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Flashcards in Session 2: Adoption Deck (21)
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1
Q

Example of slow market adoption?

A

Nespresso, took them 20 years to figure out a good strategy for market adoption

2
Q

What are the waves of technological development and when they happened?

A
  1. 1770s: Early Mechanization
  2. 1840s: Steam Power + Railways
  3. 1890s: Steam Power + Railways
  4. 1940s: Electrical + Heavy Engineering
  5. Fordist Mass Production
  6. 1990s: Information + Communications Technology
3
Q

What are the technological paradigms?

A

– Thought structure or way of thinking (about a problem)
– Paradigms identify the problems to be addressed,
and close off other approaches

4
Q

Why is technological change cumulative?

A

– Technologies build on one another - Path Dependent Trajectories

5
Q

Draw the S curve of technology perfomance

A

Slide 9

Y: Technology perfomance
X: Time (or Aggregate R&D spending)

6
Q

What happened to Xerox?

A

Apple destroyed them, despite them being the first to come with a GUI

7
Q

Key points about technological change

A
  1. Cumulative and evolutionary
  2. Not a smooth, automatic process – it takes place in
    spurts and jumps.
  3. In hindsight some changes can be identified as ‘revolutionary’ in nature – leading to tidal waves of changes called ‘technological revolutions’ or new ‘techno-economic paradigms’
  4. Technological change has major implications for the competitiveness of firms.
8
Q

Draw The product life cycle model

A

Slide 16
Y: Number of innovations/time
X: Time

  1. Fluid phase: Dominant design is not established
  2. Transitional Phase: Product innovations
  3. Specific Phase: Process innovations
9
Q

What happens in the fluid stage of product lifecycle?

A
  1. Innovation: Frequent major product changes
  2. Products: Diverse design, often customised
  3. Basis of competition: Functionally product performance
  4. Vulnerabilities of industry leaders: To imitators and to successful breakthroughs
  5. Innovation strategy: Performance maximizing
10
Q

What happens in the transitional stage of product lifecycle?

A
  1. Innovation: Major process changes required by rising demand
  2. Products: One product design, stable enough for volume
  3. Basis of competition: Product variation
  4. Vulnerabilities of industry leaders: To more efficient and higher quality producers
  5. Innovation strategy: Sales maximizing
11
Q

What happens in the specific stage of product lifecycle?

A
  1. Innovation: Incremental cumulative improvements
  2. Products: Mostly undifferentiated, standard products
  3. Basis of competition: Price
  4. Vulnerabilities of industry leaders: To technological innovations that present superior product substitutes
  5. Innovation strategy: Cost minimizing
12
Q

What does dominant design do?

A
  1. Establishes what defines the product and what is required by the product.
  2. Basic design architecture that becomes the accepted market standard.
  3. Constitutes industry agreement on the attributes of a design that holds overwhelming market share.
  4. Not always based on technological superiority.
13
Q

How should an organisation change the nature of its innovative activity in order to survive?

A

From product to process innovation.

From radical to incremental innovation

14
Q

What are the different competencies required in each product lifecycle phase?

A
  1. fluid phase → identifying ill-defined consumers needs
  2. transitional phase → developing distribution channels
  3. specific phase → designing standard products
15
Q

Do services follow a product life cycle model?

A

Many industries and products follow a life cycle model. Many industries, including services, don’t.

16
Q

What happens after the establishment of a dominant design?

A

Product innovation becomes gradually less important; process innovation becomes more important.

17
Q

What is the most important thing to focus on in the specific phase?

A

In the specific phase firms focus on incremental improvements to the design and manufacturing efficiency.

18
Q

Draw and explain the S-Curve of technology diffusion

A
  1. Adoption initially slow because technology is unfamiliar
  2. It accelerates as technology becomes better understood
  3. Eventually the market is saturated and rate of new adoptions declines
Categories
1. Innovators
2. Early adopters
CHASM
3. Early Majority 
4. Late Majority 
5. Laggards
19
Q

What’s Moore’s chasm?

A

Between early adopters and early majority

20
Q

What’s the relationship between adoption and diffusion?

A

Adoption and diffusion are two sides of the same coin: the diffusion of an innovation depends on the adoption by users.

The adoption of innovation often follows an s-curve pattern.

The technological performance often follows an s-curve pattern. Slowing performance improvements may indicate when an industry matures.

21
Q

What signs show industry maturity?

A

Slowing performance improvements