9.2b Methods of Innovation Flashcards
Ways to innovate:
- R&D
- Kaizen
- Intrapreneurship
- Benchmarking
R&D definition
Scientific investigation conducted to discover new products or manufacturing processes
How does R&D support innovation?
- Inventing new products to enter new markets
- Finding more efficient ways of production
- Improve quality of existing product
Kaizen definition
An approach of constantly introducing small incremental changes in a business in order to improve quality and efficiency
What are the two principles that Kaizen is based on?
- Gradual change
- Staff suggestions
What skills do entrepreneurs display?
- Commitment
- Determination
- Self-confidence
When does intrapreneurship occur?
When a business encourages its employees to demonstrate entrepreneurial skills within the firm
Who do the rewards from intrapreneurship go to?
The business
Ways to encourage intrapreneurship:
- Training
- Culture
- Reward
Benchmarking definition
The search for those best practices that will lead to the superior performance of a business
Types of benchmarking:
- Internal benchmarking
- Benchmarking with competitors
- Functional/generic benchmarking
What is internal benchmarking?
Collecting comparative data from similar functions within the business
What is benchmarking with competitors?
Comparison with similar businesses
What is functional/generic benchmarking?
Gathering information from a business with similar processes, although the business may be in a different field
Ways benchmarking helps innovation:
- Analyse and improve processes to gain comparative advantage
- Enhance performance by correcting mistakes
- Identify better approaches
