ENTRP 350 Final Exam

applied research

directed at increasing the understanding of a topic to meet a specific need/application

Quantitative methods for choosing projects

discounted cash flow - net present value - internal rate of return real options

What must a patent application include?

drawings written description one or more claims

Magnitude inc was the first company to introduce a video gaming console in the market. However, consumers were uncertain about the product, and its high costs discouraged consumers from purchasing it. Eventually, magnitude withdrew the product from the market. A few years later, mantel corp and adventura inc came up with their respective gaming consoles and successfully established their products. In this scenario mantel and adventura inc are...

early followers

basic research

effort directed at increasing understanding of a topic or field without a specific immediate commercial application in mind

functional development team

employees remain within functional departments - appropriate for derivative projects that only affect a single function of the firm

lightweight development team

employees remain within functional departments, but project manager provides cross-functional integration

Pioneer athletics inc wants to provide better landing mats for gymnasts. It therefore asks its foam supplier to use a new innovative process to manufacture higher quality, durable foam in its mats. This new process used to develop the foam represents a(n) ______ for pioneer athletics.

enabling technology

early followers

entrants that are early to market, but not first

Alpha information is a firm that manufactures desktop computers and wireless network hardware components. The company is spending heavily of R & D to experiment with new designs for wireless networks instead of trying to refine how well they make their current wireless network hardware components. The firm is going through a period of ambiguity and anxiety. Alpha information Inc. is in the:

era of ferment

If a firm has the option of investing in R&D, the cost of commercializing a new technology that is developed can be considered the:

exercise price

Formalization

extent to which firms use rules, procedures and written documentation

first movers

first entrants to sell in a new product/service category

Josh is the executive VP of a bank. The president of the bank has recently asked Josh to use his influence to ensure that the banks online banking project is developed and implemented. Josh has been asked to be a(n):

project champion

autonomous development team

project manager provides cross-functional integration; team members are collocated and report only to project manager

heavyweight development team

project managers provide cross-functional integration; team members are collocated but report to senior level manager

qualitative methods for choosing projects

screening questions aggregate project planning framework Q-sort

skunk works

suggests R&D teams need to be isolated from the rest of the organization

factors that make it difficult or expensive to change suppliers or buyers are referred to as _______?

switching costs

capital rationing

the allocation of a finite quantity of resources over different possible uses

agglomeration economies

the benefits firms reap by locating in close geographical proximity to each other

standardization

the degree to which work activities are performed in a routine fashion

net present value

the discounted cash inflows of a project minus the discounted cash outflows - a form of discounted cash flow analysis

learning effect

the more a product is developed, the more effective and efficient it becomes

installed base

the number of users of a particular good

What is innovation?

the practical implementation of an idea into a new device or process

technology diffusion

the spread of technology through a population

what is the difference between a trademark and a service mark?

trademark is for a product, service mark is for a service

joint venture

two firms come together to produce a third entity

discounted cash flow methods

used for assessing whether the anticipated future benefits are large enough to justify expenditure. Takes into account payback period, risk, and time value of money

demand pull

user wants it so company makes it

Science Push

what scientists think is important, so they push it out

increasing returns to adoption

when the rate of return from a product or process increases with the size of its installed base

icarus paradox

where success in existing lines of business or products can lead to overconfidence and carelessness

what is the NPV of a project if the present value of cash inflow is $10,000 and the present value of cash outflows is $5,000?

$5,000

Where can innovation originate?

- individuals - universities - government funded labs - nonprofit organization

technological spillovers

A positive externality from R&D resulting from the spread of knowledge across organizational or regional boundaries.

Nigel belongs to a wealthy family. Hes always enjoyed trying out new gadgets and devices that are launched in the market. Since he is financially well-off, he likes to experiment with expensive products and is comfortable with the risks and uncertainties associated with these products. Based on this description, Nigel most likely belongs to the group of

Innovators

Real options

The application of stock option valuation methods to investments in non-financial assets

efficiency frontier

The range of hypothetical configurations that optimize a combination of features.

internal rate of return

The rate of return yielded by a project, normally calculated as the discount rate that makes the net present value of an investment equal zero.

R&D intensity

The ratio of R&D expenditures to sales.

technology clusters

clusters of firms that have a connection to a common technology, and may engage in buyer, supplier, and complementor relationships

strategic alliance

combines skills and resources temporary agreement

methods used for combining qualitative and quantitative information

conjoint analysis data envelopment analysis efficiency frontier

platform ecosystems

contraction of ecological and system, refers to a system where elements share some form of mutual dependence

copyright

covers all manners of writings/art

design patents

covers only the appearance of a product

how do large firms obtain advantages of a small firm?

creating virtual or modular organizations by disaggregation (breaking into smaller divisions)

S- curves and technology diffusion are obtained by plotting the:

cumulative number of adopters of a technology against time

According to porters five forces model, if suppliers of a particular good are very abundant, ________________.

Bargaining power will be less

NPV formula

Cash inflows - Cash outflows

centralization

Degree to which decision-making authority is restricted to higher levels of management in an organization.

How do you calculate new present value?

PV of cash inflows minus PV of cash outflows

licensing

a contractual agreement between two parties

Conjoint Analysis

a family of techniques used to estimate the specific value individuals place on some attribute of choice

Which of the following statements is true of using marketing to shape perceptions and expectations?

a firm can signal its commitment to an industry by making substantial investments that would be difficult to reverse

s-shape curve

a graph of technology performance over cumulative effort

data envelopment analysis

a method of ranking projects based on multiple decision criteria by comparing them to a hypothetical efficiency frontier

What is the intranet?

a private network, accessible only to authorized individuals.

dominant design

a single process or product architecture that dominates a product category - usually 50 percent of the market or more

discontinuous technology

a technology that fulfils a similar market need by building on an entirely new knowledge base

service mark

a word or symbol combination used to protect a service

absorptive capacity

ability of an organization to recognize, and utilize new knowledge

radical innovation

an innovation that is very new and different from prior solutions

incremental innovation

an innovation that makes a relatively minor change from existing practices

mechanistic structures

high levels of formalization and standardization - best used when organizations aim is operational efficiency

Locally leveraged strategy

identifies the most creative resources and innovative developments

Quality Function Deployment (QFD)

improves communication and coordination between engineering, marketing, and manufacturing personnel

According to porters five force model, if a buyer can threaten to backward vertically integrate, it will:

increase the buyers bargaining power

Architectual innovation

innovation that changes the overall design of a system or the way its components interact with each other

modular innovation

innovation to one or more components that does not significantly affect the overall configuration of the system

Which of the following is a feature of a joint venture that differentiates it from other forms of alliances?

involves a significant stake by the partners

trade secrets

knowledge that is kept secret for the purpose of gaining an advantage in business over ones competitors

organic structures

low formalization and low standardization - best used when goal is to foster innovation

q-sort

method of ranking ideas or objects on a number of dimensions

Karens supervisor, while discussing her participation in a new product development team, tells her that she has been engaging in social loafing. This means that Karen:

not putting enough effort into the teams work

trademark

obtainable for any word, symbol, or combination thereof that is used on goods to indicate their source

Which of the following is true of lightweight teams?

offer a small improvement in team coordination and likelihood of success over functional teams

The demand-pull approach to research and development refers to innovation that:

originates as a response to the specific problems or suggestions of the customer

technology trajectory

path a technology takes through its lifetime