Deck 13: Managing Innovation, Intrapreneurship, and Creativity

Question 1

Quantum innovations are relatively uncommon.

Answer 1

True

Question 2

At gate one of the stage-gate development funnel, cross-functional managers create a product development plan.

Answer 2

False

Question 3

The main innovation problem at The Gap was that front-line managers were given too much authority to innovate.

Answer 3

True

Question 4

Creativity can be defined as simply going beyond the current boundaries.

Question 5

Your text discusses how the VCR industry slipped into the decline stage because of a failure to provide cost effective products.

Question 6

The principles around "project management" are designed more for manufacturing operations, and can actually hinder the creative process.

Question 7

An "intrapreneur" is simply an entrepreneur working inside of an organization.

Question 8

The stage-gate funnel is designed to foster innovation because left to their own devices, managers tend not to take on as many projects as they can handle.

Question 9

Without strong property rights, very few organizations would be willing to invest in innovation.

Question 10

Product life cycles are becoming shorter as managers focus their resources on innovation to increase customer responsiveness.

Question 11

The growth stage in the product life cycle begins right after the product is introduced to the market.

Question 12

The shorter the product life cycle, the more important innovation is to an industry or organization.

Question 13

A lightweight team leader is normally the head of a functional department.

Question 14

A patent gives owners the rights to profit from their creation for a period of 75 years from the date the patent is issued.

Question 15

"Creative destruction" is when an organization gets so involved with R&D and creating new products that it neglects its core business activities.

Question 16

It has been estimated that between 12 to 20% of R&D projects result in a product that gets to the market.

Question 17

Innovation is associated with a high level of risk.

Question 18

The invention of the microchip by Intel is considered to be a quantum innovation.

Question 19

TQM is an example of an incremental innovation.

Question 20

The Gap used innovation to develop a more cost effective production process for its clothing line.

Question 21

According to Anderson and Tushman, the era of ferment:

A) is best management using a lightweight team leader.
B) spars elaboration on the dominant design.
C) begins with a technological discontinuity.
D) begins with an incremental innovation.

Question 22

As organizations age, they tend to become less flexible and less innovative.

Question 23

Organic structures promote innovation and creativity.

Question 24

According to Anderson and Tushman, design competition is most prevalent in the era of ________.

A) product champions
B) dominant designs
C) incremental change
D) ferment

Question 25

Strong property rights weaken obstacles to change.

Question 26

For innovative processes to be successful, R&D activities must be integrated with other functions.

Question 27

A "skunk works" team is formed when all other forms of innovation and creativity have failed.

Question 28

Boundary spanners typically push the innovation envelope as far as they can, sometimes upsetting top management.

Question 29

What percentage of R&D activities results in a product getting to market?

A) 30 to 40
B) 12 to 20
C) 15 to 32
D) 1 to 16

Question 30

Don Frey, the champion of Ford's Mustang, encountered little opposition to his idea to build the Mustang.

Question 31

Cross-functional teams are an essential element in the new product development effort.

Question 32

The Pentium chip is an example of:

A) a quantum technological change.
B) an incremental innovation.
C) a quantum innovation.
D) an incremental technological change.

Question 33

Most companies focus on:

A) technological discontinuities.
B) quantum technological change.
C) revolutionary change.
D) incremental technological change.

Question 34

Property rights are important to the innovation process because:

A) Without property rights, innovation would actually be too strong, hampering manufacturing.
B) Organizations would have little incentive to innovate.
C) Managers would behave unethically if property rights were too strong
D) Both A and C

Question 35

A "skunk works" is a temporary team that is created to expedite new product design and to promote innovation.

Question 36

Increasing the size of the organization tends to slow innovation.

Question 37

How long is a patent valid?

A) 10 Years
B) 5 Years
C) 20 years
D) 50 years.

Question 38

According to Anderson and Tushman, a technological discontinuity is:

A) an obsolete product.
B) an incremental innovation.
C) an unprofitable new product.
D) a type of quantum innovation that is the basis of a company.

Question 39

One downside to linking employees through information technology is that bad advice may increase along with good advice.

Question 40

It is difficult for individuals to remain entrepreneurial throughout their careers.

Question 41

A PERT/CAM network would most likely be used during ________.

A) quantum change
B) project management
C) stage 1 of the stage gate model
D) incremental change

Question 42

Amazon.com's addition of CD's and gifts represents ________.

A) revolutionary change
B) an incremental innovation
C) reengineering
D) quantum innovation

Question 43

VCRs are currently at which stage in the product life cycle?

A) Growth
B) Maturity
C) Embryonic
D) Decline

Question 44

Smartphones and iPods are currently at which stage in the product life cycle?

A) Growth
B) Embryonic
C) Maturity
D) Decline

Question 45

The leaders of innovation and new product development in established organizations are called ________.

A) intrapreneurs
B) team leaders
C) entrepreneurs
D) project managers

Question 46

What is a knowledge creating organization?

A) A research firm finding a cure for a disease.
B) One in which intrapreneurs share ideas.
C) One that provides a knowledge service, such as a web search engine.
D) One in which innovation is occurring at all levels of the organization.

Question 47

Which of the following products or industries has the longest product life cycle?

A) VCRs
B) Electric power
C) Computers
D) Automobiles

Question 48

A stage-gate development funnel typically has ________ gates.

A) four
B) one
C) two
D) three

Question 49

How long is the product life cycle estimated to be in the PC industry today?

A) 2 years
B) 3 months
C) 12 months
D) 5 years

Question 50

Which of the following products or industries has the shortest product life cycle?

A) Computers
B) Electric power
C) VCRs
D) Automobiles

Question 51

In which part of the stage-gate model would a proposal be reviewed in terms of its technical feasibility or its fit with the organizational strategy?

A) Stage 1
B) Gate 2
C) Stage 2
D) Gate 1

Question 52

What is the first step in the project management process?

A) Developing a clear plan to take the product from its concept phase to market
B) Charting all activities on a PERT chart
C) Aligning product champions
D) Developing a critical path model

Question 53

How long is the product life cycle estimated to be in the auto industry today?

A) 7 years
B) 2 years
C) 5 years
D) 10+ years

Question 54

Why did The Gap have trouble managing the innovation process?

A) They didn't recognize where the products were positioned in the life cycle.
B) They were not able to innovate effectively enough in production to produce a cost effective product.
C) Frontline managers were not given enough authority to determine product lines.
D) Frontline managers were given too much authority to determine product lines.

Question 55

What does the term "creative destruction" refer to?

A) Old, inefficient companies being driven out of the market by new ones
B) Entrepreneurs that lack management skills
C) Organization that focus too much on creativity so as to ignore the bottom line
D) Obsolete products that never make it to market

Question 56

If the typical consumer for a product purchases the product as a replacement, such as upgrading a computer or getting a new car, that product is considered to be in what stage of the life cycle?

A) Maturity
B) Decline
C) Embryonic
D) Growth

Question 57

A stage-gate development funnel typically has ________ stages.

A) three
B) four
C) two
D) five

Question 58

"Creative destruction" is when:

A) The creative process becomes too important to an organization and they forget their core business.
B) New, creative organizations drive older, less efficient organizations out of business.
C) An organization's own innovations make its existing product lines obsolete.
D) Entrepreneurs are forced to start their own companies.

Question 59

Which innovation technique is most likely to ensure that projects receive the necessary funding?

A) Stage-gate development funnel
B) Product champion
C) Product team structure
D) Intrapreneurs

Question 60

Automobiles are currently at which stage in the product life cycle?

A) Growth
B) Decline
C) Maturity
D) Embryonic

Question 61

To maintain a capacity for innovation, an organization should:

A) decrease property rights.
B) recruit like-minded scientists.
C) maintain diversity in scientists.
D) centralize authority.

Question 62

Which of the following would be the best project manager?

A) A heavyweight leader
B) A lightweight leader
C) A product champion
D) A skunk works leader

Question 63

Which of the following does not reduce innovation in an organization?

A) Increases in horizontal differentiation
B) Increases in the age of personnel
C) "Skunk works"
D) Increases in organizational age

Question 64

A new organization is created with both:

A) a heavyweight team leader and a new venture division.
B) a new venture division and a "skunkworks."
C) a joint venture and a "skunkworks."
D) a new venture division and a joint venture.

Question 65

Establishing the balance of control between a division and corporate headquarters is a problem associated with ________.

A) CIIS
B) new ventures
C) "skunk works"
D) project managers

Question 66

Senior management typically looks at proposals at what part of the stage-gate model?

A) Gate 2
B) Stage 1
C) Gate 1
D) Stage 2

Question 67

A "skunk works" is:

A) a new organization.
B) responsible for marketing a new product.
C) located in an independent facility.
D) another term for an integrating department.

Question 68

To retain innovative R&D scientists, an organization needs to:

A) adopt TQM.
B) establish a joint venture.
C) adopt a mechanistic structure.
D) have strong property rights.

Question 69

A lightweight team leader would be appropriate for an organization seeking:

A) incremental innovation.
B) quantum innovations.
C) revolutionary change.
D) technological discontinuities.

Question 70

Which of the following structures is most appropriate for a new product development effort?

A) Functional
B) Market
C) Multidivisional matrix
D) Product team

Question 71

Core team members in a new product development effort:

A) are usually engineers.
B) are top managers.
C) refers to a group of 10 people who are assigned primary responsibility for product development.
D) typical work on only one development project at a time.

Question 72

In which part of the stage-gate model do managers develop a detailed product development plan?

A) Stage 1
B) Gate 2
C) Stage 2
D) Gate 1

Question 73

When Don Frey directed his efforts to build the Mustang, he was a(n) ________.

A) product champion
B) innovator
C) engineer
D) entrepreneur

Question 74

An upstart biotechnology firm fears losing its talented scientists. What can it do to avoid this problem?

Question 75

A product champion:

A) resolves conflict among team members.
B) is appointed by top management.
C) is responsible for establishing a "skunk works."
D) is responsible for performing the marketing activities associated with a product created by a "skunk works."

Question 76

A heavyweight team leader would be appropriate for an organization seeking:

A) incremental innovation.
B) quantum innovations.
C) technological discontinuities.
D) revolutionary change.

Question 77

Which of the following is considered to be a task force?

A) Flexible teams
B) Quality control circle
C) "Skunk works"
D) New venture

Question 78

Which of the following companies will most likely be innovative?

A) A biotechnology company that hires all of its scientists from one university
B) A chicken processing plant that has 11 hierarchical levels
C) A refrigerator manufacturer that has an older workforce
D) A computer software company that gives its employees stock options

Question 79

The technical feasibility of new product ideas is evaluated at ________ in the stage-gate development funnel.

A) gate 2
B) stage 2
C) gate 3
D) gate 1

Question 80

Which of the following is not one of the factors that shapes organizational culture?

A) people
B) Structure
C) Property rights
D) All are factors that shape culture.