1) Hundreds of companies around the world adopt the practices of open innovation.

Why Is
this happening?

Open innovation has been shown to benefit businesses in a number of ways. First, it can help
businesses to be more efficient in their use of resources. Second, it can help businesses to be
more effective in their innovation process. Finally, it can help businesses to better engage
with their customers and stakeholders.

One of the main reasons of open innovation is that it can help businesses to be more
efficient in their use of resources. In a traditional closed innovation model, businesses
typically keep all of their ideas and information within the company, which can lead to a
number of problems. First, it can be difficult for companies to identify all of the potential
uses for their products or services, as they may not be aware of all of the potential
applications. Second, it can be difficult for companies to assess the potential value of their
products or services, as they may not have access to all of the relevant information.

Another benefit of open innovation is that it can help businesses to be more effective in their
innovation process. In a traditional closed innovation model, businesses typically rely on a
small team of internal experts to generate new ideas and bring them to market. This can lead
to a number of problems. First, it can be difficult for businesses to generate a large number
of new ideas, as the team of experts may not be able to generate a significant number of
new ideas on their own. Second, it can be difficult for businesses to assess the potential
value of new ideas, as the team of experts may not have access to all of the relevant
information.

Another reason of open innovation is that it can help businesses to better engage with their
customers and stakeholders. In a traditional closed innovation model, businesses typically
keep all of their ideas and information within the company, which can lead to a number of
problems. First, it can be difficult for companies to get feedback from customers and
stakeholders on their products or services, as they may not be aware of all of the potential
uses for their products or services. Second, it can be difficult for companies to assess the
potential value of their products or services, as they may not have access to all of the
relevant information.

2) Discuss the evidence that we have gone through the “wave of number five”.

"Wave of number five" refers to the fifth wave of innovation in technology and industry. This
wave is characterized by advancements in various sectors such as computers, electronic
capital goods, telecommunications, robotics, and information services, as well as the
adoption of key factors like gas, oil, and microelectronics. The infrastructure supporting this
wave includes digital networks, satellites, and flexible manufacturing systems enabled by
electronic control systems and networking. Furthermore, this wave overcomes the
limitations of previous technoeconomic paradigms through networks of large and small firms
based on computers, trust-based cooperation, and close collaboration in technology, quality
control, training, and production planning.
 Firstly, Advancements in Computing and Information Services: The widespread adoption of
computers and the internet has revolutionized various aspects of our lives, including
communication, commerce, and entertainment. The emergence of cloud computing, big
data analytics, and artificial intelligence further exemplifies the advancements in this sector,
aligning with the characteristics of the fifth wave.

Secondly, Integration of Robotics and Flexible Manufacturing Systems: The integration of

robotics and automation in manufacturing processes has led to the development of flexible
manufacturing systems that can adapt to changing production needs. These systems
leverage electronic control systems and networking to achieve necessitated flexibility,
aligning with the characteristics of the fifth wave.

Lastly, shift towards Sustainable Energy and Microelectronics: The focus on sustainable
energy sources, such as gas and oil alternatives, reflects a broader trend towards
environmental sustainability and the adoption of cleaner energy technologies. Additionally,
the advancements in microelectronics, including semiconductor technologies and integrated
circuits, have fuelled innovations in various sectors, including electronics and
telecommunications.

Overall, the evidence suggests that we have indeed gone through the "wave of number five"
characterized by advancements in computing, telecommunications, robotics, sustainable
energy, microelectronics, digital networks, and collaborative organizational structures. These
advancements have transformed industries and economies, paving the way for continued
innovation and growth in the future.

3) According to Everett Roger’s innovation diffusion theory, there are five influencing factors
which can affect the speed of adoption. Discuss three of them and explain how they can
affect the adoption rate.

Relative Advantage. Relative advantage refers to the perceived superiority of the new
innovation compared to existing alternatives. Innovations that offer clear advantages over
current solutions are more likely to be adopted quickly. This advantage can manifest in
various forms, including improved performance, cost-effectiveness, simplicity, or
convenience. For example, a new smartphone model with enhanced features and
capabilities may be adopted rapidly if consumers perceive it as significantly better than
previous models or competing brands. Similarly, businesses are more likely to adopt new
software systems if they offer enhanced functionality, efficiency, or cost savings compared to
their current systems. The greater the perceived relative advantage, the faster the adoption
rate is likely to be, as individuals or organizations are motivated to adopt innovations that
offer tangible benefits.
 Compatibility. Compatibility refers to the degree to which an innovation aligns with existing
values, practices, and needs of potential adopters. Innovations that are compatible with the
values, norms, and routines of individuals or organizations are more likely to be adopted
quickly. Compatibility can encompass various dimensions, including cultural, technical, and
organizational compatibility. For example, a new communication tool that seamlessly
integrates with existing workflows and platforms is more likely to be adopted by businesses
than a tool that requires significant changes to established processes. Similarly, cultural
compatibility plays a crucial role in consumer adoption of new products or services, as
innovations that align with cultural norms and preferences are more likely to be accepted.
The higher the compatibility of an innovation with the existing context, the faster its
adoption rate is likely to be, as it reduces resistance and facilitates integration into
established routines.

Complexity. Complexity refers to the perceived difficulty or effort required to understand and
use the new innovation. Innovations that are perceived as complex or difficult to use are
likely to face slower adoption rates. Complexity can encompass various aspects, including
technical complexity, usability, and required skills or knowledge. For example, consumer
electronics products that have intuitive interfaces and simple setup procedures are more
likely to be adopted quickly, as they reduce the perceived complexity of adoption. Similarly,
business software solutions that are user-friendly and require minimal training are more
likely to be adopted by organizations. The lower the perceived complexity of an innovation,
the faster its adoption rate is likely to be, as it reduces barriers to adoption and encourages
experimentation.

4) Do patents encourage or hinder innovation? Pick a stand and justify your position.

Hinder innovation. Defensive patenting, patent thickets, and patent trolls can create barriers
to entry for newcomers and smaller players in the market, deterring innovation and
competition. Firstly, Barrier to Entry. Patents can create significant barriers to entry for new
players in the market by requiring them to obtain licenses or face potential litigation for
patent infringement. This barrier restricts the ability of new innovators to enter the market
and compete effectively, ultimately hindering innovation. For example, newcomers to the
semiconductor business had to buy licenses from incumbents for as much as $200 million.
This high cost of entry makes it difficult for new players to compete in the market and limits
their ability to innovate. As a result, innovation may be stifled as smaller innovators are
deterred from entering the market due to the financial barriers imposed by patents.

Secondly, Blocking Innovation. Patents can be used strategically by incumbent firms to block
competition and stifle innovation through defensive patenting, patent thickets, and patent
trolls. These practices create obstacles for other innovators, making it challenging for them
to navigate intellectual property rights and develop new technologies. For example,
defensive patenting, where patents are acquired not for the purpose of innovation but to
prevent others from using certain technologies. This strategy effectively blocks competition
and stifles innovation by limiting the ability of other players to access and develop new
technologies without facing potential legal challenges or licensing fees.
 Lastly, Excessive Royalties. Patents can lead to the imposition of high licensing fees or
royalties, which can hinder innovation by increasing the cost of accessing essential
technologies or intellectual property. These excessive royalties can deter smaller innovators
from investing in research and development or entering the market, ultimately hindering
innovation. For example, Microsoft was accused of demanding excessive royalties from
companies wishing to license technical information about its Windows operating system.
This imposition of high licensing fees can deter smaller innovators from accessing essential
technologies or intellectual property, thereby hindering innovation in the market.

5) How would you compare the knowledge base of two organisations?

We can compare the knowledge bases of two organization through these factors. Firstly,
Individual Assets-The skills and knowledge of the individuals that make up an organization.
Technical Skills: These are specific skills related to a particular job function or industry. For
example, in a software development company, individual assets may include programming
languages, software development methodologies, and proficiency in using relevant tools and
technologies and proficiency in digital marketing tools and platforms such as Google
Analytics, SEO tools, social media management platforms, and content management
systems.

Secondly, managed Assets-A resource that enables businesses, individuals and technical
assets to be developed and distributed. Specifically, employee and manager technical
profiles, routines to get the job done, procedures and systems, organizational structures,
strategies to guide actions and a culture that forms shared family values. For example,
procedures and Systems. Procedures and systems refer to standardized methods and tools
used to carry out various tasks within the organization. For example, in a financial institution,
there are established procedures and systems for customer account management, loan
processing, risk assessment, and compliance with regulatory requirements.

Lastly, external assets-relationships that a company establishes with current and potential
alliances, competitors, suppliers, customers, political actors and communities. External
assets are essential for a company's success as they provide access to resources, expertise,
market opportunities, and support networks beyond its internal capabilities. For an example,
Suppliers. Suppliers play a crucial role in a company's value chain by providing raw materials,
components, or services necessary for production. For instance, a manufacturing company
may have strategic partnerships with suppliers to ensure a steady supply of high-quality
materials at competitive prices. These relationships help in maintaining product quality,
reducing lead times, and managing costs.
6) Explain how two firms, A and B, in the same industry, investing the same amounts in R&D
as a percentage of sales can perform so differently? Firm A delivers three new patents and
two new successful products whereas firm B fails to deliver anything?

The success of investments in R&D largely comes down to having a good R&D strategy. Two
firms can make the same investment in R&D but with varying strategies that aligns with the
overall corporate strategy or otherwise, one of the two firms will succeed in churning out
new products while the other will fail due to poor R&D strategy and corporate strategy non-
alignment. The success from the R&D investments depends largely on how effective R&D
management process is and the extent to which the products on which the investment is
being made aligns with the overall organizational strategy as already mentioned above.

To a large part, achieving interest in R and D is dependent on having a good R and D process.
Two businesses might have a comparable interest in R&D while using different strategies that
match with the overall corporate strategy; otherwise, one of the two firms will succeed in
generating new things while the other will fail due to a bad R&D system and non-alignment
of corporate procedures. Second, the degree to which the things on which the speculation is
being made meet up with the in general hierarchical methodology as previously stated and
the achievement from R and D the boarding procedure is.

Furthermore, the success of R&D investments also depends on the ability of the firm to
effectively leverage its intellectual capital and collaborate with external partners. Firm A may
have a robust network of partnerships with research institutions, universities, or technology
startups, enabling it to access cutting-edge research and talent that can fuel innovation. On
the other hand, Firm B may lack such collaborative networks, limiting its ability to tap into
external knowledge and expertise. This highlights the importance of fostering a culture of
open innovation and establishing strategic alliances to supplement internal R&D efforts and
drive successful outcomes.

7) Apply the notion of product platform to service industries. How relevant is it to the
financial industry or hotels?

A product platform is a set of platform elements and architectural rules that enable a group
of planned product offerings. Key characteristics of a product platform include: Architectural
rules/standards governing how technologies and subsystems can be integrated; Defines the
basic value proposition, competitive differentiation, capabilities, cost structure, and life cycle
of a set of product offerings; and supports multiple product offerings from a single platform,
permitting increased leverage and reuse across the product line.

Banks within the financial services industry can standardize architectural rules and / or basic
technologies that support account opening methods, loan issuance or contract methods,
loan interest rate application methods, account editing methods, etc. on top of. By
standardizing the base technology as banks can support multiple products offering all on a
single platform. For example, Consistency and Reliability. Standardizing architectural rules
ensures consistency in how different banking products are implemented and integrated
within the system. This consistency improves reliability and reduces the risk of errors or
inconsistencies that may arise from disparate systems.
 For hotels, a single technology platform can be implemented to handle accommodation
reservations and reservations, meeting room reservations and reservations, both
accommodation and meeting schedules payment processing, etc. For example, Enhanced
Guest Experience. A centralized platform enables seamless booking experiences for guests
across different services. Guests can make accommodation and meeting room reservations,
as well as other bookings such as spa treatments or dining reservations, through the hotel's
website or mobile app. By integrating payment processing capabilities into the platform,
guests can conveniently settle all charges in one transaction, enhancing their overall
experience and satisfaction.

8) Discuss the strength of network models of NDP

A capacity to foster new items or service can assist with breathing new life into a business. It
likewise has the capability of being the last nail in the casket of a business assuming that the
item improvement process isn't taken care of effectively. The essential benefit of item
improvement is that it can help a brand and business stay pertinent with its shopper base. By
persistently endeavouring to tackle new issues that shoppers face, an association is
consistently making the opportunity to make incomes.

The first Pros of Product Development is It makes a culture of development. Novel thoughts
help to make new items. New items help to make new incomes. New incomes can be utilized
to empower groundbreaking thoughts. This is the way of life of development. Each means
upholds the following stage with the goal that a more prominent portion of the overall
industry can be caught by a brand and business.

Secondly, it assists with driving a higher incentive. At the point when item advancement is
fixated on addressing the requirements of a buyer, then, at that point, it makes a higher offer
for the center socioeconomics of a brand and business. Higher offers make more recurrent
purchasers and positive verbal advertising, which can prompt higher incomes.

Lastly, it can grow an expert organization. Creative item advancement will draw in individuals
from inside the business of a brand and business since they are viewed as a "forefront"
association. Individuals need to be associated with pioneers and specialists. This implies the
B2B and B2C networks for an association zeroed in on sure item advancement will forever
get an opportunity to develop.