A2 Business Studies Aims and Objectives Aim Understand innovation as an operational strategy Objectives Define innovation and RampD Describe the RampD process Analyse functional areas relationship to innovation ID: 616169
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Slide1
Operational Strategies: Innovation
A2 Business StudiesSlide2
Aims and Objectives
Aim:
Understand innovation as an operational strategy.
Objectives:
Define innovation and R&D
Describe the R&D process
Analyse functional areas relationship to innovation
Evaluate
functional areas relationship to innovationSlide3
Starter
Think of 4 products which have recently been launched onto the market.
How have these influenced the lives of consumers?
How have competitors reacted to these new products?
What process have all of these products been through?Slide4
Research and Development
Define research and development.
Definition:
The scientific research and technological development used to create a new product or process.
http://
www.youtube.com/watch?v=xzkaEUEFsoQSlide5
Research and Development Process Slide6Slide7
Two Points of analysis from the dataSlide8
Research and Development
Why should businesses invest in R&D?
What are the likely costs to a business of R&D?Slide9
Research and Development
AnalysisSlide10
Research and Development
Evaluation
However effective or creative R&D is it will not satisfy the operational objectives.
Only when the R&D leads to a successful economic outcome that it leads to a comp. adv.
Successful outcomes only come from extensive R&D and even then, product success is not guaranteed!Slide11
Innovation
R&D is part of the process of innovation.
Can Microsoft still innovate using R&D to build a comp. advantage with the rise of Apple and Sony?
Microsoft spends $9bn (£5.5bn) a year on research and development - and yet its rivals are often seen as more innovative
. Is this the case?
http://
www.bbc.co.uk/news/business-12582357
http://
www.bbc.co.uk/news/business-12581442
Slide12
Innovation
Define Innovation
Definition:
The launch of a new product or process onto a market.
Task:
Brainstorm what you feel the risks and rewards are of committing to R&D and Innovating new products.Slide13Slide14
Impacts of Innovation & R&D
Round Robin
Consider the impacts of a business embarking on a costly R&D innovation strategy to launch a new product on functional areas of the business.
Marketing
Finance
Human Resources
FeedbackSlide15
Impacts of Innovation & R&D
on Marketing
Marketing may help identify target market
May gather consumer opinions
May assist in using a market led approach
Will design marketing mix for product
Communicate new product to customer, so it is vital communication is good with operations.Slide16
Impacts of Innovation & R&D
on Finance
Finance must set budgets for R&D and communicate these whilst monitoring them.
Costing of new products/processes
Work with marketing to set pricing structures
Profit, sales, cots of new productsSlide17
Impacts of Innovation & R&D
on Human Resources
R&D is likely to have workforce planning issues as there could be a need for new skilled workers to manufacture a new product.
Reduce workforce size, due to manufacturing innovations.Slide18
Impacts of Innovation & R&D
on Functional Areas
Vital for all functions to have an input from the outset.
This simultaneous development and engineering can potentially save time, money and result in a more efficient process.