Business, digitalisation and innovation

Explain what the acronym R&D+i stands for and how research, development, and innovation differ from each other, giving an example of each stage in a yoghurt manufacturing company.

Classify these innovations according to their type (product, process, organisational, or marketing): launching a new flavour, installing robots in the warehouse, reorganising the staff into self-managed teams, and updating packaging and brand image.

The diagram shows the four types of innovation according to the area of the business they transform. Identify the missing type, marked with "?", and give an example of that type in a supermarket chain.

An industrial bakery installs ovens with sensors that automatically adjust the temperature and alert of breakdowns before they occur. Explain what type of innovation this is and analyse two effects it may have on costs and bread quality.

Distinguish between incremental innovation and radical innovation, give an example of each in the transport sector, and explain why most companies innovate mainly in an incremental way.

Explain what the digitalisation of a business is and describe three specific examples in a local clothing shop (for example, selling online, managing stock with software, taking payment by mobile phone).

Distinguish between digitalising and automating, and classify these two cases: an administrative agency that goes from filing invoices in paper folders to managing them with software, and a factory that installs a robot arm to palletise boxes.

A local bookshop starts selling online as well, offering click-and-collect in store. Analyse what changes this digitalisation entails in its way of operating (sales channel, logistics, customer service, data usage) and what new costs arise.

Explain in your own words what big data is and how a supermarket that knows its customers' purchases thanks to its loyalty card can use it, stating one benefit for the company and another for the customer.

Describe two applications of artificial intelligence in a business (for example, a chatbot that serves customers or a system that forecasts demand) and explain what changes for the people who work in it.

A marketing agency with 18 creatives adopts generative AI to create copy and images. Each employee now produces three times as many campaigns per month, but two corporate clients have cancelled their accounts after detecting texts plagiarised from competitors and images with biases and branding errors that damaged their public image.

1. a) Identify the types of innovation (according to the Oslo Manual) present and analyse the clash between process innovation and the degradation of the quality of the delivered product.
2. b) Explain how the profile and skills required of the agency's workers must evolve (from manual execution work to critical curation, verification, and art direction).
3. c) Design an internal governance code with three binding ethical principles that the agency should present to its clients to restore trust regarding authorship, truthfulness, and data privacy.

A logistics chain with 1.500 employees robotizes its warehouses. It lays off 300 freight handlers, but hires 40 specialists in robotics and data analysis. Thanks to the increase in productivity, it reduces costs by $15\ \%$, lowers its commercial rates, and plans to open three new distribution centers next year.

1. a) Classify the tasks being destroyed and those being created according to their nature (routine vs. cognitive/complex) and assess the immediate impact on the company's labor structure.
2. b) Drawing on this case, use economic compensation theory to refute the idea that technology only generates net unemployment: explain the mechanism through which cost savings and price reductions can generate indirect employment across the economy as a whole.
3. c) Reason what conditions must be met to prevent the 300 laid-off workers from falling into prolonged structural unemployment.

A high-end footwear factory with 45 workers evaluates two process innovation options for leather cutting:

• Option A (Full automation): Laser cutting machine for $170.000\ \text{€}$. Net annual savings of $68.000\ \text{€}$ by laying off 4 master cutters, but with a severance cost in year 0 of $34.000\ \text{€}$.

• Option B (Collaborative cobotics): Assisted robotic arms for $110.000\ \text{€}$. No one is laid off; it invests an initial $10.000\ \text{€}$ in reskilling the 4 artisans. It generates waste reduction and net productivity savings of $40.000\ \text{€}$ annually.

1. a) Calculate the payback period for both options, taking into account all initial outlays.
2. b) Justify which one the company should choose, evaluating, in addition to the financial criterion, the impact on the work environment, the retention of artisan know-how, and brand positioning in the luxury segment.

A jewellery craftswoman sells at craft fairs and is considering opening an online shop. Explain two advantages and two disadvantages of e-commerce for a small business like hers.

A canning company with 40 workers collaborates with a university to develop a compostable container, instead of researching on its own. Explain what open innovation is, what each party gains and what risk sharing knowledge with third parties has.

A food delivery app charges restaurants a commission of $25\ \%$ on each order and the customer a delivery fee of $2,50\ \text{€}$. a) Explain what a platform model is and where its revenue comes from. b) Analyse what advantages and what risks depending on such a platform involves for a restaurant.