Chapter 5A (managing innovation and growth) Flashcards
(21 cards)
What does innovation lead to?
the genesis of new businesses; mechanism of growth because it creates new products/services
On average, what percentage of normal company profits come from new products?
32%
What percentage of profits come from new products in innovative companies?
50%
What is the best predictor of investment value?
Innovativeness
Who did a study on innovativeness?
Cooper
What do innovative companies generate?
more money; more job; more profits
What is innovation?
The act of introducing novel and useful ideas into value-creating new products, new services, or new processes.
What is the criteria in order for something to be innovative?
It must be useful and novel.
How does innovation happen?
Combine creative ideas with resources and competencies to create a useful, value-creating new product/service/process and then successfully commercialize it.
How many patents did Albert Einstein register?
over 1,000 patents
What Albert Einstein an innovator or inventor or both?
both
Why was Albert Einstein an innovator?
He invented the light bulb, but then realized that you needed power to plug it in to. He then built an electric distribution and generation infrastructure to power it.
Was the Sinclair Research C5 (motorized tricycle) an innovation?
no, it sucked. It was just a stupid invention. That got 15 MPH and was made fun of by people.
Was the Segway an innovation?
no, it was expensive, banned from sidewalks in a lot of cities, high observability, looked hard to ride
Who was the Segway invented by?
Dean Kamen
How many Segways were expected to be sold in the first year of production? How many were actually sold?
50,000-100,000; 6,000 in 18 months
What did Dean Kamen do differently with the Segway then with his other medical device inventions?
he made his own company to market it instead of licensing it to bigger companies
What was the Segway Ibot?
Another version of the Segway used for wheel-chair bound people. It could climb stairs and stuff.
What two types of creativity are there?
organizational, individual
What are sources of creativity?
inventor, users, R and D organization, Customers/Supplier/Complementers, University and Government Funded Research, Collaborative Networks
What is creativity?
The ability to create work that is useful and novel.
