Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
86 Cards in this Set
- Front
- Back
|
Name three ways innovation matters |
jobs Strategic and economic importance to society it can improve lives |
|
|
Who came up with Creative Destruction? |
Schumpeter
|
|
|
Name five factors increasing the importance of innovation |
Globalisation Shortened product and development lifecycles speed of knowlegde development increased competition and differentiation enabling technologies |
|
|
Name four examples of enabling technologies |
Computer aided desing flexible manufacturing systems 3d printing internet of things |
|
|
What is a technology? |
A phenomenon put to use |
|
|
What is an innovation |
The extraction of value from an idea |
|
|
Name five sources of innovation |
Inventors Users Firms Universities NPO's |
|
|
Name the three levels of research |
Basic Applied Development |
|
|
Name four forces working on RnD activities |
Strategic intent Autonomy of staff Market pull Technology push |
|
|
Name the three ways a business can use components |
Re-use Recombination Development of novel components |
|
|
Name five pairs of opposing innovation |
Product vs Process Incremental vs radical Competence enhancing vs destroying Architectual vs component Sustaining vs disruptive |
|
|
In regards to company core concepts and their linkages, what is incremental innovation? |
reinforced concepts, and unchanged linkages |
|
|
In regards to company core concepts and their linkages, what is architectural innovation? |
Reinforced concepts, but changed linkages |
|
|
In regards to company core concepts and their linkages, what is Modular innovation? |
Overturned core concepts, but unchanged linkages |
|
|
In regards to company core concepts and their linkages, what is Radical innovation? |
Changed concepts and linkages |
|
|
Name five reasons why it is difficult for a company to make radical transitions |
Unwilling to canibalize Short term focus Routines reduce variation Competency trap Tendency to conform |
|
|
What is sustaining innovation? |
Making better products, for higher prices, to attractive customers, in existing markets |
|
|
What is disruptive innovation? |
Simpler or more convenient products, for lower prices, to new or unattractive customers |
|
|
Why do disruptive innovations not score high on resource allocation? Name four things |
Best customers do not want disruptive innovation disruptive innovations do not offer highest profit margins Small markets do not solve growth problems for big companies financial investment tools are biased to existing markets |
|
|
Name three fases of innovation, concerning dominant design |
Fluid Transitional Specific |
|
|
Name two aspects of the fluid phase |
Explosion of different designs Era of radical product innovation |
|
|
Name two aspects of the transitional phase |
Standardisation of design emergence of process innovation |
|
|
Name two aspects of the specific phase |
Contraction of competitiors era of incremental innovation |
|
|
Name the three ways by which a standard can be set |
Market forces Collective action Government |
|
|
Name eight factors influencing dominant desing |
Technical superiority Installed base of users complementairy goods collateral assets strategic maneuvering government regulation regime of appropriablity some luck and path dependence |
|
|
Name five first mover advantages |
Brand loyalty technology leadership Preemption of assets Switching costs reaping increasing returns |
|
|
Name five first mover disadvantages |
Research and development expenses Undeveloped logistics Immature enabling tech and complements Uncertainty about customer requirements Incubent inertia |
|
|
What are the two things that an innovation strategy needs to do? |
Leverage the firms existing capabilities provide direction for the future |
|
|
What three things does the formulation of an innovation strategy require? |
Articulating an ambitious strategic intent Appraising the firms evironment Appraising the firms strenghts and weaknesses |
|
|
What is the central dilemma in producing a strategy, consisting of three parts? |
Realizing short and long term goals over time Balancing activities Balancing exploitation and exploration |
|
|
name five strategy formation models |
EXTERNAL Porters five forces stakeholder analysis INTERNAL Resource based view Core competencies Dynamic capabilities |
|
|
What are the VRIN resources a companies must have to be future proof? |
Valuable Rare Imperfect imitable Non-substitutable |
|
|
Name three ways the competency trap can manifest itself |
Familiarity trap Propinquity trap Maturity trap |
|
|
Name four psychological and economical factors which hold a company back |
Confirmation bias/overconfidence tendency to conform Routines that reduce variety Embeddedness in value networks |
|
|
What is organisational learning? |
A framework to understand incremental and redical innovation
|
|
|
Name five positive things associated with ambidexterity |
Sales growth performance rating innovation Market valuation Firms survivial |
|
|
Name the three kinds of ambidexterity |
Sequential Structural simultaniously Contextual simultaneously |
|
|
What are dynamic capabilities? |
The abilities to quickly reconfigure and reorganize |
|
|
What is the blue ocean strategy? |
Going to safe blue waters. This means new market, irrelevant competition, no value-cost tradeoff, differentiation from the brewing red ocean |
|
|
What is the average RnD spending in the EU?
|
3%. 20% for pharmaceutical companies. |
|
|
Give six strategies for setting the RnD budget |
Interfirm comparison fixed to turnover fixed to profit reference to previous expenditure costing an agreed program internal customer-contractor relationship |
|
|
Name four sources of uncertainty |
Technological uncertainty Market Organisational Resource |
|
|
What is Radical/knightean uncertainty? |
When you don't know what you don't know |
|
|
Name the two discounted cash flow methods |
Net present value Internal rate of return |
|
|
what are the two strenghts of discounted cash flows? |
Provides concrete financial estimates explicitly consider timing of investment and time value of money |
|
|
What are the weaknesses of discounted cash flows? |
They are only as accurate as the original estimates of cash flows May fail to capture strategic importance of project. Takes the existing situation as stable. |
|
|
What six pieces of information do you need for a discounted cash flow? |
Investment needed sales price sales volume variable cost timing discount rate |
|
|
What are the three ways to allocate resources? |
Stepwise like stage gate Reducing uncertainty Effectuation theory |
|
|
What are the three kinds of RnD projects? |
Breakthrough Platform Derivative |
|
|
Name the three kinds of platforms |
Technology/Innovation Social exchange Marketplace |
|
|
State the definition of a platform in three stages |
Platforms are evolving organisations that federate and coordinate agents who can innovate and compete, create value by generating and harnessing economies of scope, and entail a modular architecture composed of core and periphery. |
|
|
Name six strategies for getting customers on board for your platform |
build on existing infrastructure develop services for one side of the platform seed one of the sides Begin with a micro-market GO BIG zig-zagging between sides trying to do it all right |
|
|
Name the four benefits of platforms |
Reduction of transaction costs Bundling and unbundling Leverage external resources Rapid scaling because of lower resource needs |
|
|
What is the all-or-nothing market share dynamic of platforms mitigated by? |
Heterogeneity Multihoming Crowding effects |
|
|
Name six advantages of a platform architecture |
Reduced cost of production Shared components Reduced RnD lead times Reduced systematic complexity Improved ability to update products Customization by recombination |
|
|
What are the two main disadvantages of platform architecture? |
Decreasing distinctiveness Suboptimization |
|
|
What is a platform architecture? |
A set of core components with low variety, with a set of complementairy components with high variety |
|
|
What are the four advantages of economies of scope in production and innovation? |
Modular architecture helps innovation It attracts complementors that make the product more valuable It taps into innovation capabilities of others It's an easy route to market for complementors |
|
|
Name seven ways a company can make their platform more open by resourcing |
1. Financial support for the development of complements 2 Sharing information 3 share development tools 4 support offline communication among developers 5 support online communication 6 certify some people to work on your platform 7 offer a distribution channel for the complementors |
|
|
name four ways a company can make its platform more propietary by securing it
|
Require exlusivity Limit technical compatibility Require payment for development Check every complement |
|
|
What is open innovation? |
Performing knowledge exploration, retention, and exploitation in and outside the organisation boundries in the innovation proces |
|
|
Name four reasons for the shift to open innovation |
increasing knowledge intensity Distribution and specialization of knowledge Reduced product life-cycles Increased product complexity and connectivity |
|
|
Name four reasons for innovating solo |
Enough available capability protecting propietary technologies Controlling technology development and use Building and renewing capabilities |
|
|
Name four reasons for engaging in open innovation |
Acquiring capabilities and resources quickly Reducing asset commitment and increase flexibility Learning form partners Sharing resources and risk Building coalitions and shared standards |
|
|
Name the three innovation ecosystems |
Knowledge, Business, Platform |
|
|
Name six types of cooperation in innovation |
Strategic alliances Joint ventures Licensing Outsourcing Collective Research Organization Informal Collaboration |
|
|
Name two kinds of user innovation |
Crowdsourcing Online communities |
|
|
Name the two ways an innovation partner needs to fit |
Resource fit Strategic fit |
|
|
name three external factors to consider before cooperating with a company |
Position vs customers and rivals Competitiveness of potential partner |
|
|
name three internal factors to consider before cooperating with a company
|
Effect on firms strenghts and weaknesses, competitive advantage capabilities and financial position |
|
|
Name three types of collaboration agreements |
Alliance contracts Equity ownership Relational governance |
|
|
What is the wide lens perspective? |
Not only looking at the execution of the innovation, but also at to innovation and the adoption chain |
|
|
What are the key characteristics of knowledge ecosystems? |
Physical locality Absorptive capacity |
|
|
What are the key characteristiscs of platform ecosystems? |
They can be extended to incorporate other products They benefit from network effects (direct and indirect) |
|
|
What are the two perspectives on business ecosystems? |
Ecosystem as affiliation Ecosystem as structure |
|
|
What is alignment? |
The process to achieve mutual agreement between ecosystem actors, their activities, and roles in the ecosystem |
|
|
What four things do actors have to align in an ecosystem? |
Activities Actors Positions Links |
|
|
Name four ecosystem challenges |
Co-adoption Co-innovation Heterogeneous expectations Coopetition |
|
|
What is co-adoption risk? |
Activity based challenge Partners' willingness to undertake the required activities |
|
|
What is co-innovation risk? |
Activity based challenge Partners' ability to develop capabilities needed to undertake new activities |
|
|
What is the heterogeneous expectations risk? |
Gaps between the focal firms' and partners' expectations regarding positions and roles |
|
|
What is the three coopetition risks? |
Intertemporal: Timing of benefits Dyadic: Coopetiton between two actors Multilateral: Coopetition spanning multiple relationships |
|
|
What three things make an ecosystem strategy? |
Finding the right actors Alignment between actors and their positions and roles. The right incentives to behave right |
|
|
Name two kinds of ecosystem strategies
|
Blueprint Adaptive |
|
|
What is the merit of a blueprint ecosystem strategy? |
It reduces uncertainty about the goal and future of the ecosystem |
|
|
What is the merit of an adaptive ecosystem strategy? |
It is more adaptable to changes and can be used when a blueprint can't be made. |
