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31. Describe with examples disruptive type of innovation

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Definition:
Disruptive innovation refers to innovations that create new markets by introducing simpler, more affordable, or more accessible products or services that eventually disrupt existing markets and displace established competitors.

Description:
Disruptive innovations often start in niche or low-end markets but improve over time, capturing mainstream customers. They change the way industries operate and shift customer expectations.

Examples of Application:

Netflix disrupted the traditional video rental industry by offering online streaming services.

Smartphones disrupted traditional mobile phones and personal computers by combining multiple functions in one device.

Digital photography disrupted the film photography market by offering instant and cost-effective image capturing.

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32. Describe with examples sustaining type of innovation

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Definition:
Sustaining innovation refers to improvements or upgrades made to existing products, services, or processes that help maintain or enhance a company’s position in the market.

Description:
These innovations focus on incremental enhancements that meet the demands of current customers and improve performance, quality, or features without altering the existing market structure.

Examples of Application:

Intel’s regular updates of microprocessors to increase speed and efficiency.

Toyota’s continuous improvements to hybrid car technology.

Apple’s yearly upgrades of iPhone models with better cameras and new features.

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33. Describe with examples innovation types differentiated by Configuration

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Definition:
Configuration innovations involve changes in the way a company organizes its business system, including its processes, structure, or supply chain.

Description:
These innovations improve how resources and capabilities are aligned to deliver value, focusing on operational and business model changes.

Examples of Application:

Zara’s innovative supply chain management enables rapid fashion production and delivery.

Amazon’s warehouse automation and logistics system revolutionized e-commerce operations.

Uber’s ride-hailing platform reorganized transport services by connecting drivers and passengers directly.

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34. Describe with examples innovation types differentiated by Offering

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Definition:
Offering innovations relate to changes in products or services that a company provides to customers.

Description:
They introduce new or significantly improved features, performance, or design of products or services that meet customer needs better.

Examples of Application:

Tesla’s electric cars offering an alternative to combustion engines.

Dyson’s bagless vacuum cleaners with cyclone technology.

Netflix’s shift from DVD rental to streaming as a service offering.

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35. Describe with examples innovation types differentiated by Experience

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Definition:
Experience innovations focus on changes in how customers interact with products or services, enhancing customer engagement, usability, or brand perception.

Description:
These innovations improve the end-user’s emotional or functional experience, often through design, service, or interface enhancements.

Examples of Application:

Starbucks transformed coffee drinking into a social and lifestyle experience through store design and customer service.

Apple’s user-friendly interface and ecosystem integration enhance customer experience.

Disney’s theme parks use immersive storytelling and technology to create memorable experiences.

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36. Describe the concept Disruptive Innovation using examples

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Definition:
Disruptive innovation is a process where a smaller company with fewer resources successfully challenges established businesses by offering simpler, more affordable, or more accessible products or services that eventually reshape or create new markets.

Description:
Disruptive innovations often start by targeting underserved or new customer segments and gradually improve to displace dominant competitors. They differ from sustaining innovations by creating new value propositions rather than improving existing ones for current customers.

Examples of Application:

Netflix disrupted traditional video rental stores by offering online streaming.

Airbnb transformed hospitality by enabling people to rent out their homes.

Digital cameras disrupted film photography by providing instant and low-cost image capture.

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37. Explain the relationship between the concepts of innovation and entrepreneurship

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Definition:
Innovation is the creation and implementation of new ideas, products, or processes, while entrepreneurship is the process of identifying opportunities and organizing resources to create and grow a new business.

Description:
Innovation fuels entrepreneurship by providing novel ideas or technologies that entrepreneurs can commercialize. Conversely, entrepreneurship drives innovation by bringing ideas to market, managing risks, and scaling new solutions. Both are interdependent in creating economic growth and competitive advantage.

Examples of Application:

Elon Musk’s companies (Tesla, SpaceX) innovate with new technologies and entrepreneurial risk-taking to disrupt industries.

Startup incubators support entrepreneurial ventures to develop and market innovative products.

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38. Describe the concept Innovation value chain

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Definition:
The innovation value chain is a framework describing the sequence of activities involved in generating, developing, and commercializing innovation within an organization.

Description:
It typically includes three phases:

Idea Generation: Capturing new ideas from internal and external sources.

Conversion: Selecting, developing, and testing ideas to turn them into viable innovations.

Diffusion: Implementing and spreading innovations within the market or organization.

Each phase involves collaboration and resource allocation to maximize innovation effectiveness.

Examples of Application:

3M uses its innovation value chain to systematically generate and commercialize over 30% of revenues from new products.

Google’s “20% time” encourages idea generation, which then moves through development and implementation phases.

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39. Describe business processes of innovation

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Business processes of innovation are structured activities that guide the development and implementation of new ideas, products, or services within a company.

Description:
Key processes include:

Idea Management: Collecting, evaluating, and prioritizing ideas.

Research and Development (R&D): Creating prototypes and testing concepts.

Product Development: Designing and preparing products for market launch.

Commercialization: Marketing, sales, and customer adoption efforts.

Feedback and Improvement: Using customer input to refine innovations.

These processes require coordination across departments and continuous improvement.

Examples of Application:

Procter & Gamble uses a "Connect and Develop" process to source external and internal ideas, then develop and commercialize products globally.

Apple’s product development process integrates R&D with design and marketing teams for smooth innovation launch.

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40. Describe factors influencing the difference in ways Innovation Process is managed

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Definition:
The management of the innovation process varies depending on organizational, industry, and environmental factors that influence how innovation is planned, executed, and controlled.

Description:
Key factors include:

Industry Type: High-tech industries may use formal R&D processes, while creative industries rely on flexible approaches.

Organizational Culture: Risk tolerance and openness to change affect innovation speed and style.

Resource Availability: Budget and talent influence the scale and sophistication of innovation efforts.

Market Dynamics: Fast-changing markets demand agile innovation processes.

Leadership Style: Directive vs. participative leadership changes decision-making in innovation.

Examples of Application:

Pharmaceutical companies follow rigorous, stage-gate innovation processes due to regulation and risk.

Tech startups often manage innovation more informally and iteratively to adapt quickly.