Theories and concepts Flashcards
(40 cards)
The central argument that all definitions of innovation have in common
The need to complete the development and exploitation aspects of new knowledge, not just its invention
The book’s definition of innovation
“The process of turning ideas into reality and capture value from them” (Tidd & Bessant)
Dimensions of the ‘innovation space’ (the 4 p’s)
product – changes in the things (products/services) which an organization offers
process – changes in the ways in which they are created and delivered
position – changes in the context in which the products/services are introduced
paradigm – changes in the underlying mental & business models which frame what the organization does
Describe Radical innovation
A radical or disruptive innovation is an innovation that has a significant impact on a market and on the economic activity of firms in that market.
The innovation could, for example, change the structure of the market or create new markets
Describe Incremental innovation
Incremental innovation concerns an existing product, service, process, organization or method whose performance has been significantly enhanced or upgraded.
Define the stages - and its’ characteristics of Abernathy and Utterback’s model of innovation life cycle
Stage 1 - Fluid: exploration, uncertainty, flexibility (high emphasis on product innovation)
Stage 2 - Transitional: dominant design (high emphasis on process innovation)
Stage 3 - Specific: standardization, integration (emphasis on both product and process innovation)
Define the most central dynamics behind globalization of innovation
Open innovation, digitalization of processes and systems, advances in IT
Explain globalization of innovation
Globalization of innovation is about creating interfaces with specialized skills and innovative opportunities at a world level, as a result of open innovation, digitalization, and advances in IT
Name the 5 innovation mechanisms that create strategic advantages
- Novelty in product or service offering
- Novelty in process
- Complexity
- Legal protection (licenses, intellectual property)
- Timing
Name the Generic phases of the innovation process (innovation as a core business process)
- Searching and scanning (internal and external environments)
- Filtering and selecting potential opportunities
- Implementing development & commercialization
- Reviewing & learning from experience. Capturing the benefits.
What is the purpose of creating a Business Model Canvas?
It describes how an organization creates, delivers, and captures value.
Describe what exploration and exploitation entails
Exploration: Smaller and newer organizations rely on exploration, which involves risk-taking, experimentation, discovery, and innovation.
Exploitation: Larger companies rely on exploitation, where innovation emerges on the existing assets of the organization and improves them through innovation.
Provide the book’s example of exploration vs. exploitation
Tesla’s exploration of electric vehicles vs. the car industry’s reliance on exploitation of existing resources and capabilities
Define organizational routines
Organizational routines are considered basic components of organizational behaviour and repositories of organizational capabilities. Routines become the organization’s “personality”, as they consist of the learned processes and behaviours which determine how the organization operates
Define tacit knowledge
The intelligence we have that is gained through the personal and professional experience you’ve learned both in your current role and previous jobs. It’s the knowledge that’s difficult to explain and challenging to document
Name the 4 types of firms in terms of developing an innovation strategy
Type A: Unaware/passive
Type B: Reactive
Type C: Strategic
Type D: Creative
Name 3 advantages - and 3 disadvantages of being a first mover
Advantages: • Reputation as a pioneer • Capture market share • Early learning curve benefits • Definition of standards • Establish entry barriers e.g. patents • Dominate supply & distribution chains • Earn ‘monopoly’ profits (think of Schumpeter)
Disadvantages: • Pioneering costs, educating buyers, regulatory approval • Demand uncertainty • Changing buyer needs • Low-cost imitation • Followers of technology
Name the stages of New Product Development projects (NPD-projects)
- Idea formulation
- Concept formulation
- Product development
- Test marketing
Define single-loop - and double-loop learning
Single loop learning (Argyris & Schon, 1974,1978): Learning from the loop between results & consequences (what we obtain) and action strategies and techniques (what we do). It is a problem-solving learning style
Double loop learning (Argyris & Schon, 1974,1978): Learning, learning is from the loop between results & consequences (what we obtain) and action strategies & techniques (what we do), but also governing variables, such as goals, values, beliefs (why we do what we do)
What is Ambidexterity?
The ability to do two different things at the same time; for example, exploitation and exploration.
What is Structural ambidexterity?
It allows organisations to separate their exploration units from their exploitation units, enabling them to have different processes, structures, and cultures.
What is a ‘competence trap’?
When a company is too heavily focused on exploitation and makes continuous incremental changes (improvements) with the purpose of being more effective. This may lead the company to a trap that does not allow the company to do exploration
What is a ‘failure trap’?
When a company is always doing radical changes (new things) with the purpose of running faster than competitors
What is meant by the ‘Perpetual search trap’?
Relating to discovering something new, but the organization does not have the patience or persistence to build on the new discovery or idea.
