Home / Summaries / Class notes - Innovation Management in Multinationals / innovation-different-reverse

Managing the innovation process

17 important questions on Managing the innovation process

What are the ABCs (critical success factors) for innovation, according to Cooper (1996)?

Doing right projects (type 1: external success factors; though control through selecting & prioritizing) and doing projects right (type 2: things the project team does, often invisible; but controllable (seen from time to time)).

What does a minimum viable innovation system refer to (MVIS), according to Anthony et al. (2014)?

“Minimum viable innovation system” refers to the essential building blocks that allow a company to begin creating a reliable, strategically focused in- novation function. An MVIS will ensure that good ideas are encouraged, identified, shared, reviewed, prioritized, resourced, developed, rewarded, and celebrated. But it will not require years of work, fundamental changes to the way the organization runs, or a significant reallocation of resources.

Day 1 - 30, defining your business model (MVIS) how do you do it, according to Anthony et al. (2014)?

All innovations fall into one of two buckets.

we’ll call the first one “core innovations” and the second “new-growth innovations.”

Innovation projects meant to strengthen the core
should be tied to the current strategy and managed mostly within the main business’s organizational structure.

New-growth initiatives push the frontier of your strategy by offering new or complementary products to existing customers, moving into adjacent product or geographic markets, or developing something utterly original, perhaps delivered in a completely novel way. The

Day 45 - 90, Create a Mechanism to Shepherd Projects (MVIS) how do you do it, according to Anthony et al. (2014)?

Begin by forming a group of senior leaders who, from then on, will have the autonomy to make decisions about starting, stopping, or redirecting new- growth innovation projects.

Manila Water, for instance, picked four members of its top management team to serve on what it called the New Services Review Committee, which met every few weeks to help teams working on new-growth ideas

How should you scale up after 90 days of creating an MVIS, according to Anthony et al. (2014)?

First, consider hardwiring the components of the MVIS that are working well into more-formal systems.

Second, consider creating specialized functions to carry out parts of the innovation process. A small organization might, for example, assign a single person to act as a “scout,” keeping abreast of market changes.

Finally, work on the MVIS should highlight some of the larger barriers to innovation inside an organization. These often reside within corporate bud- geting, incentive, and strategic-planning systems, which, after all, are designed to further today’s busi- ness, not create tomorrow’s.

What is glocalization and reverse innovation, according to Immelt et al. (2009)

With glocalization, companies develop great products at home and then distribute them worldwide, with some adaptations to local conditions. With reverse innovation an innovation is being made in an emerging/developing country and then sold to a developed country.

What is the main advise that Immert et al. (2009) give General Electric?

> The model that GE and other industrial manufacturers have followed for decades - developing high-end products at home and adapting them for other markets around the world - wont suffice as growth slows in rich nations

> To tap opportunities in emerging markets and pioneer value segments in wealthy countries, companies must learn reverse innovation: developing products in countries like China and India and then distributing them globally.

> While multinationals need both approaches, there are deep conflicts between the two. But those conflicts can be overcome.

> If GE doesn't master reverse innovation, the emerging giants could destroy the company.

What are the five critical principles of the local growth team (LGT) model, according to Immert et al. (2009) to 'shift the center of gravity' for companies and create a reverse innovation strategy?

1. Shift power to where the growth is.
2. Build new offerings from the ground up.
3. Build LGTs from the ground up, like new companies
4. Customize objectives, targets, and metrics
5. Have the LGT report to someone high in the organization

What are the advantages of the multiple convergent process model (powerpoint)?

It allows for iterations among participants within stages

It easily accommodates third parties

It provides mechanisms for real integration among different functions throughout the process in the convergent points

What three critical mistakes doe marketers usually make (powerpoint)?

1.They collect a lot of factual information (customers prefer X) instead of explanations why customers behave the way they do
2.They think that they understand customers because they have collected a huge amount of customer data
3.They focus on only a limited part of the customer experience (functional features instead of emotions)

Time-to-market is an important factor when launching a new product, what are some methods to shorten it (powerpoint)?

1.Streamline individual stages
–conduct each stage as efficient as possible
–sometimes spend more time on one stage to shorten overall development time

2.Conduct activities in parallel
–crossfunctional teams
–especially with teams (team members) in different countries

3.Separate launch of basic product and options
–essential features in basic product (Minimum Viable Product)
–rest in options launched later

What are some advantages and disadvantages of launching a product fast?

Advantages

–technological leadership
–increased sales
–fast market penetration
–lock-in of customers
–use of more advanced technology
– Disadvantages

–high market development costs
–high technological and market uncertainties
–incumbent inertia

What do innovative firms look like?

1. Change constantly
2. Experiment with new ideas, explore new directions
3. Target new audiences (and perhaps loose your old one)
4. Build on your traditional strengths
5. Develop new capabilities

Innovativefirms are often led byaninnovativeindividual, which has four key skills , which one (powerpoint)?

–questioning
–observing
–networking
–experimenting

What ist the tradition perspective vs the new perspective, regarding reverse innovation (powerpoint)?

Traditional perspective:

•firm develops an innovation
•develops a cheaper version
•sells cheaper version to developing countries

in many cases this is not successful
New perspective:

•firm develops ultra-cheap innovation in developing country
•which is later also sold to rich countries

Reverse innovation requires a different mindset, how can companies change their mindset (powerpoint)?

Level 1: Only the rich world matters; poor countries are irrelevant
Level 2: We can sell our products to poor countries when they get richer
Level 3: Emerging markets have different needs, so we need to customize our products
Level 4: Emerging markets have very different needs, so we need to design new products from scratch
Level 5: Reverse innovation is critical to maintain our advantage, both in emerging markets and at home

Why do poor countries need to develop different products (powerpoint)?

Different performance needs

–customers in developing world don’t need an 80% product at an 80% price, but a 50% product at a 15% price

Different infrastructure

–absent or unreliable infrastructure requires innovation

Different sustainability issues

–different environmental situations require innovation

Different regulations

–less strict regulation stimulates innovation

Different preferences

–different preferences results in different products

a PDF, study it super fast

No sign up, email or credit card needed!
AI makes unlimited flashcards
Get unlimited quizzes and tests
Ask AI anything

Create a notebook

No sign up, email or credit card needed!
Have and keep perfect overview
Make flashcards, notes and mind maps
Review, test and score!

The question on the page originate from the summary of the following study material:

Innovation Management in Multinationals

View summary

A unique study and practice tool
Never study anything twice again
Get the grades you hope for
100% sure, 100% understanding

Remember faster, study better. Scientifically proven.

Managing the innovation process

17 important questions on Managing the innovation process

What are the ABCs (critical success factors) for innovation, according to Cooper (1996)?

What does a minimum viable innovation system refer to (MVIS), according to Anthony et al. (2014)?

Day 1 - 30, defining your business model (MVIS) how do you do it, according to Anthony et al. (2014)?

Day 45 - 90, Create a Mechanism to Shepherd Projects (MVIS) how do you do it, according to Anthony et al. (2014)?

How should you scale up after 90 days of creating an MVIS, according to Anthony et al. (2014)?

What is glocalization and reverse innovation, according to Immelt et al. (2009)

What is the main advise that Immert et al. (2009) give General Electric?

What are the five critical principles of the local growth team (LGT) model, according to Immert et al. (2009) to 'shift the center of gravity' for companies and create a reverse innovation strategy?

What are the advantages of the multiple convergent process model (powerpoint)?

What three critical mistakes doe marketers usually make (powerpoint)?

Time-to-market is an important factor when launching a new product, what are some methods to shorten it (powerpoint)?

What are some advantages and disadvantages of launching a product fast?

What do innovative firms look like?

Innovativefirms are often led byaninnovativeindividual, which has four key skills , which one (powerpoint)?

What ist the tradition perspective vs the new perspective, regarding reverse innovation (powerpoint)?

Reverse innovation requires a different mindset, how can companies change their mindset (powerpoint)?

Why do poor countries need to develop different products (powerpoint)?

Try our study magic for free

Upload a PDF, study it super fast

Summaries related to Introduction to innovation management

Class notes - Innovation Management in Multi…

Class notes - International Financial Manage…

Class notes - Empirical Research Project

Class notes - International Strategic Allian…

lecture 2

Indian Economics

Global politics

Essentials of international relations

Behavioral genetics

Management and organisational behaviour

Follow Up Engels idioom 4/5 H

International Business

a PDF, study it super fast