Role of Innovation in Business

These flashcards cover the key concepts and definitions related to the role of innovation in business as discussed in the lecture.

Innovation

The process of copying, modification, adaptation and/or transformation of existing ideas into new and creative ideas, particularly in the production of goods/services.

Research and Development (R&D)

The scientific research and technical development of new products or processes.

Product Innovation

The creation of a new product or an improvement to an existing one.

Service Innovation

The offering of a new or improved service.

Process Innovation

An improvement made to the operating procedures of a business, or the way production takes place.

Benefits of Innovation

Financial gain, expansion of global market presence, and increased market share are three main benefits of innovation for businesses.

Financial Gain from Innovation

Improved profit due to increased income, new sources of income, or reduced costs.

Expansion of Global Market Presence

A company's ability to increase competitiveness globally by protecting intellectual property.

Increased Market Share

The percentage of total sales held by one business, which may increase due to innovation.

Factors Impacting Success of Innovation

Timing, cost, market strategy, and technology are key factors that influence the success of an innovation.

Timing in Innovation

The success of innovation is more likely when consumer discretionary income and confidence are high.

Cost of Innovation

The significant investment required in time and money for research, development, and testing before an innovation can earn income.

Sunk Cost

Money that has been spent on developing an innovation that cannot be recovered if the innovation fails.

Marketing Strategy for Innovation

A necessary approach that must support the innovation to educate consumers and build demand.

Technology's Role in Innovation

Technology can facilitate the digital distribution of products and solve process-related problems.

Intellectual Property

Legal rights that protect innovations and technology.