Travelling
Essay by Wei Wei • October 26, 2016 • Essay • 10,286 Words (42 Pages) • 1,773 Views
- Innovation = Invention (Idea → Discovery → Research → Development → Invention) + Market Launch (+ Exploitation)
An Invention needs to have commercial value (market launch) to become innovation!
- Types of Innovation:
- 1. Product innovation
- 2. Process innovation
- 3. Service innovation
- Scope/Impact of Innovation
- 1. Incremental: small improvement
- 2. Significant: technology unchanged → from B&W printer to color printer
- 3. Radical: new technology → laser printer instead of mechanical printing/typewriter
- Sources of innovation
- 1. Suppliers → Vodafone redbox
- 2. Manufacturers → Crown cork
- 3. (End-) Users → Foot straps for jumps
- 4. Hybrid / Co-creation: Joint creation by company and user → Open Source Software; Youtube (User generated content)
- Value Drivers
- 1. Design innovation → structuring group creativity towards valuable outcomes using design practices
- 2. Management innovation → invention and implementation of management practices, process, structure, or technique (GM’s organizational structure)
- 3. Business model innovation → Budget airlines; Airbnb
- 4. Digital innovation → using digital tools and infrastructure to offer customers enhanced or unique values (3D printing, AI, cloud computing)
- Importance of knowing the model:
- - Firm might need to adapt to the phase
- - Forecast certain changes
- - Actually change the environment/competition position
- How do industries come into existence?
- - Completely new technology (technology driven) e.g. ICT industry
- - Existing material/knowledge but new industry = recombination e.g. renewable energies
- Not new industry but change of application e.g. nano technology
- Utterback and Abernathy Model → Industry Evolution
- Innovation follows 3 phases:
Fluid Pattern | Transition Pattern | Specific Pattern | |
INNOVATION | |||
Emphasis | Functional product performance | Product variation | Cost reduction |
Stimulation | Info on users’ needs and technical inputs | Opportunities created by expanding internal technical capabilities | Pressure to reduce cost and improve quality in order to stay competitive |
Predominant type of innovation | Frequent major changes in products | Major process changes required by rising volume[pic 1] | Incremental for product & process, with cumulative improvements in productivity & quality |
ORGANIZATION | |||
Type of Org control | Informal & entrepreneurial → Searching & sorting | Through liaison relationships, projects & task groups | Through emphasis on structure, goals & rules[pic 2] |
- Radical innovation Incremental
FLUID PHASE | TRANSITION PHASE | SPECIFIC PHASE | |
Innovation Stimulated By | Market pool: information on users’ needs and users’ technical inputs | Technology push: opportunities created by expanding internal technical capability | Pressure to reduce cost and improve quality |
Technology | Uncertainty and not well understood | Adaptation to the standard + better understanding of the technology + stability | Known |
Rate Of Innovation | High | High | Decreasing |
Predominant Type Of Innovation | Frequent major changes in products (Radical Product innovation) | Major process changes required by rising volume (decreasing rate of product innovation) | Incremental for product and process, with cumulative improvement in productivity and quality |
Competitive Emphasis On | Functional product performance | Product variation | Cost reduction |
Production Processes | Flexible and low quantity | Scale up + focus on efficiency | Efficient |
Quality Of Product | Not high, still unreliable or expensive | High | High and “customized” |
Market | - Uncertain size and response - Attract demand, first mover advantage | - Market acceptance, increasing diffusion - Attract demand | - Stable + price competition - Increasing market share |
Market Entry | High | Goes down | Very low |
Market Exit | Very low | Goes up (winners who stay in the market) | Very low |
Organizational Control Is | Informal and entrepreneurial | Through liaison relationships, project and task groups | Through emphasis on structure, goals and rules |
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