Deck 17: Managing Technology and Innovation

Question 1

Unlike those who seek technology leadership,followers can gain a significant learning advantage that can be sustainable.

Answer 1

False
Explanation: Technology leadership can provide a significant learning advantage.Ongoing learning by a technology leader can keep a company ahead by generating minor improvements that are difficult to imitate.

Question 2

Early adopters of a new technology are often considered impulsive and extreme by others.

Answer 2

False
Explanation: After the innovators,the next 13.5 percent of adopters are early adopters.This group is critical to the success of a new technology because its members include well-respected opinion leaders.Early adopters often are the people or organizations to which others look for leadership,ideas,and up-to-date technological information.

Question 3

Being the first to develop or adopt a new technology is a risk-free path to high profits.

Answer 3

False
Explanation: Being the first to develop or adopt a new technology does not always lead to immediate advantage and high profits.While such potential may exist,technology leadership does impose high costs and risks that followers do not have to bear.

Question 4

Innovation is described as a change in method or technology,a positive and useful departure from previous ways of doing things.

Question 5

A technology audit is the process of clarifying the key technologies upon which an organization depends.

Question 6

A technology life cycle can be made up of many individual product life cycles.

Question 7

Technology followership cannot be used to support low-cost and differentiation strategies.

Question 8

A manager's decision on when to adopt new technology depends on the potential benefits of the new technology.

Question 9

The invention life cycle is a predictable pattern that is followed by a technological innovation from its inception and development to market saturation and replacement.

Question 10

As new product adopters,a lack of enthusiasm among innovators can be a sign that the new technology has serious problems.

Question 11

A technique for measuring competitive value categorizes technologies as emerging,pacing,key,and base.

Question 12

Emerging technologies are those that have proven effective but still provide a strategic advantage because not everyone uses them.

Question 13

Compared to benchmarking,scanning seeks out pacing and emerging technologies.

Question 14

Benchmarking is the process of advancing the organization's use of technology over time.

Question 15

Technology is embedded in every product,service,and procedure used or produced.

Question 16

If a new technology is theoretically possible but economically impractical,the technology will probably not emerge.

Question 17

Pacing technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.

Question 18

Among adopter categories for new technologies,innovators are adventurous and willing to take risks.

Question 19

An advantage of technology leadership is the first-mover advantage.

Question 20

The appropriate time for an organization to adopt technological innovations is when the costs and risks of switching to the technology are outweighed by the benefits.

Question 21

Development projects are focused on creating a new product or process via technological advances.

Question 22

The technical innovator is the person who promotes a new technology throughout the organization in an effort to obtain acceptance of and support for it.

Question 23

The sociotechnical systems approach redesigns tasks in a manner that jointly optimizes the social and technical efficiency of work.

Question 24

The technology life cycle begins with the:

A) bringing together of resources and entrepreneurial initiative.
B) refinement and evolution of a new technology.
C) recognition of a need coupled with potential to satisfy that need through science.
D) decline in usefulness or practicality of a competing product,process,or service.
E) recognition that a new technology is economically practical.

Question 25

Even firms that are not technology oriented must pay attention to changing technology.

Question 26

Analyzer firms have cultures that are the most outward-looking and opportunistic in their approach to technological innovation.

Question 27

The question of how to acquire new technology is a make-or-buy decision.

Question 28

Rival organizations use technology trading to acquire new technology.

Question 29

The systematic application of scientific knowledge to a new product,process,or service is called ____.

A) instrumentality
B) benchmarking
C) technology
D) collaboration
E) job enrichment

Question 30

Because of today's quick-moving technological advances,technical obstacles are overcome easily and no longer represent a concern for managers.

Question 31

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

Question 32

Several ways to acquire new technology include internal development,purchase,and licensing.

Question 33

_____ is a change in method or technology;it is a useful departure from previous ways of doing things.

A) Innovation
B) Integration
C) Reinforcement
D) Diffusion
E) Arbitration

Question 34

A chief information officer's role is to personally train individual employees how to efficiently operate a company's information system.

Question 35

Product innovation is a change in the:

A) way outputs are produced.
B) way the organization creates and delivers value.
C) outputs the organization produces.
D) value of the product alone.
E) product line of the organization.

Question 36

In developing a strategy for technological innovation,the first consideration that should be addressed is market potential.

Question 37

Firms that are early adopters of new technologies tend to be more profitable.

Question 38

If a product champion lacks the power and financial resources to initiate innovations alone,he or she seeks sponsorship from an executive champion.

Question 39

Bureaucracy,by its very nature,helps innovation to thrive.

Question 40

Key roles in acquiring and developing new technologies are the technical assistant,product positioner,and executive developer.

Question 41

Crescent Corp.had come up with a new thumb impression home security system that was not very popular initially.However,in a few years,it was in high demand in the market.This is an example of:

A) disruptive innovation.
B) contracted development.
C) upward innovation.
D) a product champion.
E) technology followership.

Question 42

Categorizing technologies as base,key,pacing,or emerging is an effort to:

A) persuade early adopters.
B) measure competitive value.
C) speed up the adoption process.
D) regulate patent rights.
E) provide a basis for licensing.

Question 43

Daddy's Girl is an exclusive online store started recently.The store's target market includes fathers who would wish to buy gifts for their daughters.The website has rapidly gained market,learning from a leading website's experience and avoiding costly mistakes.In this case,Daddy's Girl is an example of a(n):

A) corporate entrepreneur.
B) product champion.
C) executive champion.
D) intrapreneur.
E) technology follower.

Question 44

The key factor that makes technology leadership attractive for some companies is the potential for:

A) lower infrastructure costs.
B) conflict resolution.
C) higher profits.
D) lower market development costs.
E) lower risks.

Question 45

Which of the following groups of adopters of a new technology includes well-respected opinion leaders or organizations to which others look for ideas and up-to-date technological information?

A) Early adopters
B) Late majority
C) Innovators
D) Early majority
E) Laggards

Question 46

Who among the following adopters of a new technology are extremely suspicious of innovation and change?

A) Laggards
B) Early adopters
C) Innovators
D) Early majority
E) Early minority

Question 47

Q-Tech 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,Q-Tech has an advantage over its competitors as it has adopted a _____ strategy.

A) vertical integration
B) differentiation
C) low-cost
D) premium pricing
E) predatory pricing

Question 48

Timez Inc. ,a company that prepares individual tax returns,has finally agreed to utilize the IRS system that enables the returns to be transmitted electronically rather than through mail.Almost every other firm in the United States is utilizing the system because it has been proven reliable.The company has accepted the new technology only after a number of threats of account withdrawal from key customers.In this case,Timez should be classified as:

A) an innovator.
B) an early adopter.
C) part of the early majority.
D) part of the late majority.
E) part of the early minority.

Question 49

With a _____ strategy,the advantage comes from having a unique good or service for which customers are willing to pay a premium price.

A) concentration
B) vertical integration
C) low-cost
D) diversification
E) differentiation

Question 50

Who among the following adopters of a new technology are more skeptical of technological change and approach innovation with great caution?

A) Late majority
B) Early majority
C) Late minority
D) Early minority
E) Early adopters

Question 51

Quadra Tech.was the first company to utilize a new device developed by Intech Corp.that enabled Quadra to find flaws in its cars using sound waves.Quadra Tech.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,Quadra Tech.can be classified as:

A) an innovator.
B) a late adopter.
C) part of the early majority.
D) part of the late majority.
E) a laggard.

Question 52

Which of the following is a disadvantage of technology leadership?

A) Lower profit margins
B) Intense competition
C) Loss of brand image
D) Higher costs
E) Establishment of entry barriers

Question 53

Early adopters of new technologies tend to be:

A) isolated and highly conservative in their views.
B) extremely suspicious of innovation and change.
C) less educated and unable to cope with uncertainty and abstraction.
D) critical to the success of a new technology.
E) the most adventurous and willing to take risks.

Question 54

The situations in which a simple application is adopted at the lower end of the market and then swiftly takes over the market is referred to as ____.

A) disruptive innovation
B) contract development
C) upward innovation
D) strategic maneuvering
E) predatory invention

Question 55

A _____ helps clarify the key technologies upon which an organization depends,often in terms of their competitive value.

A) product champion
B) technology audit
C) situational analysis
D) technical innovator
E) technological record

Question 56

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?

A) Innovators
B) Late majority
C) Early majority
D) Early adopters
E) Laggards

Question 57

Of the adopters of new technologies,the members of early majority:

A) are deliberate and take longer to decide to use something new.
B) include organizations to which others look for leadership.
C) tend to be isolated and highly conservative.
D) are critical to the success of a new technology.
E) tend to be the most adventurous and willing to take risks.

Question 58

An innovation will spread faster if it:

A) is similar to its predecessor.
B) is compatible with existing systems and procedures.
C) has more rather than less complexity.
D) requires a significant commitment to try or test.
E) is difficult to copy.

Question 59

Which of the following is an advantage of technology leadership?

A) There is little risk involved.
B) The infrastructure cost is low as the product is new.
C) There is little or no competition.
D) There is no need to develop complementary products.
E) The market development cost is low.

Question 60

Which of the following types of technologies is still under development and thus unproved?

A) Base technologies
B) Emerging technologies
C) Key technologies
D) Initial technologies
E) Pacing technologies

Question 61

_____ technologies are those that are commonplace in the industry;everyone must have them to be able to operate.

A) Base
B) Emerging
C) Strategic
D) Key
E) Pacing

Question 62

The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself is referred to as a:

A) trade-off decision.
B) licensing decision.
C) make-or-buy decision.
D) SWOT analysis.
E) benchmark analysis.

Question 63

_____ technologies have proved effective,but they also provide a strategic advantage because not everyone uses them.

A) Base
B) Emerging
C) Key
D) Elevated
E) Pacing

Question 64

C Sharp Inc.plans to make a new mobile phone that would use a retina scanner to unlock the phone.However,the company does not implement the plan as it realizes that the costs involved are too high.Which of the following factors while making a technology decision has C Sharp Inc.taken into consideration?

A) Economic viability
B) Competence development
C) Organizational suitability
D) Market receptiveness
E) Technological feasibility

Question 65

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

A) purchase it.
B) develop it internally.
C) license it for a fee.
D) develop it through research partnerships.
E) purchase the owner of the technology.

Question 66

For years,Helia Corp.wanted to develop a face recognition system with which organizations could improve their security features.However,it failed to successfully achieve its objective.The key factor while taking technology decisions that Helia Corp.failed to analyze in the example is technological ____.

A) reliability
B) ambidexterity
C) variability
D) feasibility
E) agility

Question 67

Crystal Corp.has introduced a voice recognition machine system that enables machines to recognize the workers' 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.Crystal Corp.'s voice recognition machine system is an example of a(n)_____ technology.

A) base
B) emerging
C) elevated
D) strategic
E) pacing

Question 68

_____ help executives decide if there is a good financial incentive for attempting a technological innovation.

A) Technological feasibility
B) Market receptiveness
C) Economic viability
D) Organizational suitability
E) Competence development

Question 69

_____ technologies have yet to prove their full value but have the potential to alter the rules of competition by providing significant advantage.

A) Base
B) Emerging
C) Key
D) Strategic
E) Pacing

Question 70

Which of the following is the first consideration in developing a strategy around technological innovation?

A) Organizational suitability
B) Market potential
C) Technological feasibility
D) Economic viability
E) Political barriers

Question 71

_____ firms' strategies are focused more on deepening their capacity base through complementary technologies that extend rather than replace their current ones.

A) Defender
B) Laggard
C) Prospector
D) Contingent
E) Analyzer

Question 72

The process of comparing an organization's practices and technologies to those of other companies is known as:

A) benchmarking.
B) scanning.
C) situational analysis.
D) technological auditing.
E) strategic maneuvering.

Question 73

Gretchen Corp.is looking for a simple and cost-effective way of acquiring new technology for its present venture.Which of the following methods should Gretchen Corp.utilize for the purpose?

A) It should license the technology.
B) It should develop it internally.
C) It should purchase the technology.
D) It should purchase the company that owns the technology.
E) It should develop it through research partnerships.

Question 74

One advantage of developing technology within one's own company is:

A) the optimal utilization of the company's resources.
B) cost effectiveness.
C) keeping the technology exclusive to the organization.
D) the reduced requirement to hire additional staff.
E) the ability to take plenty of time to develop a product right.

Question 75

Scanning focuses on:

A) improvising base technologies.
B) current activities and technologies.
C) what can be done and what is being developed.
D) comparing the competitive advantages of two companies.
E) clarifying the key technologies on which an organization depends.

Question 76

The similarity between benchmarking and scanning is that both focus on:

A) what is being done currently.
B) what can be done and is being developed.
C) key technologies.
D) pacing technologies.
E) obtaining competitor's secrets.

Question 77

Base technologies are those that:

A) are not used by everyone.
B) are commonplace in the industry.
C) provide significant competitive advantage.
D) have not been proved useful.
E) are not known to everyonE.

Question 78

Iris Corp.is developing a new retina scanner locking system that is still under development and is yet to be approved.In this case,Iris Corp.'s product is an example of a(n)_____ technology.

A) base
B) key
C) emerging
D) improved
E) pacing

Question 79

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

A) vertical integration
B) technological followership
C) corporate espionage
D) benchmarking
E) gradual diffusion

Question 80

Z-Tech Scans is in the process of deciding whether to develop a new scanning machine with advanced features or to get it from another company that specializes in that area.This is an example of a:

A) make-or-buy decision.
B) licensing decision.
C) trade-off decision.
D) SWOT analysis.
E) benchmark analysis.