Flashcards
3.9.2: Assessing innovation
Cards in this deck (20)
- 1Innovation:when a business exploits new ideas which have been developed (developed using R&D and can be new products, proceducres, manufactures)
- 2Why Innovate:-access to new markets
-stay competitive
-recover from a decline in product lifecycle/portfolio
-maintain/grow profits
-increase demand
-new technology
-avoid/satisfy pressures - 3Product Innovation:the development and marketing of the introduction of a new or redesigned good/service
-could be more desirable functions (Apple), new materials (GoreTex) or new components (Land Rover) - 4Process Innovation:implementing a new or improved production process, delivery method or communication method. This can include software, equipment or techniques e.g. 3D printing for easy prototype making
- 5Advantages of Innovation:-improved quality
-ability to enter new markets
-increase value added
-increase product range
-spread the risk
-reduce costs (especially unit)
-improved flexibility/increased capacity
-easier to meet regulations
-reduce environmental impact of manufacturing process
-growth/market share
-price
-USP/ stay ahead of competition
-attract skilled workers
-survive business cycle more easily - 6Disadvantages of Innovation:-uncertainty of demand
-operational difficulties
-competition (rivals may be tempted to join new market)
-generic products (copies can be manufactured)
-cost of skilled employees may be higher
-plagiarism
-finance (is it available or how to raise) - 7To Become Innovative A Business Should Consider:-protecting ideas (ensuring sole ownership of an idea)
-planning (using life cycle)
-culture (embedding entrepreneurship)
-secrecy (competitive edge)
-customer orientation (focus on customers needs and wants make it easier) - 8Innovative Companies:-Netflix
-Uber
-Air BnB
-Buzzfeed
-Facebook - 9Methods of Becoming Innovative:-kaizen techniques
-using R&D
-Entrepreneurship
-Benchmarking - 10Kaizen:eliminating waste, improving productivity, achieving sustained continuous improvement
-small changes over long period of time means large improvements can be made - 11Research & Development:customer/product orientated business
(customer or product first depending)
if not able to R&D businesses will have to rely mergers/acquisitions - 12Entrepreneurship:the act of behaving like an entrepreneur while working within a large organisation
-management focuses employees to be innovative, creative and can transform ideas into profit
-try ideas until they fail
-taking initiative and doing something new without being asked to - 13Benchmarking:identifying the best practice used in the production process and delivery of the product itself
4 Steps:
-UNDERSTAND in detail the existing business process
-ANALYSE the business processes of others
-COMPARE business performance against others analysed
-IMPLEMENT steps to close the gap - 14Benchmarking As A Strategy:-strategic (identifying long-term strategies to improvement, implementation is also long-term so benefits may be delayed)
-competitive (identifying key characteristics from the same sector e.g. exam results across high schools)
-process (production of process maps to compare processes across similar sectors)
-functional (identifying similar functions which need improvement)
-internal (comparing how standardised data is used across a business)
-external (identify the best in class and who has the leading edge)
-international (comparisons made internationally but in similar industries) - 15Protecting Ideas: (3 Methods)-patents
-copyright
-trade mark - 16Patents:protects new inventions and covers how things work, what they do, how they do it and what they are made of and how they are made
Why:
-avoid copying
-differentiation/USP
-minimising P5F - 17Copyright:legal protection against copying authors, composers and artists
- 18Trademark:protecting a logo/symbol or name
- 19Impact on Functional Areas:-HR: success means growth which means more employees needed, job design and motivation becomes more important for change
-Finance: expensive, high R&D investment, cash flow
-Operations: machinery, training
-Marketing: market research, product lifestyle/portfolio evaluation also - 20Prevent Innovation:-expensive
-long-term strategy
-difficult to gain finance due to risk
-low success rate
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- A level Business Studies (3.9: Strategic methods: how to pursue strategies) Flashcards on 3.9.2: Assessing innovation, created by Ashleigh-Jade Jones on 08/06/2017.
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- Ashleigh-Jade Jones
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