IBDP Business Management Operation Management Chapter 6 Notes

research and development and innovation

STUDY NOTES FOR BUSINESS MANAGEMENT – OPERATION MANAGEMENT CHAPTER 6 – RESEARCH AND DEVELOPMENT AND INNOVATION

These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free.

Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international, It also helps in developing holistic understanding of the business environment today which is complex and fast changing.

The subject covers important characteristic of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.

The chapter on Research and Development and Innovation examines research as an investigation of an unfamiliar process, product, issue, or a concept to gain knowledge into the subject matter  developed is what follows research where the findings of research are used to develop new products\processes or to make improvements in the existing ones. Research and development are particularly important to businesses as it gives a competitive edge to them, helps them get customer loyalty, provides publicity, and increases the chances for charging high prices for the products.


However, there are certain limitations of research and development to businesses as carrying out research and developing new technology can be expensive and the probability of failure is also extremely high. Other than this there might also be a funding problem for many organizations due to the high amount of investment involved. Whenever research and development are successful it leads to innovation which further is of four types- product innovation, processing innovation, positioning innovation, and paradigm innovation. The chapter also discusses the factors that affect innovation followed by the differences between innovation, creativity, and invention.