MGMT 417 – Exam 2 – Comprehensive Study Guide and Key
Topic Review
Chapter 5: - ANS✔✔
Need figure 5.1 - ANS✔✔ 1) Off the scale- disruptive, frame shifting
2) deeper
3) deep
4) (nothing)
5) sustaining innovation
6) (nothing)
7) shallow change- incremental, cut cost
8) not on scale
First Order change: - ANS✔✔ Involves a specific initiative that solves a problem, and/or makes
improvements, in ways that do not present a challenge to current methods and thinking.
-It's adaptive and implies a degree of continuity and order. "change to stay the same"
-Ex: safety features are added to improve product but the actual car is still the same concept.
Second Order Change: - ANS✔✔ Leads to organization transformation by introducing new
products, services, and ways of doing business, based on creative lateral thinking that alters
current core assumptions
-Disruptive and discontinuous. "Move to get to a new position."
-Ex: development of electric powered self-driving motorcars.
The role that innovation plays in driving change: - ANS✔✔ Innovation does not just refer to new
products but also concern ways to organize, better working practices, and new ways to provide
, services. Broadly means the adoption of any product, system, process, program, service, or
business model that is new to this organization.
-Operational innovation, sustaining innovations, disruptive innovations
-Change is triggered by innovation; the reason companies change is because of innovation to
stay competitive
From Innovators to Laggards - Table 5.1 - ANS✔✔ 1) Innovators: Usually the first in their social
grouping to adopt new approaches and behaviors, a small category of individuals who enjoy the
excitement and risk of experimentation.
2) Early Adopters: Opinion leaders who evaluate ideas carefully, and are more skeptical and take
more convincing, but take risks, help to adapt new ideas to local settings, and have effective
networking skills
3) Early Majority: Those who take longer to reach a decision to change, but who are still ahead
of the average.
4) Late Majority: Even more skeptical and risk averse, wait for most of their colleagues to adopt
new ideas first
5) Laggards: Viewed negatively by others, the last to adopt new ideas, even for reasons that
they believe to be rational.
the concept of disruptive innovation and the factors which influence whether an innovation will
be accepted: (Page 148) - ANS✔✔ Distruptive Innovation: creates a new market and value
network and eventually disrupts an existing market
-The probability of an innovation being accepted is increased when it has these properties:
• Advantageous when compared with existing practice
• Compatible with existing practices
• Easy to understand
• Observable in demonstration sites
• Testable
• Adaptable to fit local needs.
Topic Review
Chapter 5: - ANS✔✔
Need figure 5.1 - ANS✔✔ 1) Off the scale- disruptive, frame shifting
2) deeper
3) deep
4) (nothing)
5) sustaining innovation
6) (nothing)
7) shallow change- incremental, cut cost
8) not on scale
First Order change: - ANS✔✔ Involves a specific initiative that solves a problem, and/or makes
improvements, in ways that do not present a challenge to current methods and thinking.
-It's adaptive and implies a degree of continuity and order. "change to stay the same"
-Ex: safety features are added to improve product but the actual car is still the same concept.
Second Order Change: - ANS✔✔ Leads to organization transformation by introducing new
products, services, and ways of doing business, based on creative lateral thinking that alters
current core assumptions
-Disruptive and discontinuous. "Move to get to a new position."
-Ex: development of electric powered self-driving motorcars.
The role that innovation plays in driving change: - ANS✔✔ Innovation does not just refer to new
products but also concern ways to organize, better working practices, and new ways to provide
, services. Broadly means the adoption of any product, system, process, program, service, or
business model that is new to this organization.
-Operational innovation, sustaining innovations, disruptive innovations
-Change is triggered by innovation; the reason companies change is because of innovation to
stay competitive
From Innovators to Laggards - Table 5.1 - ANS✔✔ 1) Innovators: Usually the first in their social
grouping to adopt new approaches and behaviors, a small category of individuals who enjoy the
excitement and risk of experimentation.
2) Early Adopters: Opinion leaders who evaluate ideas carefully, and are more skeptical and take
more convincing, but take risks, help to adapt new ideas to local settings, and have effective
networking skills
3) Early Majority: Those who take longer to reach a decision to change, but who are still ahead
of the average.
4) Late Majority: Even more skeptical and risk averse, wait for most of their colleagues to adopt
new ideas first
5) Laggards: Viewed negatively by others, the last to adopt new ideas, even for reasons that
they believe to be rational.
the concept of disruptive innovation and the factors which influence whether an innovation will
be accepted: (Page 148) - ANS✔✔ Distruptive Innovation: creates a new market and value
network and eventually disrupts an existing market
-The probability of an innovation being accepted is increased when it has these properties:
• Advantageous when compared with existing practice
• Compatible with existing practices
• Easy to understand
• Observable in demonstration sites
• Testable
• Adaptable to fit local needs.
