INNOVATION, ORGANIZATION AND ENTREPRENEURSHIP NOTES
Lecture 1
Lecture 2
Firm survival
Conclusion: Average firms do not live as long as ordinary human beings. They need to adapt with
their environment and innovate.
Types of innovations
- Product
o In goods (a phone)
o In services (the apps)
- Process
o Technological (new processer for your phone, new camera)
o Organizational (the production line)
- Can be a mixture
Improvement vs renewal
Launching a new product is not always radical.
After a year or two you’ll see what the impact was on the industry.
iPhones news series are an incremental change.
,The internet is a radical change. It’s created a new world, to digital communication.
Analysing case studies about the 20th century.
This s-curve tells you that the first half of the curve, the time/effort spend to develop the product
have a disproportional. E.g. if you’re a bank and you get one unit of time you get 1,5 product
performance. So you’d better stop putting effort in a product when you’re halfway.
,At the beginning it will be higher profit, but after you invest more in it, the cost will be higher but
your revenue might decrease.
, At the latter part you need radical innovation to increase revenue.
First product, then process innovation. When the curves cross it has meaning.
Lecture 1
Lecture 2
Firm survival
Conclusion: Average firms do not live as long as ordinary human beings. They need to adapt with
their environment and innovate.
Types of innovations
- Product
o In goods (a phone)
o In services (the apps)
- Process
o Technological (new processer for your phone, new camera)
o Organizational (the production line)
- Can be a mixture
Improvement vs renewal
Launching a new product is not always radical.
After a year or two you’ll see what the impact was on the industry.
iPhones news series are an incremental change.
,The internet is a radical change. It’s created a new world, to digital communication.
Analysing case studies about the 20th century.
This s-curve tells you that the first half of the curve, the time/effort spend to develop the product
have a disproportional. E.g. if you’re a bank and you get one unit of time you get 1,5 product
performance. So you’d better stop putting effort in a product when you’re halfway.
,At the beginning it will be higher profit, but after you invest more in it, the cost will be higher but
your revenue might decrease.
, At the latter part you need radical innovation to increase revenue.
First product, then process innovation. When the curves cross it has meaning.
