MGMT 640 Exam 2/Final Exam Questions and Answers Already Passed
The Innovation Process - Answers - 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 - Answers - 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 - Answers ① Technology improves slowly at first because it
is poorly understood
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
ⓐ 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
ⓒ 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) - Answers
Typically follow S-Shape Curve
3 Types of Technological Change - Answers ① Platform Innovation
, ② Component Innovation
③ Design Innovation
Platform Innovation - Answers (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 - Answers (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 - Answers (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 - Answers ① Introduction Stage
② Growth Stage
③ Maturity Stage
④ Decline Stage
"Jumping the S-Curve" - Answers ① How to beat the growth cycle, get on top and stay there
② High performers that are able to get to top of one S curve and then make the jump/leap to
transition to another successful business (important for a sustained pattern of leaps and jumps)
ⓐ Create edge centered strategy (supplement original strategy)
ⓑ Shake up top management when business is still doing really well
ⓒ Create surplus talent (provides flexibility)
Idea/Innovation funnels - Answers - a conceptual framework with a formal series of identifiable
inputs, actions, and outputs that are used to understand the relevance, risks, and value of an
idea as it progresses to maturity.
- Pipeline process should be flexible and scalable to enable rapid evaluation, and include
appropriate stakeholders for stage gate approvals; the goal is not only to identify new innovative
opportunities, but also to quickly discard ideas that do not have sustainable value.
The Innovation Process - Answers - 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 - Answers - 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 - Answers ① Technology improves slowly at first because it
is poorly understood
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
ⓐ 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
ⓒ 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) - Answers
Typically follow S-Shape Curve
3 Types of Technological Change - Answers ① Platform Innovation
, ② Component Innovation
③ Design Innovation
Platform Innovation - Answers (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 - Answers (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 - Answers (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 - Answers ① Introduction Stage
② Growth Stage
③ Maturity Stage
④ Decline Stage
"Jumping the S-Curve" - Answers ① How to beat the growth cycle, get on top and stay there
② High performers that are able to get to top of one S curve and then make the jump/leap to
transition to another successful business (important for a sustained pattern of leaps and jumps)
ⓐ Create edge centered strategy (supplement original strategy)
ⓑ Shake up top management when business is still doing really well
ⓒ Create surplus talent (provides flexibility)
Idea/Innovation funnels - Answers - a conceptual framework with a formal series of identifiable
inputs, actions, and outputs that are used to understand the relevance, risks, and value of an
idea as it progresses to maturity.
- Pipeline process should be flexible and scalable to enable rapid evaluation, and include
appropriate stakeholders for stage gate approvals; the goal is not only to identify new innovative
opportunities, but also to quickly discard ideas that do not have sustainable value.
