12 - Competing Through Innovation
1. Explain how companies find and develop new-product ideas.
Generally, companies analyze the role of new products in the firm's growth
objectives .Would it help achieve the company's planned growth.
After doing this, they must identify the category which the new product/s belong.
Whether they fall under a new product line, extension to an existing product line,
improved product, newly positioned product, a product offered cheaper, or an all-
together new product.
Depending on a combination of external and internal factors such as sales, market
share, financial objective, current offerings and management, they select the most
appropriate new product idea to develop. In terms of finding new ideas to develop,
Both the creativity of individuals and the methods of idea generation can be
employed to obtain novel ideas.
2. Discuss the different barriers to innovation.
Different barriers to innovation
(1) Perceptual blocks- having clear perception of the problem/necessary information
to understand the problem.
Example: Limited information
(2) Cultural blocks-tradition or cultural values prevent innovation because people
are used to them. Example: Paperless workplaces are non-existent in Japan which is
related to the fact that Japanese people use personal stamps instead of signatures.
(3)Environmental blocks- brought about by immediate social and physical
environment, linked to cultural barriers.
Example: autocratic boss
(4)Emotional blocks- barriers that prevents us from being creative or
communicating our ideas with others such as fear of rejection, failing, etc.
(5) Intellectual and expressive blocks- stem from having limited intellectual
capabilities and verbal/writing skills need to share information. Example: poor
language skill
3. Discuss the key factors that influence a new product’s success in the
marketplace.
Key factors that come ito play for the success of new producst in the marketplace
include: proper allocation of sufficient time, resources, and excellent market
launch strategy. Most new products fail not because of difficiencies in their
development, but rather, marketing activities failed. Whether it be coordination
within the marketing team, proper saleforce training, attractive sales promotion
and materials, all of this collectively help toward commercialization success.
4. What is the difference between ‘innovation’ and ‘invention’?
Invention pertains to the discovery of a new device or new process. It cannot be
planned and relies on the perseverance and not to mention the ingenuity of the
scientitst/inventor.
Innovation, on the other hand, can be managed by the firm and likely to be
succesful when managed properly. The fate of a discovery/idea are pretty much on
the hands of the firm therefore it must ensure new product development process is
1. Explain how companies find and develop new-product ideas.
Generally, companies analyze the role of new products in the firm's growth
objectives .Would it help achieve the company's planned growth.
After doing this, they must identify the category which the new product/s belong.
Whether they fall under a new product line, extension to an existing product line,
improved product, newly positioned product, a product offered cheaper, or an all-
together new product.
Depending on a combination of external and internal factors such as sales, market
share, financial objective, current offerings and management, they select the most
appropriate new product idea to develop. In terms of finding new ideas to develop,
Both the creativity of individuals and the methods of idea generation can be
employed to obtain novel ideas.
2. Discuss the different barriers to innovation.
Different barriers to innovation
(1) Perceptual blocks- having clear perception of the problem/necessary information
to understand the problem.
Example: Limited information
(2) Cultural blocks-tradition or cultural values prevent innovation because people
are used to them. Example: Paperless workplaces are non-existent in Japan which is
related to the fact that Japanese people use personal stamps instead of signatures.
(3)Environmental blocks- brought about by immediate social and physical
environment, linked to cultural barriers.
Example: autocratic boss
(4)Emotional blocks- barriers that prevents us from being creative or
communicating our ideas with others such as fear of rejection, failing, etc.
(5) Intellectual and expressive blocks- stem from having limited intellectual
capabilities and verbal/writing skills need to share information. Example: poor
language skill
3. Discuss the key factors that influence a new product’s success in the
marketplace.
Key factors that come ito play for the success of new producst in the marketplace
include: proper allocation of sufficient time, resources, and excellent market
launch strategy. Most new products fail not because of difficiencies in their
development, but rather, marketing activities failed. Whether it be coordination
within the marketing team, proper saleforce training, attractive sales promotion
and materials, all of this collectively help toward commercialization success.
4. What is the difference between ‘innovation’ and ‘invention’?
Invention pertains to the discovery of a new device or new process. It cannot be
planned and relies on the perseverance and not to mention the ingenuity of the
scientitst/inventor.
Innovation, on the other hand, can be managed by the firm and likely to be
succesful when managed properly. The fate of a discovery/idea are pretty much on
the hands of the firm therefore it must ensure new product development process is
