Innovation & Management
What is incremental innovation ?
Incremental innovation focuses on making small, continuous improvements to existing products, services, or processes.
Degree of Change: Low; it is evolutionary, not revolutionary.
Technology/Market: Leverages existing technology and targets the existing market.
Risk & Cost: Typically lower risk and more cost-effective, as it builds on known foundations.
Impact: Leads to sustained growth and improved efficiency or user satisfaction over time. It helps a company maintain its competitive position.
Example: Yearly updates to a smartphone (faster processor, better camera) or adding a new flavor/line extension to an established product (like Coca-Cola introducing Cherry Coke).
What is radical innovation ?
Radical innovation introduces entirely new concepts that fundamentally change or create new markets and industries.
Degree of Change: High; it is a fundamental break from existing practices.
Technology/Market: Often involves new technology and addresses new markets or creates them entirely ("Blue Oceans").
Risk & Cost: Typically higher risk and requires significant investment in research and development due to technological and market uncertainty.
Impact: Has the potential for transformational growth and can reshape industries, making existing solutions obsolete.
Example: The invention of the automobile (replacing horse-drawn carriages), the personal computer, or the internet (as a commercial product).
What is a market vision ?
Market Vision is the ability of firms to look into the future and picture products and services that will be successful.
What are the sources of innovation ? Lead Users:
Lead Users are often involved in creating the product or solution before the manufacturer even recognizes the need.
What is crowndsourcing ?
A method, often part of 'open innovation,' to gather ideas, content, or solutions from a large group of people (the 'crowd'). This includes using contests (e.g., Walkers Crisps' "Do Us a Flavour") or fan platforms (e.g., LEGO Ideas)
What is an open innovation ?
Open innovation is based on the idea that companies can and should use external and internal ideas and resources to drive innovation. This model embraces collaboration, partnerships, and external knowledgesharing.
What is a model of innovation and what are they ?
There are several models of innovation that explain how new
ideas, products, and processes are developed and brought
to market. Some of the main models are:
▪ Linear models
-Technology push
-Market Pull
▪ Interactive model
▪ Open innovation
What is a linear model of innovation ?
- Offer an explanation on where the initial stimulus for innovation was born.
- Whilst this model of innovation can be applied to a few cases, most notably the
pharmaceutical industry (technology-push) or food industry (market-pull), it is not applicable in many other instances; in particular where the innovation process follows a different route.
What is an interactive model of innovation ?
Innovations occur as a result of the interaction of the marketplace, the science base and organization’s capabilities.
➢ Still oversimplified but more comprehensive representation of innovation process. Flow of
communications are not necessarily linear.
➢ Any function may initiate innovation (e.g. manufacturing function may initiate a design
improvement that leads to the introduction of a different material)
What is the difference between "croudsourcing" and "crowndfunding" ?
Crowdsourcing is about utilizing the crowd's brains and skills to solve a problem or generate content, while Crowdfunding is about using the crowd's wallets to finance a project or business.
What is frugal innovation ?
The goal of Frugal Innovation today is concisely captured by the mantra: "Do more with less, for more people."
Why is it important to talk about frugal innovation ?
Frugal Innovation is highly relevant and intentionally used to address the rising challenges of both economic and ecological constraints across the globe, not just in developing countries.
What is market adoption ?
Market adoption refers to the process through which a new product, service, technology, or innovation gains acceptance and widespread use by consumers, businesses, or investors within a specific target market.
What are the innovation theories ?
Innovation diffusion theories try to explain how an
innovation is diffused in a social system over time.
These are:
1. Rogers diffusion theory (S-curve)
2. Moore: crossing the chasm
3. Beacon products
4. Seasonality
5. Bass diffusion model
What is Roger's diffusion theory ?
Rogers' theory, developed by Everett Rogers, explains how a new idea, product, or technology (an innovation) spreads through a social system over time. The rate of adoption typically follows a characteristic S-shaped curve .
What is Moore's crossing theory?
Its primary focus is on the critical challenge faced by companies selling disruptive, high-tech products—specifically, how to transition from early market success to widespread market acceptance
What is a Beacon Product?
They showcase the company's best technology, design, and vision for the future, influencing consumer perception of the entire product line.
What is seasonality ?
Seasonality refers to predictable, repeated changes or fluctuations in economic, financial, or market data that occur at the same time every calendar year. These changes are typically driven by weather, holidays, or cultural events.
What is the bass diffusion model ?
The Bass Diffusion Model is a mathematical model used primarily to forecast the first-time purchase and long-term adoption rate of new products or technologies. It mathematically formalizes the S-curve adoption process.