Deck 3: Innovation: Planning

Question 1

Benefits of innovation include all of the following except:

A) Greater control over process and outcomes
B) Greater profit potential as first mover
C) Greater ability to evaluate competitors
D) Greater understanding of the technology
E) Greater ability to potentially develop the next generation of technology

Answer 1

Greater ability to evaluate competitors

Question 2

Drawbacks of innovation include all of the following except:

A) Keeping a pipeline of new products is difficult
B) Greater risk of failure to develop the right products at the right time
C) Greater liability for failed products
D) Usually internal development is slower
E) There is always the danger of someone beating you to the market

Answer 2

Greater liability for failed products

Question 3

In order to encourage innovation, 3M allows its employees to spend how much of their time on projects of their choice?

A) 5%
B) 15%
C) 20%
D) 25%
E) 40%

Answer 3

15%

Question 4

The first question that should take place as the firm conducts it innovation strategy planning is ____.

A) Do we innovate internally or not?
B) Are we making a profit?
C) What is happening in economy?
D) What is attitude of leadership to innovation?
E) Will shareholders tolerate innovative strategy?

Question 5

What is the name given to a firm that is the first to the market for a given product?

A) Innovator
B) Leader
C) First mover
D) Producer
E) Follower

Question 6

It is beneficial to be a follower when ____.

A) an industry is growing too fast
B) an industry has high customer loyalty
C) there are high customer educational costs
D) the industry leader is the first mover
E) there are few penalties for industry mistakes

Question 7

Which type of research and development (R&D) is done to answer specific questions?

A) Basic research
B) Systems integration
C) Applied research
D) Product research
E) Industry research

Question 8

The creation of new knowledge involves ____.

A) Basic research
B) Systems integration
C) Applied research
D) Product research
E) Industry research

Question 9

Intel labs are now seeking to develop a new type of computer chip that is more compact. This is an example of ____.

A) Basic research
B) Systems integration
C) Applied research
D) Product research
E) Industry research

Question 10

The R&D method that is the most incremental in nature is:

A) Basic research
B) Systems integration
C) Applied research
D) Product research
E) Industry research

Question 11

The lowest risk type of R&D is ____.

A) Basic research
B) Systems integration
C) Applied research
D) Product research
E) Industry research

Question 12

Systems integration:

A) is R&D that largely takes place outside of the firm
B) is high risk/high return
C) involves adjusting the ways a firm organizes it systems, structures, and knowledge to increase leverage
D) adds to basic understanding of a new field
E) is the most difficult type of innovation to accomplish

Question 13

The type of research universities are mostly involved in is:

A) quantitative
B) applied
C) systems integration
D) qualitative
E) basic

Question 14

Process innovation focuses on ____.

A) The development of new products
B) Increasing effectiveness and effectiveness of the organization
C) Increasing profits
D) Decreasing the number of employees in the firm
E) Basic R&D

Question 15

Reengineering's goals include all of the following except:

A) increasing productivity
B) optimizing value to shareholders
C) achieving quantum results
D) expanding functions
E) eliminating unnecessary levels and work

Question 16

Sticky notes are a good example of ____.

A) Small innovations that make too much money
B) The role of teamwork in innovation
C) The central role of a single person in the innovation process
D) How to rescue a failed product
E) How a single product can rescue a troubled firm

Question 17

The innovation process within a firm is ____ process.

A) A logical and consistent
B) A free flowing
C) A predictable
D) Not a central
E) A political

Question 18

To create an environment for innovation a manager must understand all of the following except:

A) The reality of innovation
B) The needed characteristics of innovation for their business climate
C) What each level of the organization should be doing to create a climate of innovation within the organization
D) What the organization needs to do to maintain this innovation climate
E) How to seek a new vision for the organization

Question 19

When Louis Gerstner took over IBM he determined that planning should have all of the following activities except:

A) ensuring external opportunities and threats were the focus of the planning not internal organizational issues
B) ensuring that the plan focused on key implementation issues
C) structuring on going processes to reexamine fundamental strategic challenges
D) ensuring allocation decisions were not impacted by short term shifts in strategy
E) promoting widespread support and involvement in process

Question 20

There are four ways that innovative organization encouraged creative thinking and perpetual challenging within the organization. They include all of the following except:

A) Adventuring
B) Confronting
C) Portfolioing of skill
D) Opportunity identifying
E) Rewarding

Question 21

Adventuring as a means to encourage creative thinking involves:

A) Exploring an area outside of your comfort zone
B) Deliberate debates
C) Building a portfolio of skills
D) Creative employees developing new projects
E) A camping trip by employees to build teamwork

Question 22

Which one of these methods to encourage creativity involves stretching your skills?

A) Adventuring
B) Confronting
C) Portfolioing of skill
D) Opportunity identifying
E) Rewarding

Question 23

Confronting as a means to encourage creative thinking involves:

A) Exploring an area outside of your comfort zone
B) Deliberate debates
C) Building a portfolio of skills
D) Creative employees developing new projects
E) A camping trip by employees to build teamwork

Question 24

Which of the following is not a primary way innovative organizations encourage creative thinking and perpetual challenging within the organization?

A) Referring
B) Confronting
C) Portfolioing of skills
D) Adventuring
E) Opportunity identifying

Question 25

A mission statement usually has:

A) more than 150 words
B) more than 75 words
C) less than 75 words
D) less than 60 words
E) less than 25 words

Question 26

During the "Growth" stage of the technology life cycle, what kind of information does the firm need?

A) Competitors' actions
B) Science trends
C) Other uses of technology
D) Market sustainability
E) Developments

Question 27

What stage of the life cycle would the focus be on monitoring potential competitors?

A) Startup
B) Growth
C) Maturity
D) Decline
E) Death

Question 28

How should you describe the innovation process?

A) irregular and unpredictable
B) straight and narrow
C) defined and renowned
D) nice and easy
E) slow and steady

Question 29

Which one of the following is not a common myth about innovation?

A) A good process is 90% of the battle
B) Leadership, culture and process form a three legged stool
C) Have a good methodology for evaluating ideas
D) We want to be entrepreneurial
E) We need the next big idea

Question 30

Which one of these statements is a myth about innovation?

A) Seek a balance of behaviors
B) Leadership, culture and process form a three-legged stool
C) Ideas are the key to innovation
D) Your organization has lots of brilliant ideas that you've never heard of
E) Do not blind yourself to the human dimension

Question 31

It took how long to develop large flat screen panels for market?

A) 6 months
B) 1 year
C) 3 years
D) 5 years
E) 20 years

Question 32

Which of the following does 3M do to encourage innovation?

A) employees are required to spend 35 percent of their time on innovative projects
B) seed money is provided to promising ideas
C) compensation system rewards employees for innovations
D) compensation system is strictly focused on employees innovation so slacking employees do not slow them down
E) 25 percent of revenue is spent on advertising each year

Question 33

Tweaking is associated with which type of research:

A) basic
B) process
C) applied
D) systems integration
E) product

Question 34

Strategic group maps a firm's attention on those firms that:

A) compose the total industry
B) substitute for the industry
C) are the same size
D) are most relevant as competitors
E) are in the same region

Question 35

Downsizing refers to:

A) firms selling machinery that is no longer useful
B) seeking to operate the same business in a smaller building
C) building smaller telephone units for customers
D) compressing more data in a smaller space
E) selling units or laying off employees of the firm

Question 36

A company should always strive to be the first mover in the industry.

Question 37

Ideas are the key to innovation.

Question 38

Individuals in the organization may only engage in the innovation process over time.

Question 39

Two principle ways a company can acquire new technology are internal innovation and/or some type of alliance or purchase.

Question 40

A first mover is a firm that is first to market with a given product.

Question 41

Innovation is usually the product of one person's effort and genius.

Question 42

It is sometimes more beneficial to be a follower in an industry then a leader.

Question 43

The first question a firm considering an innovation strategy should ask is "should we innovate, or not?"

Question 44

Aspects of the innovation process may come from different parts of an organization.

Question 45

Process activities are related to how the firm reacts to trying new ideas.

Question 46

Basic research takes knowledge new to the firm and allows the firm to change its strategic position in the industry, or at least, change its potential position in the industry?

Question 47

It is a myth about innovation is that firms need to seek a balance of behaviors among its employees to be successful.

Question 48

The motivation for applied research is to answer specific questions.

Question 49

With all that is involved in innovation, the direction of a new product is easy to forecast.

Question 50

A negative element to embracing internal innovation as a strategy includes a greater risk of failure to develop the right product at the right time.

Question 51

What are the potential benefits of an innovation strategy?

Question 52

Discuss the three principal types of R&D.

Question 53

Discuss the four primary ways that innovative organizations encourage creative thinking.

Question 54

There are negative elements to embracing internal innovation as a strategy. Please list three of these negative elements.

Question 55

List four stages of technology, describe the "Focus" and information needed in each stage.

Question 56

Briefly describe what a manager needs to understand to create a climate for Innovation.

Question 57

How did 3M position itself as an innovative firm?