CH 12 Managing Innovation

Which of the following statements regarding the incremental versus preemptive launch challenges to innovation are correct? (Check all that apply.)

A preemptive launch requires more resources. An incremental launch is less risky because it requires fewer resources. An incremental launch may allow competitors to respond.

Product innovation tends to be more common during which stage of the industry life cycle?

The introduction stage

Which of the following are true about managing the pace of radical innovation? (Check all that apply.)

The project timeline is typically as long as 10 years or more. There is often open-ended experimentation with time-consuming mistakes. It has long periods of exploration in which experimentation makes strict timelines unrealistic.

Companies can use real options logic to invest in young firms using funds called corporate capital that are earmarked for such investments.

venture

Collaborating on innovation projects with other companies is Blank______.

often the best means to achieve success, since new skills and insights are needed.

Place the steps to leveraging business technologies or competencies in new markets in their correct order, with the first step at the top.

1. Redefine the technology or competency. 2. Identify new applications 3. Select the most promising applications 4. Choose the best mode of entry.

______ innovation is an innovation that enhances existing practices or makes small improvements in products and processes.

Incremental

Which of the following statements about radical innovation are true? (Check all that apply.)

It is usually due to technological change. It tends to be highly disruptive. It may lead to products or processes that can be patented.

Which of the following statements about innovation are true?

It must involve using new knowledge. New technology is among the most important sources for innovation. There can be innovation made to human resources, marketing, and a firm's infrastructure.

Which of the following are resources or services that business incubators provide start-up companies?

funding business services physical space

Which of the following are resources or services that business incubators provide start-up companies? (Check all that apply.)

funding business services physical space

Which of the following are among the challenges to innovation?

internal versus external staffing seeds versus weeds experience versus Initiative

Which of the following refers to a firm-specific view of innovation that defines how a firm can create new knowledge and learn from an innovation initiative even if the project fails?

strategic envelope

What is the goal of redefining a particular competency or technology?

to broaden its possible applications

Innovation by managers requires creative intelligence, which is driven by which of the following?

Associating Observing Experimenting

Guidelines for competing in a dynamic, innovative market in which a winning technology has not yet become dominant include which of the following? (Check all that apply.)

Be cautious about overcommitting in an attempt to be seen as a leader in the market. Apply knowledge gained from an innovation that has failed to new market opportunities. Be aware that making initial correct innovation choices does not prevent later mistakes.

Which of the following affect whether a typical company will pursue entrepreneurial projects? (Check all that apply.)

Corporate culture Leaders' attitude Organizational structure

______ is the creation of new value for a company through investments that create either new sources of competitive advantage or renewal of the value proposition.

Corporate entrepreneurship

Which of the following statements regarding risk taking are true?

Entrepreneurial firms often will assume higher levels of debt in order to introduce new products into new markets. Entrepreneurial managers will forgo methods or products that have worked in the past. Corporate entrepreneurs often choose riskier alternatives in order to be successful.

True or false: A sustaining innovation is a type of disruptive innovation.

False

Which of the following statements about process innovation are correct? (Check all that apply.)

Firms can often improve by drawing on new technologies and the organization's experience. They are associated with an overall cost leadership strategy. Process innovation is likely to occur during later stages of the industry life cycle.

Which of the following statements regarding collaborating with innovation partners are correct? (Check all that apply.)

Firms must identify their strengths and weaknesses to ensure they select a partner that is complementary. Networks of partners can result in increased speed and ease when innovation is conducted. Innovation partners may come from many sources, including research universities.

______ is the use of new knowledge to transform organizational processes or create commercially viable products and services.

Innovation

______ innovation refers to efforts to improve the efficiency of organizational processes, especially manufacturing systems and operations.

Process

______ innovation involves efforts to create product designs and applications of technology to develop new products for end users.

Product

______ innovation is an innovation that fundamentally changes existing practices.

Radical

Which of the following regarding the challenges to innovation of experience versus initiative are correct? (Check all that apply.)

Senior managers must determine who is best suited to lead an innovation project. Senior managers have experience but may be too risk averse to lead an innovation product. Mid-level employees may not have as much experience but may be able to understand how an innovation would address specific problems.

True or false: Companies are often reluctant to invest time and other resources into activities with an unknown future.

True

True or false: Disruptive innovations appeal to less demanding customers who want more convenient and less expensive solutions.

True

True or false: Real options analysis is suitable for strategic decisions for investments that give a company the right, but not the obligation, to make subsequent investments.

True

Which factors determine the way a company approaches entrepreneurial ventures? (Check all that apply.)

Whether it uses teams in strategic decision making Whether it is product- or service-oriented Whether it bases innovations on products or process

What do companies gain when they use real options logic to invest in promising start-ups?

access to emerging technology

In successful CE, which of the following often provide the greatest returns?

breakthrough opportunities

Focusing a firm's innovation efforts to a strategic limits the scope of the firm's efforts and helps avoid wasting resources on the project.

envelope

A(n) Blank______ champion is an individual working within a corporation who is willing to question the viability of a venture project by demanding hard evidence of venture success and challenging the belief system that carries a venture forward.

exit

In companies with many innovative ideas, deciding which ideas to cultivate and which to cast aside is known as Blank______.

seeds versus weeds

Firms that use a focused approach to entrepreneurship typically Blank______.

separate the venturing activities from the rest of the ongoing operations

Which of the following are examples of staffing practices for innovation that are counterproductive? (Check all that apply.)

A climate where innovation teams are treated as second-class citizens A team consisting of volunteers who want to work on projects they find interesting A team consisting of strong employees taken from the company's core business

Which of the following are among the human resources management practices that help firms to capture value from innovation efforts? (Check all that apply.)

Create innovation teams with experienced members who know how to deal with ambiguity. Require employees to serve in the new venture group as part of their career ladder. Separate an individual's performance from the innovation project's performance.

Which of the following statements about managers being able to develop innovative products and services are correct? (Check all that apply.)

Creative intelligence is the key attribute that firms need to develop in their managers. Practicing questioning, observing, experimenting, and networking will make managers more innovative thinkers. Questioning, observing, experimenting, and networking play important roles in the innovative process.

Which of the following statements about the seeds versus weeds challenge to innovation are correct? (Check all that apply.)

Some projects require a considerable level of investment before their worth can be evaluated. Companies need to develop a mechanism with which they can select among various opportunities.

Which of the following are the aims of corporate entrepreneurship (CE)? (Check all that apply.)

Strategic renewal within the company The pursuit of new venture opportunities

Which of the following statements about disruptive innovations are true? (Check all that apply.)

They appeal to less demanding customers who are seeking more convenient, less-expensive solutions. They are technologically simpler and less sophisticated than currently available products or services. They take time to take effect and only become disruptive once they have taken root in a new market or low-end part of an existing market.

Which of the following are true about sustaining innovations? (Check all that apply.)

They often enable new products or services to be sold at higher margins. They include either incremental or radical innovations. They extend sales in an existing market.

Which of the following are guidelines for successfully competing in dynamic markets with high technology uncertainty? (Check all that apply.)

Don't over commit, because it can lead to becoming entrenched in the technology that managers select. Consider staying in the market, even when betting on the wrong technology, so that the company does not miss out on future opportunities. Change course quickly (pivot) once a mistake is realized.

Which of the following statements regarding the building capabilities versus collaborating challenges to innovation are true? (Check all that apply.)

Innovation projects often require new sets of skills not found in the company. Partners bring new skills and other resources and also share risk. Partnerships may inhibit internal skill development.

Which of the following statements regarding the internal versus external staffing challenges to innovation are correct? (Check all that apply.)

Internal personnel may be inhibited from thinking outside the box due to their knowledge of their organization's culture and routines. People within the firm may have greater social capital and know the organization's culture and routines. Project managers must be able to justify the time required to hire, train, and help with relationship building for new personnel.

Which of the following statements about incremental innovations are correct? (Check all that apply.)

It can be a source of competitive advantage. It often extends or expands the firm's product line or manufacturing skills. It enhances existing practices.

Which of the following are true about managing the pace of incremental innovation? (Check all that apply.)

Milestones are often driven by stringent goals and deadlines. Development is usually at a fast pace to get innovations out at a planned pace. The project time may be six months to two years.