Deck 13: Innovation, Intrapreneurship, and Creativity

Question 1

Incremental technological change refers to a fundamental shift in technology that revolutionizes products or the way in which they are produced.

Answer 1

False

Question 2

The growth stage of the product life cycle comes immediately after the mature stage.

Answer 2

False

Question 3

Patents confer a monopoly right on their owner.

Answer 3

True

Question 4

Copyrights last for much longer periods than patents, often the lifetime of the work's creator
and beyond.

Question 5

The new product development plan submitted during stage 2 of a stage-gate development funnel is reviewed by a cross-functional team of managers to review its fit with the goals and strategies of the organization.

Question 6

According to Philip Anderson and Michael Tushman, technological discontinuities result due to incremental innovation.

Question 7

Demand for a product peaks during the mature stage of the product life cycle.

Question 8

The critical path method is generally used to identify the best marketing strategy for the product.

Question 9

Intrapreneurs are entrepreneurs inside an organization who are responsible for the success or failure of a project.

Question 10

As compared to quantum innovations, incremental innovations are more likely to cause major changes in an environment and to increase uncertainty.

Question 11

Trademarks give their owner the sole legal right to use certain names or symbols and control the use to which they are put.

Question 12

Copyrights last for much smaller periods than patents.

Question 13

Copyrights are typically granted to people who create intellectual property, such as written or visual works such as books, videogames, poems, and songs.

Question 14

The embryonic stage comes after the growth stage in a product life cycle.

Question 15

During the growth stage of the product life cycle many consumers enter the market and buy the product for the first time.

Question 16

A patent is valid for a period of 75 years from the date it is issued by the U.S. Patent Office.

Question 17

TQM is an example of an incremental innovation.

Question 18

An organization in which innovation is going on at all hierarchical levels and across all functions and divisions is known as a collateral organization.

Question 19

The most important determinant of the length of a product's life cycle is the rate of technological change.

Question 20

Quantum technological change refers to the improvements that are continuously made to particular technologies over time.

Question 21

Product team structure and matrix structure are especially suitable for managing innovation in high-tech organizations.

Question 22

Lightweight team leaders often function as product champions.

Question 23

According to Anderson and Tushman, a technological discontinuity is a(n) ________.

A) incremental innovation
B) unprofitable new product
C) quantum innovation
D) obsolete product

Question 24

What percentage of R&D projects result in products that get to market?

A) 1 to 9
B) 12 to 20
C) 24 to 32
D) 33 to 40

Question 25

Typically, use of IT results in a flatter organization.

Question 26

________ technological change refers to the improvements that are continuously made to particular technologies over time.

A) Quantum
B) Normative
C) Incremental
D) Mimetic

Question 27

Skunk works is dissolved when the product is brought to market.

Question 28

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

Question 29

The term "information efficiencies" represents the cost and time savings that occur when IT allows individual employees to perform their current tasks at a higher level, assume additional tasks, and expand their roles in the organization due to advances in the ability to gather and analyze data.

Question 30

Which of the following statements is true regarding an incremental innovation?

A) An incremental innovation results due to a fundamental shift in technology that revolutionizes products or the way in which they are produced.
B) As compared to quantum innovations, incremental innovations are more likely to cause major changes in an environment.
C) Total quality management (TQM) is an example of an incremental innovation.
D) According to Philip Anderson and Michael Tushman, technological discontinuities result due to incremental innovation.

Question 31

A typical stage-gate development funnel has five stages.

Question 32

A skunk works is a temporary team that is created to expedite new product design and to promote innovation by coordinating the activities of functional groups.

Question 33

During stage 1 of a stage-gate development funnel, prospective project managers draft a detailed new product development plan which contains information about topics such as human resource requirements and strategic and financial objectives.

Question 34

________ technological change refers to a fundamental shift in technology that revolutionizes products or the way in which they are produced.

A) Normative
B) Quantum
C) Mimetic
D) Incremental

Question 35

The introduction in 1971 of Intel's 4004 microprocessor, the first "computer on a chip" ever produced, is an example of a(n) ________ innovation.

A) normative
B) quantum
C) mimetic
D) incremental

Question 36

A lightweight team leader is given primary control over key human, technological, and financial resources for the duration of the project.

Question 37

Intel's Pentium chip is an example of a(n) ________ innovation.

A) mimetic
B) incremental
C) normative
D) quantum

Question 38

The term "information synergies" represents the knowledge building created when two or more individuals or subunits pool their resources and cooperate and collaborate across role or subunit boundaries.

Question 39

According to Prahalad and Hamel, it is the level of knowledge a firm possesses that leads to innovation and competitive advantage and not the velocity with which the knowledge is circulated in the firm.

Question 40

A heavyweight team leader remains under the control of a functional department head and in order to get access to resources, he or she must pursue the heads of functional departments to obtain them.

Question 41

The ________ stage in a product life cycle begins when market demand peaks because most customers have already bought the product.

A) embryonic
B) growth
C) mature
D) decline

Question 42

A patent is valid for a period of ________ years from the date the patent is issued by the U.S. Patent Office.

A) 5
B) 10
C) 20
D) 50

Question 43

Which of the following statements is most likely to be true regarding the mature stage of a product life cycle?

A) In a product life cycle, the mature stage comes immediately after the embryonic stage.
B) A product in the maturity stage has yet to gain widespread acceptance because the consumers are unsure about the value proposition offered by the product.
C) During the mature stage, demand for a product is typically replacement demand because incremental innovation has resulted in a new generation of the product.
D) In a product life cycle, the mature stage is followed by the embryonic stage.

Question 44

A ________ organization is one in which innovation is going on at all hierarchical levels and across all functions and divisions.

A) knowledge-creating
B) collateral
C) mechanistic
D) boundaryless

Question 45

Which of the following statements is true regarding quantum innovation?

A) Quantum innovations result due to improvements that are continuously made to particular technologies over time.
B) Total quality management (TQM) is an example of a quantum innovation.
C) As compared to incremental innovations, quantum innovations are more likely to cause major changes in an environment.
D) According to Anderson and Tushman, as compared to quantum innovation, incremental innovations are more likely to cause technological discontinuities.

Question 46

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

A) marketing research
B) organizational restructuring
C) project management
D) organizational value analysis

Question 47

A stage-gate development funnel typically has ________ gates.

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

Question 48

Which of the following tools is most likely to help managers develop a structured process for evaluating different new product development proposals and deciding which to support?

A) Pareto chart
B) stage-gate development funnel
C) critical path method
D) fishbone diagram

Question 49

A stage-gate development funnel typically has ________ stages.

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

Question 50

Mobile computing devices, such as smartphones and tablet computers, are currently in the ________ stage of the product life cycle.

A) embryonic
B) growth
C) mature
D) decline

Question 51

Which of the following tools is most likely to be used during project management?

A) BCG matrix
B) Porter's five forces model
C) GANTT chart
D) GRIT model

Question 52

________ are typically granted to people who create intellectual property, such as written or visual works such as books, videogames, poems, and songs.

A) Industrial design rights
B) Trademarks
C) Patents
D) Copyrights

Question 53

Which of the following statements is most likely to be true regarding copyrights?

A) Copyrights are typically used for protecting new drugs invented by pharmaceutical companies.
B) Copyrights last for much longer periods than patents.
C) Copyrights are typically used for protecting names, symbols, and logos associated with a product.
D) Copyrights are valid for a period of 30 years from the date it is issued.

Question 54

Which of the following statements is most likely to be true regarding the embryonic stage of a product life cycle?

A) During the embryonic stage, a product becomes technologically obsolete due to the introduction of an alternative superior product.
B) A product in an embryonic stage has yet to gain widespread acceptance.
C) A Walkman is an example of a product that is currently in the embryonic stage.
D) The embryonic stage comes after the growth stage in a product life cycle.

Question 55

Which of the following takes place during the first stage of a stage-gate development funnel?

A) The new product idea is evaluated by a top-management committee.
B) A detailed new product development plan that contains the detailed information about financial objectives is submitted for review.
C) The product development proposal is reviewed in terms of its fit with the goals and strategies of the organization.
D) Organizational resources are allocated for developing a prototype of the product.

Question 56

In the ________ stage of the life cycle of a product, many consumers enter the market and buy the product for the first time.

A) embryonic
B) growth
C) mature
D) decline

Question 57

________ are entrepreneurs inside an organization who are responsible for the success or failure of a project.

A) Free riders
B) Whistle-blowers
C) Boundary spanners
D) Intrapreneurs

Question 58

The critical path method helps determine ________.

A) the most suitable structure for the organization
B) the best long-term marketing strategy for a company
C) the particular tasks or activities that have significant effect on project time and cost
D) trends in consumer tastes and preferences

Question 59

Which of the following statements is most likely to be true regarding the growth stage of a product life cycle?

A) The growth stage of a product life cycle comes after the maturity stage.
B) During the growth stage, demand for a product is typically replacement demand because incremental innovation has resulted in a new generation of the product.
C) In a product life cycle, the growth stage is followed by the embryonic stage.
D) During the growth stage, many consumers buy the product for the first time.

Question 60

Which of the following types of property rights is typically used to protect the name of a product and any symbols or logos associated with it?

A) patent
B) trademark
C) copyright
D) industrial design right

Question 61

________ often function as product champions.

A) Boundary spanners
B) Whistle-blowers
C) Free riders
D) Heavyweight team leaders

Question 62

Which of the following statements is true regarding skunk works?

A) A skunk works assumes full responsibility for the commercialization of the new product and for achieving the desired profit targets.
B) A skunk works is a team of employees working in the finance department in an organization who look after the financial viability of the new product.
C) A skunk works is dissolved when the product is brought to market.
D) A skunk works is a team in an organization that is responsible for quality control.

Question 63

Interacting with individuals and groups outside the organization to obtain valuable information and knowledge from the environment is known as a ________ activity.

A) reciprocal logrolling
B) business process reengineering
C) vale engineering
D) boundary-spanning

Question 64

A ________ is a mid-level functional manager who has lower status than the head of a functional department and he or she is not given control over human, financial, and functional resources.

A) business agent
B) boundary spanner
C) lightweight team leader
D) product champion

Question 65

Which of the following is most likely to help an organization align the interests of their talented employees with those of the organization?

A) mechanistic organizational structure
B) strong property rights
C) centralized decision-making authority
D) a tall organizational hierarchy

Question 66

To speed innovation, many organizations have begun to ________.

A) adopt mechanistic organizational structures
B) increase the length of the organizational hierarchy
C) implement total quality management
D) move decision-making to lower levels in the organization

Question 67

Which of the following functions is most likely to be true regarding a product champion?

A) A product champion is always appointed by the top-management team in an organization.
B) A product champion takes ownership of the project.
C) A product champion is the head of the R&D department in an organization.
D) A product champion is a lightweight team leader.

Question 68

A "________" is a task force, a temporary team that is created to expedite new product design and to promote innovation by coordinating the activities of functional groups. Typically, this team operates at a separate facility, at a location isolated from the rest of the organization.

A) workers' union
B) kaizen group
C) skunk works
D) quality circle

Question 69

Which of the following takes place during the second stage of a stage-gate development funnel?

A) The product development proposal is reviewed in terms of its fit with the goals and strategies of the organization.
B) A senior management committee reviews the new product development plan.
C) Organizational resources are allocated for developing a prototype of the product.
D) A cross-functional team of managers is formed to develop a detailed plan for product development.

Question 70

Which of the following statements is true regarding a lightweight team leader?

A) A lightweight team leader remains under the control of a functional department head.
B) A lightweight team leader often functions as a product champion.
C) A lightweight team leader is a top-level manager.
D) A lightweight team leader is given primary control over key human, technological, and financial resources for the duration of the project.

Question 71

Define innovation.

Question 72

Which of the following statements is most likely to be true regarding core team members in a new product development project?

A) They work on several projects simultaneously.
B) They mainly look after the marketing aspect of the project.
C) They stay with the project from inception to completion of the development effort.
D) The top-managers involved in a product development project are referred to as the core members of the project.

Question 73

Which of the following statements is true regarding heavyweight team leaders?

A) Heavyweight team leaders are not given control over human, financial, and functional resources.
B) As compared to a lightweight team leader, a heavyweight team leader has less ability to assemble a cross-functional team with the skills needed to develop a successful new product.
C) Heavyweight team leaders can acquire resources only after they have obtained a permission from the appropriate functional heads and they cannot override the wishes of the functional heads.
D) Heavyweight team leaders often function as product champions.

Question 74

Which of the following is most likely to promote innovation in an organization?

A) adopting a product team structure
B) increasing vertical differentiation
C) decreasing the flexibility of the organization
D) increasing the number of levels in the organizational hierarchy

Question 75

A lightweight team leader would be appropriate for an organization seeking a(n) ________.

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

Question 76

Which of the following terms best represents the knowledge building created when two or more individuals or subunits pool their resources and cooperate and collaborate across role or subunit boundaries?

A) technical discontinuities
B) economies of scale
C) information synergies
D) economies of scope

Question 77

At which stage of a stage-gate development funnel do prospective managers develop a detailed product development plan that includes information about factors such as strategic and financial objectives and human resource requirements?

A) stage 1
B) stage 2
C) stage 3
D) stage 4

Question 78

Which of the following is a difference between a skunk works and a new venture division?

A) A skunk works is formed for marketing a newly developed product whereas a new venture division is formed for improving the quality of a newly developed product.
B) A skunk works consists of top-level managers whereas a new venture division consists of low-level managers.
C) A skunk works is dissolved when the product is brought to market whereas a new venture division assumes full responsibility for the commercialization of the product.
D) A skunk works is formed for achieving an incremental innovation whereas a new venture division is formed for achieving a quantum innovation.

Question 79

Which of the following actions taken by an organization leads to the creation of strong property rights?

A) using 360 degrees performance evaluation method for conducting employee appraisals
B) centralizing decision-making authority
C) giving innovative employees stock options proportional to the increase in profitability that can be attributed to their efforts
D) giving employees an opportunity to learn new skills with the help of job rotation

Question 80

Which of the following structures is most suitable for managing innovation in high-tech organizations?

A) functional structure
B) market structure
C) product team structure
D) geographic structure