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Travelling

Essay by   •  October 26, 2016  •  Essay  •  10,286 Words (42 Pages)  •  1,304 Views

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  • 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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