The document discusses innovation, research and development, and intellectual property for businesses. It explains that innovation is key for any business and is not limited to one function. Research and development is one form of innovation that can give competitive advantages but also carries risks. The document also outlines different types of intellectual property rights like patents, copyrights, and trademarks that protect businesses' innovations and assets.

1. BUSINES
S&MANA
GEMENTby: Shadi A. Razak 1
Innovation

2. Objectives
• Explain the importance of innovation and
research and development for a business
• Explain the role of importance of intellectual
property for a business
• Analyse the factors affecting innovation
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3. Structure
• Innovation
• Research and Development
• Intellectual Properties
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4. Innovation
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INNOVATION

5. Innovation
• Innovation is a key function of any business
• It is not restricted to one business function
• ‘Change is healthy for business and it can
improve performance.’
Charles Handy and Kurt Lewin
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INNOVATION

6. Innovation in business
• Innovation is not restricted to one business
function:
‒ Product innovation
‒ Process innovation
‒ Positioning innovation
‒ Paradigm innovation
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INNOVATION

7. Product innovation
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INNOVATION

8. Process innovation
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INNOVATION

9. Positioning innovation
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INNOVATION

10. Positioning innovation
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INNOVATION

11. Paradigm innovation
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INNOVATION

12. Factors affect innovation
• Corporate Culture
• The Market
• Available Technology
• Finance
• Human Resource
• Legal Constraints
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INNOVATION

13. Research and development
• One form of innovation
• Development of existing product or creating a
new one
• Needs vast sums of money
• Extend product life cycle
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INNOVATION RESEARCH AND DEVELOPMENT

14. Research and development
• Time consuming
• Can be destructive to business
• No single best way to conduct it
• Requires good planning and leadership
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INNOVATION RESEARCH AND DEVELOPMENT

15. R&D life cycle
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INNOVATION RESEARCH AND DEVELOPMENT
Idea
Test the Concept
Research the Market
Cost the Idea
Build Prototype
Review
Launch
Pilot Test
iPad
Hybird Cars
Bitcoins

16. R&D Advantages
• Give competitive advantage over competition
• Extend life of an existing product
• Open new markets
• Enhance brand image
• Motivate workforce
• Improve quality
• Reduce cost
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INNOVATION RESEARCH AND DEVELOPMENT

17. R&D Disadvantages
• Risk huge opportunity cost
• Goes into the wrong direction
• Time consuming
• Highly competitive process
• Can involve ethical issues
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INNOVATION RESEARCH AND DEVELOPMENT

18. Intellectual Property Rights
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• They appear in balance sheets as intangible
assets
• Reflects business ownership of valuable assets
that needs Protection
• Not having them might led the business to lose
its competitive edge
INNOVATION RESEARCH AND DEVELOPMENT INTELLECTUAL PROPERTIES

19. Patents
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• Applied to invented product or production
process
• Gives its owner undisputable rights for using it
for a period of up to 20 years
• Gives its owner first mover advantage in the
market
INNOVATION RESEARCH AND DEVELOPMENT INTELLECTUAL PROPERTIES

20. Patents
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INNOVATION RESEARCH AND DEVELOPMENT INTELLECTUAL PROPERTIES

21. Copyright
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• Similar to a patent
• Applied to written and artistic forms of media
presentations
• The owner intellectual property is protected
for 50 years
INNOVATION RESEARCH AND DEVELOPMENT INTELLECTUAL PROPERTIES

22. Trademarks
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• Have two forms:
– Conventional trademarks : Logos & Slogans
– Non-conventional trademarks : distinctive qualities
or feature of a design
INNOVATION RESEARCH AND DEVELOPMENT INTELLECTUAL PROPERTIES

23. Intellectual property rights
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• All different intellectual property rights ensure:
– First mover advantage
– Earn greater profit
– Ensure continuity in production
– Develop brand loyalty
– Have time to develop new products
– Obtain rewards for their intellectual output
INTELLECTUAL PROPERTIESINNOVATION RESEARCH AND DEVELOPMENT

24. Summary
• Explained the importance of innovation to
business
• Discussed advantages and disadvantages of
research and development
• Explained the importance of intellectual
properties right to business
• Differentiated between patents, copyrights
and trademarks rights
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INTELLECTUAL PROPERTIESINNOVATION RESEARCH AND DEVELOPMENT