SET A

1. Vision, mission and objective

 Vision
A vision statement addresses the inquiry: ‘What do we want to become?’ An
acceptable vision creates a complete mission statement. Creating a vision statement
is the first step in strategic planning. Numerous vision statements are made in a
short and single sentence.

Vision statements must include more than being the greatest this or that. Doing
what is needed to make the organization what it wants to be requires focus and
management competence.

Organizations needs to figure out what they need to be and convey the message to
stakeholders. An adequately conveyed vision is a device to drive the dedication of
company’s workers in the desired direction. Strategic vision will be effective just
when the vision statement is situated in the mind of organization members, and
interpreted into objectives and strategies afterwards.

 Mission
A mission statement characterizes what an organization is an its explanation for
being. For businesses with employees, this statement is the basic for managing their
operation. In a straightforward description, the mission addresses the question:
‘What is our business about?’ A clearly stated mission statement is fundamental for
building objectives and strategies.

A mission statement expresses shared expectations among employees about the

organization’s public image. The mission is stated in writing to ensure that all
members will have access and really understand what the organization is trying to
accomplish.

Mission statements can vary in content, format, length, and specialization. Most
effective statements usually have nine characteristics or components, as follows:

 Customers: State the firm’s customers

 Product or service: State the firm’s major products or services
 Markets: The geographic location of the market
 Technology: The firm’s technology level
 Concern for survival, growth, and profitability: The firm’s commitment to
growth and financial soundness
 Philosophy: The basic belief, values, aspirations, and ethical priorities of the
firm
 Self-concept: The firm’s major competitive advantage
 Concern for public image: The firm’s reaction to social, community, and
environment concerns
 Concern for employees: The firm’s reaction to their most valuable asset:
employees
  Objective
Objectives could be characterized as specific outcomes that an organization seeks to
accomplish after its fundamental mission. Objectives are the organization’s hope to
attain in the short-term and long-term and the implications in connection to growth,
products, technologies, and markets. There is no doubt that both the short-term and
long-term objectives need to be satisfied. Objectives should be SMART, which stands
for:

 Specific: Must be specific and clear

 Measurable: Should be expressed in quantitative terms so that success or
failure is easily measured
 Achievable: Should be achievable and attainable
 Realistic: Should be realistic and within reach with the resources available
 Time frame: Must have a deadline as to when it should be accomplished

2. Innovation Process Model

The Rothwell Model – Technology push model

The technology push model is considered as a traditional perspective in the innovation

process view. It is driven by developments of science and technology. This generic model is
presented earlier as it is as effective as research-led models. This will inexorably lead to
more innovation as it assumes towards technology. However, R&D could be more costly.
The processes area linear and sequential as each stage requires completion from the
previous stage, in order to move to another.

Figure below is portrayed as passive as is virtually ignored in the marketplace, merely

supplementing what technology has to offer. It is also considered a naïve model. The nature
of the process is lesser known: however, this innovation process commonly takes place in
the pharmaceutical industry.

Design and
Basic Science Manufacturing Marketing Sales
engineering

3. Innovation Process Design

Production Full-scale
Insight/Research Development Design Pilot testing Market launch
engineering manufacturing

R&D/Invention Commercialization

Innovation
 Insight/Research
The process starts with an insight or a new discovery as the result of research. While
some innovations result from a long research process, it also can come from an
insight – an outcome of human intelligence.

 Development
Development activities involve transforming ideas into products. However, the
product created at this stage is considered not yet ready to be introduced to the
marketplace, but it will have a lot of the operational characteristics of the final
product. The product at this stage will have the ability to work and demonstrate the
feasibility of placing it on the market, though still much more needs to be done
before it can be produced in lager quantities, in accordance with consumer reliability
standards.

 Design
Designers not only have to consider the degree of standardization they should
incorporate, but also to achieve a product design that will meet or exceed customer
expectations. This should consider the operations capabilities as well as being within
the organization’s cost or budget.

 Product engineering
This stage is concerned with the selection of a suitable production system and
process structure in manufacturing the final product. The impact of this process
selection goes beyond organizational operations, affecting the entire organization
and its supply chain.

 Pilot testing
Allows the designer to test and verify the ability of the product and to determine a
certain level of market acceptance one the product is commercialized. This is a very
importance stage as many products fail to satisfy performance expectations.

 Full-scale manufacturing
This process requires individuals from numerous functional areas to ensure a
smooth manufacturing process. Finally, the product can be introduced in the
market.

 Market launch
This stage addresses how organizations introduce innovations to the market and the
intensive marketing efforts involved. A successful market launch often incorporates
marketing messages and identifies key product benefits with the goal of creating
awareness and making potential customers keen to try it.
4. A) Organizational resources
 People
This may be the most difficult resource to manage. People can come from or have
different disciplines, ethnic backgrounds, philosophies of life and living, aspirations
or talents.

People are seen as a valuable asset to the organizational resource, and hard-working
and knowledgeable employees are important for an organization to succeed. People
who are knowledgeable can make the difference between success and failure.

In the competitive environment with scarce resources, it is important for an

organization to choose personnel wisely. A thorough employee appraisal prior to
employment will result in hard-working, capable people who will be valuable assets
to the organization. The organization must also provide excellent incentives for the
employees to maintain motivation and stay with the organization in the long run.

 Intellectual Property
IP needs to be actively protected. Much of the experience and knowledge is properly
documented to be of future use and reference. IP includes formal engineering
drawings, laboratory results, test data, customer concerns, all formalized
documentation models use to demonstrate feasibility, notebook data, hand
sketches (usually discarded), and working models.

 Access to Information
Organizations have not been reluctant to invest in information systems. However,
the inability to communicate adequate information at the appropriate level
continues to limit performance. Access to protected information must be restricted
to authorized people only; even then, the information needs to be protected
carefully. The computer programs must also be authorized.

 Technology
Description of technology involve converting resources into products and services.
Technology is also the knowledge and resources needed to achieve a goal, involving
a body of scientific and engineering knowledge that can be applied to the design of
new products or innovative products. Technology represent the artifacts developed
from applying the principles of science and engineering

Product technologies
All new technology products have a natural life cycle, which begins when the
product is developed and ends when it is removed from production. This life cycle
goes through several predictable stages. Understanding these stages helps both the
producer and the consumer to get the longest possible lifespan out of the product
and get the best returns on their investment. This is especially true in the case of the
fast-changing world of technology.
 Production technologies
Production technologies involve a system for scheduling the manufacture of
products and managing stock inventory. It aims to optimize costs, minimize
inventory, and maintain a steady workflow. The modern production technology that
might be used by a manufacturing business can identify production blockage and
sense capacity constraints, and it does not usually operate at full capacity if
sufficient inventory to meet demand already exists.

 Marketing and Sales

For innovation to occur, an item must be sold or some marketing or sales activity
must take place. The innovator may or may not be knowledgeable in marketing and
sales, but he/she needs to understand the role that marketing and sales will play in
the success of the innovation.

The type of innovation will largely determine the marketing and sales approach. The
following are examples of the types of innovation:
- Incremental innovation
A series of small improvements to an existing product or product line that
usually helps maintain or improve its competitive position over time.
Incremental innovation is regularly used within the high technology business
by companies that need to continue to improve their products to include
new features increasingly desired by consumers.

- Top-down projects
Resources are provided in this type of innovation. As such there are no
major issues or problems in marketing and sales, and related decisions will
go through traditional channels.

- Bottom-up
A bottom-up innovator faces a more serious problem with specialised
knowledge and single discipline experience. General problems with
introducing a new idea can be minimal. Support from immediate
management is required in the initial stages, as well as support from other
disciplines.

 Time
Time is a major issue – the time-to-decision. A timetable is used to manage cycles
and to provide a better approach when dealing with innovation. Cycle time includes
three distinct interacting elements:
- Time
A commodity and a business resource. It cannot be reclaimed or recycled.
The only issue is how to use time more effectively.
- Timing
An important issue when choosing to introduce a new product. Realistic
timing begins when the time required for accomplishing a task is
independent of its size or scope. A timetable shows the length of time it
takes to meet a particular objective that begins at point ‘A’ and ends at
point ‘N’.
 - Cycle duration
A company’s operating cycle (or cash conversion cycle) shows the length for
time it takes a company to buy inventory, convert it into sales, and collect
sales revenue (accounts receivable). Accounts receivable is the accounting
term for money that customers owe a company for purchases made on
credit. Operating cycles differ in length by industry. A shorter operation
cycle is typically better because it allows the company to generate cash
faster, which can be used to pay bills or help the company grow.

 Distribution
A distribution system involves three distinct functions: the means by which the
organization sells its products (direct sales force, independent representatives,
various dealer organizations, distributors, various combinations); the physical plant
and equipment that move the product from the warehouse to the customer; and
customer service.

Distribution requires an investment of other organizational resources (time, energy,

and money). Too often, organizations fail to recognize the costs associated with
developing and maintaining these three distribution functions.

 Customers
Customers will provide valuable input in assisting product improvement and existing
processes. Input from the customer can be a valuable resource when the
organization tries to innovate new ideas and concepts. Customers are generally
categorised into two types:
- An intermediate customer or trade customer (more informally: ‘the trade’),
who is a dealer that purchases goods for resale.
- An ultimate customer. Who does not resell purchased items, but either
passes them to the consumer or actually is the consumer.

 Suppliers
Suppliers provided a major resource long before downsizing and outsourcing
became popular as without suppliers, organizations will find it difficult to determine
the length of time for the whole production process. Suppliers in all business areas
provide a valuable resource.

The term supplier may refer to:

- Manufacturer – uses tools and labour to make things for sale
- Processor (manufacturing) – converts a product from one form to another
- Packager (manufacturing) – encloses products for distribution, storage, sale,
and use
- Distributor (business) – the middleman between the manufacturer and
retailer
- Wholesale – sells goods or merchandise to retailers , franchised dealership,
and local franchised distribution
- Merchant – a professional dealing with trade
  Production Capability
Innovators need to understand the availability of both facilities and the process
know-how. This is done by understanding production as the act of creating output,
goods, or service which has value; and contributes to the utility of individuals. The
act may or may not include factors of production other than labour. Any effort
directed toward the realization of a desired product or service is a ‘productive’ effort
and the performance of such efforts is production. The relation between the amount
of inputs used in production and the resulting amount of output is called the
production function.

 Operational Facilities
This is an essential resource for innovators and helps reduce the time from concept
to implementation/commercialization. The innovator requires adequate tools to
perform at a high performance level. For example, using the best of available search
engines provides the means of simplifying the acquisition of required data. Another
example is to have communication facilities that meet the needs of the innovation.
These tools allow the innovator and team to reduce the time from idea to
implementation.

 Finance
The need to understand finance is important in order to recognize the limitations of
the organization’s financial resources. Investments will vary depending on the scope
of the innovation. The ability to finance an innovation in the innovation process
stages needs to be assessed in relations to the organization’s ability to provide the
financial resources. For the incremental innovations, funding should not be a
problem, whereas for radical innovation, an organization may find the need to
provide significant funding.

B) Importance of customer and technology (refer above)

5. A) Benefit of e-commerce & internet to a buyer and seller

e-Commerce and the Internet

Benefits to Convenience
buyers Clients do not need to fight movement, discover carports, and trek
through stores and passageways to discover and inspect item. They can
do relative shopping aby perusing mail lists or surfing the web.

Buying is easy and private

Clients experience fewer purchasing inconveniences and do not need
to face sales representatives or open themselves up to influence and
passionate aims. Business purchasers can look in to and purchase items
and administrations without being held up and tied up with
salespeople.

Greater product access and selection

Unreserved by physical limits, digital merchants can offer an almost
boundless determination. Think about the extraordinary choices offer
by web traders, e.g. Amazon.com, to more small collections of their
partner in the brick-and-mortar world.

Access to a wealth of comparative information

Data about organizations, item and competitors’ good locales
frequently give more data in more valuable structures than even the
most thoughtful sales representative can.

Online buying is interactive and fast

Purchasers regularly can connect with the merchant’s website to make
precisely the set-up of data, items, or administrations they fancy, then
request or download them on the spot. Purchasers get more decision
and control.
Benefits to Customer relationship building
sellers Companies can connect online with clients to take in more about
particular needs. Online clients can make online inquiries and
volunteer input. In light of this progressing association, organizations
can build client esteem and fulfilment through item and administration
refinements.

Reducing costs
Reduce cost and expanding velocity and proficiency. E-advertisers stay
away from the cost of keeping up a store and the related expenses of
rend, insurance, and utilities.

Flexibility
Allowing the marketer or advertiser to make progressive changes daily
or even hourly, according to the offers and projects available.

Global medium
Allows purchasers and vendors to click starting with one nation then
onto the next in seconds and have admittance to the world.
B) Type of business products
 An improvement to the current product or class of products
- These include improvements that are more than just cosmetic and provide
defined benefits to users. These products are able to sustain business as well
as market share. They are more than just slight improvements and may
carry innovations on the technology front of considerable change in the
design of existing products. These may include new flavours, new perfume,
new package, revised sizes, etc.
- Examples of the products in this category are copiers, personal computers,
and automobiles.

 A novel (new) replacement product

- The product serves the same purpose as the current product. However, the
development of the new product does not occur very often. In every new
product, significant improvement is always focused on new features.
- One of the strategies employed is repositioning, where the products are
existing products, but targeted at new segments or new markets to increase
market share, to fight local brands, etc.
- Another strategy is cost reductions in which these products are functionally
similar to the existing products, but launched at a reduced price.
- Marketing innovations is another strategy more into improving or altering
existing products in terms of packaging, branding, and easy availability,
rather than a change in the substance of the product itself.

 A new-to-market product
- Entrepreneurs usually enter business with new products, processes, and
services to the marketplace. These products are absolutely new to the world
and will create their own market.
- Significant improvements with these products are not born out of a major
invention but offer superior performance, hence replacing existing products.
- Examples are Apple computers and Magnetic Resonance Imaging (MRI).

 A breakthrough product
- Product or process breakthrough seldom occurs. Breakthrough means
coming up with something new (not to be compared to any existing item).
Usually the breakthrough product is in the areas of technology and markets.
- Technological innovations are products that are really innovative and have
the highest degree of innovation. These products will create new industries.
- Examples include 3M Post-it notes, gene technology, lasers, and facsimiles.

 A me-too product
- A me-too product is a product introduced into the market in direct
competitions with one already in the marketplace (same functions). The
product may not even have extra features, but has a better distribution
system or delivery, even a better marketing system.
- An example of a me-too product is Dell computers. Dell is available via direct
selling, which is completely different to that in its class. Dell customers can
make purchases via the official website and Dell sends the order straight to
the customer’s home.
SET B

1. Objective & Strategy (Definition, importance, relation)

 Objective
Objectives could be characterized as specific outcomes that an organization seeks to
accomplish after its fundamental mission. Objectives are the organization’s hope to
attain in the short-term and long-term and the implications in connection to growth,
products, technologies, and markets. There is no doubt that both the short-term and
long-term objectives need to be satisfied. Objectives should be SMART, which stands
for:

 Specific: Must be specific and clear

 Measurable: Should be expressed in quantitative terms so that success or
failure is easily measured
 Achievable: Should be achievable and attainable
 Realistic: Should be realistic and within reach with the resources available
 Time frame: Must have a deadline as to when it should be accomplished

 Strategy
Having a strategy is a process of planning that takes into account the objectives,
goals and policies for the organizations. In addition, planning should consider
environmental factors and resources owned by the relevant organizations. The
strategies are important to achieve the goals and success of an organization.

 The Nature of Strategy

Strategy of the business as

a whole
Business Strategy

How do we compete?
Nature of Strategy

Marketing strategy and

technology strategy
Functional Strategy

Which technologies?

Long-term development
and projection of
product/service
Product Strategy

How do we innovate?
 Strategic challenges for the firm
Whether to enter?
When to enter?
Where to enter?

Should the organization enter

the market with its innovation?

No Yes
(External routes to innovation) (Internal routes to innovation)

Lack of resources First-mover strategy/pioneer

strategy

Lack of knowledge
Follower/latecomer strategy

Not in line with the strategy of Side-entrance strategy

the organization

Derivative strategy
Lack of reach

Licensing

Spin-off
2. Rothwell model – Demand Pull Model
This type of innovation process is reflected in more market-centred, technology-based
industries, where consumer demand is sophisticated and grown toward realization.

The market contributed a source of ideas in creating new innovation in the demand pull
model. The R&D is driven from knowledge of consumer requirements that led to innovation.
This model is appropriate for mature technologies/industries, where a firm’s innovation
effort is devoted to minor improvements that are better at meeting consumer requirements.

Market need Development Manufacturing Sales

4. B) Importance of innovation to individual, society, & country

Individual Society Country
- Increased well-being - Increased job - Economic growth
- Communication and opportunities - Improve international
educational accessibility - Reduced sickness, poverty relations
and hunger