CH 12

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: At first, Sean's company was the only clothing manufacturer to make low-waisted jeans. However, within a year, most clothing manufacturers offered similar pants. ex: Although few cell phone manufacturers offered touchscreen phones in the early 2000s, other companies figured out how to add similar technology to their products. ex: The first flat-screen televisions were expensive and offered by few manufacturers. However, within a few years, most televisions incorporated that technology. At this step of the innovation process, most competing organizations have access to the idea.

Maturity Step #5

for or against change? Desire for outcomes associated with status quoDiffering opinions of the situation Feelings of loss Job insecurity Threatened self-interests

against Typical forces against change include different opinions about the situation among stakeholders, feelings of loss, threatened self-interests among stakeholders, and feelings of uncertainty. Note that the forces may not always be rational .A common force against change is the discomfort associated with ambiguity and fear. The perceived benefits of making the change must outweigh the factors against change if the change is to be successful.

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: Once the entire lot around a newly built home is ready, a gardener adds all of the landscaping during a 3-day period, instead of planting small sections over an extended period. ex: A book publisher starts reading each chapter of an author's work as soon as it is written, rather than the former practice of waiting for the entire manuscript to be completed. ex: A single loan officer handles a customer's application throughout the process, rather than having each step completed by a different bank employee. At this step of the innovation process, an organization uses a developed idea in the design, manufacturing, or delivery of new products, services, or processes.

application step #2

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: Gilberto considers whether a narrower version of the company's smartphone would make the screen too small for most users' needs. ex: Tim sends a survey to customers to better understand their level of interest in two features that may be added to his company's product. ex: Neha compares several recent sneaker releases to choose the colorways for her company's next limited edition shoe. At this step of the innovation process, an organization evaluates, modifies, and improves on a creative idea.

development step #1

external or internal force to inciting organization change? Rapid growth in a competitor's user base New ad formats offered by competitors Pessimistic forecasts by industry analysts Laws affecting the industry, such as internet neutrality legislation

external

for or against change? Influence of a change agent Focus on corporate mission Ability to compete effectively

for change

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: Although most people thought neon Hammer pants would never come back in style, thousands of pairs sold after a popular singer wore a pair during a national television interview. ex: Once Maria's new clothing line got publicity on blogs and social media, and people began to see the products, sales started to steadily increase. ex: Musashi started selling a mixtape on street corners. Once it got play time on a local radio station, thousands of people downloaded it from online sites. At this step of the innovation process, demand for new products or services grows.

growth step #4

What rate of change exists in Twitter's business environment? Staying the same Increasing A U-shaped curve Decreasing

increasing Overall, organizations today face increasing change. Technology and globalization, in particular, are changing at faster and faster paces, and organizations such as Twitter have to change more and more rapidly to keep up.

is this a radical or incremental innovation? gmail Ford's EcoBoost engine Samsung Galaxy5 these innovations are new products or processes that modify existing ones.

incremental

external or internal force to inciting organization change? Company owners' desire for higher rate of return on investmentsInnovation that improves user experience

internal

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: Learning from its staffing shortages in the past, a concert venue now has extra ticket-office staff working the first few days after popular concert tickets first become available. ex: A shoe company now has its marketing and distribution departments work together on release dates; this prevents ads from appearing before the shoes are actually available ex: A clothing company ships new products to stores 2 weeks before the release date (instead of just 5 days early) to ensure they are available to customers on the release date. At this step of the innovation process, an organization introduces new products or services to the marketplace.

launch step #3

Innovations can be categorized as radical or incremental, technical or managerial, and product or process. is this technical or managerial: changes in the management process ex: CRM systems Instant Messaging

managerial

What reasons might have contributed to the failure of fire stations to adopt the innovation? Check all that apply. Culture of entrepreneurship Lack of financial resources Failure to recognize opportunity Complacency

Lack of financial resources Complacency

What type of change did Twitter make when it appointed Dorsey CEO in response to concerns about its declining stock values? Sustainable Reactive Planned Organic

Reactive

If Twitter changed CEOs to restore confidence among investors, to what could the change be attributed? An external force Organic change An internal force Maintenance

An internal force Internal forces compelled the change in leadership roles. The decision was based on factors within (and not external to) the company.

Which techniques would you recommend that eBay's leadership utilize to overcome resistance to change in this situation? Check all that apply. -Communicate how the change will affect people on an individual basis. -Educate stakeholders about the benefits of the change. -Tell employees that change should be like ripping off a band-aid—the faster the change, the less painful it is. -Promise to quit if the change is not successful. -Promise those affected by the change that it will be the only time the company will make changes in structure or strategy.

Communicate how the change will affect people on an individual basis. Educate stakeholders about the benefits of the change. There are several techniques managers can use to overcome change resistance. These include participation, education, communication, and force-field analysis. Threats, punishments, and lack of participation would enhance the feelings of resistance and anxiety about the change.

Eastman Kodak remained entrenched in film photography, despite the innovation by its own engineers of digital modes. What were the most likely reasons for the company's failure to innovate? Check all that apply. Complacency Lack of expertise Failure to recognize opportunity Lack of financial resources

Complacency Failure to recognize opportunity

which step of the general life cycle of innovation? Development / Application / Launch / Growth / Maturity / Decline ex: Rather than watching television shows on traditional televisions, many people subscribe to Internet-based services or watch shows on their smartphones. ex: While some students still prefer traditional textbooks, many now choose e-books, because of the added features they provide. ex: A manufacturer that makes compact disk (CD) players sold fewer CD players once people began buying music in MP3 format. At the decline stage of the innovation process, demand for an innovation decreases, and substitute innovations are developed and applied.

Decline Step #6

Under which condition would you recommend that the CEO consider a business process change? If the enterprise resource planning system is adequate If the change program will involve all aspects of design, technology, and people If a major reengineering has not occurred in the last 10 years

If the change program will involve all aspects of design, technology, and people Business process change, also known as reengineering, is appropriate when the change will involve all three areas of organization change.

What do you recommend Donahoe do once he has ensured those affected by the separation recognize the need for change? Implement the change. Reinforce and support the change. Eliminate individuals who voice opposition to the change.

Implement the change. The first step is unfreezing. This is accomplished by leading those involved to recognize why the change is necessary. The second step is to implement the change itself. The final step is to reinforce and support the change so that it is successful.

What are the most likely reasons the USPS failed to innovate? Check all that apply. Failure to recognize opportunity Lack of resources Resistance to change Time to innovate

Lack of resources Resistance to change

If the management team wants to improve its competitive position by increasing the ability of the company to innovate, in what area should the team focus? People Technology and operations Organization structure and design

People A key factor in the ability to innovate is the quality of the workforce. If management decides to improve innovation at your company, it should focus on ideas that will transform the way people behave in the organization.

How could Twitter maximize its effectiveness? -Minimize the number of changes it makes overall -Change frequently at the top levels of the company, but keep the bottom levels of the company the same -Frequently change its strategies, but rarely change the way employees do their work -Proactively change to keep up with changes in its environment

Proactively change to keep up with changes in its environment Effective organizations need to proactively change to keep up with changes in their environments. As Twitter's environment changes, the company has to create new strategies that will be effective in the new environment. Those new strategies will change the way each company employee does his or her work.

which area of organizational change: organization structure and design / technology and operations / people? job design departmentalization reporting relationships authority distribution coordination mechanisms line-staff structure overall design culture human resource management

organization structure and design

which area of organizational change: organization structure and design / technology and operations / people? abilities and skills performance perceptions expectations attitude values

people

Even if Dorsey is a more effective CEO, it will be impossible to make all changes at Twitter (proactive/reactive/planned) changes , because it is impossible to eliminate the chance that reactive changes will be necessary.

planned Managers should remember that no amount of foresight can totally eliminate the chance that the organization will need to adapt to some unexpected circumstance.

process or product innovation: changes in the way products or services are manufactured, created, or distributed. ex: RedBox Robotic automation 3D printing

process Process innovations are changes in the way products or services are manufactured, created, or distributed.

process or product innovation: technical innovations that include changes in physical appearance or performance, or the creation of brand-new products or services ex: Nest home thermostat, Fitbit

product Product innovations are technical innovations that include changes in physical appearance or performance, or the creation of brand-new products or services

is this a radical or incremental innovation? netflix broadband these innovations are new products, services, or technologies developed by an organization that completely replace the existing products, services, or technologies in an industry.

radical

Innovations can be categorized as radical or incremental, technical or managerial, and product or process. is this technical or managerial: changes in the physical appearance or performance of a product or service, or of the physical processes through which a product or service is manufactured. ex: Online banking Self check-out system Direct deposit

technical

which area of organizational change: organization structure and design / technology and operations / people? information technology equipment work processes work sequences control systems enterprise resource planning

technology and operations

Which techniques would you recommend that eBay's leadership utilize to overcome resistance to change in this situation? Check all that apply. Discourage stakeholders from expressing anxiety about the change. Announce the change well in advance. Eliminate the ability for stakeholders to learn about the consequences of the change. Remove displaced workers from the organization before they can negatively influence organizational morale. Encourage employees to participate in implementing the change.

Announce the change well in advance. Encourage employees to participate in implementing the change.

Which of the following statements describes an organization's use of cultural symbols to promote innovation? Check all that apply. The Martin Agency has no limit on the days of vacation employees can take. Google's corporate campus features a giant slide and nap pods. A large art installation of push pins positioned prominently on a wall in Wieden & Kennedy's headquarters spells out the agency mantra, Fail Harder. Bronze statues of great athletes like Michael Jordan adorn Nike's corporate headquarters. GradyWhite Boats offers a financial bonus company-wide when revenue goals are met. Google has a "20% Time" policy. A fifth of an employee's time at work can be spent working on ideas and projects of personal interest. All of Google's work facilities incorporate snack and beverage stations within a 150 feet of employee work spaces. DreamWorks Animation offers employees fully-paid sabbaticals.

Google's corporate campus features a giant slide and nap pods. A large art installation of push pins positioned prominently on a wall in Wieden & Kennedy's headquarters spells out the agency mantra, Fail Harder. Google has a "20% Time" policy. A fifth of an employee's time at work can be spent working on ideas and projects of personal interest. DreamWorks Animation offers employees fully-paid sabbaticals. The mantra, fail harder, suggests a commitment to innovation. The giant slide at Google also supports its image as an innovative work environment. Vacation days are employee benefit, not a cultural symbol. Nike's bronze statues are cultural symbols but the focus on athletes does not directly relate to innovation. Structural support for innovation is present in the time policy and in the use of sabbaticals as an employee benefit. Financial bonuses and dining facilities are not related to job design.

According to force-field analysis, what is the final thing you recommend Donahoe do to ensure the change accomplishes what was intended? Reinforce and support the change, also called refreezing. Allocate blame for the forces that led to the need for change. Justify the need for the change.

Reinforce and support the change, also called refreezing.

Which factors encouraged change in this situation? Check all that apply. Investors seek to maximize their return on investment. The two businesses have different needs when it comes to managing the environment, choosing strategy, and structuring the organization. Donahoe, eBay's CEO, wanted more power over the future of the company. Investors, led by Carl Icahn, believed PayPal could be far more successful if it pursued its own strategic vision.

The two businesses have different needs when it comes to managing the environment, choosing strategy, and structuring the organization. Investors, led by Carl Icahn, believed PayPal could be far more successful if it pursued its own strategic vision. Forces for change encourage a change to take place. In this case, Icahn voiced support for the change. Separating two companies that need vastly different strategies to optimize growth and earnings is also a force for change. Investors do seek to maximize their returns, but it is unknown whether they would earn more with the companies merged or separated. Donahoe is stepping down, so an assumption about his desire for power is unfounded.

According to the case study, which of the following are likely reasons Twitter changed its executive leadership? Check all that apply. Twitter wanted a more streamlined decision-making process. Twitter must achieve a higher conversion rate of passive to active users. Twitter needed new leadership to better establish a strong value proposition for users. Twitter faced increased competition from companies such as Facebook.

Twitter wanted a more streamlined decision-making process. Twitter must achieve a higher conversion rate of passive to active users. Twitter needed new leadership to better establish a strong value proposition for users. Twitter faced increased competition from companies such as Facebook. There are many possible reasons for the CEO change at Twitter, both internal and external to the company. Internally, the company is growing, but not at the rapid pace investors expected. Twitter has also failed internally to establish a strong value proposition for users. Its own investors expect the organization to identify ways to operate more effectively. Externally, Twitter is operating in a rapidly changing business environment, facing increasing business competition from Facebook, Instagram, and others. Financial analysts have expressed concern over its ability to achieve earnings goals. Twitter was not losing money at the time of the change, nor did its board of directors demand the change, so these would not be reasons for the change. Its leadership has not sought to charge users fees, leaving open the possibility of monetization of passive users.