Chapter 2 + 6 - Innovation

Question 1

Innovation

Answer 1

• Creative destruction
• thinking outside the box
• leaving the realms of know and stable —> the unknown and uncertain

Question 2

Innovation objects

Answer 2

• products innovation
• process innovation
  Marketing innovation
  Organizational innovation

Question 3

product innovation

Answer 3

indroduction of goods/services => new / significantly improved with respect to its chracteristics/ intended use

Question 4

process innovation

Answer 4

implementation of new/ improved production/ delivery method => significant changes i. techniques, equipment and/ or software

Question 5

marketing innovation

Answer 5

implementation of new marketing methods

=> significant changes im product design/ packaging, placement, promotion or pricing

Question 6

organizational innovation

Answer 6

implementation of new organizational method in firm’s business practices, workplaces organization/ external relations

Question 7

types of innovation

Answer 7

radical innovation
incremental innovation
disruptive innovation
architectural innovation

Question 8

radical innovation

Answer 8

new technologies in new markets

Question 9

incremental innovation

Answer 9

existing technologies in existing marktes

Question 10

disruptive innovation

Answer 10

new technologies in existing markets

Question 11

architectural innovation

Answer 11

existing technologies in new markets

Question 12

first mover advantages

Answer 12

defence by entry barriers via
- customer lock in (switching costs)
- knowledge advantage (patents, secrecy)
- experience curve advantage
potential pioneer monopolist profits

Question 13

first mover disadvantages

Answer 13

high risk and high costs

• competition against non-consumptiom
• lock-in effects leading = high fixed costs
• technological risks
• imitation and knowledge leakage risks

Question 14

follower advantage

Answer 14

lower technological risks
non consumption barrier already overcome
low need to allocate contribution margins to fixed expenditures from R&D + asset depreciation

Question 15

openess

Answer 15

indicator for techinology’s future value creation potential:

• compalilty with established technology
• potential for future development
• breadth of application possibilities
• network effects

Question 16

innovation’s technology stages

Answer 16

• embryonic technology
• pace maker technology
• key technology
• basic technology

Question 17

embryonic technology

Answer 17

laboratory stage => some limited commercial experimentation

• high R+D investment needed
• very high risk + difficult value assessment
• very high differentiation potential

Question 18

pace maker technology

Answer 18

could become tomorrows key technology

• no reliable technological standard + potential f. diffusion
• latent potential f. high value but high risk

Question 19

key technology

Answer 19

provide competitive advantage

• only used by major players
• potential differentiation + competitive advantage

Question 20

basic technology

Answer 20

an organization must master to be an effective competitor

• established standard in whole industry
• no differentiation potential anymore

Question 21

adaptor categories

Answer 21

1. innovators
2. early adopters
3. early majority
4. late majority
5. laggards

Question 22

attractiveness of technology depending on diffusion + differentiation

Answer 22

lower diffusion -> higher differentiation -> higher market potential -> higher attractiveness

Question 23

Technology

Answer 23

knowledge, facts, and abilities for solving technical problems
+
equipment and methods for the practical realization of (scientific) results

Question 24

Technology-Portfolio-Analysis

Answer 24

• Illustration of current and future technology position possible
• Evaluation along external (independent) and internal (dependent) criterion
• Recommendations for actions concerning a company’s technology strategy

Question 25

Technology-Portfolio-Analysis steps

Answer 25

1. Identification of technology 2. Evaluation and positioning of a technology according to a) Evaluate a technology’s attractiveness b) firm’s (relative) resource strength (with regards to the respective technology) 3. Deduction of norm strategies and recommendations for action 4. Transformation of technology portfolio

Question 26

Tools for innovative thinking/ parallel thinking

Answer 26

- reversed brainstorming - morphological matrix - parallel thinking tool: six thinking heads

Question 27

reverse brain storming

Answer 27

- define topic + goal - reverse goal - classical brainstorming - reverse ideas - evaluate ideas => potential solution/ attributes of a solution

Question 28

morphological matrix

Answer 28

1. attributes of examined object listed as matrix columns 2. vary attributes in as many combinations as possible 3. selecting one entry per column => creating of a new product ( modes. randomly/ focus on interesting combinations) 4. evaluate combinations value generation (marketability=

Question 29

six thinking hats

Answer 29

- white hat (paper) information, facts - green hat (growth) creativity {new ideas/ solutions} - black hat (the judge's robe): caution - yellow hat (Sunshine) Logical positive - red hat ( attective) feelings - blue hat (Sky) overview

Question 30

advantages of six hats

Answer 30

1. give direction + framing to parallel thinking 2. shift from personal preference centrism => to thinking performance 3. participants employ all modes of thinking + faster meetings

Question 31

Business model risk analysis

Answer 31

sensitivity analysis scenario analysis Monte Carlo simulation

Question 32

sensitivity analysis

Answer 32

one parameter varied - rest constant | + impact of each parameter regarding NPV, Tornado Chart

Question 33

family firm

Answer 33

one/ several families hold collectively >50% of a firm + exert influence on its strategic course via the board / owner management => + sustainable across generations

Question 34

hidden champions

Answer 34

- family - small (revenue < 5billion) - hidden - champion

Question 35

Technology-Portfolio-Analysis Aim

Answer 35

evaluation of applied, new/ emerging + old technologies to support strategic decisions identification of investment needs

Question 36

scenario analysis

Answer 36

several parameters varied | + comparisons of interesting/ feasible scenarios

Question 37

Monte Carlo simulation

Answer 37

all parameters varied simultaneously using probabililty distributions + risk profile, overview of all outcomes