chapter 17

Wyatt, a senior member in an organization, received a pay raise when the company implemented some changes in response to a new technology that it had adopted. This is an example of a _____ compensation.

person-contigent

Billy works at a leather factory as an experimental scientist. Through his experiments, he learns that soaking leather in a lime mixture infused with oil from a species of wild flower cuts in half the time and labor needed to soften leather. As a result, the factory changes its leather softening procedure to incorporate Billy's more efficient method. Billy's discovery is an example of

process innovation

A(n) _____ is a person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.

product champion

Mike worked at the Stanford Molding Company as a technician, and he developed an instrument to help test the quality of plastic products. The section supervisor, Keith, thought that Mike's instrument was so clever that the company should make it widely available for all technicians in the company. Keith convinced a number of other managers to have their employees try Mike's innovation. Keith's role in developing the new device is that of a(n)

product champion

Required information Scenario D. Total Vital Life Inc. develops foods and beverages aimed at boosting the energy levels of athletic and active individuals. In a product development meeting, Justin suggests that Total Vital Life acquire a newly developed technology for infusing vitamin and mineral blends into food, created by Sound Nutrition Co. Justin believes that it would be easiest and fastest to acquire the technology straight from Sound Nutrition. Matthew, although supportive of the infusing idea, feels that the methodology behind the next generation of Total Vital bars should be kept exclusive. Matthew knows it may take longer to produce the technology and the bars, but he feels that the competitive advantage and exclusivity are worth the wait. Finally, Marci likes Justin's idea of incorporating the Sound Nutrition technology but feels that Total Vital does not possess sufficient financial resources to buy the technology outright. She suggests that they should opt for something more economical. Which of the following methods of acquiring technology does Justin support?

purchase

In most situations, the simplest, easiest, and most cost-effective way to acquire new technology is to

purchase it

Nightingale Inc. has introduced a voice recognition machine system that enables machines to recognize a worker's voice and respond to commands. The company is yet to prove the full value of this product. However, organizations that have used the product appropriately have found that it efficiently speeds up various processes. Nightingale Inc.'s voice recognition machine system is an example of a(n) _____ technology.

pacing

Scenario B. Researchers at SunStrength Inc. found a new solar-power technology suitable for cell phones. However, the technology is still being developed and is yet to be proved functional. Activoice Inc. has developed a very useful cell-phone technology based on voice activation. However, the technology is expensive and has yet to prove its full value. Ocean Gale Corp. has developed a technology that can be used with any cell-phone lithium-ion battery to reduce energy consumption. The system has proved to be very effective, but not all cell-phone manufacturers have adopted it yet. Activoice Inc. has developed a useful cell-phone technology that has yet to prove its full value. This is an example of a(n) _____ technology.

pacing

In assessing external technological trends, benchmarking and scanning are similar in that both are concerned with

pacing technologies

Which of the following is one of the compensation practices used in an advanced manufacturing firm?

pay based on a salary

Gene asks his employee Rhian to clearly identify the technologies that their company depends on most. Gene is asking Rhian to perform a(n)

technology audit

Charmed Power Inc. is working on a fast battery-recharging system that is still under development and has yet to be approved. Charmed Power's product is an example of a(n) _____ technology.

emerging

Planetary Systems is developing a gas vapor detection system that will be able to tell when a fuel system is in the early stages of becoming inefficient in a manner needing adjustment and will then sound an alarm to notify the driver. The system is still in the trial stages and has not been proven to be effective. What type of technology is this?

emerging

In the technology life cycle, which of the following follows the initial recognition of a need coupled with potential to satisfy that need through science?

knowledge and ideas are brought together and developed

Floyd is the CEO of Black Sand Inc. He is in need of an updated technology and is questioning whether he should develop it or acquire it from external sources. This is an example of

a make-or-buy decision

Scenario A. Business Breakthroughs Inc. has come up with a new technology to make organizational processes easier, and the company promotes it to other organizations. Sharp Perspectives Corp. is a fast-growing organization that is willing to try Business Breakthroughs' new technology. Prince Mechanical Systems Corp. has been going through a difficult period and therefore adopts the technology out of economic necessity to improve its operations. Prep Teams Inc. feels that the new technology has nothing to offer and therefore chooses not to adopt it. Business Breakthroughs is concerned about Backdoor Creations Corp.'s opinion on the new technology because Backdoor Creations is a leading organization to which others look for ideas and technological information. Backdoor Creations Corp. is an example of

an early adopter

Oxy Systems Corp. was the first company to utilize a new device developed by Symbol Developers Inc. that enabled Oxy to locate previously undetected underground hot springs that could be tapped as geothermal heating sources. Oxy Systems tested the device and provided a testimonial to other organizations about the product. However, the other organizations were hesitant and decided to wait until the product was proven reliable. In this case, Oxy Systems can be classified as

an innovator

A(n) _____ firm needs to stay technologically competitive but tends to allow others to demonstrate solid demand in new arenas before it responds.

analyzer

Harvey heads a company that builds stairways and ramps. One of his lead scientists, Carrie, has an idea to create an outdoor stairway that automatically adjusts to the slope of the ground. Her research is very well done and provides some interesting discoveries, but her project does not succeed. How should Harvey deal with Carrie's failure to complete her project successfully?

ask her to see if she can apply her results to another project that will work

Although competitors understandably are reluctant to share their secrets, information trading for _____ is not uncommon and can prove highly valuable.

benchmarking

Katrina is part of a committee that must decide whether the company should adopt a new technology. Katrina's task is to compare the proposed technology to the technology that other companies in her industry use. This task is known as

benchmarking

Technology followership can be used to support

both low-cost and differentiation strategies

Although _____ is useful to maintain orderliness and gain efficiencies, it is an enemy of innovation.

bureaucracy

Group Line Transport, a company that creates components used by the shipping industry, has an urgent request to create a transport method for one of their clients, Envirolight Creations. Envirolight needs to find a better way to economically ship its oversized, but very light and delicate solar panel components. How should Group Line approach this situation?

by creating a special, temporary group to work on this issue separately from group line's other business

Darius is designing a new type of self-driving automobile guidance system. He explains to Janelle, his supervisor, that it has far more accurate sensing capabilities than current models, uses current satellite technology used in available guidance systems, can readily be implanted in experimental cars at his company's test facility, incorporates five times as many features and complicated circuitry as current models, and can be easily manufactured by tweaking existing production machinery. Janelle says it is a good start, but she has some concerns. Why is Janelle most likely concerned?

darius's model has must greater complexity than its predecessor

Julia focuses her organization in an effort to use technological advances to create a new process. Julia is leading her organization through a

development project

Lowland Corp. devised a Wi-Fi based home security system that was not very popular initially. However, a few years later, the technology was in high demand in the market. This is an example of

disruptive innovation

Which of the following will best help an organization decide if the time is right to adopt a new technology?

doing a cost benefit analysis

Of the five groups of adopters of a new technology, the group that includes the people or organizations to which others look for leadership, ideas, and up-to-date technical information are known as the

early adopters

The exploding growth in piracy or fakery of patented pharmaceuticals, software, and other products has added new barriers to

economic viability

Scenario B. Researchers at SunStrength Inc. found a new solar-power technology suitable for cell phones. However, the technology is still being developed and is yet to be proved functional. Activoice Inc. has developed a very useful cell-phone technology based on voice activation. However, the technology is expensive and has yet to prove its full value. Ocean Gale Corp. has developed a technology that can be used with any cell-phone lithium-ion battery to reduce energy consumption. The system has proved to be very effective, but not all cell-phone manufacturers have adopted it yet. Sunstrength Inc.'s new solar-cell technology would be an example of a(n) _____ technology.

emerging

Required information Scenario E. Bo has developed a new technology for his organization Limb Trim Corp. Segundo, his colleague, has been promoting the idea of the new technology in the organization at his own risk. Garrett, their boss, supports Bo's idea and helps protect Segundo from getting into trouble and provides financial help toward the project as well. From Scenario E, it can be inferred that Garrett plays the role of

executive champion

Which of the following refers to the stage of the technology life cycle that is characterized by recognition of a need, a perception of a means to satisfy that need through applied science or knowledge, and slow progress?

identifying early problems

One of the determinants in assessing market receptiveness is the

immediate, valuable application of the new technology

A disadvantage of technology leadership is

infrastructure costs

Scenario A. Business Breakthroughs Inc. has come up with a new technology to make organizational processes easier, and the company promotes it to other organizations. Sharp Perspectives Corp. is a fast-growing organization that is willing to try Business Breakthroughs' new technology. Prince Mechanical Systems Corp. has been going through a difficult period and therefore adopts the technology out of economic necessity to improve its operations. Prep Teams Inc. feels that the new technology has nothing to offer and therefore chooses not to adopt it. Business Breakthroughs is concerned about Backdoor Creations Corp.'s opinion on the new technology because Backdoor Creations is a leading organization to which others look for ideas and technological information. Which of the following groups of adopters of a new technology is exemplified by Sharp Perspectives Corp.?

innovators

Which of the following groups is most likely to pay a premium for the latest and newest technology or product to come along and to champion it if it meets with their approval?

innovators

Required information Scenario A. Business Breakthroughs Inc. has come up with a new technology to make organizational processes easier, and the company promotes it to other organizations. Sharp Perspectives Corp. is a fast-growing organization that is willing to try Business Breakthroughs' new technology. Prince Mechanical Systems Corp. has been going through a difficult period and therefore adopts the technology out of economic necessity to improve its operations. Prep Teams Inc. feels that the new technology has nothing to offer and therefore chooses not to adopt it. Business Breakthroughs is concerned about Backdoor Creations Corp.'s opinion on the new technology because Backdoor Creations is a leading organization to which others look for ideas and technological information. Which of the following groups of adopters of a new technology is exemplified by Sharp Perspectives Corp.?

innvovators

Required information Scenario D. Total Vital Life Inc. develops foods and beverages aimed at boosting the energy levels of athletic and active individuals. In a product development meeting, Justin suggests that Total Vital Life acquire a newly developed technology for infusing vitamin and mineral blends into food, created by Sound Nutrition Co. Justin believes that it would be easiest and fastest to acquire the technology straight from Sound Nutrition. Matthew, although supportive of the infusing idea, feels that the methodology behind the next generation of Total Vital bars should be kept exclusive. Matthew knows it may take longer to produce the technology and the bars, but he feels that the competitive advantage and exclusivity are worth the wait. Finally, Marci likes Justin's idea of incorporating the Sound Nutrition technology but feels that Total Vital does not possess sufficient financial resources to buy the technology outright. She suggests that they should opt for something more economical. Which of the following methods of acquiring technology does Matthew support?

internal development

Which of the following options would a company choose when it wants to develop a technology and keep it proprietary?

internal development

Which of the following is true of innovation in the context of management?

it is the new method the creates value

Blue Moon Innovations has developed a grammar-checking program that is better able to account for the idiosyncrasies of the way humans use language. Publishers have found the program effective, but it still has not caught on within the business community. What type of technology is this?

key

Scenario B. Researchers at SunStrength Inc. found a new solar-power technology suitable for cell phones. However, the technology is still being developed and is yet to be proved functional. Activoice Inc. has developed a very useful cell-phone technology based on voice activation. However, the technology is expensive and has yet to prove its full value. Ocean Gale Corp. has developed a technology that can be used with any cell-phone lithium-ion battery to reduce energy consumption. The system has proved to be very effective, but not all cell-phone manufacturers have adopted it yet. Ocean Gale Corp.'s new system is a proven, effective technology that some companies are using to their competitive advantage. This system is an example of a(n)

key technology

Scenario A. Business Breakthroughs Inc. has come up with a new technology to make organizational processes easier, and the company promotes it to other organizations. Sharp Perspectives Corp. is a fast-growing organization that is willing to try Business Breakthroughs' new technology. Prince Mechanical Systems Corp. has been going through a difficult period and therefore adopts the technology out of economic necessity to improve its operations. Prep Teams Inc. feels that the new technology has nothing to offer and therefore chooses not to adopt it. Business Breakthroughs is concerned about Backdoor Creations Corp.'s opinion on the new technology because Backdoor Creations is a leading organization to which others look for ideas and technological information. Which of the following groups of adopters of a new technology is exemplified by Prep Teams?

laggards

Low Tide Inc. adopts a new technology purely out of social pressure. In this case, Low Tide Inc. would be classified as part of the ______ group of adopters of new technology.

late majority

Foxtrot Processing Corp. uses a new technology that allows it to produce standard goods in an economical way. In contrast, its competitors strive for uniqueness and use technologies that offer unique products for which customers are willing to pay a premium price. In this case, Foxtrot Processing has an advantage over its competitors because it has adopted a _____ strategy.

low-cost

Aeroquad Inc. is in the process of deciding whether to develop a new automatic guidance system for its quadcopters or to get it from another company that specializes in that area. This is an example of a

make-or-buy decision

Diamond Weather Proofing needs a better adhesive applicator machine, and the executive managers disagree about whether to invent one in house or purchase one on the market. This is an example of a

make-or-buy decision

Scenario C. The production manager at RJ Fabrics Inc., a clothing manufacturing company, has proposed replacing some of the equipment on its production line with newer technology. The chief executive officer (CEO) insists on comparing the company's current technology with that being used by other organizations to decide what new technology should be considered. However, the chief technology officer (CTO) thinks that the company should look ahead and consider a new technology that is under development. He also raises the issue of whether the company should go to an outside firm or try to develop the technology itself. The CTO of RJ Fabrics Inc. is concentrating on what can be done in the future and on the new technologies being developed. This is known as

scanning

Roddy leads a medical technology firm, and he has a vision of using nanotechnology to send small robots equipped with metal scrapers into arteries to remove plaque and prevent heart disease. Roddy's lead product development scientist, Juan, runs a couple of studies and reports some bad news to Roddy. He says there would be a great demand for the product, and it would fit well with their business structure and objectives and would be highly profitable. Furthermore, he believes they are as well-situated as any company to deal with integrating medical devices with technology. However, Juan says that currently it is impossible to build robots small enough to safely scrape away plaque. First, better superconductors must be discovered and developed. Roddy's vision lacks

technological feasibility

Time machines are a staple of science fiction novels and movies, but there are not any businesses trying to develop one. The main reason is the lack of

technological feasibility

Cutting-Edge Carvers Inc. is a recently established online vendor that sells custom luxury products made from wood on automated lathes. Before opening for business, the company studied the problems that companies using a similar technology had experienced. Cutting-Edge Carvers was therefore able to avoid their costly mistakes. Cutting-Edge Carvers would be an example of a(n)

technology follower

Bob's Soccer Gear, a manufacturer of soccer accessories, adopted a change in soccer ball composition pioneered by other manufacturers, thereby avoiding the costs and risks of innovation. This is an example of

technology followership

Managers of Grilled Snacks, a fast-food restaurant chain, visited Spectacular Sandwiches, a competitor. Spectacular Sandwiches has a system in which waiters use a cell phone to text orders directly to the kitchen. The two companies made an arrangement by which Grilled Snacks adopted the ordering system and, in turn, Spectacular Sandwiches adopted a food-preparation technique devised by Grilled Snacks. This scenario is an example of

technology trading

Which of the following best describes pacing technologies?

the have yet to prove their full value but have the potential to alter the rules of compitition

Which of the following characteristics tends to increase the speed at which an innovation will spread?

the innovation can be tried without significant cost

benchmarking is

the process of comparing an organization's practices and technologies with those of other companies.

Bridget has to decide whether it is the right time to adopt a new technology for her department. Besides considering the potential benefits of the new technology, which of the following factors should have the most influence on her decision?

the technology skills of the people in her department

Which of the following is an advantage of technology leadership?

there is little or no competition

Which of the following best describes the role of executive champions in developing new technologies?

they provide financial resources to support the project

For which of the following reasons might a firm choose to trade technology?

to avoid development costs

Todd is the owner of TodVac, a producer of high performance commercial vacuum cleaners based in Texas. Todd knows that some companies use technology that has been proven over the years to efficiently create components very similar to the components in his vacuums. Unfortunately, Todd has never seen this technology and does not have a clue how it works. How should Todd go about learning how to improve his production with time-tested technology?

tour an asian factory the uses this technology but does not compete directly with todvac

The technique of scanning in assessing external technological trends focuses on

what can be dine and what is being developed