innovation and entrepreneurship basics

Quest
ionBankwi
thsol
uti
on


Modul
e1
1.I
ll
ust
rat
einnov
ati
onpr
ocesswi
thaneatdi
agr
am.




• anidear emainsjustani deaunti
litisembodiedwithi
nat angi
bleproductorservice
off
eri
ng, atwhichpointi
tmaybedescr i
bedasaninventi
on.
• Anofferi
ngi sonlyconsider
edtobeani nnovat
ionwheni ti
ssuccessf
ull
ydeploy
edand
usedbysomecommuni tyormarketforwhi
chitdel
i
versabenefi
t.
• asignif
icantmodi f
icati
ontotheplan,orevenacompl eterepl
acementoft heidea,is
ref
err
edt oasapi vot.
• I
n2003, astart
-upcal
ledAndroi
dhadt heideatobuil
danoperati
ngsy st
em f
orcameras.
I
tsinit
ialvi
sionwasanecosy stem ofsmar tcamerasconnect
ingtoPCsandl i
nkedto
Androi
d-powereddatacent
resthatoff
eredcloudstoragef
orphotos.
• However,t
hedownwar dmarkettrendofcamer
asalesandthepar
all
elgr
owthinmobi
le
devi
ce sales pr
ompted t
he v ent
ureto make a si
gni
fi
cantpivot
,which l
ed t
oits
acqui
sit
ionin2005byGooglefor$50mill
ion

, 2.Descri
becur
rentt
rendi
ngdi
git
alt
echnol
ogi
esandcur
renthot
marketsf
ori
nnovati
on.


cur
rentt
rendi
ngdi
git
alt
echnol
ogi
es

 Vir
tualandaugment
edreali
ty(VR/AR)
,especi
all
yinr
espectoft
hei
rwi
derappl
i
cabi
l
ity
beyondgamingandent
ert
ainment.

 Art
ifi
ciali
ntel
li
genceandmachi nelear
ning(AI/
ML),especi
all
yinr
espectofappl
i
cat
ions
rel
ati
ngt oproduct
ivi
tyenhancementorriskr
educt
ion.

 Bi
gdataandanal
yti
cs,especi
all
yinr
elat
iont
oimpr
oveddeci
sionmaki
ngandmachi
ne
l
earni
ng.

 Bl
ockchai
nt echnol
ogies,especi
all
yinrel
ati
on t
o secure onl
ine t
ransact
ionswithi
n
di
str
ibut
edledgernetworksandcomplexsupplychai
ns,andt odocumentsharingand
management.

 Cy
bersecur
it
ytechnol
ogi
es,
incl
udi
ngt
hoset
hatexpl
oitAIt
echni
ques.

 I
nter
netofThi
ngs(
IoT)t
echnol
ogi
es,
especi
all
yinr
elat
iont
obusi
nesst
ransf
ormat
ion.

 Robot
ics,
incl
udi
ngi
ndust
ri
alanddomest
icappl
i
cat
ionst
hatexpl
oitAI
/MLandI
oT.

cur
renthotmar
ket
sfori
nnov
ati
on

 Manufacturi
ngpr ocesses,materi
alsandlogisti
cs,incl
udingautomat
edvehi
cles–
Autot
ech
 Smart,Fl
exibl
eandcl eanenergytechnol
ogies,
incl
udingbatter
ies
 Fi
nancialande-commer ce–Fintech
 Di
giti
zati
on and i mpr ovement of procedures for propert
y sal
es and r
ental
management–Pr optech
 Medicalandhealthcare–Medt ech
Gami
ngandgami f
icati
on



3.Exami
net
hef
ourcr
it
eri
a'
sforchar
act
eri
zat
ionofani
nnov
ati
on.


Sust
aini
ngv
ersusDi
srupt
iveI
nnov
ati
ons

 Sustainingorincrementali
nnov at
ionsoff
eri
mpr ovedperf
ormancewi t
hinanest
abl
i
shed
mar ket.
 Disrupti
v eorr adicali
nnovat
ionsbr ingtomar ketadiffer
entandnew ki ndofval
ue
proposition,whichmayhav et heef f
ectofchangingthemar ket
’sassumpti
onsar
ound
howt hingswor k.

,I
nnov
ati
onsBasedonTechnol
ogyPushv
ersusThoseBasedonMar
ketPul
l

 Ani nnovati
onbasedont echnologypushi sdr i
venbyar esearchandtechnologyidea
thathasbeenqual ifi
edasof feri
ngthepot enti
altobedevelopedasasuccessfulmar ket
offeri
ng.
 Thedi gi
talcamer aisagoodexampl e.
 Ani nnovati
onbasedonmar ketpull,ont heotherhand,i
sdr i
venbyanobser vedneed,
problem oroppor tunit
yi namar ket
.
 Forexampl e, i
n2017, Facebookaddr essedtheneed–i ni
ti
all
yident
if
iedandsatisf
iedby
Snapchat–f orimagest hatdisappearaf t
eraperiodofti
me.
Ver
ti
calversusHor i
zont alInnov ati
on

 Av ert
icalmarketreferstoani ndustrysector,suchasenergy,educati
on,ret
ailorheal
th
care.Consequently,av ert
icalinnovationisonet hatappli
esspecif
ical
lytoapar ti
cul
ar
sector.
 Verti
calinnov
ationisof t
ensust aini
ngandhenceassoci atedwithmor el
ocali
zedimpact.
 Ahor i
zontali
nnovationisonet hataddr essestheneedsofmanyi ndustr
ies.
 Thisincludesinnov at
ionst hataddr esshor i
zontalmarketssuchassecur i
ty,HR and
fi
nancemanagement .
ScopeofI
nnov ati
on

 Apr oductinnov ati
oni sonethatintr
oduceschangesi nthethingsthatareoffer
edand/ or
i
nt hecust omerexper ienceoftheof feri
ng.Anexampl ewoul dbeani mprovedencrypti
on,
searchoranal y si
salgorit
hm
 A pr ocess innov ati
on is one thatbr ings changes int he wayt hings are cr
eated,
performed ordel iver
ed.An exampl eist he int
roducti
on ofsecur e onli
ne payment
systems, andt hecont i
nuingevol
utionofsuchmechani sms
 Apar adigm innov ati
onisonet hatbr i
ngsaboutchangesi ntheunder l
yi
ngment almodel
wher ebypeopl et hi
nkabouthow somet hingi sdone.Exampl e:changefrom special
ist
adviserfunctionst oonli
neself-
servicesolutionssuchaschat bots.




4.Discussthei
ngr
edi
ent
sforsuccessi
ninnov
ati
onand
entrepr
eneur
shi
p.


 Adiverseleadershippr ofil
e.Compani eswi thmorediverseteamshavebeenshownt obe
45percentmor el ikelytorepor tgr
owt hinmar ketshareand70percentmor eli
kelyto
capt
ur eanewmar ket.
 Acompel li
ngv i
siont hatcancar ryt
het eam andt hepeopletheyneedtoinf
luenceinthe
market.
 Anunder st
andingoft hebusi nessecosy st
em andt hemarketpl
acedriv
ersofinnovat
ion.
 Aculturededicatedt oi nnovati
onandexpl icit
lyr
ecognizi
ngitscol
lect
ivenat
ure.
 Adegr eeoflearningf rom pastexperiences,bothgoodandbad.

 Amul
ti
disci
pli
nar
yteam wi
thabal
anceoft
echnol
ogi
cal
andmar
ket
-f
aci
ngski
l
ls.

,  Judgementi
nchoosi
ngandmanagi
ngt
het
imi
ngofmar
keti
ntr
oduct
ion.

 Anunconst
rai
nedopennesst
oexpl
orenewi
deasorbusi
nessmodel
s.




5.Discussthecommonmi
stakesandr
easonsf
orf
ail
urei
n
entrepr
eneur
ship.


Thecommonmi stakesandreasonsforfail
urei
nent
repr
eneur
shi
pcanbecat
egor
ized
underoneormor
eoft hefol
l
owingheadings.

 Fai
l
ureoft
hei
dea.

 Fai
l
ureoft
hebusi
nessmodel
.

 Fai
l
ureoft
het
eam.

 Fai
l
ureoft
hepl
an.

Thestorybehindev er
yfiel
dventur
ecombi nesauni quecoll
ecti
onofr easons,t
ypi
call
y
i
nvolvi
ngpoorj udgment,poorpr
eparedness,l
ackofr equi
redabili
ti
es,orevenjustbad
ti
ming.Byanalysingtherangeofreasonsforfail
ure.
,ispossibl
etodisti
llsomefurt
her
cri
ti
calqual
it
iesofent repr
eneur
shipthatenable.Suchmi stakestobeav oi
ded,orat
l
easttoberecov eredr
apidl
yenoughfortheventuretosurvi
veandf l
ouri
sh.



Fai
lure oft he Idea An idea can failbecause i
tdoes notwork:itmay notbe
i
mpl ement able,ordel
iver
able,
orsustainabl
e,orther
emaysimpl
ybenodemandf ori
t.I
t
canal sofaili
fitcannotbeexpressedinameani ngfulway–tot
heteam andt
hemarket
–ori fiti
st oovagueandi l
l-
defi
ned.

Howev ergoodt hebusi nessmodel,team andplan,i
ftheunderl
yi
ngi
deaispoor,t
hen
theventur
ewi llnotsucceed.Agoodi deawithapoorini
ti
ali
mplement
ati
oncansurvi
ve,
withsuffi
cientresourcebehindit,butiti
sami staketocont
inuetoi
nvestmoneyand
eff
orti
ntoani deat hatult
imatel
yhasnoappl i
cat
ion.