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Lecture outline
Definition of innovation
Innovation in detail Measuring innovation Innovation in small firms Managing innovation Sources of innovative opportunity
Innovation
It comes from a Latin word innovare, which means to
make something new. It can be defined as the successful exploitation of ideas or turning ideas into profitable products, processes, services or business practices. There are three underlying concepts
Innovation as achievement
Innovation as achievement
In technological context not in social or commercial
context New technologies evolve over time Introduction of new technology is a risky process in terms of uncertainties
change. It is a process Dynamic capabilities means a learned and stable pattern of collective activity through which the organization systematically generates and modifies its operating routines in pursuit of improved effectiveness.
Innovation in detail
Misinterpretations of innovation Innovation = invention
Invention is a creative idea and innovation takes it a step ahead and puts it to work New markets, new marketing methods, new operating methods Old ideas can be combined to make them new It is a gradual and ongoing process
Innovation = original
Measuring innovation
Can it be measured?
Four factors can be used Conceptual novelty Technological uncertainty Market uncertainty Extent to which a firm has committed sunk costs to the project. The first three factors require judgment and forth can be measured
The unexpected
Unexpected success or failure often gives clues to
underlying trends which can lead to innovation. Success computers were basically designed for scientific purposes Failure restaurant with sales of jacket potatoes rather than the main courses
The incongruous
An incongruous event or result is a discrepency
between what is said and what everyone expects. Its is a further sign that changes are taking place
Process need
necessity is the mother of invention
It means the way or process through which products or
innovate, it has been suggested that cooperation and collaboration among smaller enterprise can help overcome some disadvantages The concept of networked innovation is becoming popular The aim is to promote individual projects by pooling ideas, technology, and commercial experiences.
a market. They understand that research can not always predict needs because sometimes customers do not know what is possible through a breakthrough Owners usually have a specific skill or knowledge that they wish to exploit The business is already established and wishes to add to its existing range without diversification The business has established products which it wishes to sell to new customers
Resources available
New ideas
Market opportunity
Analysis of distribution
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