Innovation & Technology Management Final NotesUser Innovation: Users have a deep understanding of their own needs, and the motivation to fulfill them. Whilemanufacturers typically create innovations to profit from their sale, user innovators often initially create innovations purely for their own useClosed innovation: Traditionally, new business development processes and the marketing of new products took place within firm boundaries Open Innovation: Combining internal and external ideas as well as internal and external paths to market to advance the development of new technologiesIncremental innovations: may involve only a minor change from (or adjustment to) existing productsThe radicalness of an innovation is the degree to which it is new and different from previously existing products and processesComponent innovation (or modular innovation) entails changes to one or more components of a product system without significantly affecting the overall design/ structure. Ex- adding gel-filled material to a bicycle seatArchitectural innovation entails changing the overall design of the system or the way components interact. Ex-transition from high-wheel bicycle to safety bicycle.Most architectural innovations require changes in the underlying components. Era of ferment: Each discontinuity inaugurates a period of turbulence and uncertainty until a dominant design is selected. Dominant design: A dominant design always rose to command the majority of market share unless the next discontinuity arrived too early.Incremental change: firms often cease to invest in learning about alternative designs and instead focus on developing competencies related to the dominant design. Monetary rewards undermine creativity by encouraging employees to focus on extrinsic rather than intrinsic motivation.Investing in process innovation can help firms lower their costs.While the value of a stock is independent of the call holder’s behavior, the value of an R&D investment is not independent of the investor’s behavior.If an individual knows a field too well, it can stifle creativity.An innovation can be competence enhancing for one firm, while competence destroying for another.Silk Work Inc., a manufacturer of silk garments, is planning to replace hand weaving with some modern machines that run on fuel. Which of the following consequences of this measure can be categorized as a negative externality? Increased pollution as a result of the new technologyWhen the first personal computers were introduced, Bill started using a spreadsheet program to maintain his accounts. Bill discovered that due to this new method his work had become much slower and that if he typed in the wrong data, it led to more mistakes. This illustrates that: initially, discontinuous technology may have lower performance than the incumbent technology.Unicorn Medicines, a pharmaceutical company based in the United States, has its research and development units spread across the globe. These research and development units have lately not been receiving adequate financial support. Which of the following is typically the cause for such a situation? Most innovative ideas do not become successful new products.Erison Group, an advertising company, wants to hire an individual for the post of creative head. Which of the following is the characteristic that the company has to look for while recruiting for that particular post? An individualwho has a moderate degree of knowledge of the field, but is intrinsically motivatedDalton discovered that using garlic salt on a regular hamburger made the hamburger taste more like steak. He could then use a less expensive meat for the “smoked steak” sandwich that he sold. This is an example of a compnent innovation. Breaking Ventures Inc. realized that most parents are worried about their teenage children going out on their own. Based on this information, the company developed a device that could be fixed into the concerned person’s cell phone, and this device helped parents keep track of their children’s location. This approach to research and development is referred to as Demand-pullOrganizations that manufacture products such as light bulbs for lamps, or DVDs for DVD players are examples of Complementors.The phenomenon that success can engender overconfidence, carelessness, and unquestioning adherence to one’s way of doing things refers to Icarus paradox.Organizational structural dimension within a firm: Formalization, standardization,
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