Unit 1 - E Flashcards
Define innovation
New products/services that don’t already exist, a creative approach
What are benefits of innovation?
- competitive advantage
- USP
- more market share
- few/no competitors
- premium prices
What are some ways a business can be innovative?
- producing/developing new products/services
- improving efficiency/profit
- add value#
- new/added services or branch off
Define enterprise
How a business is organized, functions and is efficient
What are disadvantages of innovation?
- taking risks
- costs/budget
- maintaining innovation
- time
Define the creative process
The way that decision making takes place
Define added value
Making product/services worth more so customers are happy to pay more
What are examples of added value?
- brand
- quality/design
- convenience
- USP
What is decision making?
How a business makes choices, where/how long it takes and by whom
What are the 4 types of decision making?
- lateral
- blue sky thinking
- serendipity
- intuition
What is lateral thinking?
Approaching subjects from alternative perspectives
- encourages creativity, thinking outside the box, wearing someone else’s hat
What is blue sky thinking?
Approaching subjects with no restrictions on perspective
What is chance and serendipity?
A pleasant discovery that occurs unexpectedly or by accident
What is intuition?
When someone makes decisions based on instinct
- e.g. changing products colour/packaging
What are benefits of a business making slow decisions?
- take time
- less risks
- less mistakes
What are benefits of a business making quick decisions?
- productivity
- competitive advantage
- USP
What are disadvantages of a business making quick decisions?
- risks
- lack of planning/thought
What are disadvantages of a business making slow decisions?
- opportunities may be missed
- lose competitive advantage/USP
- competitors may act faster
What are benefits of using only 1 of the decision making techniques?
- reduces risk
- choose most suitable option
Define risk
Something that could happen to a business, can be positive or negative
What are disadvantages of using only 1 of the decision making techniques?
- takes time
- negotiating with others
List 7 benefits of business innovation
- processes improve
- improved services and customers experience
- business growth
- development of new and niche markets
- offering USP
-improved recognition and reputation - branding
Define reward
Something good/positive that can happen to a business
Define smarter working
Businesses allowing their employees to work in different locations
+ enables communication between employees, cuts costs
