Innovation in Business - Study Guide

This set of flashcards covers key concepts and definitions related to innovation in business, including types, sources, and frameworks for understanding innovation.

What is the definition of Innovation?

The process of creating new or improved products, services, processes, or business models that deliver value.

What are the two main types of Innovation?

Sustaining Innovation and Disruptive Innovation.

What is Product Innovation?

The creation of new or improved products, such as the iPhone or Tesla vehicles.

What is Process Innovation?

Improvements to processes, exemplified by Amazon warehouse automation and Toyota Lean Manufacturing.

What is Business Model Innovation?

Innovations in business models, demonstrated by Uber, Airbnb, and Spotify subscriptions.

Differentiate between Sustaining and Disruptive Innovation.

Sustaining Innovation improves existing products for current customers, while Disruptive Innovation creates simpler or cheaper solutions that generate new markets.

What does the term 'Adaptability' refer to in the context of Innovation?

The ability of a company to adjust, exemplified by Netflix moving to streaming.

What are the phases of Design Thinking?

1. Empathize 2. Define 3. Ideate 4. Prototype 5. Test.

What is Human-Centered Design?

An approach driven by empathy, iterative processes, and user involvement.

List the four types of Innovation.

Sustaining, Breakthrough, Disruptive, Basic Research.

What are Peter Drucker's 7 Sources of Innovation?

Unexpected events, incongruities, process needs, industry changes, demographic changes, perception changes, and new knowledge.

What is Lean Canvas?

A one-page business model tool that identifies problems, solutions, value propositions, customers, revenue and costs.

What is the Value Proposition Canvas?

A tool that focuses on Customer Jobs, Pains, Gains, linking them to Products, Pain Relievers, and Gain Creators.