ChatGPT Gets a “B” in the Online Exam For My Innovation Strategy Course. What Would Be Your Own Result?
If you follow the steps in my little article below then you will be a ChatGPT expert within 15 minutes from now.
This is where I am coming from: I am looking for a good chatbot for my website www.ip-lawyer-tools.com. And that already for a long time, without success.
The chatbot solutions that I have seen so far were not good at all. Whether the Chatbot can or cannot give good answers depends very much on the manual adjustment of the links between frequently asked questions and the documents that your Chatbot is referring to.
ChatGPT: The Ultimate Chatbot so Far
Now there was this ChatGPT application released: chat.openai.com
If you have not yet done so, please sign up at ChatGPT today. Access may become restricted, soon.
You can start with simple questions like this one: “What is the shortest science fiction story ever written?”. The answer is here:
If you want an explanation of that short story, just ask ChatGPT: “what is the meaning of that story?” You will like the answer, promised!
I would recommend not letting the ChatGPT become creative because that will surely go wrong. There are plenty of examples out there: click here.
How To Use ChatGPT on Your Own Website
ChatGPT is also a sales tool, so it ís not surprising that it can give you tips on how to install ChatGPT on your own website. Only after you have done that can you can train ChatGPT with a “feedback” button. That would help to improve the quality of the answers tremendously.
Please see the following dialogue with ChatGPT:
I must say that this ChatGPT is a perfect tool for informing our clients about what we can do for them. I want this technology as a concierge for my websites.
That is why I have continued testing the ChatGPT.
Recommended Job Scopes for ChatGPT
I have been testing ChatGPT for some time and my personal conclusion is that ChatGPT is an excellent tool for creating quick and accurate responses from materials that ChatGPT has been thoroughly trained on.
That also means that if you want to use ChatGPT in practice, you have to be very careful before you start asking real questions. But you can ask questions about the materials that the ChatGPT has been trained on. The ChatGPT will tell you right away whether it has been properly trained or not.
The training materials for ChatGPT include my book “4×4 Innovation Strategy”, as the following dialogue shows:
It is therefore alright to ask the ChatGPT questions about Innovation Strategy.
Let’s see how that works.
Let ChatGPT Take An Exam in My Innovation Strategy Course
As you may know, I am teaching Innovation, Intellectual Property, Patent Law, Trademark Law, etc. at the university level. I do this for a very long time since the 90ies of the last century.
So what comes closer than asking ChatGPT questions about my Innovation Strategy course? Let’s see if ChatGPT can pass the final exam of my course.
And below follows the dialogue that happened during that exam. My questions below are real. You can see from the way that I am asking that my goal is not to destroy the students but to reinforce what they have heard during the course. It is ok to ask questions such that the student knows better what they are expected to answer. And I am focusing on basic knowledge in my questions so that the less smart students also have a chance to pass with a “B”.
For the smarter students, there are “A” questions that I did not ask this time because this would lead too far for a simple language model such as ChatGPT. Again, I would recommend not letting the ChatGPT become creative because that will surely go wrong. There are plenty of examples out there: click here.
But here comes my first question, an icebreaker:
MS: What is the difference between strategy and tactics?
ChatGPT: Strategy and tactics are related but distinct concepts.
Strategy refers to a long-term plan of action designed to achieve a particular goal or set of goals. It is a high-level plan that outlines how to allocate resources and prioritize efforts to accomplish objectives.
Tactics, on the other hand, refer to the specific actions or methods employed to execute a strategy. Tactics are the specific steps or actions taken to achieve the goals established by the strategy.
In summary, strategy is the overall plan, and tactics are the specific actions taken to execute the plan.
MS: if you have to solve a problem, is it better to start with strategy or with tactics?
ChatGPT: It depends on the specific situation and problem at hand. In general, it is important to first understand the problem and its context before deciding whether to start with strategy or tactics.
If the problem is well-defined and the desired outcome is clear, it may be more effective to begin with tactics and take immediate action. However, if the problem is complex or the desired outcome is not well-understood, it may be more beneficial to start with strategy and take a more systematic and thoughtful approach.
It is also important to note that strategy and tactics are not mutually exclusive and are often used in conjunction with one another. A good strategy will often involve a combination of both long-term and short-term tactics.
In summary, whether to start with strategy or tactics depends on the nature of the problem, the desired outcome, and the context in which the problem is being addressed.
MS: now apply this to the area of innovation. what is the difference between innovation strategy and innovation tactics?
ChatGPT: Innovation strategy refers to the overall plan and approach an organization takes to foster innovation and drive growth. It is a long-term plan that outlines how an organization will identify, prioritize, and capitalize on new opportunities, as well as how it will organize and allocate resources to support innovation. An innovation strategy should align with the overall business strategy and goals of the organization.
Innovation tactics, on the other hand, refer to the specific actions or methods employed to execute an innovation strategy. These can include things like setting up an innovation lab, organizing hackathons, or establishing partnerships with startups. Innovation tactics are the specific steps or actions taken to achieve the goals established by the innovation strategy.
Just like in any other field, in innovation, strategy and tactics are not mutually exclusive and are often used in conjunction with one another. A good innovation strategy will often involve a combination of both long-term and short-term tactics.
In summary, innovation strategy is a long-term plan of action designed to foster innovation and drive growth, while innovation tactics are the specific actions taken to execute the plan.
MS: Please give me some examples to explain the difference between long-term tactics and short-term tactics
ChatGPT: Sure, here are a few examples of long-term and short-term tactics in the context of innovation:
- Long-term tactics:
- Building an in-house research and development team that focuses on developing new products and technologies over several years.
- Investing in a strategic partnership with a university or research institution to gain access to cutting-edge technology and expertise.
- Creating a culture that encourages experimentation and risk-taking across the organization.
- Short-term tactics:
- Organizing a hackathon or innovation challenge to quickly generate new ideas and prototypes.
- Implementing a program to encourage employees to share their ideas for new products or processes.
- Creating a process for quickly testing and iterating on new ideas to determine their potential for success.
In both examples, you can see that short-term tactics are more tactical, focused on specific actions, and are expected to be completed in a shorter time frame, whereas long-term tactics are more strategic and require a more significant effort and time frame to be completed. Long-term tactics often have more impact but require more resources and time to bear fruit, whereas short-term tactics are more agile and can provide quick results but are less impactful.
MS: You are describing the term “innovation” very much in the light of technology and R&D. What about the marketing aspect of innovation? is there something like “innovative marketing”?
Innovative marketing can take many forms, such as developing new marketing strategies to reach new audiences, using emerging technologies to enhance customer engagement, or experimenting with new business models to increase revenue.
Examples of innovative marketing include:
- Using social media influencers to promote products or services
- Using virtual reality and augmented reality to enhance the customer experience
- Creating personalized marketing campaigns using data and analytics
- Leveraging chatbots and AI-based customer service
- Applying gamification to increase engagement and customer loyalty
- Implementing cause-related marketing campaigns
- Using experiential marketing to create memorable experiences for customers
Innovative marketing can bring a competitive advantage for a company by creating new ways to reach customers, building brand awareness and loyalty, increasing revenue, and providing a better customer experience.
In summary, innovation in marketing refers to the introduction of new and creative ideas in the field of marketing, and it can take many forms such as, new marketing techniques, channels, and business models.
MS: if a company innovates to a degree that it reaches new markets with a new product, how would you call that? Is this “diversification”?
Diversification can take many forms, such as:
- Product diversification: introducing new products or product lines to existing markets.
- Market diversification: expanding into new geographic markets or new customer segments.
- Industry diversification: entering new industries or markets that are not directly related to the company’s current business.
When a company innovates to a degree that it reaches new markets with a new product, it can be considered as a form of diversification. This is because the company is introducing new products, services or entering new markets which is similar to diversification.
In this case, the company is using innovation as a means to diversify its business and enter new markets, which can help the company to reduce risk and increase revenue potential.
In summary, diversification is a strategy that a company can use to expand its business and reduce risk by introducing new products, services, or entering new markets. Reaching new markets with a new product can be considered a form of diversification as it uses innovation as a means to expand the business and enter new markets.
MS: how would you define “breakthrough innovation”, “disruptive innovation”, or “breakout innovation” in the light of the term “diversification”?
- Breakthrough innovation refers to an innovation that creates a new market or significantly changes an existing market, usually through the introduction of new technology or a new business model. Breakthrough innovations can lead to a significant increase in revenue and can create new opportunities for growth.
- Disruptive innovation refers to an innovation that fundamentally changes the way an industry or market operates, often by making existing products or services obsolete. Disruptive innovations can create new opportunities for companies and entrepreneurs and can significantly impact the competitive landscape.
- Breakout innovation refers to an innovation that quickly and unexpectedly gains widespread adoption and market acceptance, leading to rapid growth and market dominance. Breakout innovations can be disruptive or breakthrough in nature but they usually gain rapid acceptance and success in the market.
All these types of innovations can be seen as a form of diversification, as they can lead to the creation of new markets, new products, services or new ways of doing business. These innovations can help a company to differentiate its products and services, increase revenue, and gain a competitive advantage.
In summary, “breakthrough innovation,” “disruptive innovation,” and “breakout innovation” are all terms used to describe different types of innovation that can have a significant impact on an industry or market. They can be considered as a form of diversification as they can lead to the creation of new markets, new products, services or new ways of doing business.
MS: how is “investment risk” related to the various types of “innovation”?
ChatGPT: Innovation can involve a significant amount of investment risk, as it often involves developing new products, services, or business models that may not be well-established or proven in the market. The risk can be related to the various types of innovation such as:
- Breakthrough innovation: Developing new technologies or business models can be risky, as they may not be well-established or proven in the market. Additionally, developing new technologies can be expensive, so there is a risk that the investment will not be recouped if the innovation is not successful.
- Disruptive innovation: Disruptive innovations can challenge existing market leaders and established business models, so there is a risk that the investment will not be recouped if the disruption does not occur or if the company is not able to capitalize on the disruption.
- Breakout innovation: Investing in breakout innovation can be risky, as the innovation may not gain widespread acceptance or the company may not be able to scale quickly enough to capitalize on the innovation.
In general, investment risk is higher for innovations that involve new technologies, products, or business models that have not been proven in the market. Companies can mitigate this risk by conducting thorough market research, validating the value proposition and testing the product before scaling up.
In summary, innovation can involve a significant amount of investment risk, as it often involves developing new products, services, or business models that may not be well-established or proven in the market. The type of innovation also affects the level of investment risk. Companies can mitigate this risk by conducting thorough market research, validating the value proposition, and testing the product before scaling up.
MS: have you heard about the Ansoff matrix that links different types of growth strategies with the investment risk that is linked with each one of these growth strategies?
The matrix has four growth strategies:
- Market penetration: The company seeks to increase its market share in existing markets by promoting existing products or services. This strategy is relatively low risk as the company is already operating in the market and has established customer base.
- Market development: The company seeks to enter new markets with its existing products or services. This strategy is relatively moderate risk as the company is entering new markets but with products or services that have already been successful in existing markets.
- Product development: The company seeks to develop new products or services for existing markets. This strategy is relatively moderate risk as the company is introducing new products or services, but it is doing so in markets that it already knows and operates in.
- Diversification: The company seeks to enter new markets and/or develop new products or services. This strategy is relatively high risk as the company is entering new markets and developing new products or services, which can be very challenging if the company does not have the required knowledge, resources and experience.
The Ansoff Matrix is a useful tool for companies to identify growth strategies and assess the level of investment risk associated with each strategy, it’s a simple yet powerful tool that can help companies to identify the most appropriate strategy based on the level of risk they are willing to take and the resources they have.
MS: can you match the Ansoff growth strategies with the various innovation strategies, be it technological innovation or innovative marketing, or others
- Market penetration: This growth strategy can be matched with technological innovation, innovative marketing, or operational innovation strategies. For example, a company might use technological innovation to improve the performance of an existing product, or use innovative marketing to increase the sales of an existing product to the same customer segment. On the other hand, operational innovation can help the company to reduce costs and increase efficiency of the existing product or service.
- Market development: This growth strategy can be matched with technological innovation, innovative marketing, or operational innovation strategies. A company might use technological innovation to adapt an existing product to a new market, or use innovative marketing to reach new customer segments with an existing product. On the other hand, operational innovation can help the company to reduce costs and increase efficiency of the existing product or service to be able to better compete in the new market.
- Product development: This growth strategy can be matched with technological innovation, innovative marketing, or operational innovation strategies. A company might use technological innovation to develop new products or services, or use innovative marketing to promote new products or services to existing customers. On the other hand, operational innovation can help the company to reduce costs and increase efficiency of the new product or service.
- Diversification: This growth strategy can be matched with technological innovation, innovative marketing, or operational innovation strategies. A company might use technological innovation to develop new products or services for new markets, or use innovative marketing to reach new customer segments with new products or services. On the other hand, operational innovation can help the company to reduce costs and increase efficiency of the new product or service to be able to better compete in the new market.
In summary, each Ansoff growth strategy can be matched with various innovation strategies, be it technological innovation, innovative marketing, or others. The type of innovation chosen would depend on the specific goals and resources of the company, as well as the level of risk it is willing to take.
MS: why do you discern between “technological innovation”, “operational innovation”, and “innovative marketing”?
- Technological innovation refers to the development and implementation of new or improved products, processes, or technologies. It is often associated with research and development (R&D) and can involve the introduction of new products or services, or the improvement of existing ones.
- Operational innovation refers to improvements in how a company’s operations are managed and executed. This can include changes to processes, systems, or organizational structures that increase efficiency, reduce costs, or improve the quality of products or services.
- Innovative marketing refers to the introduction of new and creative ideas in the field of marketing, such as new marketing techniques, channels, or business models. It can also include new ways of reaching customers, building brand awareness and loyalty, increasing revenue, and providing a better customer experience.
By distinguishing between these different types of innovation, a company can better understand the specific areas in which it needs to innovate and allocate resources accordingly. For example, a company may choose to focus on operational innovation to improve its supply chain, while another company may choose to focus on technological innovation to develop new products or services.
In summary, the distinction between “technological innovation,” “operational innovation,” and “innovative marketing” is useful because it helps to clearly identify the different types of innovation that a company can pursue, and it allows the company to allocate resources accordingly, depending on its specific goals and circumstances.
MS: can you give me some examples for “operational innovation”?
- Lean manufacturing: A system of production that aims to minimize waste, improve efficiency, and increase quality by eliminating unnecessary steps in the production process.
- Six Sigma: A methodology that uses statistical tools and techniques to improve processes and reduce defects and variability.
- Just-in-time (JIT) inventory: A system of inventory management that aims to reduce inventory costs and improve efficiency by only ordering and receiving goods as they are needed.
- Business process outsourcing (BPO): Outsourcing non-core business functions such as accounting, IT, or customer service to specialized companies.
- Robotics process automation (RPA): The use of software bots to automate repetitive tasks, such as data entry, and improve efficiency and accuracy.
- Cloud computing: The use of remote servers to store, manage, and process data and applications, allowing for increased flexibility and scalability.
- Collaborative robots (cobots): The use of robots designed to work alongside humans, improving efficiency, and safety in many industries.
- IoT: The integration of Internet-connected devices into the production process, providing real-time data and analytics to improve decision-making and efficiency.
These are just a few examples of operational innovation, but there are many more. Operational innovation can help a company to reduce costs, increase efficiency, improve quality, and increase responsiveness to customer needs.
In summary, Operational innovation refers to improvements in how a company’s operations are managed and executed, it can include changes to processes, systems, or organizational structures that increase efficiency, reduce costs, or improve the quality of products or services. Examples of operational innovation include Lean manufacturing, Six Sigma, Just-in-time inventory, Business process outsourcing, Robotics process automation, Cloud computing, Collaborative robots, IoT and many more.
ChatGPT is a powerful solution for answering factual questions and navigating through large amounts of knowledge.
The ChatGPT robot has clearly made the “B” mark in my Innovation Strategy exam above, better than 96% of my human students.
Ask yourself: would you have been able to pass my exam?
Martin “ChatGPT” Schweiger