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Innovation strategies - Coggle Diagram
Innovation strategies
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Market-pull, technology push
Innovation has traditionally been seen as a linear, sequential model which begins with creativity, the development of unexpected new knowledge through scientific discoveries
Technologists, engineers and designers then develop the discoveries into prototypes
Manufacturing is left to devise ways of actually producing the merchandise efficiently and cost-effectively
The final part of the process is then sales and marketing, who will promote the product to the end user
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A push supply chain is a supply chain that emphasises distribution of a product to passive customers
A push system produces finished goods inventory in advance of customer demand, using a forecast of sales
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In the market pull model,, the innovation process is much more customer focused and need driven - marketing has a central role to play as an initiator of new ideas resulting from close customer interactions,, the results of this research are then passed to R&D and manufacturing
Adoption and diffusion
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Diffusion is also an endogenous characteristic of the innovation process itself, like the learning, imitation and feedback effects that arise during adoption further develop the initial innovation
The term diffusion has also been used to communicate how innovation is communicated and distributed through society over time or the rate at which different customer adoption categories adopt new products
Diffusion can refer to the spread of an innovation to other firms, products or industries
Adoption is similar to diffusion and describes the different behaviours of consumer types as they purchase new products and services at the various stages of the life cycle
Innovators are people who like new ideas and are most likely to take risks associated with new products; they are the first people to adopt a new product
Early adopters are people who enjoy being at the leading edge of innovation and buy into new products at an early stage. They choose new products carefully and are often consulted by people from the remaining adopter categories
The early majority are people who require reassurance that a product works and has been proven in the market before they are prepared to buy it; the people who adopt products just before the average person
The late majority are people in the process of diffusion who sceptical of new ideas and only adopt new products because of social or economic factors
Laggards are the last people to adopt a new product, suspicious of new products and orientated towards the past
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An innvoation strategy is a strategy that emphasises the introduction of major new products and services