Types of Innovation
What aspects of business should organizations focus when they concentrate on product innovation and on process innovation?
Organizations that focus on product
innovation should concentrate on new product
development or improvement of the existing
technologies while organizations launching new
organizational methods or techniques as process
innovation should focus on knowledge and
management culture.
What is the basic reference point to the difference between product innovation and process innovation?
The distinction between product and
process relates to the areas and activities that have
an innovation effect. While product innovation refers to a new
product, commercialized invention or artifact that is introduced into the market and put into
use, process innovation is known as new factors
(systems, equipment, techniques, and human
resources) introduced in an organization to increase
product quality, improve methods of production,
or reduce production costs.
What are the connection points between product innovation and process innovation as they have commonalities?
-New processes may lead to the introduction
of new products/services,
-New products/services may lead to the
introduction of new processes,
-A product innovation for one company
may simultaneously be a process innovation
for another.
What is the difference between product innovation and process innovation in regard to visibility?
Product innovations are more visible to the customers whereas process innovations are less visible to customers .
What is the basis of the attempt to explain the difference between radical innovation and incremental innovation?
The radical-incremental distinction is one of the perceived degrees of new knowledge embodied in the technology.
How would you explain and compare the radicalness of an innovation in terms of timing of the innovation process?
Radical innovations follow incremental innovations. Radical innovation results with great leaps forward in terms of revenue
or efficiency, whereas the tweaks offered by
incremental innovation result in slower and gradual benefits that
tend to be more modest.
What are some characteristics of radical innovation?
It is discontinuous (with or without predecessor; essential,
nonlinear improvement obtained by the customer)
It leads to a new dominant design
It implies a high level of uncertainty
It is driven by technology
Whar are some characteristics of incremental innovation?
Continuous (linear improvement of value
acquired by the customer)
Based on old technology
Improvement of existing characteristics
Driven by market pull
Existing organization and qualifications are
sufficient
Innovations can also be classified as competence enhancing and competence-destroying.
What is the relationship of the two types of innovation to technology?
An innovation is considered as competence-enhancing
when it builds up on an existing technology.
An innovation is considered as competence-destroying when
it replaces a technology.
What type of innovation can we think of about Intel’s introduction of new microprocessors?
Intel’s introduction of new microprocessors is an example of competence enhancing innovation.
What type of innovation can we think of about the introduction of digital cameras?
The introduction of digital cameras is a good example to competence-destroying type of innovation.
What is the affect of competence-destroying innovation on the industry structure?
Competence-destroying innovations have a strong potential to change the industry structure since they introduce new knowledge.
What is the affect of competence-enhancing innovation on the incumbent performance of a firm?
Competence-enhancing innovations are positively associated with the incumbent performance of a firm.
What type of innovation applies when new product classes are introduced in various industries such as airline models, cement, or lain-paper copying?
Competence-destroying competence occurs when
new products lines or services are introduced in various industries.
What type of innovation applies when firms implement major product improvements?
When firms implement major product improvements competence-enhancing innovation occurs.
What extent of impact would competence-destroying and competence-enhancing innovations likely to have on existing products/services of a firm?
Competence-destroying innovation would result with product substitution; whereas competence-enhancing innovation would cause incremental product changes.
What is the basic idea of the systems approach providing basis for component innovation which is also one of the managerial approaches?
Systems approach claims that all
entities are actually systems that are composed
of components, and each component is also a
system of components.
How does systems understanding apply or related to innovative activities in industrial organizations whether manufacturing or service?
A system is made of connected components. An innovation to one or more components that does not significantly affect the overall configuration of the system is known as component or modular innovation.
Simply, how does architectural innovation differ from component innovation?
Further than component innovation, architectural innovation changes the whole configuration of the system as well as how the
components interact with each other.
Which one important action should companies take for implementing component innovation and architectural innovation separately?
Having a knowledge base or expertise on specific
component(s) for component innovation; understanding
the whole configuration of the system as well as
how specific components of the system work.