Lessons 26–27 · 2 lessons · U. G‘afurov, Q. Sharipov. Basics of Entrepreneurship: textbook for Grade 11 of general secondary schools and for secondary specialised and vocational institutions. 1st edition. “O‘zbekiston” publishing house, Tashkent, 2018
27
Innovation activity
Textbook: pp. 124–127
GoalExplain innovation, its types and the sources of ideas, and compare results before and after an innovation.
New words
innovation: applying something new, such as a new technology, product, service or way of working or managing · Innovatsiyatechnological innovation: using a new or improved method of producing goods · Texnologik innovatsiyaorganisational innovation: new ways of organising production, transport, sales or supply · Tashkiliy innovatsiyasocial innovation: new solutions in working conditions, health, education or culture · Ijtimoiy innovatsiya
Explanation
Innovation is putting into practice a new technology, product, service, or way of working and managing. If you create a product or service that did not exist before, you have made an innovation. Innovations are divided into technical (a product with new or improved properties), technological (a new method of production), organisational-managerial (organising work differently), informational (speeding up getting and passing on information) and social (working conditions, education, health). A new idea may come from an unexpected event, a gap between what we imagine and reality, a need of a process, a sharp change in the market or new knowledge. The result of an innovation is judged by comparing indicators before and after: how output, cost and profit changed. Innovation also carries risk, so it is best first tested on a small scale, with safety rules observed.
Worked examples
An imaginary sewing shop introduced a new cutting method (technological innovation). Before it made 2 000 items a month at a cost of 50 000 so‘m each; now it makes 2 400. Output growth = (2 400 − 2 000) / 2 000 × 100 = 20 %.
Revenue was 2 000 × 70 000 = 140 000 000 and is now 2 400 × 70 000 = 168 000 000 so‘m. Revenue rose by 28 000 000 so‘m. Revenue alone does not show whether the innovation paid off, so costs and profit must be compared as well.
Class activity
Idea bank: a group writes 3 small innovation ideas for its school or neighbourhood (naming the type and the source of each idea), chooses one, invents “before and after” numbers and calculates the growth in per cent.
Practice
1
Why is a new idea by itself not yet an innovation?
Innovation is putting something new into practice; an idea becomes an innovation only when it is applied in production or service and gives a result.
2
Give one example each of an informational and a social innovation.
Informational: taking orders online. Social: improving safety and rest conditions at the workplace.
3
Before: 1 500 units a month; after the innovation: 1 800. By what per cent did output grow?
20
4
Cost fell from 8 000 so‘m to 7 200 so‘m. By what per cent did it fall?