Week 10 Innovation and Entrepreneurship Flashcards Preview

Strategic management in dynamic environments > Week 10 Innovation and Entrepreneurship > Flashcards

Flashcards in Week 10 Innovation and Entrepreneurship Deck (12)
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1
Q

Define innovation and the dilemmas it raises for strategiests

A

Innovation - conversion of new knowledge into a used product.

Dilemma - in the tension between resourcing the creation of products and how to put them to use.

2
Q

What are the 4 issues to consider in driving innovatin, at the heart of this dilemma?

A

Tech push vs market pull
Product vs process innovation
Open v closed innovation - extent it’s internal
Tech innovation vs innovation of business model

3
Q

Define innovation diffusion

A

The extent and speed by which innovation spread amongst users.

4
Q

What factors influence the pace of diffusion?

Supply side - ICCER

Demand side - MNC

A
Supply side: 
Improvement 
Compatibility with other factors 
Complexity of product 
Experimentation – ability to test
Relationship management 

Demand side:
Market awareness
Network effects – growth because others adopt
Customer innovativeness - Satisfy early adopters needs

5
Q

What is the diffusion S curve?

A

Graphical representation of slow adoption, rapid diffusion, plateau of demand

Helps managers predict direction of sales. Features:
Predict tipping points
Track the extent of diffusion – duration and time
Predict tripping points

6
Q

What are the advantages of moving first or being a late mover?

MGESSL LS

A

Advantages of ‘First Mover’ / Innovator

  1. Monopoly of market
  2. Gain rapid experience
  3. Establish mass production / economies of scale
  4. Source raw materials / contract better terms than late movers
  5. Strong reputation for being innovator
  6. Lock in customers / contract

Disadvantages First Mover / Advantages Later mover (imitators)

  1. Lose ability to ‘free ride’ from other companies and their mistakes ,
  2. Setting the path for copy cats
7
Q

What factors influence a decision to innovate or imitate?and what are the problems of incumbents?

A

3 contextual factors in this decision:

Capacity for profits
Complementary asset access
Fast moving arenas

The problems of incumbents?
Manager reluctance
Relationship dependence

8
Q

Define disruptive innovation.

A

Disruptive innovation displaces current conventions, achieves CA with first mover advantages.

2 policies to remain open to disruptive innovation:

Real options – r and d teams, keep interest in small startups.

New venture units – protect innovation from demands of core businesses by making them independent.

9
Q

List the 4 stages of entrepreneurial growth

A

Start up – sources of capital to sustain idea
Growth – moving from doing to managing. Improve management skills or import them
Maturity – retain energy, and growth. Move from entrepreneurship to intrapreneurship (growth from within).
Exit – departure by founders, inverstors or both. 3 routes - Trade sale, MBO, IPO

10
Q

How are relationships important for entrepreneurs?

CSE

A

Often entrepreneurs have worked for large orgs and continue a relationship after for mutual benefit:

Corporate venturing – create venture units to develop ideas:
Ideas in exchange for capital

Spin offs – generation of small innovative orgs from large orgs.
Stake for independence

Ecosystems – open innovation to create complimentary products.
Control in exchange for fertile creative space

11
Q

What is social entrepreneurship?

A

Individuals and groups mobilising ideas and resources to address social problems,

Flexible & dynamic

12
Q

What are the 3 key choices for social entrepreneurs?

A

3 key choices for social entrepreneurs:

Social mission - identify, goals

Organisational structure

Business model – viable business model