Q and A.pdf - Chapter 1 2 1 Innovation What and why(the context for innovation \u2022 It is the process of creating value from ideas by exploitation of new

Q and A.pdf - Chapter 1 2 1 Innovation What and why(the...

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Chapter 1 & 2 1. Innovation: What and why (the context for innovation) It is the process of creating value from ideas by exploitation of new ideas or take advantage of opportunities. In other way, innovation is Not just about opening new markets but also new ways of servicing established and mature ones The reasons beyond innovation are all related to: Profits, Market capitalization, Growth and Market share. 2. Creative Destruction/Discontinuous innovation Creative Destruction: Refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. Discontinuous innovation : by creating such dramatic change that they transform existing industries or create new ones. 3. Hidden innovation Hidden innovation refers to innovation that is not taken or recognized by traditional indicators such as research and development (R&D) spending or number of patents. The term generally refers to innovation that takes place outside science & technology sectors. For example, although technological innovations are often developed in the oil & gas sector through oil exploration activities, these innovations are unaccounted for in innovation metrics because oil exploration is not counted as formal R&D 4. Barriers to innovation Seeing innovation as ideas, not managing the whole journey; Not recognizing the need for change; Mindset and complacency – core competence becomes core rigidity; Closed information network, insulated from new ideas.
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5. Process Model 4 key steps: • recognizing the opportunity • finding the resources • developing the idea • capturing value Strategic analysis: what could we do? Strategic selection: what are we going to do, and why? Strategic implementation: how are we going to make it happen? Capture: How are we going to get the benefits from it? 6. Dimensions of Innovation Dimension Type of change ‘Product’ Changes in the things (products/services) which an organization offers ‘Process’ Changes in the ways in which these offerings are created and delivered ‘Position’ Changes in the context into which the products/services are introduced ‘Paradigm’ Changes in the underlying mental models which frame what the organization does
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7. Open vs Closed Innovation Open innovation means opening up the innovation process beyond company boundaries in order to increase one's own innovation potential through active strategic use of the environment. A closed innovation is based on the view that innovations are developed by companies themselves. From the generation of ideas to development and marketing, the innovation process takes place exclusively within the company. The distinction between open innovation and closed innovation is determined by the way in which innovation is created. While a closed innovation is developed in a self-contained company environment, Open Innovation incorporates external knowledge into innovation management.
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