Ways of becoming innovative

Question 1

Types of innovation

Answer 1

Product
- launching a new or improved product
- first mover advantages (early innovators get more chance of brand loyalty)
- Netflix streaming content, Tesla’s electric cars

Process
- better or more efficient ways of production or delivery
- more responsive to needs
- higher quality

Question 2

Benefits of innovation

Answer 2

Helps build a brand

Can charge higher prices

Improved productivity (lower unit costs)

Question 3

Ways of becoming innovative

Answer 3

Kaizen
- continuous improvement
- can be improving customer service, waste levels
- McDonald’s ( order prep, customer service, inventory management)

Research and development
- product innovation to better meet customer needs

Intrapreneurship
- Google (personal projects such as Gmail)
- enable employees to act as an entrepreneur
- build matrix twams
- not used if focusing on the short term or change is not in the culture
- need rewards, resources and culture

Benchmarking
- compare startegy, production, product to high perfomring competitors or other branchs of the business