Deck 17: Managing Technology and Innovation

Question 1

Broadly speaking, _____ can be thought of as the commercialization of science.

A)invention
B)innovation
C)development
D)technology
E)application

Answer 1

D
Explanation: Technology can be thought of as the commercialization of science: the systematic application of scientific knowledge to a new product, process, or service. In this sense, technology is embedded in every product, service, and procedure used or produced.

Question 2

One approach for measuring the competitive value of technologies is to categorize them as emerging, pacing, key, and base.

Answer 2

True
Explanation:
A technology audit helps clarify the key technologies on which an organization depends. The most important dimension of a new technology is its competitive value. One technique for measuring competitive value of technologies is to classify them as emerging, pacing, key, and base.

Question 3

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

Answer 3

False
Explanation:
Bureaucracy is an enemy of innovation. While bureaucracy is useful to maintain orderliness and gain efficiencies, it also can work directly against innovativeness. Developing radically different technologies requires a more fluid and flexible (organic) structure that does not restrict thought and action.

Question 4

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

A)The prestige connected with using the technology
B)The likelihood of a better technology becoming available
C)The extent to which the new technology will enhance his professional reputation
D)The technology skills of the people in his department
E)The entry barriers to using the technology

Question 5

Common ways of acquiring new technology include internal development, purchase, and licensing.

Question 6

Carly's company is considering adopting a new information technology. Because the information technology managers of the company are not yet familiar with the technology, they would most likely consult with someone from which of the following groups to help determine the suitability of technology?

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

Question 7

Adopters of new technologies who are classified as _____ are typically adventurous and willing to take risks.

A)innovators
B)early adopters
C)early majority
D)late majority
E)laggards

Question 8

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

Question 9

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

Question 10

Technology followership can be used to support

A)only a low-cost strategy.
B)only a differentiation strategy.
C)both low-cost and differentiation strategies.
D)scale economies but not economies of scope.
E)economies of scope but not scale economies.

Question 11

A lack of enthusiasm for a new product among the technology adopters called innovators can be a sign that the new technology has serious problems.

Question 12

Development projects are focused on marketing existing products or processes through mass media and social media.

Question 13

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

Question 14

In the context of managing, _____ is a new way of working that creates value.

A)invention
B)innovation
C)development
D)technology
E)application

Question 15

Which statement about the technology life cycle is true?

A)A technology life cycle can be made up of many individual product life cycles.
B)The technology life cycle is represented by a V-shaped pattern.
C)The developments in a technology life cycle must always be big innovations.
D)The technology life cycle usually starts with a small change followed by increasingly bigger ones.
E)Over the span of the technology life cycle, the technology gets more difficult to use.

Question 16

Which of the following is a disadvantage of technology leadership?

A)Lower profit margins
B)Reduced efficiency
C)Loss of best market niches
D)Infrastructure costs
E)Establishment of entry barriers

Question 17

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

Question 18

Which of the following is a first-mover advantage for a technology innovator?

A)Being able to charge a premium price
B)Letting someone else work out all the bugs
C)Having an infrastructure ready to support the technology
D)Being able to take advantage of complementary products
E)Having a ready-made customer base

Question 19

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

Question 20

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

A)Calculating liability ratios
B)Calculating leverage ratios
C)Balancing the year-end budget
D)Doing a cost-benefit analysis
E)Taking an employee survey

Question 21

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 22

Which of the following is becoming increasingly common as a way for companies to gain access to new technologies while avoiding high development costs or financing?

A)Contracted development
B)Internal development
C)Technology trading
D)Research partnership
E)Purchase

Question 23

Galaxy Autos is developing a motion-detector system that will be able to tell when a driver is nodding off and then sound an alarm to wake up the driver. The system is still in the trial stages and has not been proved to be effective. What type of technology is this?

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

Question 24

Product innovation is a change in the

A)way the outputs of an organization 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 25

Sunrise Solutions 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?

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

Question 26

Aqua Technologies Corp. was the first company to utilize a new device developed by Signal Master Innovators Inc. that enabled Aqua to locate previously undetected aquifers that can be tapped as water sources. Aqua Technologies 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, Aqua Technologies 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 27

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

A)economic viability
B)organizational suitability
C)market receptiveness
D)competence development
E)technological feasibility

Question 28

Key roles in acquiring and developing new technologies are the _____, product champion, and executive champion.

A)technical innovator
B)technical imitator
C)technology auditor
D)chief researcher
E)early adopter

Question 29

Grasshopper is a small smartphone company that has developed an innovative security system for its phones. The technology has yet to prove its full value, but if it catches on, it may change the competitive landscape of the smartphone industry. What type of technology is this?

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

Question 30

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

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

Question 31

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?

A)A dominant design emerges after early problems are resolved.
B)Competitors experiment with operational characteristics to meet consumer needs.
C)Knowledge and ideas are brought together and developed.
D)The product, process, or service declines in usefulness or practicality.
E)Managers seek advantages through process efficiencies and cost competitiveness.

Question 32

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

A)economic viability
B)organizational suitability
C)market receptiveness
D)practical application
E)technological feasibility

Question 33

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

A)defender
B)laggard
C)prospector
D)contingent
E)analyzer

Question 34

Volume controls on an MP3 player are an example of a(n) _____ technology.

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

Question 35

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 36

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

A)scanning
B)corporate espionage
C)auditing
D)a make-or-buy decision
E)benchmarking

Question 37

The executive who coordinates the technological efforts of various business units within a corporation is the _____.

A)executive champion
B)information resource officer
C)strategic champion
D)technology innovator
E)chief information officer

Question 38

Whereas _____ focuses on key and perhaps some pacing technologies, _____ seeks out pacing and emerging technologies.

A)scanning; auditing
B)auditing; scanning
C)benchmarking; auditing
D)scanning; benchmarking
E)benchmarking; scanning

Question 39

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

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

Question 40

Furth Gaskets 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 _____.

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

Question 41

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 42

_____ 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 43

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 44

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 45

Digital Woodcrafters 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. Digital Woodcrafters was therefore able to avoid their costly mistakes. Digital Woodcrafters would be an example of a(n)

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

Question 46

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 47

Which of the following is a disadvantage of technology leadership?

A)Lower profit margins
B)Intense competition
C)Loss of brand image
D)The need to educate buyers
E)Establishment of entry barriers

Question 48

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 49

_____ 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 50

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 51

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

A)The late majority
B)The early majority
C)The late minority
D)The early minority
E)Early adopters

Question 52

Which of the following categories refers to technologies that are still under development and thus unproved?

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

Question 53

Which of the following is an advantage of technology leadership?

A)There is little risk involved.
B)The infrastructure cost is low because 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 54

Hilltop Corp. devised a Wi-Fi based home security system that was not very popular initially. However, in a few years, the technology 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 55

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

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

Question 56

The situation 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 57

Alpha Gamma Manufacturing 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, Alpha Gamma Manufacturing has an advantage over its competitors because it has adopted a _____ strategy.

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

Question 58

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 59

Tax Tranquility 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. For this reason, the company would 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 60

Technological innovation can support a _____ strategy, in which an 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 61

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 62

_____ 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 63

_____ 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 64

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

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 65

Flightera 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

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

Question 66

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 67

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 68

SurePhone 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 SurePhone Inc. taken into consideration?

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

Question 69

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

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

Question 70

Meadowlark 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. Meadowlark Inc.'s voice recognition machine system is an example of a(n) _____ technology.

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

Question 71

Total Technology Corp. is looking for a simple and cost-effective way of acquiring a commercially available new technology for its present venture. Which of the following methods should the company first consider for the purpose?

A)Licensing the technology.
B)Developing the technology internally.
C)Purchasing the technology.
D)Buying the company that owns the technology.
E)Developing the technology through research partnerships.

Question 72

Managers of Fast Dogs, a fast-food restaurant chain, visited Quick Burgers, a competitor. Quick Burgers 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 Fast Dogs adopted the ordering system and, in turn, Quick Burgers adopted a food-preparation technique devised by Fast Dogs. This scenario is an example of

A)technology trading.
B)licensing.
C)contracted development.
D)internal development.
E)research partnership.

Question 73

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

A)To facilitate first-mover advantages
B)To avoid development costs
C)To build barriers to entry
D)To partner with competitors
E)To create diseconomies of scope

Question 74

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 75

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 76

_____ is a factor that helps 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 77

The technique of scanning in assessing external technological trends 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 78

Although 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 79

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

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

Question 80

For years, TXA Corp. wanted to develop a face recognition system that clients could buy to improve their security systems. The managers of the company evaluated the product's market potential, economic viability, and anticipated capability development, which were all very strong. However, TXA Corp. was unable to make a successful product. The key factor that the company failed to adequately assess in making technology decisions was the product's technological ____.

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