SAGE UNIVERSITY

INDORE

INSTITUTE OF MANAGEMENT STUDIES

SESSION: 2022-23
Project 1
BBA 1ST SEMESTER
Assignment Subject – “FOI”

SUBMITTED TO SUBMITTED BY

Asst. Prof. Sakshi Upadhyay Piyush Prajapati

1.Write a note on-
A. Innovation
 Innovation is the practical implementation
of ideas that result in the introduction of
new goods or services or improvement in offering
goods or services. ISO TC 279 in the standard ISO
56000:2020 defines innovation as "a new or changed
entity realizing or redistributing value". Others have
different definitions; a common element in the
definitions is a focus on newness, improvement, and
spread of ideas or technologies.
Innovation often takes place through the development
of more-effective products,
processes , services , technologies , art
works or business models that innovators make
available to markets, governments and society.
Innovation is related to, but not the same
as, invention: innovation is more apt to involve the
practical implementation of an invention (i.e. new /
improved ability) to make a meaningful impact in a
market or society, and not all innovations require a
new invention.

B. Types of Innovation
 The 4 Types of Innovation

1. Disruptive Innovation
 Disruptive innovation is often the most well-known
type of innovation. It comes with effective uses of
new technology and high-impact results. While
disruptive innovation is extremely flashy and grabs
headlines, it comes with many nuances and
challenges. The most common organizations
exhibiting the characteristics of disruptive
innovation are startups targeting overlooked
segments in the market to deliver an offering that is
more affordable, convenient, or simpler than the
established players can.

2. Incremental Innovation

Incremental innovation constitutes a gradual,

continuous improvement of existing products and
services. While the least flashy of any of the
categories, it offers the most evident value to an
established bottom line. By continuously improving
products, services, and business operations,
organizations can reduce stagnation and
consistently grow market share.

3. Sustaining Innovation

Sustaining innovation is the best way to protect an

organization’s position in a market. Incremental
innovation focuses on small improvements to
existing products and services to increase value or
customer satisfaction. Sustaining innovation
focuses on larger changes to gain or maintain a
 market-leader position. This category is focused on
creating new features or services that differentiate a
product from all of its competitors.

4. Radical Innovation

Radical innovation typically utilizes a technological

breakthrough that transforms industries and creates
new markets. This type of innovation completely
changes how an organization interacts with the
marketplace. The success of the underlying
technological shift to drive this type of innovation is
often related to the firm’s organizational behaviors
and capabilities that create the right conditions for
new ideas to be successfully commercialized in the
first place.

C. Creation of Competitive advantage

based on Innovation.
  Innovation capability is the key productivity that
creates competitive advantage by perceiving or
discovering the new or better way to compete in an
industry and launch them into the market. One of
success factor depends on innovation’s relative
advantage. Innovation has become the most important
asset that creates competitive advantage for company,
and the first mover advantage when getting magnitude
of market acceptance. In the long run,
 maintaining product innovation is the way to sustain
competitive advantage and drive the growth of
productivity for further competitiveness of the
company. However, product innovation always comes
along with new process technology.

D. Types of Innovation Models

 First-Generation Innovation Model (1G) –

Technology Push :
- The idea was to break down complex processes
of space projects.
- It focused on systemizing the work and gaining
control over activities.
- The Phase-review-processes implies consistent
monitoring of each phase
- It focused on pushing technological innovation
through extensive research & development.

Second-Generation Innovation Model (2G)–

Market Pull:
- In the 1960s mid, the approach shifted from
Technological push to Market pull.
- The focus began on responding to market needs.
- It includes- the cost-benefit analysis of each
project & systematic allocation of resources.
Third-Generation Innovation Model (3G) – Coupling
Method
- The third-generation model overcomes the
limitations of the previous two linear models
- It gained prominent acceptance during the
inflation and stagflation phase of the economy.

Fourth-Generation Innovation Model (4G) – Integrated

Model
- The fourth-generation model follows an
integrated model for the business process
- It moved away from the sequential process to
follow the parallel process.

Fifth-Generation Innovation Model(5G) – Network

Model .
- The network model focused on the effective
distribution of network processes
- It emphasized gaining flexibility and increasing
the development speed.

Sixth-Generation Innovation Model (6G) – Open

Innovation Model
- Open innovation is the use of purposeful inflows
and outflows of knowledge to accelerate innovation
internally while also expanding the markets for the
external use of innovation.”
 2. Explain relationship between the Innovation and
entrepreneurship.

Innovation Entrepreneurship

Innovation is the process

of creating something new. Entrepreneurship identifies the
opportunities in great
innovations and creates
opportunity, adds value, and keeps
the value improving over a period
of time.

In innovation, there is no
major risk involved. In converting an idea into
a business opportunity, risk-taking
cannot be avoided. Risk-taking is a
key factor in entrepreneurship.

Innovation generally has a

short durability Entrepreneurship has long
durability, which adds and
improves the value of the
opportunity created.
Innovators lose interest Entrepreneurs fail, rethink and
after the idea stage. work hard to make the venture
more successful.

3.Explain process of innovative models

 Innovation is part of a successful business
strategy. Most often, Innovators fail when they
pursue the wrong model for the
implementation of innovation. Lacking the
required capabilities can also be the reason for
failure. An Innovation model provides a
detailed framework to identify, advance, and
implement ideas. Thus, focusing on adopting
methods to create the needed value
4.Describe Creative methods and approaches
used in innovation management

6 methods to innovate :
 METHODS AS A SUPPORT OF
EXECUTION .
 THE DESIGN THINKING METHOD.
 THE LEAN STARTUP METHOD.
 THE BLUE OCEAN METHOD.
 THE BUSINESS MODEL CANVAS.
 THE BUSINESS DESIGN METHOD

5.Describe sources of innovation.

- Sources of Innovation are :
Unexpected Occurrences. Consider,
first, the easiest and simplest source of
innovation opportunity
 Industry and Market Changes. ...
 Demographic Changes. ...
 Changes in Perception. ...
 New Knowledge.
 Process Needs. ...