Unit 1 -Part1

1.Define Innova ona on

Innovation is defined as the process of bringing about new ideas, methods, products,
services, or solutions that have a significant positive impact and value1. It involves
transforming creative concepts into tangible outcomes that improve efficiency,
effectiveness, or address unmet needs1. Innovation is not limited to technological
advancements and encompasses novel approaches to problem-solving, processes,
organizational practices, or business model innovations1.

Here are some key characteristics of innovation:

1. Relative Advantages: The potential audience needs to see how your innovation
improves from previous generation products according to their current situation2.
2. Compatibility: This refers to the harmony of relationship that innovation has
with potential individuals as they absorb it into their lives2.
3. Complexity: This refers to how difficult the innovation is to understand and use2.
4. Trialability: This refers to the degree to which an innovation can be
experimented with on a limited basis2.
5. Observability: This refers to the degree to which the results of an innovation are
visible to others2.

The advantages of innovation include improved productivity, reduced costs, increased

competitiveness, improved brand recognition and value, new partnerships and
relationships, increased turnover, and improved profitability3. Innovation is also the
driving force to hunt for new possibilities and opportunities4. It determines the growth
of any organization and helps a business stay competitive in an ever-changing market4.

CHARACTERISTICS OF INNOVATION

* There is an object or target which is being changed.

* It can be a product, a process, an individual's lifestyle, an organization's strategy, a
society culture.
*Innovation vary in extent or magnitude i.e. degree towhich one deviates from the
past.
* It is closely related to problem solving since generation& implementation of ideas
for change never transpirewithout difficulty.
* A final characteristic is the impact of the change, thesignificance or range of its
effects.
2.Explain different types of Innova on

It seems like you’re interested in different types of innovation. Here’s a brief

explanation of each:

1. Product Innovation: This involves creating new products or improving existing

ones. It’s often what people think of when they hear “innovation”.
2. Process Innovation: This is about improving the way a product is developed or
delivered. It’s often about making things more efficient or effective.

3. Open Innovation: This is when companies use external ideas and resources to
drive their innovation efforts. It’s about collaborating with others and leveraging
their strengths.
4. Closed Innovation: This is the traditional model where companies rely on their
internal resources for innovation. It’s about keeping things in-house and
protecting intellectual property.
5.Incremental Innovation: This is about making small improvements to
existing products or processes. It’s often about refining and optimizing what
already exists.
 6.Radical Innovation: This is about creating something completely new that
disrupts the market. It’s often risky but can have huge rewards.

7.Modular Innovation: This involves making changes to one or more components of

a product, but not changing the overall product architecture.

8.Architectural Innovation: This involves changing the overall product architecture,

but not the components.
Each type of innovation has its own strengths and weaknesses, and the best approach
often depends on the specific situation. Let me know if you want more information on
any of these topics!

3.Differen ate between Inven on and Innova on

1. Origin and Essence:

 Invention: Invention refers to developing entirely new creations, often

characterized by originality and novelty. They represent the birth of a new idea,
product, or process that didn't exist before.
 Innovation: Innovation introduces the improvement or transformation of an
existing product. It focuses on practical implementation, refining, adapting, and
finding new applications for established ideas, products, or processes.

2. Impact and Evolution:

 Invention: Inventions have the potential to create entirely new industries or

revolutionize existing ones, but they may require further innovation to reach their
full potential.
 Innovation: Innovations often have a more immediate impact on existing
industries and processes, as they are designed to improve or optimize current
practices.

3. Risk and Uncertainty:

 Invention: The path of invention is often riskier and more uncertain, as it involves
uncharted territory and untested concepts.
 Innovation: Innovation tends to involve less risk because it builds upon existing
foundations and leverages established knowledge.

4. Time Frame:

 Invention: The invention process can be time-consuming, requiring extensive

research, development, and testing to bring a novel idea to fruition.
 Innovation: Innovation can occur relatively quickly, as it involves refining or
adapting an existing product, allowing for more rapid implementation.

5. Parties Involved:

 Invention: The responsibility for generating new inventions typically lies within the
organization's research and development department. This specialized team is
dedicated to exploring new concepts, conducting experiments, and ultimately
creating novel solutions.
 Innovation: Unlike invention, achieving great innovation requires the involvement
of multiple sectors and departments within a company. This collaborative effort
draws on the strategic expertise, perspectives, and resources of various teams,
allowing for a broader exploration of new ideas and a more comprehensive
approach to problem-solving.
4.Explain in detail about Innova on Management
5.List the external and Internal barriers of Innova on Management

Sure, let’s break down these barriers to innovation:

External Barriers

1. Market-Related Barrier: This refers to obstacles that make it difficult for a

new product or service to gain traction in a new market. These may include
technology challenges, government regulations, patents, start-up costs, or
education and licensing requirements1. For example, in India, U.S. exporters
and investors often encounter non-transparent or unpredictable regulatory and
tariff policies2.
 2. Government & its Policies: Government policies can either facilitate or hinder
innovation. They are specific plans of action to target an issue and achieve the
goals of different sectors of the Indian economy3. For example, the Indian
government frames policies to tackle problems in different spheres such as
employment, health, women empowerment, etc3.
3. Technical, Societal, & Inter-Organizational Barriers: These include
technical challenges such as data limitations and infrastructure challenges in AI
adoption4. Societal barriers could include cultural issues and risk aversion 5.
Inter-organizational barriers could arise when there is a need to collaborate
across organizational boundaries and even state borders6.

Internal Barriers

1. People Related: Fear is a major factor that holds back innovation. This
includes fear of criticism, fear of uncertainty, and fear of negative impact on
one’s career7. Politics, turf wars, and lack of alignment within the organization
can also hinder innovation5.
2. Structural: These are the day-to-day habits and routines that regularly stifle
innovation. These include poorly run meetings, no slack capacity, few
opportunities to speak up, and the notion that doing things differently is
inefficient and costly8.
3. Strategy Related: When the strategy orients resources toward incremental
improvements in the core business, it can be hard for organizations to go after
the best opportunities, which often are not in the core. This strategy can
become a barrier that reinforces fear of stepping out9.

These barriers can be overcome by creating a conducive environment for innovation,

fostering a culture of openness and honesty, aligning innovation with business goals,
and investing in the necessary infrastructure for success57.

6.With a neat diagram ,explain inven on process .

Unit 1 part 2
1.Role models of entrepreneurship
2.Entrepreneurial characteris cs
3.Role of entrepreneurship in economic development
4.Entrepreneurship in the new millennium