Value Creation Flashcards
What is organizational resilience?
Refers to an organization’s response to damage and it highlights the ability to recover and grow under uncertainty, crisis, and emergency.
What is competitive advantage?
When a company obtains a set of traits that enable it to work better than its competitors, it gains a competitive advantage. The competitive advantage is shown when a firm’s actions are more profitable than its competitors or when it beats them in terms of other essential incomes.
What is economic sustainability?
It relates to the growth, development, and productivity of the company. It means that we should optimize the usage of resources to create long-term sustainable values in our organization.
What is environmental sustainability?
It refers to the maintenance of natural capital; for this reason, firms should take care of waste emissions and use renewable and non-renewable resources very carefully.
What is social sustainability?
It is a technique for developing sustainable locations that encourage wellness by understanding people’s requirements of their living and working places. It relates to the physical and social infrastructures, social amenities, and citizen participation mechanisms.
What is innovation?
Innovation is the process of bringing an invention, creation, or insight regarding a novel device, process, or system to its first successful commercial use is referred to as innovation. As a result, it can be used to new goods, processes, and services, as well as new markets, supply sources, and organizational structures.
We can define innovation as any change to a business product, service, or process that adds value (the process by which new ideas are developed, tested, and brought to the market by businesses).
Innovation is not just about “big bangs”; it is about anything new that has impact. True or False
True
What is the difference between invention and innovation?
Invention is an event when a new idea for a product, process or service is thought up for the first time. Innovation, on the other hand, is the process that moves from the original invention to its first successful commercialization.
Regarding innovation:
From “Decisions made based on intuition and seniority” to (…):
Decisions made based on testing and validating
Regarding innovation:
From (…) to “Testing ideas is cheap, fast, and easy”:
Testing ideas is expensive, slow, and difficult
Regarding innovation:
From “Experiments conducted infrequently by experts” to (…):
Experiments conducted constantly, by everyone
Regarding innovation:
From (…) to “Challenge of innovation is to solve the right problem”:
Challenge of innovation is to find the right solution
Regarding innovation:
From “Failure is avoided at all cost” to (…):
Failures are learned from, early and cheaply
Regarding innovation:
From (…) to “Focus is on minimum viable prototypes and iteration after lunch”:
Focus is on the “finished” product
What is an experimentation?
Experimentation can be defined as an iterative process of learning what does and does not work. The goal of a business experiment is actually not a product or solution; it is learning, the kind of learning about customers, markets, and possible options that will lead you to the right solution.
What are the two types of experiments?
- Convergent experiments are best suited for learning that eliminates options and converges on a specific answer to a clearly defined question (e.g., Which of these three designs is preferred by the customer?).
- Divergent experiments are best suited for learning that explores options, generates insights, asks multiple questions at the same time, and, when done right, generates new questions to explore in the next iterative stage.
What do the convergent and divergent experiments have in common?
- Increases knowledge
- Tests assumptions
- Looks outside for answers
- Requires willingness to learn versus decide
To innovate successfully, we only need divergent experiments. True or False
False
To innovate successfully, you will need both convergent and divergent experiments at different stages and in different parts of your business
What is disruptive innovation?
The concept of disruptive innovation is not about a breakthrough technology. Instead, it involves the introduction of a simpler, more affordable product or service but with performance attributes that fall below those valued by established customers and with a small market opportunity.
What are sustaining technologies?
Sustaining technologies are those that foster improvement along performance dimensions valued by established customers.
Incumbent firms often ignore a disruptive innovation and continue serving established customers with innovations on a sustaining technology’s trajectory. While incumbents ignore the disruptive innovation, firms with the disruptive innovation take root in an undemanding segment of the market, gain experience, improve their products and begin to move up market.
What is open innovation?
Open innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation, respectively.
What is collaborative innovation?
Collaborative innovation is about how people with collective vision interact with each other, how they offer ideas and intuitive thinking and how they share knowledge and experience for a common goal. It is a value co-creation process that not only results in a desired outcome for all collaborators but simultaneously co-elevates the capabilities of entities.
Explain the balance between core and crowd pillar.
The final rebalancing is between the core (organizing around centralized knowledge and processes internal to an organization) and the crowd (organizing to take advantage of a vast, global, digitally connected crowd of talent and the new technologies of extreme decentralization).
In the past, companies hired organizing internal workforces of experts and skilled laborers. Work, and especially creative work, happened inside the organization. Nowadays (…)
Companies discovered that they can find work with expertise outside the organization in a cost-effective way.
