Initiative - ANSWER-An organizational priority that identifies a direction or strategic area
of focus
Innovation - ANSWER-Process of developing and implementing a new product or
process that delivers value to users or customers
Iterative - ANSWER-Repeated cycles that increasingly approach the desired result
Creativity - ANSWER-Generation of novel or unique ideas
Critical Thinking - ANSWER-Disciplined process of rational, evidenced-based, and open-
minded thinking that involves analysis and evaluation of inputs to reach an answer
Market Share - ANSWER-The percentage of sales in a market controlled by a particular
company or product
Customer Value - ANSWER-The benefit (vs. cost) a customer receives from a product or
service offering
Product Innovations - ANSWER-New or improved goods or services offered to the
market
Process Innovations - ANSWER-New or improved ways of conducting business, such as
the application of new technology, production techniques, or distribution methods
Invention - ANSWER-The creation of a unique new idea, process, or object
Which type of innovation adds indirect value to customers by lowering costs and
increasing the quality of new or existing products or services? - ANSWER-Process
Research and Development - ANSWER-Organizational activities with the goal of
innovating products and services
Incremental Innovations - ANSWER-Gradual improvements to products or processes
Breakthrough Innovation - ANSWER-The development of an entirely new product or
process
Transformational Innovation - ANSWER-Organizational adaptation and development of
new processes and business models
Business Model - ANSWER-A company's plan for creating value, including the types of
products and services it will offer to earn revenue
Which type of innovation results in the development of entirely new products or
processes? - ANSWER-Breakthrough
Key Point - ANSWER-Innovation is an activity or process that leads to more effective
products, processes, services, technologies, or ideas. Innovation is the development of
customer value through solutions that meet unmet needs in new ways.
, Key Point - ANSWER-Creativity is the generation of new ideas. Innovation is the
development and implementation of a new idea through a series of stages.
Key Point - ANSWER-Three types of innovation include breakthrough, incremental, and
transformational. Breakthrough innovation results in the development of completely new
products or processes. Incremental innovation occurs through gradual improvements.
Transformational innovation radically changes an existing product or process into a new
model.
Design Thinking - ANSWER-A human-centered process for innovation consisting of six
iterative stages—empathize, define, ideate, prototype, test, and implement
Scientific Method - ANSWER-Empirical approach or procedure used to hypothesize and
test observations
Wicked Problem - ANSWER-A challenging or complex problem without a clear solution,
usually social or cultural in nature
How does design thinking differ from traditional problem-solving? - ANSWER-Develops
iterative solutions
Stages of Design Thinking - ANSWER-Empathize, define, ideate, prototype, test, and
implement
Empathy - ANSWER-The ability to understand or be attuned to the feelings, thoughts, or
experiences of another human being
Human Centered Design - ANSWER-Approach to design that begins with the people
(users) affected by the problem or potential solution
Define Stage - ANSWER-Stage of Design Thinking process that builds on observations
of users to identify and refine a problem statement
Ideate Stage - ANSWER-Stage of Design Thinking process where ideas are
brainstormed and generated
Prototype Stage - ANSWER-Stage of Design Thinking process where designers create
testable versions of the ideated solution; draft or example version of a solution that can
be tested and evaluated
Test Stage - ANSWER-Stage of Design Thinking process where the prototype is tested
and additional information can be gathered to inform the solution
Implement Stage - ANSWER-Stage of Design Thinking process where a solution is
brought to scale as a market offering or is adopted throughout the organization
Problem Statement - ANSWER-Brief description of the issue to be addressed through
the design of a solution
Scale - ANSWER-Grow or expand production, distribution, and sale of a product in a
profitable way
A company designed and evaluated a new product concept with customers and
received useful feedback to improve the product's design.
Which stage of design thinking should the company address next? - ANSWER-Prototype
Internet of things (IoT) - ANSWER-Connection of everyday devices via the internet, using
sensors, gauges, and a variety of computing technologies
What is one of the strengths of design thinking? - ANSWER-Ideas are adjusted during
the process.
Key Point - ANSWER-The design thinking process provides a powerful, iterative, human-
centered approach to problem-solving and innovation.
of focus
Innovation - ANSWER-Process of developing and implementing a new product or
process that delivers value to users or customers
Iterative - ANSWER-Repeated cycles that increasingly approach the desired result
Creativity - ANSWER-Generation of novel or unique ideas
Critical Thinking - ANSWER-Disciplined process of rational, evidenced-based, and open-
minded thinking that involves analysis and evaluation of inputs to reach an answer
Market Share - ANSWER-The percentage of sales in a market controlled by a particular
company or product
Customer Value - ANSWER-The benefit (vs. cost) a customer receives from a product or
service offering
Product Innovations - ANSWER-New or improved goods or services offered to the
market
Process Innovations - ANSWER-New or improved ways of conducting business, such as
the application of new technology, production techniques, or distribution methods
Invention - ANSWER-The creation of a unique new idea, process, or object
Which type of innovation adds indirect value to customers by lowering costs and
increasing the quality of new or existing products or services? - ANSWER-Process
Research and Development - ANSWER-Organizational activities with the goal of
innovating products and services
Incremental Innovations - ANSWER-Gradual improvements to products or processes
Breakthrough Innovation - ANSWER-The development of an entirely new product or
process
Transformational Innovation - ANSWER-Organizational adaptation and development of
new processes and business models
Business Model - ANSWER-A company's plan for creating value, including the types of
products and services it will offer to earn revenue
Which type of innovation results in the development of entirely new products or
processes? - ANSWER-Breakthrough
Key Point - ANSWER-Innovation is an activity or process that leads to more effective
products, processes, services, technologies, or ideas. Innovation is the development of
customer value through solutions that meet unmet needs in new ways.
, Key Point - ANSWER-Creativity is the generation of new ideas. Innovation is the
development and implementation of a new idea through a series of stages.
Key Point - ANSWER-Three types of innovation include breakthrough, incremental, and
transformational. Breakthrough innovation results in the development of completely new
products or processes. Incremental innovation occurs through gradual improvements.
Transformational innovation radically changes an existing product or process into a new
model.
Design Thinking - ANSWER-A human-centered process for innovation consisting of six
iterative stages—empathize, define, ideate, prototype, test, and implement
Scientific Method - ANSWER-Empirical approach or procedure used to hypothesize and
test observations
Wicked Problem - ANSWER-A challenging or complex problem without a clear solution,
usually social or cultural in nature
How does design thinking differ from traditional problem-solving? - ANSWER-Develops
iterative solutions
Stages of Design Thinking - ANSWER-Empathize, define, ideate, prototype, test, and
implement
Empathy - ANSWER-The ability to understand or be attuned to the feelings, thoughts, or
experiences of another human being
Human Centered Design - ANSWER-Approach to design that begins with the people
(users) affected by the problem or potential solution
Define Stage - ANSWER-Stage of Design Thinking process that builds on observations
of users to identify and refine a problem statement
Ideate Stage - ANSWER-Stage of Design Thinking process where ideas are
brainstormed and generated
Prototype Stage - ANSWER-Stage of Design Thinking process where designers create
testable versions of the ideated solution; draft or example version of a solution that can
be tested and evaluated
Test Stage - ANSWER-Stage of Design Thinking process where the prototype is tested
and additional information can be gathered to inform the solution
Implement Stage - ANSWER-Stage of Design Thinking process where a solution is
brought to scale as a market offering or is adopted throughout the organization
Problem Statement - ANSWER-Brief description of the issue to be addressed through
the design of a solution
Scale - ANSWER-Grow or expand production, distribution, and sale of a product in a
profitable way
A company designed and evaluated a new product concept with customers and
received useful feedback to improve the product's design.
Which stage of design thinking should the company address next? - ANSWER-Prototype
Internet of things (IoT) - ANSWER-Connection of everyday devices via the internet, using
sensors, gauges, and a variety of computing technologies
What is one of the strengths of design thinking? - ANSWER-Ideas are adjusted during
the process.
Key Point - ANSWER-The design thinking process provides a powerful, iterative, human-
centered approach to problem-solving and innovation.
