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1. Explain the relationship between the concepts of invention and innovation

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Invention is the creation of a new idea, product, or process that has never existed before.

Innovation is the process of improving, implementing, or commercializing inventions or existing ideas to create value.

Description:
While invention is about discovery and the generation of new knowledge or tools, innovation focuses on the application and adoption of these inventions to meet market or social needs. Innovation can include bringing an invention to market, improving it, or finding new ways to use it. Thus, innovation turns potential into value.

Examples of Application:

Invention: The creation of the first touchscreen.

Innovation: Apple’s iPhone used touchscreen technology in a user-friendly smartphone, revolutionizing the mobile phone industry.

Dyson invented a bagless vacuum cleaner (invention), and then launched it successfully to disrupt the home appliance market (innovation).

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2. Describe the concept of Systematic Inventive Thinking and its patterns, give examples for each pattern

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Definition:
Systematic Inventive Thinking (SIT) is a way to create new ideas by using structured thinking. It helps people invent new products, services, or processes by following clear steps.

Description:
SIT is based on the idea that creativity is not random — it can be learned and used with a system. SIT works with what you already have, not by adding more. It uses five thinking patterns to help people come up with new and useful ideas.

Examples of Patterns and Applications:

1. Subtraction – Take away a part of the product.
   Example: A spinning bike without a seat for strong fitness workouts.

2. Multiplication – Copy a part and change it.
   Example: Razors with many blades (like Gillette) for a better shave.

3. Division – Split the product into parts and move them.
   Example: Home theatre systems where the screen and speakers are separate.

4. Task Unification – Give a new job to a part you already have.
   Example: Sunglasses with lenses that change color in sunlight.

5. Attribute Dependency – One feature changes when another changes.
   Example: Lenses that get darker when the sun is stronger.

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3. Describe types of innovations using examples

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Definition:
Types of innovation refer to the different ways innovations can manifest based on their impact and scope.

Description:

Functional Innovation Types

Product Innovation: New or improved goods or services.

Process Innovation: Improved production or delivery methods.

Business Model Innovation: Changes in how a company creates and captures value.

Organizational Innovation: New methods in business practices or workplace organization.

Marketing Innovation: Changes in product design, placement, promotion, or pricing.

Strategic Innovation Types: Sustaining,disruptive,new market,integrative.

Examples of Application:

Product Innovation: Tesla's electric cars with autopilot features.

Process Innovation: Toyota's lean manufacturing system.

Business Model Innovation: Netflix moving from DVD rentals to streaming.

Organizational Innovation: Google’s “20% time” policy allowing employees to work on side projects.

Marketing Innovation: Coca-Cola’s personalized name bottles campaign.

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4. Describe dimensions of innovation in a manufacturing company, give examples

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Definition:
Innovation dimensions in manufacturing are different areas where a company can bring new ideas to improve how products are made or managed.

Description:
There are several key areas where innovation can happen in manufacturing:

• Product Innovation means creating new or better products.

• Process Innovation means improving how the product is made to save time, money, or resources.

• Technological Innovation means using new machines or digital tools.

• Organizational Innovation means changing how the company works or how teams are managed.

• Environmental or Sustainable Innovation means making production more eco-friendly.

Examples of Application:

• Product Innovation: A car company creates a new engine that uses less fuel.

• Process Innovation: BMW uses robots on their production lines to work faster and better.

• Technological Innovation: A factory adds IoT (Internet of Things) to check machines in real-time.

• Organizational Innovation: 3M gives workers more freedom to make decisions and create new ideas.

• Sustainable Innovation: Unilever starts using packaging that breaks down naturally to protect the environment.

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5. What are 5 components of innovation according to Schumpeter

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Definition:
Joseph Schumpeter was an economist who identified five types of innovation. He said these innovations drive economic change through “creative destruction.”

Description:
Schumpeter said innovation is not just about new products. It also means better production methods, new customers, new resources, and new business structures. His five types are:

• New Product Introduction: Making and selling new goods or services.

• New Methods of Production: Using new ways to make products.

• Opening New Markets: Selling in new places or to new people.

• New Sources of Supply: Finding new materials or resources.

• New Organizational Structures: Changing how a business is organized or works.

Examples:

• New Product: Smartphones.

• New Production Method: 3D printing.

• New Market: Tesla selling electric cars in China.

• New Supply Source: Apple getting rare materials from new suppliers.

• New Organization: Uber’s app-based gig economy.

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6. Explain the relationship between the concepts of Innovation 1.0 and Innovation 2.0

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Definition:
Innovation 1.0 is the old way where companies do research and development inside the company with experts. Innovation 2.0 is a newer way that includes many people, like customers and partners, to help create new ideas.

Description:
Innovation 1.0 works alone inside the company with little outside help. Innovation 2.0 opens the process to others using crowdsourcing, teamwork, and partnerships. Innovation 2.0 builds on Innovation 1.0 by adding more people and ideas.

Examples:
IBM making computers by itself is Innovation 1.0. LEGO’s platform where customers suggest and vote on new toys is Innovation 2.0.

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7. Develop Innovation Management Matrix, describe it and give examples

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Definition:
The Innovation Management Matrix is a tool that helps companies understand how much change an innovation brings to products and markets.

Description:
The matrix divides innovations into four types:

• Incremental Innovation: Small improvements to products for current markets.

• Disruptive Innovation: Big changes that create new ways to serve existing markets.

• Radical Innovation: Completely new products for new markets.

• Architectural Innovation: Using existing technology in new ways or for new markets.

Examples:

• Incremental: Making a smartphone battery last longer.

• Disruptive: Uber’s ride-sharing service changing transportation.

• Radical: The invention of the internet.

• Architectural: Changing an MP3 player design into a fitness tracker.

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8. Explain the relationship between the concepts of Thinking inside the box and Thinking outside the box

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Definition:
Thinking outside the box means creative thinking that goes beyond usual limits. Thinking inside the box means using what you already have and working within limits.

Description:
These two ways of thinking are different. Thinking outside the box helps create new and big ideas. Thinking inside the box is more organized and helps find practical solutions. They work well together and give many ways to solve problems and create innovations.

Examples:

• Thinking outside the box: Airbnb used empty apartments as hotel rooms.

• Thinking inside the box: McDonald’s improved its drive-thru using the same kitchen space to serve more customers faster.

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9. Where do product ideas come from? Describe each source and give examples

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Definition:
Product ideas are new thoughts for goods or services that come from inside or outside a company.

Description and Examples:

• Customers: Feedback or needs from customers create new ideas.
  Example: Netflix added downloadable shows because customers wanted it.

• Employees: Workers see problems and suggest improvements.
  Example: Toyota’s workers suggest ideas regularly with the Kaizen system.

• Competitors: Watching rivals can inspire new or better products.
  Example: Samsung made foldable phones after flexible screens became popular.

• Suppliers and Distributors: Partners suggest ways to improve materials or delivery.
  Example: A packaging supplier may suggest using eco-friendly materials.

• R&D Departments: New science and technology come from research teams.
  Example: Self-healing materials in aerospace were invented by R&D.

• Market Research: Surveys and studies show what customers want.
  Example: Coca-Cola created new flavors after youth market research.

• Crowdsourcing and Open Innovation: Getting ideas from the public or outside experts.
  Example: LEGO Ideas lets users submit new toy ideas.

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10. What are variables that stimulate and nurture innovation?

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Definition:
These are things that help new ideas to be created and used inside a company.

Description:
To encourage innovation, a company needs a good environment, strong leaders, enough resources, and a culture that accepts risk and trying new things. These help turn creative ideas into real solutions by giving motivation, guidance, and the ability to act.

Examples:

• Leadership Support: Top managers support new ideas, like at 3M, where employees can spend time on their own projects.

• Organizational Culture: A work culture that allows failure and encourages trying new things, like Google.

• Resources and Funding: Enough money for research and development, like Amazon did for Alexa.

• Cross-functional Collaboration: Teams from different departments working together, like IDEO’s innovation projects.

• Incentive Systems: Rewards and prizes for new ideas, such as innovation bonuses.

• External Collaboration: Working with partners or customers, like Philips does with hospitals to improve medical devices.