help stroke patients recover |
| what is the role of lead users in user-lead innovation? | -innovation by users tends to be done by "lead users" -experience needs that will become general in marketplace months/years before majority of target market - so they are motivated to innovate themselves and often develop own solutions |
| what is an example of user lead innovation? | inventions on 'dragon's den' tv show |
| what are the common traits of good innovation? | -strategic focus -insight -collaboratin -process: streamline idea>evaluation>creation>market place -organisation |
| what is a heritage brand? | -core values and history -use symbols consistently (may alter slightly, but maintain link, e.g. peugot changed a little and pepsi changes alot) -brands that go forward but with a meaningful past (balmer) |
| what is a brand extension? | endowing a new product with a well known brand name (e.g. apple) |
| what is brand elasticity? | how able a brand is to extend into distant product categories e.g. Virgin quite elastic, virgin mobile, virgin airlines. not enough to extend into things like softdrink |
| what allows a brand to stretch? | (volkner & sattler) -difficulty in producing the extension product -consumer's knowledge of the extensions product class -comapny size -order and direction of previous brand extensions -consumers mood |
| what 4 things help brand extensions succeed? | -Fit between parent brand and extension product (by extending on: appealing attribute e.g. good at cleaning, make more cleaning products, extending to be used within existing products (e.g. make ipod then make speaker) -Parent brand conviction -Parent brand experience -Retailer acceptanceMarketing support |
| how does consumer's style of thinking effect their acceptance of brand extensions? | -analytical vs holistic: holistic more positive about extension fit -innovators (willing try new things) -early adopter (respected opinion leaders) -early majority (not opinion leaders) -late majority (risk-averse) laggards (highly risk-averse, traditional) |
| how can companies increase the fit of the brand extension with the parent brand? | -link extension with the existing strong brand image -create associations (e.g. through sponsorship) -increase exposure to the extension |
| what is brand architecture? | -how the brands fit with one another and with parent brand -branded house (e.g. virgin, see virgin name on extensions) -house of brands (e.g. Nestle, see a tiny nestle name on each product, each brand extension has own identity) |
| what should co's consider in regards to brand architecture? | Number of brand levels Role of the corporate brand Relative weight of the brands Degree of globalisation |
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