Contemporary Management
Show slide youtube on Mercedes innovation:
Trivia: Did you know that 280 years ago, the British government announced if not the world’s first, then certainly the world’s largest prize for innovation at 20,000 pounds reward for anyone who can “discover the longitude”- according to John Brandt.
What is innovation? Why do organizations pay so much on research and development just to develop more of these?
In a nutshell:
1. Innovation is something that is created as “new”. * According to Marion Hembrick: Deliberate use of resources to create something new whether a new product, process, policy or procedure.
Ex: An example of an innovation is that of a three-wheel car in 1886 by Mercedes Benz.
* People use innovations for competitive advantage or to increase market share or ta have a better system, but is innovation alone essential in an existence of an organization?
2. Innovation is a game changer: Something that is perceived to be different and could contribute to a change in lifestyle. As said by Sheremata in “Strategy in Network Markets” there are two types of innovation: radical and incremental.
-In competing with market leaders, challengers do innovations to gain market shares. * Radical * provide large improvements, costly and risky. Challengers hoping to gain monopoly power. * high possible return and embodies new knowledge * may affect competitive outcome * DISRUPTIVE-can penetrate and be widely accepted or it can fail and may bring about signification loss/cost an organization according to Christensen * Example: radical innovation of a 3-wheel petrol car to a 4-wheel petrol car which change lives and made it so easy with the convenience of driving or riding. * The move of a four wheel car was a game changer because it was an radical innovation that was widely accepted, where it changed lives. * Combined, adapted and improved and introduced as a “new and
Trivia: Did you know that 280 years ago, the British government announced if not the world’s first, then certainly the world’s largest prize for innovation at 20,000 pounds reward for anyone who can “discover the longitude”- according to John Brandt.
What is innovation? Why do organizations pay so much on research and development just to develop more of these?
In a nutshell:
1. Innovation is something that is created as “new”. * According to Marion Hembrick: Deliberate use of resources to create something new whether a new product, process, policy or procedure.
Ex: An example of an innovation is that of a three-wheel car in 1886 by Mercedes Benz.
* People use innovations for competitive advantage or to increase market share or ta have a better system, but is innovation alone essential in an existence of an organization?
2. Innovation is a game changer: Something that is perceived to be different and could contribute to a change in lifestyle. As said by Sheremata in “Strategy in Network Markets” there are two types of innovation: radical and incremental.
-In competing with market leaders, challengers do innovations to gain market shares. * Radical * provide large improvements, costly and risky. Challengers hoping to gain monopoly power. * high possible return and embodies new knowledge * may affect competitive outcome * DISRUPTIVE-can penetrate and be widely accepted or it can fail and may bring about signification loss/cost an organization according to Christensen * Example: radical innovation of a 3-wheel petrol car to a 4-wheel petrol car which change lives and made it so easy with the convenience of driving or riding. * The move of a four wheel car was a game changer because it was an radical innovation that was widely accepted, where it changed lives. * Combined, adapted and improved and introduced as a “new and