Innovation

• What is the concept of innovation in business?

  It refers to creating new or improved products and processes.
• What are the two main types of innovation?

  Product innovation and process innovation.
• How does product innovation provide a competitive advantage?

  Early innovators gain customer loyalty and perceived value.
• What does product innovation involve?

  Launching new or improved products, including services.
• What is process innovation focused on?

  Finding more efficient ways to deliver products or services.
• What is first mover advantage in product innovation?

  It refers to benefits gained by being the first in the market.
• What can customers perceive from early product innovators?

  Greater added value from the product.
• What can a reputation for product innovation lead to?

  Greater market share over the long term.
• What does process innovation aim to improve?

  Quality, efficiency, and flexibility in operations.
• How can process innovation affect unit costs?

  It can potentially reduce unit costs through efficiency.
• Why is flexibility important in process innovation?

  It allows businesses to respond to customer needs quickly.
• What are potential benefits of being innovative in products or processes?

  Building a brand reputation and higher profit margins.
• How can process innovation improve competitiveness?

  By enabling businesses to compete more effectively on price.
• What is the relationship between innovation and organizational culture?

  Innovative cultures often lead to competitive advantages.
• What are the main benefits of product innovation?

  • First mover advantage
  • Customer loyalty
  • Perceived added value
  • Potential for higher prices
  • Reputation for innovation leading to market share
• What are the benefits of process innovation?

  • Improved productivity
  • Greater efficiency
  • Reduced unit costs
  • Enhanced flexibility in operations
  • Ability to compete effectively on price
• What are the key aspects of a business culture that fosters innovation?

  • Emphasis on creativity and new ideas
  • Support for risk-taking and experimentation
  • Encouragement of collaboration and teamwork
  • Focus on continuous improvement
  • Alignment of innovation with business strategy