Managing Innovation and Entrepreneurship unit 1 and 2 imp
1️⃣ Definition & Types of Innovation
✅ Definition of Innovation
Innovation means introducing a new idea, product, process, or method that creates value for customers and business.
It is not only invention.
Invention = creation of new idea
Innovation = practical use of that idea
Innovation helps businesses grow and compete in the market.
✅ Types of Innovation
1. Product Innovation
Introduction of new or improved products.
Example:
Electric cars
Smart watches
AI-based apps
Role: Attracts customers and increases sales.
2. Process Innovation
Improvement in production or delivery methods.
Example:
Automation in factories
Online ordering systems
Role: Reduces cost and improves efficiency.
3. Organizational Innovation
New management practices or work structures.
Example:
Remote work
Flexible work culture
Role: Improves employee performance.
4. Marketing Innovation
New marketing strategies to promote products.
Example:
Social media marketing
Influencer campaigns
Role: Increases brand awareness.
2️⃣ Innovation vs Entrepreneurship
✅ Innovation
Creating new ideas and improvements.
✅ Entrepreneurship
Starting and managing a new business.
Relationship:
Innovation provides new opportunities.
Entrepreneurs use innovation to start business.
Innovation is the tool; entrepreneurship is the action.
Example:
Tesla, Inc. used electric vehicle innovation through entrepreneurship.
Without innovation, entrepreneurship cannot succeed.
3️⃣ Competitive Advantage
✅ Meaning
Competitive advantage means a company performs better than competitors.
It may be due to:
Lower cost
Better quality
Unique product
✅ Role of Innovation
Innovation helps:
Introduce unique products
Improve quality
Reduce cost
Increase customer satisfaction
Example:
Apple Inc. uses product innovation.
Amazon uses process innovation (fast delivery).
Thus, innovation creates strong market position.
4️⃣ Push vs Pull Model
✅ Technology Push Model
Innovation starts from research and technology.
Flow:
Research → Development → Product → Market
Example:
New AI technology developed first, then marketed.
Advantage:
Creates breakthrough products.
Disadvantage:
May fail if no market demand.
✅ Market Pull Model
Innovation starts from customer needs.
Flow:
Market Need → Development → Product
Example:
Demand for online shopping led to e-commerce growth.
Advantage:
Less risk.
Disadvantage:
May limit radical innovation.
5️⃣ Agile Management
✅ Definition
Agile is a flexible management approach where work is done in small steps (sprints).
✅ Principles
Customer collaboration
Continuous improvement
Quick feedback
Adaptability
✅ Importance
Fast product development
Reduced risk
Supports innovation
Used mainly in software companies.
6️⃣ Sources of Innovation
1. Push Source
Technology and research create innovation.
2. Pull Source
Customer demand creates innovation.
3. Analogies
Taking idea from one field and applying to another.
Example:
Food delivery model applied to medicine delivery.
Sources also include:
Employees
Customers
Competitors
Research institutions
7️⃣ Six Thinking Hats
Developed by Edward de Bono.
Each hat represents different thinking style:
White → Facts
Red → Emotions
Black → Risks
Yellow → Benefits
Green → Creativity
Blue → Control
Helps in better decision making.
8️⃣ NUF Test
NUF means:
N – New
U – Useful
F – Feasible
Before selecting an idea, check:
Is it new?
Is it useful?
Is it practical?
It helps in selecting the best innovation idea.
9️⃣ Innovation Life Cycle
Stages:
Idea Generation
Idea Screening
Development
Testing
Commercialization
Growth
Maturity
After maturity, company must innovate again.
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