Transcript Document

CONTINUOUS
IMPROVMENT
‘Responding to changing
market conditions’
LEARNING OUTCOME
…to understand the meaning of
innovation
…to understand the relationship between
continuous improvement and added value
INNOVATION
“the adoption of an idea or behaviour, whether a
system, policy, program, device, process or service,
that is new to the adopting organisation.”
(Damanpour, 1992)
“something new or improved, which is done by the
enterprise to significantly add value either directly or
indirectly for the enterprise or its customers.”
(The Innovation Study Commission)
CONTINUOUS
IMPROVEMENT (CI)
“The collection of activities that constitute a
process indented to achieve performance
improvement.”
(Jha et al., 1996)
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Improved production efficiency
Enhanced customer satisfaction
THE PRODUCT
LIFECYCLE (PLC)
Sales
Development
Growth
Maturity
Decline
Time
FIVE STAGES OF PLC
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Development – zero sales/high investment cost
Introduction – low sales/trial
Growth – growing sales/increasing profits/entry of
competition
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Maturity – slower sales growth/ lower profit levels
Decline – sales fall off/exit
THE BOSTON CONSULTING
GROUP MATRIX
A star: High share in a
growing market.
A question mark: Small
share in a rapidly growing
market. Opportunity
to grow.
A cash cow: Large share A dog: Small share in a
in a market that is not
market that is not growing.
growing, and may even
Short term profitability.
be shrinking.
SWOT ANALYSIS
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Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)