11:21 × 0 :Innovation Is A Term Tha:× t Entrep X #/books/9781119228202/cfi/6/201
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11:21 × 0 :Innovation Is A Term Tha:× t Entrep X #/books/9781119228202/cfi/6/201/4/ feasibility of the opportunity. The best ideas are evaluated through test Ch.3Study Questions marketing and defining the resources to successfully launch the business. STUDY QUESTIONS Q.1 Why is innovation important, and how is it changing? Q.2 What are the main two types of innovation? Give two examples of each type. 0.3 What is meant by a "disruptive innovation?" Name two. Q.4 What are the various ways to generate business ideas? Q.5 Briefly describe the various methods of researching a business opportunity 0.6 List the five phases to complete an opportunity analysis Q.7 When does an idea need to be protected? 0.8 Describe the evaluation screening process. 0.9 Why do you think Dell was successful when other companies tryi the same model failed?Explanation / Answer
1. It is necessary for a business to continuously generate new ideas and translate them into products and services that address to the changing needs of the customers more effectively. Innovation helps and organisation to distinguish itself from the competitors and achieve competitive advantage. The innovation has always been the part of business, but owing to technological advancement and rising awareness level of customers, the speed, scale and domain of innovation has changed significantly,a nd contnues to do so.
2. The two types of innovation are incremenatal innovation and radical innovation. In the former, the existing products and services are gradually improved, with an intent to provide higher benefit, convenience, comfort, value and variety to the customers at a lower price. In the later, the innovation leads to an entirely new product or service, that may create new markets and customers.
3. Disruptive innovation is a radical change in business environment through an innovative idea that has capability to disrupt the existing market structure related to the product. Examples of disruptive innovation are Netflix, the DVD rental organisation that changed the face of video rental industry and Uber, which changed the way people travelled in Taxi cab.
4. Critical observation and analysis of people, their lifestyle, their aspirations, fulfilled and unfulfilled needs, the pain points ar some of the ways of generating new business ideas hat can make their lives better. Other methods are to look for opportunities that come in way by means of change of technologies, laws and regulations, business environment, lifestyle changes of customers etc. which result in new business ideas.
5. A business opportunity can be researched by knowing
(a) The nature of potential customers, their characterstics, behaviours and how your product is going to create value for them.
(b) Your capability to address those needs through expertise, training, competency etc. to achieve a competitive advantage.
(c) Financials involved. Are you in a condition to honour fianancial commitments. What is the return on investment and the time taken to recover your initial investment.
(d) Risks involved, their potential impact and its mitigation strategy.
(e) Level of competition in the chosen areas, current market players, their competency levels and your unique position among them.
(f) Sustainability of the business. How will it fare after 5 years.
6. Five phases of opportunity analysis
(a) Identify potential opportunities
(b) Define purpose and objectives
(c) Data collection from primary sources.
(d) data collection from seconday sources.
(e) Interpretation and analysis of data.
7. Idea needs to be protcted when it is an innovative and unique finding, usually resulted after scentific and technological research, and has potential of creating high value for customers and is vulnerable to be replicated and copied by other market players.
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