Summary: Innovation Management

Read the summary and the most important questions on Innovation Management

• Article: A business Model Innovation Typology

  This is a preview. There are 7 more flashcards available for chapter 02/04/2020
  Show more cards here

• What are the 5 types of innovation distinguished by Schumpeter?

  1. The introduction of a new good
  2. The introduction of a new method of production
  3. The opening of a new market
  4. The conquest of a new source of supply
  5. The carrying out of a new organisation

• What is a business model?

  The way in which a company creates and delivers value so as to generate revenue and achieve a sustainable competitive advantage

• What are the 7 building blocks of a business model (that can be subject to innovation)?

  1. Value proposition
  2. Target customers
  3. Customer relations
  4. Value chain architecture
  5. Core competences
  6. Partner network
  7. Profit formula

• What are the 3 dimensions to defining and measuring innovation?

  1. Radicality -  How much the innovation departs from previous offerings/business
  2. Reach -  How new something is, depends on to whom it is new
  3. Complexity. The number of building blocks changed

• What are the 4 strategy innovation types distinguished by Miles and Snow?

  1. Prospector strategy - most innovative, want to be first
  2. Analyser strategy - very innovative, but stay in existing domain. Pursue efficiency in stable markets, but try to be prepared for change in dynamic markets they serve too
  3. Defender strategy - stay in their existing domain, limit innovation to improving existing products
  4. Reactor strategy - no consistent strategy, perceive changes in market but do not react effectively

• Article: Visual tools for business model innovation

  This is a preview. There are 15 more flashcards available for chapter 02/04/2020
  Show more cards here

• What is a VBMR?

  A visual business model representation. It is a depiction of the business model of a firm. 
  - it helps in collaborative innovation
  - takes away from the complexity of business model innovation
  - is a knowledge sharing tool that can provide a mean for more effective communication

• How does visualisation aid the cognitive processes of managers?

  1. It constitutes external information storage, freeing up working memory for other thinking processes
  2. Enhances representation of relationships through structuring info and grouping it together
  3. Overcomes cognitive overload by offloading cognitive processes to visual perception

• How does visualisation benefit organisational communication?

  1. Creates common understanding of mental models
  2. Improve communication among working teams
  3. Influence emotional processes by engaging employees and team members
  4. Improve communication between organisation and external stakeholders

• What is a business model?

  An organisation's abstracted logic of value creation, delivery and capture

• In what ways in business model innovation a key driver for firm success?

  1. It enables enhancing strategic flexibility
  2. It makes responding appropriately to high environmental volatility easier
  3. Helps improving firm's sustainability performance
  4. Helps improve firm resilience
  5.  Helps achieving competitive advantage
  6. Drives financial performance
  Bolder claims:
  7. Can create new market areas
  8. Redefine the rules of competition
  9. Firms can capture (at least temporarily) a Schumpeterian innovation rent in terms of willingness to pay and higher customer loyalty
  10. Creates reinforcing effects on product, service and process innovation as well