Innovation 21) What is the role of innovation in business? 22) What is the difference between creativity and innovation?

Creativity and innovation are not synonyms. Creativity refers to the generation of novel ideas, innovation to their successful implementation. Creativity is the discovery of principle, and innovation is the translation of principle into useful products and services. The innovation process results in the transformation of ideas in tangible products or services that will generate new earnings for a company. Innovation results from a conscious purposeful search for innovation opportunities, which may be outcomes of incongruities, process needs, industry and market changes and new knowledge.
23) Do you agree that small business has more advantages over big business in innovative process?

Small business always extends the frontiers of knowledge and produces twice as many innovations per employee at large firms. These innovations are the source of new jobs and new opportunities for entrepreneurs. Small businesses invented the PC, photocopying machine, etc. Most studies show that size adds little to research intensity. For example General Electric has credited small businesses with many of its products ideas, including the invention of electric toasters, refrigerators, dishwashers. Big business seldom suppress inventions and innovations. But they also cannot put every invention straight into production just because it outdoors current product. They must wait new products are so superior than a changeover can be made without a steep rise in price.
24) What stages does a new product (or service) go through before launching?

1) Brainstorming-involves looking for product and service innovations that enable the business to achieve higher margins, their profits to reinvest in business and to endure sustainable competitive advantage.

2)Screening and measurement. During screening that companies consider whether they have financial resources and required skills and abilities to develop and market a product or service. A great amount of innovative ideas are rejected during the screening and measurement stage.

3) Concept testing is a phase in which a small group of potential buyers is presented with a product idea through a written or oral description to determine their attitudes and initial buying intentions regarding the product.

4)Business analysis provides a tentative outline of a products position in the marketplace, including its probable profitability. During this stage the firm considers how the new product, if it were introduced, would affect the firms sales, costs and profits.

5) Product development. In this phase, the company must find out first if it’s technically feasible to produce the product and then if the product can be made at costs low enough to justify a reasonable price.

6)Test marketing. It’s aim is to determine buyer’s probable reactions. The product is left in the test markets long enough to give buyers a chance to repurchase the product if they r so inclined.

7)Commercialization. During this phase plans for full-scale manufacturing and marketing must be refined and completed and budgets for the project must be prepared.

25) How do you think new technologies will change the way we work in the future?

Competition
26) What strategies do companies use to gain a competitive advantage? (Michael Porter’s model of competitors’ types)
27) Does it pay to be competitive in the workplace? Why/Why not?
28) How does competition affect business?
29) What are the biggest competitive threats to companies?
30) What is the character of competition in Russia?

Дата добавления: 2015-11-16