1
MGMT 640 Exam 2/Final Exam Questions
with Correct Answers | Updated (100%
Correct Answers)
The Innovation Process Answer: - Process begins with two creative
acts:
① Idea Generation and
② Opportunity Recognition
- Idea Evaluation/Incubation → Opportunity Recognition
- Commercialization → Final Phase: Moving Ideas to the Market
-Creativity plays a critical role in the innovation process. It sparks
the initial idea, and it helps to improve the idea as it moves forward
S-Curves Answer: - Visually depict how a product, service,
technology or business progress and evolves over time.
- Can be viewed on an incremental level to map product evolutions
and opportunities or on a macro scale to describe the evolution of
businesses and industries
3 "Lessons" from S-Curve Concept Answer: ① Technology improves
slowly at first because it is poorly understood
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② Then accelerates as understanding increases
③ Then tapers off as approaches limits
① Defenders face difficult choices
ⓐ Abandon the business the already own, with all its cash flow and
certainty, in favor of the rival technology
ⓑ Hold onto what they have and work hard to make it better or
useful to more customers
ⓒ Hold onto the existing business and begin investing in the new
technology as a hedge against the future; Seems logical, but has
problems:
- company may not have the competencies to develop new
technology (film vs. digital photography)
- culture of the organization may not welcome the new technology
(IBM mainframe computing vs. desktop computing)
- existing customers may pressure the company to stay in the old
business (tyranny of served markets)
② Leaders in one generation of technology are seldom leaders in
the next
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ⓐ Defenders can enlist various strategies to defeat upstart technical
challenges:
Leapfrog the attacker's technology
Acquire the attacker
ⓑ Examples:
- when mini-computers cam along, upstart Digital Equipment
became the leader, not IBM, the then dominant computer company
- GM and Ford dominated US market until small, efficient vehicles
became popular and foreign competition took leadership
③ Attackers enjoy certain advantages
ⓐ An undivided focus:
Managers of upstart companies spend little time on internal
operations and people issues
They devote most of their attention to development of the new
technology or business model
ⓑ An ability to attract talent:
Capable technical and managerial talent are often attracted to new
ideas with promising futures, especially when stock options are
significant portions of compensation
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, 4
ⓒ The are not captives of powerful customers
Powerful customers persuade established companies to con
(Look of the) Rate of a technology's improvement (and its rate of
market diffusion) Answer: Typically follow S-Shape Curve
3 Types of Technological Change Answer: ① Platform Innovation
② Component Innovation
③ Design Innovation
Platform Innovation Answer: (3 Types of Technological Change)
- the emergence of a new technology based on scientific principles
that are distinctly different from those of existing ones (Ex: CD)
Component Innovation Answer: (3 Types of Technological Change)
- one that uses new parts or materials within the same technological
platform (Ex: magnetic tape, floppy disk, and zip disk)
Design Innovation Answer: (3 Types of Technological Change)
- a reconfiguration of the linkages and layout of components within
the same technological platform (Ex: the decrease in size of floppy
disks)
Stages of a Technology's Life Cycle Answer: ① Introduction Stage
© 2025 All rights reserved
MGMT 640 Exam 2/Final Exam Questions
with Correct Answers | Updated (100%
Correct Answers)
The Innovation Process Answer: - Process begins with two creative
acts:
① Idea Generation and
② Opportunity Recognition
- Idea Evaluation/Incubation → Opportunity Recognition
- Commercialization → Final Phase: Moving Ideas to the Market
-Creativity plays a critical role in the innovation process. It sparks
the initial idea, and it helps to improve the idea as it moves forward
S-Curves Answer: - Visually depict how a product, service,
technology or business progress and evolves over time.
- Can be viewed on an incremental level to map product evolutions
and opportunities or on a macro scale to describe the evolution of
businesses and industries
3 "Lessons" from S-Curve Concept Answer: ① Technology improves
slowly at first because it is poorly understood
© 2025 All rights reserved
,2
② Then accelerates as understanding increases
③ Then tapers off as approaches limits
① Defenders face difficult choices
ⓐ Abandon the business the already own, with all its cash flow and
certainty, in favor of the rival technology
ⓑ Hold onto what they have and work hard to make it better or
useful to more customers
ⓒ Hold onto the existing business and begin investing in the new
technology as a hedge against the future; Seems logical, but has
problems:
- company may not have the competencies to develop new
technology (film vs. digital photography)
- culture of the organization may not welcome the new technology
(IBM mainframe computing vs. desktop computing)
- existing customers may pressure the company to stay in the old
business (tyranny of served markets)
② Leaders in one generation of technology are seldom leaders in
the next
© 2025 All rights reserved
,3
ⓐ Defenders can enlist various strategies to defeat upstart technical
challenges:
Leapfrog the attacker's technology
Acquire the attacker
ⓑ Examples:
- when mini-computers cam along, upstart Digital Equipment
became the leader, not IBM, the then dominant computer company
- GM and Ford dominated US market until small, efficient vehicles
became popular and foreign competition took leadership
③ Attackers enjoy certain advantages
ⓐ An undivided focus:
Managers of upstart companies spend little time on internal
operations and people issues
They devote most of their attention to development of the new
technology or business model
ⓑ An ability to attract talent:
Capable technical and managerial talent are often attracted to new
ideas with promising futures, especially when stock options are
significant portions of compensation
© 2025 All rights reserved
, 4
ⓒ The are not captives of powerful customers
Powerful customers persuade established companies to con
(Look of the) Rate of a technology's improvement (and its rate of
market diffusion) Answer: Typically follow S-Shape Curve
3 Types of Technological Change Answer: ① Platform Innovation
② Component Innovation
③ Design Innovation
Platform Innovation Answer: (3 Types of Technological Change)
- the emergence of a new technology based on scientific principles
that are distinctly different from those of existing ones (Ex: CD)
Component Innovation Answer: (3 Types of Technological Change)
- one that uses new parts or materials within the same technological
platform (Ex: magnetic tape, floppy disk, and zip disk)
Design Innovation Answer: (3 Types of Technological Change)
- a reconfiguration of the linkages and layout of components within
the same technological platform (Ex: the decrease in size of floppy
disks)
Stages of a Technology's Life Cycle Answer: ① Introduction Stage
© 2025 All rights reserved
