Summary: Smi

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• 1 Week 1

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• WHAT ARE THE THREE ELEMENTS OF A GOOD STRATEGY?

  1. ANALYSIS: involves a thorough examination of the competitive environment, internal resources, and capabilities.
  2. FORMULATION: the process of crafting the strategy based on the analysis.
  3. IMPLEMENTATION: the execution of strategic plans to achieve the desired objectives.

• WHAT IS (SUSTAINABLE) COMPETITIVE ADVANTAGE AND HOW CAN IT BE ASSESED?

  - Superior performance relative to competitors or the industry average.
  - It is RELATIVE and can be assessed by BENCHMARKING against competitors or the industry average.
  - Sustainable competitive advantage refers to outperforming competitors over a prolonged period.

• WHAT IS THE UPPER ECHELON'S THEORY?

  - Organizational outcomes reflect the values and perspectives of the top management team, influenced by their personal circumstances, values, and experiences.

• CREATIVITY VS INVENTION VS INNOVATION VS TECHNOLOGICAL INNOVATION?

  - Creativity is the ability to produce useful and novel work.
  - Invention is the outcome or result of the creative process, the first-time occurrence of an idea.
  - Invention is the first-time occurrence of an idea, while innovation is the first-time commercialization of an idea, typically occurring within firms.
  - Innovations can be technological or nontechnological and represent a broader category than technological change.

• What are the four stages in the linear model of innovation?

  - Idea
  - Invention
  - Innovation
  - Imitation

• What does the linear model of innovation assume and why is it often not right?

  - Innovation follows well-defined stages of research, development, production, and marketing
  o The linear model generalizes causation that may hold true only for a minority of innovations
  o Firms innovate because of commercial needs, and their starting point is often reviewing and combining existing knowledge, only in its absence firms invest in new research (science)
  o Also, in most settings, user experience is considered a more important input than science 
  
  - Innovation is not a sequential (linear) process
  - Innovation is a learning process involving multiple inputs, interactions and feedbacks in the process of knowledge creation

• What are the types of property rights in innovation?

  - Patent: Exclusive rights with public disclosure
  - Trade secret: Valuable proprietary information
  - Copyrights, Trademarks: Protect various intellectual property forms

• What is the advantage of patents in innovation?

  - Exclusive rights to commercialize technology for a specified period in exchange for public disclosure

• What are the differences between competence-enhancing and competence-destroying innovations?

  - Competence-enhancing innovations improve existing skills and capabilities within a firm
  - Competence-destroying innovations make existing competencies obsolete, requiring new skills and approaches

• Explain the concepts of radical and incremental innovation.

  - Radical innovation is entirely new, while incremental innovation involves minor changes
  - Radical innovation implies a significant change in products with old ones being discarded, while incremental innovation features small changes (e.g., new iPhone)