Managing Innovation Questions and answers

1.      Name and briefly discuss some of the factors which are, and are not associated with successful innovating organizations. 

The organizations form various strategies in order to become innovative and gain the competitive edge over their competitors. The factors that promote innovation in the organization include an evident future vision, alignment of innovation efforts with business strategy, the involvement of the top management, research & development and finally willingness to accept challenges. It is clear that the marketing, finance, R&D and other functions of the business support the innovation strategy of the business. However, the routine activities of the business and lack of innovation strategy are such factors which are not associated with innovation because innovation requires a lot of R&D and without an innovation strategy no organization can achieve its desired goal. If the organization has not set any goals than it is another reason which does not promote innovation. For innovation strategy, the organization first have set SMART goals and then form the strategic plan through which it can achieve those goals (Tidd & Bessant, 2014).

2.      Is  the  scale  of  an  enterprise's  investment  in  Research  and  Development  necessarily  a  source  of  strategic  advantage  in  innovation?  Why or why not?

The research & Development (R&D) plays a vital role in the innovation process. The research allows the enterprise to determine the need for the innovation and provide necessary information about what can be done to bring innovation. Through research, the researchers provide the data which is important to implement the innovation. Without the necessary data, the innovators won't know what the people of the society are looking for and the innovators will unable to resolve their issues. In short, it can be said that R&D is the essential part of the innovation process. The organization has realized the importance of research that is why many corporations invest a huge amount in the research and development.

3.      The  problem  for  the  firms  which  found  their  marketplace  disrupted  in  the  computer  disk  drive  industry  wasn’t  that  they  didn’t  listen  to  customers  but  rather  that  they  listened  too  well  -  to  the  wrong  customers.  Discuss this situation.

The reason for the marketplace disruption is that the firm has focused on the suggestions of the customers and customers are not always right. Each customer has its own beliefs and it is not appropriate to implement the customer's suggestion without analyzing it. It is important to take feedback from customers however the firm has to be very selective in using the feedback. It means that the company should listen to the advice or suggestions of the customers but the most innovative solution must be of the organization itself. The organization should analyze the market trends and make the strategy accordingly. Through this, the situation the company is facing know can be avoided.

It is important for the firm to analyze the preferences of the customers but it is also important that in order to fulfill the demands the organization won't harm its own activities. Sometimes the customers do not know how their suggestion can affect the performance & efficiency of the corporation. Therefore it is up to the corporation to listen to every customer but make their strategy by analyzing all the important factors (Tidd & Bessant, 2014).

4.      What  are  two  of  the  factors  in  the  decision  as  to  where  to  locate  research  and  development  efforts?  No discussion is necessary on this question.  Simply name two factors.

Following are the two factors in the decision as to where to locate the research and development effort:

·         Cost

·         Capability

5.      Financial  measures  are  not  the  only  way  to  judge  innovation  projects.  What are some other types of measures?  What  are  the  pros  and  cons  of  those  others  which  you  identified?

 The financial measures are not the only measures that are used for evaluating the innovation projects. Some other measures such as SWOT analysis and alternative evaluation matrix are used in order to identify the usefulness of the innovation project. The SWOT analysis analyzes the strength, weaknesses. Opportunities and threat regarding the innovation project. If the strengths of the projects are more than its weaknesses or threats that such projects are considered beneficial. In the alternative evaluation matrix, the weight is given to each criterion. The innovation project is than analyses regarding how well it meets the set criterion. The major advantage of SWOT analysis is that it helps in decision making however sometimes it over simply the strength & weaknesses which is its major drawback. The benefit of alternative evaluation matrix is that it is simple however it overlooks the real problem which is the disadvantage of this measure (Tidd & Bessant, 2014).

6.      The  most  common  model  of  the  process  of  the  diffusion  of  innovation  is  the  epidemic  or  'S-curve'  model.  This  is  useful but  is  based  on  a  number  of  assumptions.  One  of  those  assumptions  is  that  the  entire  population  consists  of  two  separate  groups:  adopters,  and  imitators.  Is this assumption entirely true?  Why or why not?

The assumption is true because in the society there are people who are imitators, some are adopters. The S-curve model shows the growth in the adoption of innovation. Some are early adopter other are late majority and laggards (Tidd & Bessant, 2014).

Reference

Tidd, J., & Bessant, J. (2014). Managing Innovation: Integrating Technological, Market and Organizational Change (5 ed.). Wiley.