HIMALAYAN COLLEGE OF MANAGEMENT

KAMALPOKHARI, KATHMANDU

SPECIAL ASSIGNMENT MANAGING INNOVATION AND

CREATIVITY

SUBMITTED TO SUBMITTED BY
PROF. SACHIN ARYAL DRISTY ADHIKARI
MBA, 2nd SEMESTER
1. ‘Innovators are rarely able to capture the full financial return associated with their innovation’.

Do you agree or disagree with the statement? Give FIVE (5) justifications to support your answer.

Although significant science and engineering skills are required to develop new processes and products,

the technical prowess that underpins process and product advances is simply insufficient to reap the

benefits of innovation. Although invention is a crucial first step in the innovation process, it is not enough

to ensure commercial success. Innovators also fail to recognize the benefits of their work. As a result, in

technology-intensive industries, securing the returns to innovation is a crucial strategic challenge. Yes, I

accept that innovators are rarely able to capture the full potential of their ideas .Because of the following

variables, there is a financial return associated with their innovation:

a. Innovators were defeated by imitators.

If there are losers among innovators, there must be winners among followers / imitators. Many imitators

succeed so well that the innovator is forced out of business. Since innovators were unable to appropriate

the returns to their own invention, they lost to imitators. The competition between innovators and

imitators is exemplified by the CAT scanner example. The innovator (EMI) competes for complementary

assets, while the imitator (GE Medical Systems) competes for technical assets to produce the

breakthrough, often by reverse engineering, and without infringing on others' intellectual property on the

patents of the inventor Imitators who are effective know how to “parse” and decode. I sort through a vast

array of information and data points in complex structures, and assemble bits and pieces of important

information They can also hone their entrepreneurial skills that, when combined with the right routines,

allows them to spot opportunities for imitation and to evaluate and execute a suitable replication as

quickly as possible.

2. Long decision-making times and sluggish processes

The bigger a corporation becomes, the slower its systems get. Long decision-making periods and sluggish

procedures can be a death sentence for new ideas. Furthermore, there are often device and connectivity

issues. All of this has a negative impact on innovation project quality and performance.

c. The impact of complementary assets on a company's results

Patent security enhancement is expected to have a huge effect on how a business benefits from

innovation. When patent security is high, firms without the specialized complementary assets needed to

commercialize innovation license more, while firms with specialized complementary assets license less.

Their findings also indicate that, while technology buyers benefit from lower transaction costs and gain

from selling technology, they lose negotiating power in technology partnerships in favor of IP owners,

resulting in lower returns on the ownership of specialized complementary properties.

d. Initially, creativity is expensive.

Knowledge is a non-rival commodity, creating new knowledge is initially expensive, but it can be

distributed and used for free once it is generated, and inventions usually become more valuable as more

people use them. However, if the new insight isn't very impressive, the predicted financial return would

be lower because the initial innovation could be more costly.

e. Most of innovation efforts on new products and product extensions.

Most companies focus most of their innovation efforts on new products and product extensions, according

to research by the consultancy Doblin. But these kinds of innovations, it turns out, are the least likely to

return their cost of investment, with success rate of only 4.5 percent. Instead, Doblin discovered that

focusing on topics like developing business models, internal processes, and consumer service yields the

highest return on investment. Rather than obsessing about the next hot product or service, you could be

better off focusing on a new profit model or improving the customer experience.

As a result, I believe that innovators are rarely able to enjoy the full financial benefits of their inventions.
2) Pay Pal is an American worldwide online payments system. When it was launched in 1999, to

enable people to settle small debts via Internet, several analysts expressed doubts over its future. Its

competitive business model, security systems and constant new services enabled its customer base

to grow from 10,000 in 1999 to 45 million in 2004. By 2002, it earned the reputation of being a

highly trusted payment system over the internet.

a. What were the opportunities that the founders of Pay Pal took advantages of through their

business?

In comparison to traditional payment methods such as checks and papers, it offers an online transfer of

funds and money service. Online retailers, business customers, and auction websites will all benefit from

the company's services. In exchange for offering the service of online money transfer, the brand charges a

fee. Pay Pal's founders took advantage of the following opportunities through their company:

a. It has begun to grow the company by adding new products, markets, and capabilities.

b. PayPal works for a wide range of clients and businesses. As a result, the business provides a variety of

programs to its customers. Billme Later, PayPal, digital products sale, PayFlow Payment portal, virtual

terminal, and online invoicing are all available.

c. PayPal has beneficial agreements with all major credit cards, offering more payment options to its

customers. With a number of deals secured, management is turning gears and seeking collaborations with

some of the world's fastest-growing e-commerce websites, such as Uber, Facebook, Instagram, and other

sites.

d. PayPal has a user-friendly application. Merchants and regular users can conveniently set up an account

and move funds with just a few clicks. If some of the competitors were to replicate PayPal's interface,

they would need a programmer and a developer.

PayPal has been working with some of the world's biggest e-commerce sites, which will benefit the

company's growth in the same way that deals with credit cards and banks have done in recent years

without incurring any additional costs.

e. Another goal for PayPal was the business opportunities in China; they launched the Gopay system and

obtained more revenue from the markets.

f. The organization can also seize opportunities, such as widening its market in developing countries.

b) What could have been the possible reasons for customers increased acceptance of technology change in

making online payments?

The more we use modern technology, the friendlier it will become to us. Computers and cell phones have

changed not just the way we operate, but also how we handle our finances and payments. The advent of

newer services, such as e-commerce, has resulted in a need for faster payment systems due to the ever-

changing and emerging technology. Customers' increased acceptance of technological change in making

online payments may be due to the following factors:

a) More convenient

Consumers can now make an online purchase even if they don't have a passport or wallet on hand, thanks

to advancements in payment technology.

b) Invest in insurance

Customers must create some level of trust with a retailer with whom they may have no prior experience

when buying from a small business, whether in person or online. Consumers can be hesitant regardless of

how explicitly a company expresses its return, trade, and customer satisfaction policies, which can be

dealt by online mediums.

c) Inexpensive advantages
Customers profit from online payments for a variety of reasons, including the fact that they are free. In a

world where few items are free, online payments provide customers with added value while requiring no

additional investment.

d) Adaptable

We can pay and use it at any time because it is more reliable and flexible, and because it is more reliable

and flexible, it has never been limited to a particular region, allowing people to use it more widely.

e) Helps you save time

Online payments are convenient not only in terms of transaction speed, but also because they remove the

need for customers to drive to a store, spend time, and wait in line to pay.

f) Faster in nature

It is faster than other payment schemes because we would pay for anything.

It assists us in paying quickly and conveniently wherever we are. We don't have to comply with any of

the financial terms and conditions, which is a time-consuming procedure. As a result of its precision and

precise way of servicing people, they attract more customers who want to use it.