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5.6 research and development R&D 5.7 crisis management and contingency…
5.6 research and development R&D 5.7 crisis management and contingency planning
the importance or R&D
is the systematic process of discovering new knowledge about products,processes and markets for applying it to do better products,processes and services
research
focuses on creating new knowledge and new products
development
is about adapting existing ideas and products to create commercially viable products
ADVANATAGES: it can improve firm's productivity rate, it can enhance a firm's corporate image,premium prices can be changed
DISADVANTAGES: opportunity os spending sums of money, time consuming, no guarantee that the R&D expenditure will be recouped
the importance of developing goods and services that address customers unmet needs
types of innovation
product innovation
creating new products or improving the existing ones
process production
focuses on new improved methods of production, how a production takes place
position innovation
focuses on changing customer perceptions of an existing product
paradigm innovation
refers to change on the concept of a product (associated to radical and extensive innovations)
difference between adaptive creativity and innovative creativity
adaptive creativity
is about adjusting and improving something that already exists (iphone12 mini forn iphone 12)
innovative cretivity
is about creating a new product or process
difference between crisis management and contingency planning
crisis management
is the reponse taken by a business in the event of an actual crisis occuring
The aim of
contingency planning
is to minimise the impact of a significant foreseeable event
factors that affect crisis management
transparency
is about the ethical obligation of businesses to be honest and to inform their stakeholders of the thruth during a crisis
communication
during and after a crisis,public relations plays an important role in communicating with and reassuring stakeholders
speed
a speedy response is essential to contain the crisis and to ensure it is not prolongued or worsened by causing collateral damage
control
crisis can be preventable for example contingency planning not only helps a business to be better prepared in the event of a real fire, but to prevent fires form actually ocurring
advantages and disadvantages of contingency planning for a given organization or situation
Advantages
business continuity becomes top priority during a crisis not costs
,
effective planning can help to minimize losses incurred
,
a properly prepared contingency is essential for being prepared for a crisis and it ensures the safety of employees
,
planning heps to reduce the risks arising from a crisis
Disadvantages
the costs for dealing a crisis are high, it uses up valuable management time and resources, the incident planned for might never happen so planning can be a wastw of time and money, its not realistic for businesses to account for all posible risks