Module 2 Flashcards
(32 cards)
What is innovation?
Original recombination of knowledge components (Nahapiet & Ghoshal, 1998)
Name the four functional sources of innovation along the value chain.
Manufacturer, Supplier, User, Complementor
Who benefits by manufacturing and selling the innovation?
Manufacturer innovator.
What is the main benefit for supplier innovators?
Creating or increasing demand for the input they supply.
What is the motive behind user innovation?
To develop a product for personal use (new functionality and/or higher productivity)
What is the main benefit for complementor innovators?
Creating or increasing demand for his/her own good, which complements the innovation
Fill in the blank
User innovations may provide a basis for ____
user entrepreneurship
What is user entrepreneurship?
professional user innovators spin-off a company or end-user innovators start their own company to commercialize their innovations
What industry is cited as an example of user innovation?
Snowboarding industry.
Functional roles can change.
How does the user become a manufacturer (user entrepreneurship)?
A user innovator expects to benefit from his/her innovation by using it.
They could also benefit by licensing the innovation or by manufacturing the innovative product
What does forward integration refer to in innovation?
When a user or supplier starts manufacturing the innovation themselves.
What is vertical or lateral integration?
A supplier/complementor benefits by creating or increasing demand for input that he/she supplies.
They could also benefit by manufacturing the innovative product themselves.
Give an example of a company involved in forward integration.
Xiaomi – transitioned from electronics to smart car cockpits.
What are hybrid types of innovation?
Co-creation and Crowdsourcing.
Give examples to co-creation.
Workshops, Online Platforms, Communities
Give examples to crowdsourcing.
Open Source Software, BMW Idea Contest, Style your SMART Design Contest, InnoCentive, TopCoder
Name a co-creation example mentioned in the slides.
Volkswagen’s AI Lab.
What is co-creation?
Innovation involving collaborative input from users or partners (e.g., workshops, online platforms).
What is crowdsourcing?
Leveraging the collective knowledge or input of a large group (e.g., Open Source Software, LEGO Ideas).
… the wisdom of crowds
What are the cons of hybrid innovation?
- niche product
- less control
- reputation might suffer if others do the job for you
- platforms have to be managed
- suppliers/users might become competitors
- IP issues/secrecy
- can be very costly
What are the pros of hybrid innovation?
- save costs
- save time
- suppliers and users may be better qualified
- external knowledge sourcing
- marketing
Name a failed example of hybrid innovation.
PRIL’s “tastes like chicken” detergent campaign.
What are the rules of closed innovation?
Hire the best people, innovate in-house, strive to be first to market, invest in R&D (discover the best and the most ideas), and control IP.
What are the rules of open innovation?
Collaborate externally, create value with external R&D, profit from shared IP, make use of internal and external ideas, and focus on better business models.
