BUS 374 Lecture Notes - Lecture 9: Creative Destruction, Joseph Schumpeter, Digital Photography

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 374
• Professor: Tim Hargrave

Document Summary

Innovation process: idea abstract concept, research, invention make idea into product, modify, recombine existing ones, innovation commercialization of entrepreneurs, imitation copy successful innovation, types of innovation: Innovation and change: today"s organizations must be innovative and change, either innovate or perish, powerful forces threats and opportunities, technology, international economic integration, maturing domestic markets, globalization, schumpeter, incremental steady improvement of a product/service. From incumbent (necessary) firms - higher entry barriers, organizational inertia, stronger position for incumbents: radical novel methods or materials serving new markets. From new firms: architectural reconfigure known components to create new markets, disruptive novel technologies serving existing markets. Japanese autos, digital photography: stages of industry development. Introduction innovation, competition, r&d, early adopting customers. 1: growth standardization, wide adoption, economies of scale, manufacturing, maturity market saturation, intense cost driven competition, shakeout, late marketing, develop strategies majority customers, decline stagnant demand, low profits, exit, consolidate. Changes in production processes: product and service.