Documente Academic
Documente Profesional
Documente Cultură
Five-forces Model
Socio-political environment 4) Threat of new entrants Economic environment
2) Suppliers
3) Customers
Technological environment
Cultural environment
DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes
Socio-political environment: Labor market Political model Unions Civil society Political stability State intervention
Economic environment Market size/growth Innovations in commercialization Distribution channels Sources of financing
Technological environment Production methods Materials and components Technological knowledge New technologies
Cultural environment Values Beliefs Attitude towards problem solving Attitude towards citizenship
External forces
The capacity of progress and development within a firm depends directly on its capacity to adapt itself quickly to the changes occurred in the environment and to take advantage of them producing modifications that act in its favor
What is Innovation
Innovation VS Invention
Innovation means introducing into the market new products, processes or services. To define whether an innovation is successful of not, the main criterion is economic, rather than technical. A successful innovation recovers the initial investment and generates further economic benefits. Invention means create a new idea that could be incorporated into a product, process or service or converting this idea into a prototype. The main criterion to define a successful invention is technical, rather than economic.
Pags, 2000
Innovation VS Invention
Examples: Walkman (product) Drycleaning (service) Assemby lines (production) Phone sales (distribution systems) What is the implication? Introducing products, processes or services into the market. Examples:
Pags, 2000
Technological Innovation
It comprises all the activities performed from the creation of a technological knowledge up to its implementation in a business. Technological innovation is an attitude, a capability to continually improve products by adapting current processes and organization to new technological developments that may be related to the company
Technological Innovation
Due to the degree of novelty and its application, technological innovation can be divided into: 1. Radical innovation 2. Systems innovation 3. Incremental innovation
2. Systems innovation
This kind of innovation creates a new functionality assemblying parts in a new way. E.g. ATMs.
3. Incremental innovation
This kind of innovation consists of small changes into existing products, processes or services. These changes extend the applications of the other two types of innovations. E.g. Integrated circuits
Process Innovations
Time
Abernathy & Utterback, 1975
Manufacturing
Competitors
Technology Push
R&D Manufacturing Marketing Strategy
Idea Generation
R&D: Design
Prototyping
Production
Market
New technologies
Chavarr, 2000
Types of innovation
Types of innovation
Business innovation
Social innovation
Institutional innovation
Technological
Managerial
Product
Process
Practices
Organization
Implementation:
Cost reduction New designs, expansion Quality improvements of product lines Diferentiation Incorporation of new Market expansion materials/components Industrial protection (trademarks, patents) Quality and environment certifications
Implementation:
Expansion of value chain Improvements in distribution and post-sale services Leaning organizational structures Training of HHRR Access to Information Systems
Social innovation
Objectives:
Solution of social problems Creation of new business model to tackle unsolved basic needs
Implementation:
Social entrepreneurs Integration with different partners Balance among the triple bottom-line: social, economic, environmental issues
Institutional innovation
Objectives:
Promotion of innovative ideas Elimination of barriers for innovation (social, legal)
Implementation:
Government policy towards innovation and financing Integration of public and private actors