unit 9.2 Flashcards
product innovation
launching new or improved products or services on the market
process innovation
finding better or more efficient ways of producing existing products
product innovation benefits
build early customer loyalty
higher prices
higher perceived value
process innovation benefits
reduced costs
improved quality
more responsive customer service
what is intrapreneurship
when employees are encourage to solve a problem by coming up with innovative new ideas -> allows them to take risks until they find the most productive and affection way to complete their task
what are the positives of intrapreneurship?
it is done alongside the intrapreneurs regular role, company isn’t wasting money, event if they don’t find a solution they have produced work on the way
what is kaizen
encouraging employees to improve the way they work + processes, small changes lead to innovation -> they have control over decision making
what is benchmarking
studying other businesses with good quality standards + aims to innovate by adopting the same methods
although it won’t lead directly to new products
benefits of benchmarking
motivates as encouraging to implement something you’ve seen work successful
what is a patent?
registering + protecting new inventions -> no one else can copy unless you give them a license
lasts for 20 yrs
what is a trademark?
it protects logos + slogans
eg McDonald golden’s arches are its property
what is copyright?
protection to written work + music, illegal to reproduce other peoples work without permission
what is innovation?
thinking of a new idea + putting it into action eg RD drives innovation
benefits of innovation
- can charger higher prices for innovative products or services before competitors bring similar products to the market
- can help add value to existing products
- can take advantage of economies of scale
negatives of innovation
- costly, time consuming, risk running out of money if invest too much in RD + don’t get products to market quickly enough to pay off costs
- can end up wasting resources producing something customers don’t want
